Australia B2B Mobility Forecast 2024

Growth in the Australian B2B mobility market is driven by IoT connectivity and managed services despite hardware declines.

David Kennedy · Venture Insights11 September 2024Period: FY248 min read

2.3%↑

Total B2B mobile services and hardware revenue CAGR (FY23-28)

65%→

Telstra share of total B2B mobile services market by revenue

Locked

Companies covered:

Abstract

Total B2B mobile services and hardware revenue in Australia is projected to grow at a +2.3% CAGR over FY23/28, reaching $5.124 billion. Lower-than-expected FY24 ARPUs due to low economic growth and heightened competition contributed to lower growth in FY24. Stronger growth is anticipated from FY25 onwards. The SMB mobile market will grow at a 1.8% CAGR to $2.50 billion by FY28, while the enterprise segment will grow at a 2.8% CAGR to $2.629 billion, driven by increased IoT and managed mobility spending.

Key Takeaways

Total Australian B2B mobility revenue is forecast to reach $5.124 billion by FY28, representing a 2.3% CAGR from FY23.
IoT connectivity is the fastest-growing sub-sector at a 7.3% CAGR, driven by digital transformation in the enterprise segment.
Managed mobility services are expected to grow at 7.2% CAGR to $302 million as BYOD policies increase security requirements.

Create a free account to keep reading

stakeholder implications · PDF download

Frequently Asked Questions

The market is projected to reach $5.124 billion by FY28, reflecting a 2.3% CAGR. While FY24 performance was constrained by 0.9% GDP growth and intense competition, a stronger recovery is expected to begin in FY25.

IoT connectivity and managed mobility services are the primary growth engines, expanding at 7.3% and 7.2% CAGRs respectively. Conversely, mobile hardware revenue is expected to contract at a -0.8% CAGR as handset refresh cycles lengthen and BYOD policies expand.

The Enterprise segment (200+ employees) is the top performer, with a projected 2.8% CAGR compared to 1.8% for SMBs. This segment will reach $2.629 billion by FY28, fueled by increased spending on managed mobility and digital transformation.

Telstra controls 65% of the B2B mobile services market by revenue, maintaining a massive lead over Optus at 19% and TPG Telecom at 11%. Despite this concentration, 60% of high-end users expect to increase their spending over the next year, providing a window for share capture in high-growth verticals like Healthcare.

Australia B2B Mobility Forecast 2024

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team