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May 24, 2019 | Frost & SullivanEstimated reading time: 2 minutes
The mobile services market in Asia-Pacific (APAC) is expected to focus more on business models for the Business-to-Business (B2B) or Business-to-Business-to-Consumer (B2B2C) segments as a result of declining revenue from traditional services.
Frost & Sullivan reported that 53% of services launched by mobile network operators in Asia-Pacific over 2017 to 2018 were consumer services, whereas the remaining 47% were services targeted at enterprises.
“There is significant untapped potential in the B2B segment as we are witnessing a growing demand from SMEs and enterprise customers for digital transformation. As more businesses go digital, the demand for ICT end-to-end services will increase,” said Mei Lee Quah, associate director, information and communication technology at Frost & Sullivan.
Frost & Sullivan’s recent report, Asia-Pacific Mobile Services Market, Forecast to 2023, provides detailed analysis on the mobile services market, revenue forecast, market trends, business case studies and growth strategies.
“The slow projected growth of 2% CAGR between 2018 and 2020 is driving mobile network operators to innovate for new revenue streams, cost reduction, and improvements in core services,” added Sofea Zukarnain, Research Associate, Information and Communication Technology at Frost & Sullivan.
The deployment of 5G networks in 2019 will further boost B2B segment services as the technology will enable mobile network operators to provide new services and transform early implementations of cloud-based services such as Artificial Intelligence (AI) and Augmented and Virtual Reality (AR/VR) services. Frost & Sullivan estimates that by 2023, only 25% of services will cater to consumers, whereas the remaining 75% will cater to enterprises.
Frost & Sullivan highlights growth opportunities in the Asia-Pacific mobile services market, mainly:
- Network Functions Virtualization (NFV)—The NFV market has grown as a result of the increasing trend toward mobility in enterprise IT infrastructure.
- Cloud Computing—There is potential for mobile network operators to partner with cloud service providers to improve business efficiency and expand new services.
- Cybersecurity—Growth opportunities exist for Managed Security Service Providers (MSSPs) to succeed in enterprise security services. Security is particularly important in the 5G era.
- Augmented and Virtual Reality—AR/VR-based services will boost mobile data usage for businesses and consumers, which ultimately increases revenue for mobile network operators.
About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.
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