GSMA's annual report on the European mobile economy shows that mobile contributed
910 billion euros of value for the European economy in 2022, while mobile operators will continue
to meet real investment challenges as bandwidth demands increase
November 23, 2023, London: Mobile data traffic in Europe will almost triple over the next five years, driven by 4G migration in central and eastern Europe and growing improvements in 5G coverage and capacity, according to new GSMA research.
Analysis compiled for 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 grows of high-quality gaming, extended reality and video content. In turn, these demands will require continued investment in Europe's mobile networks by operators, who are already expected to spend more than €198 billion on upgrading their networks by 2030.
In further analysis, the report, which assesses the value of the mobile ecosystem to the European economy, shows that:
- The mobile sector added €910 billion of value to the European economy in 2022, with mobile technologies and services generating 4.3% of GDP across Europe.
- The entire ecosystem represented 2.2 million jobs, directly or indirectly, in 2022.
- Mobile-based productivity contributed 670 billion euros to the European economy, while the contribution of the operators themselves generated 110 billion euros.
- By 2030, the sector's economic contribution is expected to reach €1 trillion, driven primarily by the continued expansion of the ecosystem and vertical segments that benefit from the improvements in productivity and efficiency generated by the adoption of mobile services.
The GSMA concluded that the mobile ecosystem contributed €110 billion in taxes in 2022, of which employment and social security taxes generated €50 billion, followed by services, VAT, taxes on sales and special taxes with 40 billion euros.
5G development
The latest report also reveals that 5G will become the dominant mobile technology in Europe in the next three years, driven by its adoption in Germany and the United Kingdom. By 2030, 5G is expected to reach 87% of all users.
As it develops, the GSMA expects the technology to benefit a range of business sectors as European economies incorporate 5G use cases into their activities. By 2030, 53% of business benefits from 5G will originate in service sectors, while almost 30% will come from manufacturing, driven by applications such as smart factories, smart cities and smart grids. To this end, 5G will help drive European GDP growth, representing €153 billion of economic benefits over the next decade and representing around 15% of the overall economic impact of the mobile sector. Many of these benefits will materialize over the next five years.
The continued growth of 5G is tempered by concerns about the impact of policies slowing investment in next-generation network technologies in Europe, threatening the bloc's digital leadership globally, as well as its ambitious “Decade” goals. Digital”. For example, European adoption of more capable 'standalone' 5G continues to lag other regions: at the end of 2022, only 5% of active 5G networks in Europe were 5G SA, compared to 25% in Asia Pacific , a reflection of the challenging operating environment faced by operators in Europe amid market fragmentation and low returns.
Daniel Pataki, Vice President of Policy and Regulation and Head of Europe at GSMA, said: “Europe has a strong history of leadership in mobile and digital technologies, but strong and sustained investment in networks is now needed to regain that leadership in the face of global competition. We are encouraged to see European policymakers now facing that reality and examining the potential for meaningful policy change in areas such as consolidation, spectrum harmonization and creating fairer investment models for infrastructure, as we approach 2024. Our report shows that action is needed now to provide European citizens and businesses with the digital infrastructure they need for the future.”
Other key findings
- He Gap in mobile Internet usage continues to narrow, with more than 460 million Europeans – 85% – are now connected, reducing the gap to just 14%. Most European countries enjoy mobile internet coverage and several countries, including Denmark, Italy, Spain and Portugal, will see over 90% penetration by 2022.
- There is more of 900 million active connections in Europe, manufactured through smartphones and “function” phones. The ownership of said devices will reach 91% by 2030made possible by greater affordability across the device domain.
- Satellite connectivity is flourishing as mobile operators and satellite companies look to address coverage gaps through connectivity to low-Earth orbit constellations.
- Generative AI Operators are actively exploring this technology for activities such as code development, network management, and customer support.
- The change to green gains momentum, with operators and phone manufacturers increasingly focused on circularity, device longevity and use of recyclable materials.
- of Europe fintech The sector has expanded further, ensuring more than 24% of global investments in 2022, and promote a general modernization of banking in the region.
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