7 Ways the Mobile Industry Will Evolve in 2025

With the new opportunities and challenges of 2025, will mobile companies be able to address emerging risks while embracing technological progress?

Written by Dario Betti
Published on Jan. 28, 2025
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In 2025, the mobile technology sector will advance, shifting consumer expectations and continue to expand our connectivity. The industry will also bump into significant challenges, however. Here are a few things to look out for.

What’s to Come for the Mobile Industry in 2025?

  1. RCS will bridge the gap between SMS and OTT messaging.
  2. 5G network APIs will strengthen applications.
  3. Developers will start embedding AI into mobile devices.
  4. Mobile fraud will get worse before it gets better.
  5. 5G will continue to get faster.
  6. Cashless payments and bioauthenticators to approve transactions will become increasingly mainstream.
  7. Device manufacturers will have to double down on security measures.

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RCS Will Modernize the Way We Text

RCS, which stands for Rich Communication Services, is built directly into mobile devices and improves on traditional SMS by operating over data and Wi-Fi instead of cellular networks. It represents a significant upgrade to the way users communicate through native messaging apps, bridging the gap between SMS and over-the-top messaging third-party apps.

For telecom carriers, RCS offers a way to compete directly with services like WhatsApp, Telegram and Facebook Messenger, which have drawn users away from SMS due to their richer features (features enabling users to send high-quality videos, audio clips, location sharing, etc.) and flexibility.

The rollout of 5G networks will help boost RCS adoption in 2025 by enabling faster and more reliable data transmission, ensuring seamless delivery of rich content and real-time interactions. But growth will be slow: fragmentation in the mobile ecosystem means not all carriers or manufacturers support RCS in the same way.

 

Network APIs Will Make Apps More Customizable

Network APIs serve as bridges that simplify and standardize the interaction between systems, enabling developers to build more powerful and versatile mobile applications.

In 2025, I expect the mobile industry to see a surge in API-driven opportunities. One significant area of growth will be in 5G network APIs, which will enable applications to customize network performance for specific use cases.

For instance, APIs could allow applications to request higher bandwidth on-the-fly for streaming services or prioritize ultra-reliable low-latency communications for autonomous vehicles and remote surgeries. This capability will improve app performance and open doors for new types of services that were previously impractical.

Similarly, APIs will play a critical role in the Internet of Things, where millions of connected devices will rely on APIs to share data, trigger actions and interact seamlessly.

 

AI Will Increasingly Power Mobile Devices

A game-changing development is the increasing reliance on artificial intelligence to power mobile devices. I predict AI will become deeply embedded in the mobile ecosystem, transforming devices into hyper-personalized companions capable of understanding context, habits and preferences.

Applications such as advanced language translation, real-time health monitoring and predictive analytics will enrich user experiences.

While the benefits are immense, AI-driven technologies pose risks related to privacy, data security and potential misuse. Striking a balance between innovation and responsibility will be crucial.

 

Mobile Fraud Will Become More Sophisticated

Experts expect the cost of mobile fraud to rise significantly, with some industry estimates suggesting tens of billions of dollars global losses, perhaps exceeding $100 billion.

Mobile fraud is likely to encompass a wide array of schemes, including phishing, identity theft, malware attacks and account takeovers. I expect phishing attacks, in particular, to become more targeted and convincing, using advanced social engineering techniques. Cybercriminals may use fake apps, deceptive links and even AI-generated voices to trick users into revealing sensitive information.

Additionally, malware designed to infiltrate mobile devices and steal data, such as banking credentials and personal identifiers, may become more prevalent. With the increasing integration of mobile devices into IoT ecosystems, attackers could exploit vulnerabilities across interconnected systems, further expanding their reach.

AI-driven solutions will be at the forefront of fraud prevention and detection. Machine learning algorithms will analyze vast amounts of transactional data in real time to identify anomalies and patterns indicative of fraudulent activity.

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5G Will Become Even Sharper

One of the most significant trends I predict for 2025 is the continued proliferation of 5G. 5G networks will offer ultra-low latency, lightning-fast download speeds and the ability to connect an unprecedented number of devices.

This will unlock possibilities in sectors like telemedicine, autonomous vehicles and real-time gaming. These advancements come with challenges, however. The deployment of dense 5G infrastructure, particularly in rural and underserved areas, remains a hurdle.

One example of how enhanced 5G will impact us is in e-sports. Experts expect the  e-sports sector to reach a valuation exceeding $4.8 billion worldwide in 2025, driven by increased global viewership, expanding sponsorship deals and the integration of mobile gaming into the competitive scene. 

With the widespread adoption of 5G networks by 2025, mobile devices will offer low-latency, high-speed connections that are essential for competitive gaming. This will enable smoother gameplay experiences and facilitate real-time streaming, allowing players to compete and spectators to watch without disruptions.

Additionally, the development of more powerful mobile processors and graphics capabilities will ensure that games run at higher frame rates and with enhanced visual fidelity, making mobile e-sports even more appealing to both players and viewers.

In regions such as Southeast Asia, India and Latin America, mobile devices are more accessible than gaming consoles or high-performance PCs. But while mobile e-sports has succeeded in reaching underserved markets, disparities in internet infrastructure, device affordability and access to competitive opportunities could limit growth in certain areas. Addressing these disparities will require collaboration between mobile manufacturers, game developers and governments to expand infrastructure and create affordable solutions.

 

Contactless Payments Will Become the Norm

The ubiquity of smartphones, coupled with advancements in near-field communication technology, has already made contactless payments seamless for users. In 2025, I expect this technology to reach new levels of sophistication, enabling even faster and more reliable transactions.

Additionally, biometric authentication, such as fingerprint scans, facial recognition and voice verification, will become the standard for authorizing payments. These features will enhance security and usability, allowing consumers to complete transactions effortlessly while reducing the risks associated with lost or stolen cards.

One major impact of the shift to contactless payments will be the increasing dominance of mobile wallets like Apple Pay, Google Pay and Samsung Pay, as well as the growth of region-specific services such as Alipay and Paytm.

I predict these platforms will offer payment services as well as an expanded ecosystem of financial tools, such as budgeting assistance, loyalty program integration and even micro-investment options. Mobile devices will become central to the financial lives of consumers, consolidating multiple functions into a single platform.

One of the primary security implications of an increasingly cashless society is the increased threat of cyberattacks targeting mobile payment platforms. In 2025, malware targeting mobile devices and exploits of biometric systems could pose significant risks. As more people rely on contactless payments, the potential scale of these attacks grows, making robust security measures critical.

 

The Mobile Sector Will Face New Security Challenges

The centralization of financial data on mobile devices, while  convenient, creates a single point of failure. If a device is compromised, it could grant unauthorized access to sensitive financial information.

Device manufacturers and payment providers will need to invest heavily in advanced security protocols, such as on-device encryption, AI-driven fraud detection systems and multi-factor authentication processes, to mitigate these risks.

Regulatory frameworks will need to keep pace with rapid changes in data collection and sharing. Governments and financial institutions will face the challenge of creating rules that balance innovation with consumer protection. They must strike a balance between personalized services and data privacy to maintain consumer trust.

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