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Mobile Value-Added Services (VAS) Market size is estimated to grow by USD 723.25 billion between 2022 and 2027 accelerating at a CAGR of 15.76%. The growth of the mobile value-added services market depends on factors such as the rapid increase in smartphone penetration, the digitalization of key industries, and the rapid penetration of mobile broadband.
This mobile value-added services (VAS) market report extensively covers market segmentation by Product (mobile advertising, mobile games, mobile music, and video streaming, mobile money and m-commerce, and mobile publications), End-user (large enterprises, small, and medium enterprises), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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During the projected period, the mobile advertising segment is expected to experience substantial growth, contributing significantly to the overall market share of mobile value-added services. This segment encompasses various forms of advertising, including SMS and MMS, push messages, click-to-download and click-to-call ads, in-app advertising, as well as /image, text, and banner ads. As more consumers increasingly use smartphones instead of desktop computers, companies like Alphabet and Apple have developed mobile advertising platforms specifically designed for smaller screens. These platforms deliver customized advertisements tailored to individual consumers' browsing behavior, location, and shopping preferences. These factors are anticipated to drive the mobile value-added services market growth of this segment throughout the forecast period.
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In 2017, the mobile advertising segment had a valuation of USD 190.92 billion, and its growth continued until 2021. In 2022, in-app advertising played a major role in driving the mobile advertising segment, particularly in developed markets like the US. With the widespread adoption of mobile broadband, video advertising has become a popular and engaging format for consumers, presented in a non-intrusive manner. These ads are commonly found in over-the-top (OTT) applications and social media platforms, and advertisers gauge revenue generation based on consumer clicks and application installations. While certain developing markets such as Africa and South America still heavily rely on SMS and MMS advertising, the expansion of mobile broadband in these regions will lead to a transition towards mobile internet-based advertising throughout the forecast period. The rapid growth of other essential mobile value-added services (VAS) like mobile games, mobile banking, and m-commerce may slightly reduce the dominant mobile value-added services market share of the mobile advertising segment during the projected period.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of upcoming trends and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rapid increase in smartphone penetration is a major factor driving the growth of the mobile value-added services market. The global smartphone user base has witnessed a rapid expansion in recent years. In 2019, approximately 60% of all active mobile connections worldwide were constituted by smartphone users with active connections. This growth can be attributed to the increasing reliance of consumers on mobile devices for a wide range of activities, including gaming, web browsing, e-commerce, and social media engagement.
The surge in disposable income on a global scale has played a significant role in driving the adoption of smartphones and tablets. Users' desire for on-the-go access to content has fueled the preference for portable devices over traditional desktop computers. Additionally, smartphone manufacturers have introduced a diverse range of devices at competitive prices, allowing consumers to select smartphones that align with their specific needs. In the Asian market, for example, vendors like Xiaomi, OnePlus, Oppo, and Huawei offer feature-rich smartphones at affordable prices through various distribution channels. The intense competition in the smartphone market has led to declining prices, making smartphones more accessible to consumers. Consequently, this expansion in smartphone usage is expected to propel the global mobile value-added services (VAS) market in the coming years.
The increasing popularity of AR in location-based games is a trend that has positively impacted the mobile value-added services market growth. The use of augmented reality (AR) in location-based games is on the rise, where virtual content is overlaid onto real-world environments and objects. These games are accessible through smartphones and wearables like smart glasses. The popularity of AR in location-based games can be attributed to its platform flexibility. Unlike virtual reality (VR) games that require specialized headsets and equipment, AR can be experienced on most mobile devices and headsets.
The success of Niantic's Pokemon Go, launched in July 2016, has led to increased interest from game developers in creating location-based AR games. Google's announcement in March 2018 about opening the Google Maps Platform has further enhanced the potential for better location-based gameplay. The growing trend of merging AR with location-based services (LBS) in gaming is expected to attract significant investments from major mobile value-added service (VAS) providers like Alphabet and Apple. This investment will drive the mobile games segment, leading to the overall growth of the global mobile VAS market in the forecast period.
Constraints in content monetization are a major challenge hindering the growth of the mobile value-added services market. OTT content providers are facing an increasingly difficult task of monetizing their content. In the past, mobile service providers primarily generated revenue from voice calls. However, with the significant decrease in call tariffs and the rise of popular online calling applications and instant messaging services that offer free voice and video calling, the revenue generated from voice calls has seen a sharp decline.
To offset the loss in revenue from voice calls, mobile service providers are looking to monetize OTT content, including video and audio downloads. Companies like Reliance Industries and AT&T, who previously offered free OTT content through partnerships with third-party vendors, are expected to transition to a subscription-based revenue model in the forecast period. However, this shift presents a considerable challenge as customers will now have to pay for content that was previously free. Retaining customers for subscription-based value-added services (VAS) will be challenging for mobile vendors unless they consistently ensure high-quality content and introduce innovative offerings. Therefore, the monetization of content as a substitute for voice call revenue is expected to hinder the growth of the global mobile VAS market in the forecast period.
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APAC is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The APAC region emerged as the dominant player in the mobile value-added services market in 2022, primarily due to the rapid adoption of smartphones and mobile broadband in emerging economies like China and India. Both international and domestic vendors offering smartphones and mobile broadband services have contributed to the widespread penetration of mobile devices and internet connectivity in these countries. With increased investments and government initiatives focused on developing mobile technology infrastructure in the future, APAC is projected to maintain its dominance in the global mobile value-added services market throughout the forecast period.
This report provides a forecast of the contributions made by each segment to the growth of the mobile value-added services (MVAS) market. Additionally, we have taken into account the impact of the COVID-19 pandemic and included recovery strategies for each segment. The pandemic led to a surge in demand for mobile value-added services in the APAC region. As people spent more time at home, there was a significant increase in the demand for various MVAS such as mobile TV, OTT services, and online gaming during the lockdown period. Moreover, as businesses shifted to online operations, the demand for mobile advertising services from these businesses also experienced substantial growth during the lockdown. All these factors had a positive impact on the growth of the mobile value-added services market in APAC in 2020. Additionally, with the implementation of large-scale vaccination programs across the APAC region, the lockdown restrictions were gradually lifted in the second half of 2020, leading to the resumption of operations in the telecom industry in the first half of 2021. As a result, the mobile value-added services market in APAC is expected to witness continuous growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Mobile Value-added Services (VAS) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Infosys Ltd.- The company offers value added services such as loyalty and rewards solutions, fraud prevention and detection services, On behalf of services, advance authorisations and alerts.
The report also includes detailed analyses of the competitive landscape of the market and information about 10 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The mobile value added services (vas) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Mobile Value-added Services (VAS) Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.76% |
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Market growth 2023-2027 |
USD 723.25 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
13.89 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 58% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., America Movil SAB de CV, Apple Inc., AT and T Inc., Call Up, Cisco Systems Inc., Comviva Technologies Ltd., Huawei Technologies Co. Ltd., Infosys Ltd., InMobi Pte. Ltd., International Business Machines Corp., Monty Mobile, MyRepublic Ltd, OnMobile Global Ltd., Reliance Industries Ltd., Samsung Electronics Co. Ltd., Singapore Telecommunications Ltd., Telcovas Solutions and Services Pvt Ltd, Telefonaktiebolaget LM Ericsson, and Vodafone Group Plc |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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