The Mobile Economy Report China 2023 PDF
The Mobile Economy Report China 2023 PDF
Economy
China 2023
The GSMA is a global organisation unifying the mobile
ecosystem to discover, develop and deliver innovation
foundational to positive business environments and
societal change. Our vision is to unlock the full power of
connectivity so that people, industry and society thrive.
Representing mobile operators and organisations across
the mobile ecosystem and adjacent industries, the GSMA
delivers for its members across three broad pillars:
Connectivity for Good, Industry Services and Solutions,
and Outreach. This activity includes advancing policy,
tackling today’s biggest societal challenges, underpinning
the technology and interoperability that make mobile
work, and providing the world’s largest platform to
convene the mobile ecosystem at the MWC and M360
series of events.
www.gsmaintelligence.com
5G underpins China’s
digital ambitions
China’s economy is on the road to recovery, following
the easing of Covid-19 restrictions from late 2022.
Mobile connectivity served as a lifeline throughout
the pandemic and will play an even more crucial
role in enabling the safe return to social interaction
and the restart of many economic activities. To this
end, authorities across China have outlined plans
to integrate digital technologies, underpinned by
advanced mobile connectivity, into every aspect
of society to sustain China’s competitiveness
in an evolving global economy. In 2022, mobile
technologies and services generated 5.5% of China’s
GDP – a contribution that amounted to $1.1 trillion of
economic value added.
Executive summary 3 / 46
Key trends shaping the
mobile ecosystem
5G enterprise services to see greater The mobile industry shifts towards
commercial scale in 2023 circularity
Mainland China is the largest 5G market in the Across the telecoms ecosystem, sustainability has
world, accounting for more than 60% of global 5G extended beyond corporate social responsibility
connections at the end of 2022. With strong take- (CSR) to become a core strategic priority. Industry
up of 5G among consumers, the focus of operators players are increasingly adopting a model of
is now increasingly shifting to 5G for enterprises. production, service offering and consumption
This offers opportunities to grow revenues beyond that involves sharing, leasing, reusing, repairing,
connectivity in adjacent areas such as cloud services refurbishing and recycling existing materials and
– a segment where operators in China have recently products for as long as possible. This circular
made significant progress. approach is important for networks to operate in a
more sustainable and energy-efficient way, and for
the industry to make progress towards realising its
Dedicated networks on the rise climate goals.
Private and dedicated wireless network solutions are
back in vogue, as 5G’s enhanced capabilities move
Fintech presents opportunities for
deployments beyond low-profile, niche offerings.
Manufacturing and mining are two sectors where
mobile industry players
demand for private and dedicated 5G networks in China has developed a lead in fintech services
China looks particularly strong. A number of use over the past decade, driven by investments in
cases are currently in testing or live operation, an expanding portfolio of products and surging
including mobile robotics, automated guided public demand for electronic payment options. As
vehicles (AGVs) and drones. For growth to continue, fintech innovators increasingly leverage emerging
solutions need to become cheaper as well as easier technologies (such as big data, AI and cloud
and faster to install and operate. This will drive computing) to enable more complex and customised
demand for pre-integrated solutions. solutions, operators have an opportunity to play a
greater role in fintech.
Executive summary 4 / 46
China: key mobile industry
milestones to 2030
1.3 bn mobile
1 bn 5G connections 70% 5G adoption 80% 5G adoption
subscribers
1.73 bn
4G adoption falls 90% smartphone
75% 5G adoption smartphone
below 50% adoption
connections
Executive summary 5 / 46
The Mobile Economy China
Unique mobile
subscribers
2022
1.29bn 87% 89%
1.33bn
2022 2030
Mobile internet
users
2022
1.17bn 79% 89%
1.33bn
2022 2030
1.7%
2030 Penetration rate CAGR
Percentage of population 2022-2030
2022
1.74bn 2022
64%
2030
1.87bn 2030
12%
Penetration rate
Percentage of population
118% 125%
2022 2030
5G Percentage of connections
(excluding licensed cellular IoT)
CAGR
2022-2030
2022
36%
0.9% 2030
88%
Smartphones Licensed cellular
Percentage of connections
(excluding licensed cellular IoT)
IoT connections
2022
81%
93% 1.8bn
2022 Total
connections
3.6bn
2030
2030
2022
$207bn Total
revenues
$291bn
2023 2030
2030
$219bn Over
95% on 5G
2022
$1.1tn 5.5% of GDP
2022 $110bn
$1.3tn
Mobile ecosystem contribution to
public funding (before regulatory
2030 and spectrum fees)
Employment
64+36+Q 12+88+Q
Technology mix* Subscriber penetration
<1% 12% 2022 87%
36%
2030 89%
2022 2030
Smartphone adoption
2022 81%
64% 88%
2030 93%
3G 4G 5G
10+65+25Q 4+96+Q
Technology mix* Subscriber penetration
2022 2030
Smartphone adoption
2022 86%
65% 96%
2030 93%
3G 4G 5G
4+95+1Q 5+95+Q
Technology mix* Subscriber penetration
1% 4% 5% 2022 91%
2030 93%
2022 2030
Smartphone adoption
2022 92%
96% 95%
2030 94%
3G 4G 5G
72+28+Q 4+96+Q
Technology mix* Subscriber penetration
4% 2022 95%
28%
2030 96%
2022 2030
Smartphone adoption
2022 85%
72% 96%
2030 96%
3G 4G 5G
Executive summary 8 / 46
01
The mobile industry
in numbers
Unique mobile Unique mobile subscriber growth is beginning to
plateau in China as the mobile market approaches
subscribers in China
saturation. China will see an additional 41 million
subscribers by 2030, taking the mobile penetration
Figure 1
China: mobile subscribers and penetration
MIllion, percentage of population
89%
1,350
87%
1,300
1,250
1,200
billion mobile
20% in 2022. More people rely on the internet for
many daily activities, especially in the wake of the
internet subscribers
Covid-19 pandemic.
Figure 2
Mobile internet adoption by region, 2022
Percentage of population
4% 1% 1% 1% 5% 3% 4% 6%
60%
*Excludes China
Source: GSMA Intelligence
in 2024 to become
5G base stations exceeded 2.3 million at the end
of 2022, including around 887,000 built during the
technology in China
end of 2022. 2
Figure 3
China: mobile adoption by technology
Percentage of total connections
100%
90%
5G 88%
80%
70%
60%
50%
40%
30%
20%
10%
4G 12%
0% 3G 2G 0%
2022 2023 2024 2025 2026 2027 2028 2029 2030
1. "China's telecom industry reports steady expansion in 2022", english.gov.cn, January 2023
2. 5G-Ecosystem January 2023 Member Report, GSA, 2023
leading 5G markets
connections in China will reach 1.6 billion by 2030,
accounting for nearly a third of the global total.
adoption by 2030 mainland China will marginally lag some of its peers
by 2030, Hong Kong, Macau and Taiwan will have
similar adoption levels to the global leaders.
Figure 4
5G adoption in 2030
Percentage of total connections 5G connections
(2030)
connections will
controls and the resulting slowdown in the economy,
as well as a global shortage of chips. However, the
accounting for 93% taking the total to 1.73 billion. 5G will be a key driver
of new smartphone sales, as consumers upgrade
Figure 5
Smartphone adoption
Percentage of connections (excluding licensed cellular IoT)
2022 2030
traffic in China to
live e-commerce and online gaming. By June 2022,
around 68% of internet users in China had used a live
Figure 6
Mobile data traffic per smartphone
GB per month
Global average
2022 15
Increase 3.1×
2028 46
3. Statista
4. Analysing the behaviour of early 5G users: 10 things to know when planning consumer 5G strategies, GSMA Intelligence, 2022
connections in
and Information Technology (MIIT), making it the
first major economy to record more cellular IoT
China to double to
connections than mobile users. NB-IoT accounts for
the largest proportion of IoT connections in China.
3.6 billion by 2030 MIIT data shows that water meters, gas meters,
smoke detectors and tracking each account for over
10 million connections. Agriculture, streetlights and
five other use cases have crossed the 1 million mark,
while public services, connected vehicles, smart retail
and smart home applications dominate end-user
services, with a combined 1.4 billion connections.
Figure 7
China: licensed cellular IoT connections
Million
China will account for 67%
of the global total in 2030.
Europe and the US will
jointly account for 21%
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2022 2023 2024 2025 2026 2027 2028 2029 2030
set to moderate in
core communications services. Gaming, financial
services, cloud and security are among the leading
Figure 8
China: mobile operator revenue and year-on-year growth
Billion
$225
8.0%
$220
$215
$210
$205
-0.2%
$200
2022 2023 2024 2025 2026 2027 2028 2029 2030
billion on their
generating returns on investment.
networks during
2023–2030, with
most on 5G
Figure 9
China: mobile operator capex
Billion
$45
$40
19%
$35
$30
15%
$25
$20
$15
$10
$5
$0
2023 2024 2025 2026 2027 2028 2029 2030
economic value to
reached $720 billion, followed by the rest of the
mobile ecosystem, which generated $160 billion.
the Chinese
economy in 2022
Figure 10
Total economic contribution of the mobile industry in China, 2022
Billion, percentage of GDP
$720 $1,100
Mobile 3.6%
ecosystem
5.5%
$100
$160 0.5%
$120 0.8%
0.6%
economic
Billion
$1,270
contribution will
reach $1.3 trillion $1,100
ecosystem in China
people in China in 2022. In addition, economic
activity in the ecosystem generated 3 million jobs in
supported 6 million
other sectors.
jobs in 2022
Figure 12
Employment impact of the mobile industry in China, 2022
Jobs (million)
3.1
5.9
2.9
contribution of the
sector, with around $110 billion raised through taxes.
A large contribution was driven by services, VAT,
mobile ecosystem
sales taxes and excise duties, generating $40 billion,
followed by employment taxes and social security at
in 2022
Figure 13
Fiscal contribution of the mobile industry in China, 2022
Billion
$30
$20
$110
$20
$40
Services VAT, sales Handset VAT, sales Corporate taxes Employment taxes Total
taxes and excise taxes, excise and on profits and social security
duties customs duties
Figure 14
Annual global 5G contribution by industry in China
Billion
$350
$300
$250
$200
$150
$100
$50
$0
in 2030
and smart grids.
Figure 15
5G contribution by industry in China, 2030
Percentage of total benefit
Utilities management,
construction, oil and 12%
gas, agriculture Services (public
administration,
23%
finance, healthcare,
education)
ICT 8%
57% Manufacturing
• China Mobile reported a 40% uplift in • China Unicom’s enterprise revenue reached
digital transformation revenue in H1 2022, CNY37 billion ($5.5 billion) for the first six
underpinned by growth in 5G solutions for months of 2022, representing a year-on-year
vertical sectors, mobile cloud and smart home increase of 32%. 5G industry applications
services. The operator has signed agreements accounted for more than 10% of total
for more than 11,000 5G commercial projects, enterprise revenues for the operator, driven by
representing a contract value of CNY16 billion strong uptake of 5G virtual private networks.
($2.4 billion).
5. Operator revenue diversification: growth beyond core continues as Covid-19 spurs digitisation, GSMA Intelligence, 2021
Companies
Location Sector Customer Primary use case(s)
involved
Autonomous mobile
Binjiang, Manufacturing China robots, and remote
(consumer ZTE Telecom, control of production
China electronics) ZTE process using 4K video
streaming
Autonomous mobile
Ningbo, Manufacturing China Mobile, robots, and image
Hotel Star
China (packaging) ZTE recognition for quality
inspection
Real-time video
Yanjiahe Shanxi
China streaming of
Xiangning
Coal Mine, Mining Unicom, underground HD
Coking Coal
China Huawei cameras for risk
Group
identification
Figure 17
Overview of the 14th Five-Year Plan and Long-Range Objectives
Through the Year 2035
Create new opportunities New opportunities in cloud computing, big data, IoT, blockchain, AI,
in the digital economy VR and AR.
8. https://www.oases.gov.hk/en/strategic-industries.html
Figure 18
Main technologies used by China's leading fintech enterprises, 2022
Source: Statista
Figure 19
The concept of the circular economy
Recycle
Refurbish
Reuse
Source: GSMA
Figure 20
Mobile's impact on the SDGs in China, 2021
Highest
SDG
scores
Improving network performance and connectivity • China Mobile, Huawei and other partners have
with 5G and growing IoT deployments have advanced jointly advanced 5G and smart healthcare projects
healthcare facilities in China. Examples include the in Shenzhen. Using a dedicated 5G network, they
following: have developed remote emergency care, remote
consultation, mobile diagnosis and treatment,
• China Unicom, Huawei and Hainan province
community first-aid guidance, and smart ward
launched the ‘5G Smart Healthcare Lights Up
applications based on efficient and safe information
Hainan Healthy Island’ project. This is one of the
sharing among medical institutions in the district.11
largest 5G commercial applications in China and
Included on the agenda of World To safeguard 5G growth and innovation, the GSMA’s
Radiocommunication Conference 2023 (WRC-23) global recommendations are as follows:
is the IMT identification of 6425–7025 MHz in ITU
• 6425–7125 MHz should be identified for IMT across
Region 1 (Europe, the Middle East and Africa) and
regions and countries at WRC-23
7025–7125 MHz in all ITU regions. While the WRC-23
agenda discusses the entire 6425–7125 MHz band in • 6425–7125 MHz should be made available for
only the EMEA region, there is growing support for licensed 5G by 2030
this process throughout the world – including in Asia
• 5925–6425 MHz should be considered for licensed
Pacific, where 5G has grown strongly in parts of the
5G, or licence-exempt on a technology-neutral
region.
basis.
A GSMA Intelligence study conducted cost-benefit
analysis for different authorisation models for the
6 GHz band. The study implemented a supply and
demand framework for the 2021–2035 period to
determine where 6 GHz spectrum will have its most
productive and efficient use, taking into account
Mobile requires
current and expected demand for 5G and Wi-Fi. 2 GHz of mid-
Considering three policy scenarios, the report finds band spectrum
that assigning the full 6 GHz band for licensed IMT
use would drive the largest socioeconomic benefit
bandwidth to meet
across most countries analysed. Failure to allocate demand by 2030
any 6 GHz spectrum for licensed use could mean
higher operator costs and/or lower network quality,
and would make it impractical to deliver on the full
characteristics of 5G (IMT-2020).
• Mobile networks will need, on average, 2 GHz of • Mobile networks are already highly densified, but
mid-band spectrum per country by 2030. This is 6 GHz can enable the growth of sustainable 5G
challenging to achieve without 6 GHz. capacity on existing sites to enable cost-effective
deployments.
• 6 GHz capacity will be required to meet increasing
customer demand at the required speeds of ITU • Timely availability of 6 GHz, at reasonable
IMT-2020 as 5G matures for both consumer and conditions and price, will drive cost-efficient
enterprise customers. network deployment, help reduce the broadband
usage gap and support digital inclusion.