Mobile Value-Added Services Market

Mobile Value-Added Services Market Size

Mobile Value-Added Services Market is projected to grow at a CAGR of 14.5% in the forecast period (2023-2032), with the market size valued at USD 758.91 billion in 2022 and projected to reach USD 2931.2 billion by 2032.

Mobile Value-Added Services (VAS) consist of an extensive range of enhancements and offerings offered by mobile network operators, improving the mobile user experience with features like content services, entertainment, messaging, location-based services, mobile banking, and more. These services provide benefits such as improved user experiences, revenue generation, differentiation, and enhanced engagement, though they also come with challenges related to technology, content licensing, and regulatory compliance. As technology continues to advance, Mobile VAS remains a dynamic and integral part of the mobile ecosystem, adapting to evolving user preferences and harnessing new technologies to deliver innovative services.

Market Highlights

Mobile Value-Added Services Market is expected to exhibit a CAGR of 14.5% during the forecast period, 2022-2032

Mobile Value-Added Services Market is anticipated to reach USD 2931.2 billion, growing at a CAGR of 14.5%, owing to the expanding mobile phone adoption, the continuous expansion of 4G and 5G networks, and the surging demand for personalized and convenient mobile services. VAS solutions involve content, entertainment, mobile banking, and enterprise applications, and they are benefiting from the growing number of smartphones and the increase in data consumption. Mobile service providers and content developers are taking advantage of this trend to provide a diverse range of VAS to meet the unique needs of users. Additionally, the ongoing integration of emerging technologies such as AI and IoT is driving the market's expansion, creating new opportunities for innovative VAS offerings and improved user experiences.

Source: Fatpos Global

Mobile Value-Added Services Market Segmentation

Short Messaging Service (SMS) Segment to Dominate for its Popularity and Convenience

By Solution, the Mobile Value-Added Services Market is segmented into Short Messaging Service (SMS), Multimedia Messaging Service (MMS), Location Based Services, Mobile Money, Mobile Infotainment, and Others. Short Messaging Service (SMS) segment dominated the market owing to its popularity as an effective e-marketing channel for rapidly and conveniently delivering information to large numbers of people. SMS is a basic and universally supported feature on mobile devices, making it accessible to a broad user base. Almost all mobile phones, including basic feature phones, support SMS functionality.

Large Enterprises Segment to Expand Rapidly Due to the Growing Users & Demand

Based on the End User, the market is divided into SMB and Large Enterprises. The large enterprises segment led the market, as the demand for mobile value-added services among these enterprises has consistently increased owing to the global increase in mobile phone users. Large enterprises are using these services to extend their outreach to consumers who were previously inaccessible due to the infrastructure limitations and high operational costs in remote areas. Additionally, sectors such as banking, healthcare, electronics manufacturing, and others within the boundaries of large enterprises are increasingly turning to mobile applications and other value-added services as a means to provide customers with easy access to services, while simultaneously improving productivity and efficiency. These factors are anticipated to remain influential in shaping the mobile value-added services market in the forecast period.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Rising Mobile Phone Penetration Will Fuel Market Expansion

The widespread adoption of mobile phones is a crucial growth driver for the mobile value-added services market. With a growing percentage of individuals worldwide embracing mobile devices, there exists a vast and expanding user base for these services. As mobile phones become more affordable and accessible, particularly in emerging markets, the possibility for reaching new customers and delivering different value-added services continues to grow. This trend not only widens the customer base but also increases the demand for services that encompass entertainment, information access, mobile banking, and enterprise solutions.

Advancements in Technology to Support Market Growth

Technological progress is the driving force behind the growth of the mobile value-added services market. Continuous developments in mobile networks, device capabilities, and app development have opened the way for more sophisticated and feature-rich offerings. High-speed 5G networks, powerful smartphones, and improved app integration provides service providers with the tools to deliver enhanced and innovative services to users. These advancements expand the possibilities for services like augmented reality, IoT integration, and personalized experiences, drawing in more users and sustaining the market's evolution and expansion.

Restraints

Data Privacy and Security Concerns can Hinder Market Expansion

A key restriction for the mobile value-added services market is the rising concern regarding data privacy and security. In an era where users are increasingly conscious of data privacy and security, service providers face mounting challenges in handling personal information. Stringent data protection regulations, require companies to ensure data security and stick to privacy compliance. Cyber threats and data breaches represent ongoing risks, underscoring the need for robust security measures. Any lapses in privacy or security can result in a loss of user trust, legal consequences, and substantial harm to the reputation of service providers. The user's hesitation to engage with services that collect and potentially mishandle their data can hinder market expansion. Thus, striking a balance between personalized services and data security remains a significant challenge.

Recent Developments

• On June 30, 2021, Deutsche Telekom, Samsung, and Ericsson successfully completed a 5G end-to-end (E2E) network slicing experiment. The slicing experiment was conducted in Deutsche Telekom's Bonn facility using commercial Samsung S21 equipment coupled to a (VR) Virtual Reality headset.
• On June 21, 2021, Verizon Communications Inc. announced the purchase of Senion AB, an indoor positioning platform that delivers corporate solutions such as location sharing, geo fence, indoor way finding, and analytics.
• On June 9, 2021, InMobi Pvt. Ltd. established a relationship with the Trade Desk. This cooperation will allow businesses to measure the incremental brand effect of their digital media campaigns - in-app, mobile web, and desktop - deterministically.

Mobile Value-Added Services Market

Key Players:

• Telefonica
• AT&T
• Verizon Communications
• Vodafone Group
• Airtel
• T-Mobile
• Google
• Orange
• Reliance Jio
• Ericsson
• Apple
• Amazon
• Facebook
• Samsung
• China Mobile
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Mobile Value-Added Services Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America is poised to maintain a substantial share in the global mobile value-added services market. The region's strong position is attributed to several factors, including escalating smartphone demand, the adoption of cloud-based solutions, and the rapid integration of new technologies. The emergence and proliferation of Internet of Things (IoT) applications play a pivotal role in propelling the North American mobile value-added services market forward. Meanwhile, countries in the Asia-Pacific region, particularly India and China, are also experiencing noteworthy market growth.

 Source: Fatpos Global

Impact of Covid-19 on Mobile Value-Added Services Market

Despite the challenges presented by the COVID-19 pandemic, mobile value-added services (MVAS) have continued to grow in significance. Even prior to the pandemic, MVAs were making a notable impact within the telecom industry. The global crisis accelerated the pace of digitization and remote activities while influencing corporate spending on ICT networks and services, leading to increased investments in the MVAS sector. Key global industry players have played a pivotal role in efficiently providing digital communications infrastructure to governments and health authorities. The MVAS messaging ecosystem has proven instrumental in delivering real-time public health notifications from healthcare providers and facilitating citizens' access to services, such as scheduling COVID-19 tests, through diverse mobile channels. As a result, the global mobile value-added services market is gaining momentum, with investments steadily on the rise.

Mobile Value-Added Services Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Mobile Value-Added Services Market Scope and Segments:

Frequently Asked Questions (FAQ):