Mobile technologies contribution to economy hits $7.6tr
Mobile technologies and services generated 6.4per cent of global gross domestic product (GDP), a contribution that amounted to $7.6 trillion of economic value added. The greatest benefits came from productivity
- By Lucas Ajanaku
Mobile technologies and services generated 6.4per cent of global gross domestic product (GDP), a contribution that amounted to $7.6 trillion of economic value added. The greatest benefits came from productivity effects reaching $4.8 trillion, followed by the direct contribution of the mobile ecosystem generating almost $2 trillion last year, according to a new report by industry body, the Global System for Mobile Communication Association (GSMA).
The report entitled: The Mobile Economy 2026, noted that the impacts of mobile technologies include connectivity and digital transformation.
Connectivity refers to the use of mobile technologies, while digital transformation involves the integration by enterprises of advanced mobile technologies such as the fifth generation (5G) technology, Internet of Things (IoT) and Artificial Intelligence (AI).
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“The mobile ecosystem is formed of three categories: mobile operators; infrastructure and equipment; and content and services. The infrastructure and equipment category encompasses tower companies, network equipment providers, device manufacturers and IoT suppliers. “Meanwhile, the content and services category encompass content, mobile application and service providers, distributors and retailers, and mobile cloud services,” GSMA noted.
Projecting to the future, the report noted that by 2030, mobile’s contribution to the global economy will reach $11.3 trillion, or 8.4 per cent of GDP, driven by the improvements in productivity and efficiency brought about by the continued expansion of the mobile services and the growing adoption of digital technologies, including 5G, IoT and AI.
“Towards the end of the decade, mobile’s contribution is expected to grow at a CAGR (Compound Annual Growth Rate) of 8.4per cent, three times the expected growth in global GDP for 2026–2030 (CAGR of 2.6per cent).
“This highlights the importance of mobile and digital technologies as key components in promoting innovation, shaping the future of the digital economy and serving as a means of development and progress for the least developed countries,” the report noted.
On the jobs created during the period, the report said mobile network operators (MNOs) and the wider mobile ecosystem provided direct employment to 31 million people across the world. In addition, economic activity in the ecosystem generated around 19 million jobs in other sectors, meaning that 50 million jobs were directly or indirectly supported.
