China is poised to overtake the US as the largest global telecommunications market, with China Communications Holdings Ltd.
(CCHL) now the largest telecoms operator in the world, according to new research from the McKinsey Global Institute.
The report, titled “China’s Mobile Broadband Opportunities: The New Frontier?” estimates that by 2020 China will account for 15 percent of global mobile broadband services and will account at least 15 percent globally by 2027, with the US and Europe taking a back seat.
The McKinsey report predicts that by 2025 China will surpass the US in global mobile internet market share and will overtake the European Union by 2026.
The US and the European Central Bank have made a big push into the Chinese mobile broadband market, which has become a key component of China’s government’s effort to develop the country’s next billion mobile users.
According to the McKinseys report, the McKinley Global Institute’s “Mobile Broadband Potential 2020” report is the first comprehensive report to assess the mobile broadband opportunities in China.
The study projects that China’s mobile broadband penetration will reach 15.4 percent of the population by 2034, up from 11.2 percent currently.
McKinsey says China’s network penetration of over 15 percent is likely to increase from this point forward, as China continues to expand its internet penetration.
The company projects that by 2031, China’s internet penetration will be 40 percent of that of the United States, and 40 percent or more of Europe, while the United Kingdom, France and Germany will be in the top 10 countries in China’s broadband penetration.
China is projected to expand into Europe by 2035, the report states.
McKinseys Global Institute China is also expected to surpass the United Arab Emirates as the top global mobile telecommunications operator by 2033.
In 2030, China will reach 45.4 million mobile subscribers, the company reports.
In 2032, China is expected to reach 35.5 million mobile users, a jump of 4.5 percent from 2031.
China’s wireless penetration is expected in 2034 to reach 42 percent, the largest of any country, and the McKinleys report estimates that mobile penetration in China will continue to increase until 2032.
The United States and Europe are expected to account for 10 percent of China mobile internet services, and McKinsey estimates that the US will account 10 percent, while Europe will account to 5 percent.
The majority of the US wireless users in 2035 will be over 65 years of age, the study states.
The next major telecommunications market in China is predicted to be in South Korea, with South Korea accounting for nearly half of all global mobile communications by 2040, with Hong Kong and Singapore the next two fastest growing markets, according the McKinys report.
China has been expanding its network of wireless internet facilities in the past decade, with over 10 million wireless connections installed as of January 2017, and more than 40 million of these facilities have been built.
According the McKinays report, by 2042, the number of wireless connections in China, the US, and Europe will be 50 million, and in 2025, they will be 100 million, compared to the current level of 35 million and 35 million respectively.
McKinys predicts that as the number and density of wireless networks continues to grow, China, like most countries, will continue its efforts to reach a 100 percent mobile broadband capacity by 2025.
The new McKinsey global telecommunications report predicts the growth of the global telecommunications industry, with total revenues and assets rising to $4.5 trillion by 2045, up 25 percent from $3.4 trillion in 2020.
China, along with the United states, Europe, Japan, India and Russia are expected “to have the greatest impact on the global economy.”
In 2020, the United Nations Conference on Trade and Development estimated that the world will have 3.5 billion people living in poverty by 2030, a figure that is projected for the world as a whole.
The world’s largest country by area, China has become the most populous country in the entire world.
China overtook India as the second largest economy in 2020 with over 6 million people.
The Chinese economy is expected “grow at a compound annual growth rate (CAGR) of 9 percent over the next three decades, and to reach 5.4 billion people by 2030.”
McKinsey predicts that China will overtake India as Asia’s largest economy by 2025 and become the second-largest economy by 2030.
McKinays Global Institute predicts that India will overtake China as the world’s second-biggest economy by 2020 and the world economy by 2039.
The global telecommunications sector is forecast to account in excess of 40 percent by 2030 and “will account for more than 50 percent of all new mobile phone revenues in 2045,” the McKinests report states, citing McKinsey’s research.
The research also predicts that the mobile telecommunications industry will grow to become the fastest growing global industry by 2025, surpassing the telecommunications industry in the United Nation’s World