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The mobile value-added services market size is forecast to increase by USD 723.25 billion between 2022 and 2027, accelerating at a CAGR of 15.76%. In 2017, the US held the largest market share, projecting an annual revenue of USD 72.04 billion. The market growth analysis report is segmented into Product including mobile advertising, mobile games, mobile music and video streaming, mobile money and m-commerce, and mobile publications, End-user including large enterprises, small, and medium enterprises, and Geography including APAC, North America, Europe, South America, and Middle East and Africa. The market research and growth has included market size, historical market size (2017-2021), and forecasts are provided on the basis of value (USD billion) for all the above segments.
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The rapid increase in smartphone penetration is a key factor driving the market growth. The global smartphone user base has rapidly expanded, accounting for about 60% of active mobile connections in 2019. Consumers are increasingly using smartphones for a wide range of activities, including gaming, web browsing, e-commerce, and social media interaction.
This growth is driven by rising disposable incomes worldwide, making smartphones and tablets more accessible for on-the-go content access. The portability of these devices has shifted user preferences from traditional desktops to mobile platforms. Additionally, fierce competition among smartphone manufacturers, like Xiaomi, One Plus, Oppo, and Huawei in the Asian market, has resulted in affordable, feature-rich smartphone options.
Mobile Advertising Segment Holds the Largest Market Share
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 (VAS) like mobile games, mobile banking, and m-commerce may slightly reduce the dominant mobile services market share of the mobile advertising segment during the projected period.
MVAS Market Revenue Share by Mobile Advertising Segment, 2017-2027
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APAC Holds a Prominent Position Market
APAC is estimated to contribute 58% to the growth of the global market during the forecast period. In 2022, APAC dominated the market, driven by the rapid adoption of smartphones and mobile broadband in China and India. Government initiatives, partnerships with vendors, and the digitization of industries like transportation and banking played a significant role. Ride-sharing apps like Ola and Uber gained popularity in India, and cashless transaction initiatives in countries like India and Thailand spurred market growth. Major companies like Reliance Industries, Vodafone, and Samsung partnered with content developers to offer competitive subscription-based services. The market in APAC is expected to experience rapid growth, especially in untapped rural areas of India and China, focusing on segments like mobile audio and video streaming and mobile publications.
The COVID-19 outbreak in 2020 had a negative impact on economic growth in APAC, leading to strict lockdowns in countries like India, China, Japan, Australia, Indonesia, South Korea, Bangladesh, and Vietnam. These lockdowns halted operations in various industries, including telecom. However, during the lockdown, the demand for mobile TV, OTT services, online gaming, and mobile advertising services surged as people stayed at home. This boosted the VAS market in APAC in 2020.
In the latter half of 2020, lockdowns were lifted thanks to widespread vaccination efforts across APAC, allowing the telecom industry to resume operations in the first half of 2021. As a result, the market in APAC is expected to continue growing in the forecast period.
Market Size, By Region, Global, 2017-2027
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The MVAs market is fragmented in nature. Some significant players include Alphabet Inc., America Movil SAB de CV, Apple Inc., AT and T Inc., Call Up, Cisco Systems Inc.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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
Market Analysis
In the mobile communication, Short Message Service (SMS) and Multimedia Messaging Service (MMS) continue to be pivotal, augmented by the evolution of mobile email, instant messaging, and location-based services. The surge in Mobile Internet usage and the prevalence of smartphones and tablets have reshaped the landscape, influencing the dynamics of mobile applications and the mobile web. Return on marketing expenditure is a key metric, particularly for telecommunication companies navigating the challenges posed by the COVID-19 crisis. Despite the digitalization wave and advancements like 5G technology, concerns around privacy, customer authentication, and the lack of regulations persist. Communication contribute to the vertical integration across industries like media & entertainment, healthcare, education, retail, and the ever-expanding IT and telecommunications sectors. The Asia-Pacific region stands out as a hub for innovation and adoption, with mobile services encompassing news, movies, and the next-generation networks.
The 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 - 2027.
Mobile Value-added Services (VAS) Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.76% |
Market growth 2023-2027 |
USD 723.25 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.89 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 58% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market forecasting,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 |
Customization purview |
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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
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