At -29.4% CAGR, Asia Pacific 2G & 3G Switch Off Market is Projected to be Worth US$ 114.50 Million by 2030, says Business Market Insights

According to Business Market Insights' research, the Asia Pacific 2G & 3G switch off market was valued at US$ 3,717.24 million in 2020 and is projected to reach US$ 114.50 million by 2030, registering a CAGR of -29.4% from 2020 to 2030. Growing demand for smart cities and rising digital transformation across SME's are among the critical factors attributed to drive the Asia Pacific 2G & 3G switch off market growth.

Smart cities are metropolitan areas that improve citizens' infrastructure, services, and quality of life by utilizing IoT devices and cutting-edge technologies. Smart city solutions include energy-efficient buildings, intelligent transportation systems, and smart grids. In smart cities, high-speed networks such as 4G and 5G play an important role in linking millions of devices-including sensors, lighting, and traffic lights-to a network, improving resource management, easing traffic congestion, and enhancing public safety. Governments across the globe are emphasizing the adoption of smart infrastructure and smart city initiatives, such as Internet of Vehicles. For instance, as of 2018, in China, the Ministry of Industry and Information Technology issued administrative regulations on using 5905-5925 MHz Spectrum for Direct Connected Communication on the Internet of Vehicles, which allocated the dedicated spectrum for LTE-V2X direct communication. In 2020, eleven ministries, including the Ministry of Industry and Information and Technology (MllT) and the National Development and Reform Commission (NDRC), jointly issued the Intelligent Vehicles Innovation Development Strategy, which progressed the deployment of intelligent transport systems, as well as Smart City-related facilities. Existing cellular networks does offer a wide variety of tools that address business requirements. However, Cellular Vehicle-to-Everything (C-V2X) and its evolution to 5G V2X will foster synergies between the automotive industry and other verticals moving towards 5G. Its extreme throughput, low latency, and enhanced reliability will allow vehicles to share rich, real-time data, supporting autonomous and connected driving experiences. For example, LTE Cat-M and Narrow Internet of Things (NB-IoT) are excellent low-power sensor communication technologies. In order to determine and recommend individual actions to enable complex vehicle maneuvering, e.g., deceleration, lane changes, route modifications, or acceleration, the vehicles must be able to receive and share information about their driving intentions in real-time. This low-latency demand can be fulfilled with the development of an overall 5G system architecture to provide optimized end-to-end vehicle-to-everything (V2X) connectivity. With smart cities, such an architecture is easier to accomplish, and a greater amount of data can be utilized by the vehicle for making decisions. Hence, there is a strong push for smart cities and 5G networks.

According to the report of the European Commission, by 2025, the number of connected devices across the globe is likely to reach 75 billion. Smart infrastructure and smart city initiatives require high-speed networks for real-time data collection from sensors and smart city IoT devices. The increasing number of interconnected objects creates an extraordinary volume of data that the city can evaluate in order to make more informed decisions about the changes that can widely benefit locals. 5G technology has various traits that will positively impact smart cities and digital experiences; a higher speed of uploading and downloading data guarantees the ability to connect multiple devices while maintaining very short latency times. The growing smart infrastructure or smart city initiative propels the demand for high-speed networks such as 4G and 5G, thereby driving the 2G & 3G switch off market.

On the contrary, prevalent use of 2G and 3G in some application areas hampers the growth of Asia Pacific 2G & 3G switch off market.

Based on type, the Asia Pacific 2G & 3G switch off market is bifurcated into 2G and 3G. The 3G segment held 72.5% market share in 2020, amassing US$ 2,696.39 million. It is projected to garner US$ 101.58 million by 2030 to register -28.0% CAGR during 2020-2030.

In terms of application, the Asia Pacific 2G & 3G switch off market is segmented into message, voice, data, and IoT. The data segment held 36.8% share of Asia Pacific 2G & 3G switch off market in 2020, amassing US$ 1,368.45 million. It is anticipated to garner US$ 44.11 million by 2030 to register -29.1% CAGR during 2020-2030.

Based on country, the Asia Pacific 2G & 3G switch off market is categorized into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured -54.6% share of Asia Pacific 2G & 3G switch off market in 2022. It was assessed at US$ 1,622.20 million in 2020 and is likely to hit US$ 31.45 million by 2025, registering a CAGR of -23.2% during 2020-2025.

Key players operating in the Asia Pacific 2G & 3G switch off market are AT&T Inc, China Mobile Ltd, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, Telenor ASA, and Vodafone Group Plc, among others.

• In August 2023, China Telecom's 2G shutdown in Guangdong has left some of its users with 2G devices without working phones. The provincial telco branch Guangdong Telecom, which began to turn off its 2G network at the start of the year, had not communicated the shutdown with all its users, according to local reports.
  
  
• In March 2022, Japan's second-largest mobile network operator (MNO) by subscriptions, KDDI (au), announced that it was shutting down its legacy 3G network on March 31 and advised affected users to upgrade to new device models if they want to continue using its services.

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