The GSMA report noted that 5G will become the dominant mobile technology in Europe within the next three years, driven by growing adoption in Germany and the U.K.
Mobile data traffic in Europe is forecast to almost triple over the next five years, chiefly boosted by 4G migration in Central and Eastern Europe and increasing improvements in 5G coverage and capacity, according to new research by the GSMA.
The organization’s annual European Mobile Economy Report indicates that 5G subscribers, in particular, are interested in adding high-bandwidth services and content to their mobile contracts, as demand for high quality gaming, extended reality and video content grows. The GSMA highlighted that these demands will require continued investment in Europe’s mobile networks by operators, who are already expected to spend over EUR 198 billion ($215.8 billion) on upgrading their networks by 2030.
The report also showed that the mobile sector added a total of EUR 910 billion of value to the European economy in 2022, with mobile technologies and services generating 4.3% of GDP across Europe.
The report also reveals that 5G will become the dominant mobile technology in Europe within the next three years, driven by a growing adoption in the U.K and Germany. By 2030, 5G is expected to account for 87% of all mobile users in the continent.
By 2030, 53% of 5G’s business benefits will originate within the services sectors, while almost 30% will come from manufacturing, driven by applications such as smart factories, smart cities and smart grids, according to the GSMA report.
However, the report highlighted that the adoption of 5G Standalone (5G SA) networks in Europe is lagging behind compared to other regions. At the end of 2022, only 5% of live 5G networks in Europe were 5G SA, compared with 25% in Asia Pacific.
Daniel Pataki, VP for policy and regulation, and head of Europe at the GSMA, said: “Europe has a strong history of leadership in mobile and digital technologies, but strong, sustained investment in networks is now needed to regain that leadership in the face of global competition. We’re encouraged to see European policymakers now facing up to that reality and examining the potential for meaningful policy change on areas such as consolidation, spectrum harmonization and the creation of fairer investment models for infrastructure, as we go into 2024.” “Our report shows that action is needed now to give European citizens and businesses the digital infrastructure they need for the future,” Pataki added.
5G technology is forecast to account for 88% of total mobile subscriptions in Western Europe by 2030, up from 13% in 2022, according to the latest update of the Ericsson Mobility Report.
