Mobile data consumption and the adoption of 5G services will be key drivers of mobile service revenue growth in Malaysia, according to analyst firm GlobalData.
In a statement, GlobalData forecast that total mobile service revenue in the country will grow at a compound annual growth rate (CAGR) of 3.5%, rising from US$5.1 billion in 2024 to US$6.1 billion by 2029. This growth is expected to be fuelled by increasing demand for over-the-top (OTT) communication services, general data consumption, and greater use of 5G.
By contrast, mobile voice service revenue is projected to decline at a CAGR of 1.1%, while average revenue per user (ARPU) is expected to fall by 5.1% over the same period. This reflects a broader shift towards OTT platforms and a rise in internet subscriptions.
Sarwat Zeeshan, Telecom Analyst at GlobalData, noted that average monthly data consumption per user in Malaysia is set to more than double – from 21.6GB in 2024 to 51.9GB in 2029.
“This will be driven by growing consumption of online video and social media content via smartphones, supported by the increasing availability and adoption of 5G services and the data-centric offers provided by telcos through their 5G plans,” Zeeshan said.
While 4G accounts for the largest share of mobile subscriptions in 2024, it will be overtaken by 5G this year. By 2029, 5G is expected to make up 84% of all mobile subscriptions, as operators expand their networks and benefit from government-backed initiatives. As of December 2024, Malaysia’s 5G network covered 82.4% of populated areas.
Zeeshan concluded: “CelcomDigi led the Malaysian mobile services market in terms of subscriptions in 2024, followed by Maxis. CelcomDigi is expected to retain its leading position through to 2029, supported by its focus on 5G network expansion and modernisation, as well as its wide range of prepaid and postpaid plans offering unlimited calls and data.”
