ID: MRFR/ICT/2183-CR | February 2020 | Region: Global | 120 pages
Global Value-Added Services Market is projected to garner a valuation of USD 309.1 Billion by 2025, registering a 15.3% CAGR during the forecast period (2019–2025).
Value-added services (VAS) are provided by mobile operators through third-party content providers as well as on their own. MVAS providers offer various services such as welcome tunes, voice messages, missed call alerts, news alerts, call block, call forwarding/diverting, videos, music, mobile games, and streaming services through mobile carriers under a revenue-sharing model, and subscribers/customers are charged by mobile phone operators. However, mobile operators need to ensure proper compliance with the regulator's directive and gain consent before deploying a certain mobile VAS on a mobile phone user.
Despite the COVID-19 disruption, the mobile value-added services (MVAS) are still garnering significant market prominence. Pre pandemic, the MVA services were already having a big impact on the telecom industry. The pandemic accelerated digitization and increased remote activities, and impacted corporate spending on ICT networks and services. This, as a result, has increased investments in the mobile value-added services industry.
The COVID-19 crisis brought a dramatic shift in consumer behavior from public spaces and physical meetings to digital interactions. The transition in the healthcare sector is even more pronounced, with 245% surges in telemedicine usages. It is expected that these changes would outlast the pandemic, marking a permanent shift in health-seeking behavior. The pandemic has also highlighted the crucial need for mobile value-added services in public health messaging.
Industry players worldwide are efficiently providing digital communications infrastructure to governments and health authorities. The MVAS messaging ecosystem empowers healthcare providers to send out real-time public health notifications and enables citizens to use different mobile channels to make appointments for COVID-19 tests and other services. Resultantly, the global mobile value-added services market has begun to garner traction, witnessing continually increasing investments.
Factors Impacting the Mobile Value-Added Services Market Size
Telecom operators and service providers worldwide are offering several new and innovative customized mobile apps and MVA services to suit the changing consumer needs. Factors such as the rising numbers of various MVAS subscribers and smartphone users define the growing market landscape. Besides, the need for customized value-added services by businesses and consumers increase the mobile value-added services market size.
Constant modifications and customization of services according to consumer preference, mainly in the education, advertisement, and IT and telecommunication industry, foster mobile value-added services market growth. Moreover, mobile value-added services market trends such as superior user experience offered by MVAS, optimized investments, and the demand for enhanced customer engagement boost the market size.
Mobile Value-Added Services Market Opportunities
Mobile value-added services are projected to witness significant growth in all industrial verticals during the predicted period. The increasing digitization and remote activities accelerated by the recent COVID 19 pandemic have further encouraged many large and small corporations to make more choices for their employees when it comes to corporate card products.
This is expected to provide plenty of opportunity for value-added features enticing enough for businesses of all sizes to adopt new payment products. Additionally, the penetration of 5G cloud-based gaming is projected to offer significant mobile value-added services market opportunities.
Restraints & Challenges
Technical Expertise is the Key Restraint
Despite the lucrative growth opportunities, the MVAS market still witnesses major setbacks, such as the lack of technical expertise and network security. These factors are estimated to restrict the value-added services market growth.
Mobile Value-Added Services Market is segmented into Type, Product, Store, Vertical, and Regions.
SMS is the Largest Value Added Service Type
The type segment is sub-segmented into short message service (SMS), voice, data, and other value-added services. Among these, the SMS value-added service segment dominates the market, and voice value-added service stands as the second-largest segment in the market. The voice VAS segment is expected to grow at the highest CAGR during the assessment period.
Mobile Music & Games Stands as the Largest Product Segment
The product segment is sub-segmented into mobile games, mobile music, mobile wallet, mobile commerce, mobile advertising, email and IM, and others. Among these, the mobile music and games segments hold the dominating market share.
Google Play Leads the Store Segment
The store segment is sub-segmented into Google Play, App Store, and others. Among these Google play segment accounts for the largest market share and the app store segment stands second in the market. The app store segment is projected to register the highest CAGR in the forecast period.
The Vertical Segment Growing Evenly
The vertical segment is sub-segmented into media & entertainment, IT & telecommunication, banking, healthcare, BFSI, retail, government, and others. All these industry verticals are increasingly deploying mobile value-added services.
North America is the Largest Regional Segment
By region, the market is bifurcated into the Americas (US, Canada, Mexico, Rest-of-North America) and South America, Europe (the UK, Germany, France, Italy, and Rest-of-Europe), Asia Pacific (Japan, India, China, South Korea, and Rest-of-the-APAC), and Rest-of-the-World. Among these, North America accounts for the largest market share, followed by Europe and the APAC region, respectively.
North America to Maintain its Leading Position
North America leads the global value-added services market and would continue to maintain its market position throughout the assessment period. Factors such as the presence of many MVAS providers offering enterprises/verticals services and advances in value-added telematics technologies drive the MVAS market in the region.
Additionally, the rising uptake of various MVASs such as games, music, and mobile among mobile network subscribers in the region increases the mobile value-added services market share. The US market leads the regional market, followed by Canada and Mexico, mainly due to the well-established telecom sector.
Europe Holds Second Highest Share in Global Market
Europe accounts for the second-biggest share in the global market. The region witnesses a vast base of mobile value-added services subscribers from various industry verticals. Factors such as increasing numbers of enterprises/verticals availing various mobile value-added services and the rapid growth in industry verticals such as IT and telecommunication, retail, and BFSI drive the market growth.
The increasing adoption of the latest communication network protocols and high data transfer speeds across the region increases the mobile value-added services market size. Additionally, the availability of innovative technologies, such as MVAS software and common channel MVAS pushes the regional market growth.
Players Focus on Product Development & Expansion
The mobile value-added service market appears extremely fragmented due to the presence of well established service providers. Matured players seek to improve the extensive value chain and focus on expansion, R&D investments, and strategic approaches to gain additional impetus. They deliver reliable, leading-edge MVA services, substantially investing in developing adept technologies and products.
Singtel, MyRepublic Limited, PROTECH, InMobi Pte. Ltd, Vodafone Group PLC, OnMobile Global Limited, CALLUP, Kongzhong Corporation, Stonehenge Telecom, Streamwide SA, Symsoft, Comviva, TelcoVas, Giesecke+Devrient Mobile Security GmbH, and Sangoma Technologies are some of the affluent contenders holding sizeable mobile value-added services market share.
Allot Ltd. is a UK-based provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide. Allot's solutions are deployed globally for network & application analytics, traffic control & shaping, network-based security services, and more, enhancing value to its customers.
Multi-service platforms by Allot are deployed by over 500 mobile, fixed & cloud service providers and over 1000 enterprises. Its industry-leading network-based security-as-a-service solution witnesses over 50% penetration with some service providers and is already used by over 20 million subscribers globally.
Jan. 21, 2021 – ZW Data Action Technologies, Inc. (the US), an integrated data analytics, online advertising, precision marketing, and other value-added services company, announced its investment in Weiyouxin Technology, a private domain SaaS software operation service provider.
Jan. 21, 2021 – PertSol (Part Telecom Solutions Pvt Ltd.) announced bagging a contract worth Rs 30 crore from state-run BSNL (India) to deploy Location Based System (LBS) for the telco's pan-India 2G/3G/4G networks. The telecom department mandated the deployment of LBS in 2014 under the Unified Access Service License (UASL) rules.
PertSol's LBS solution, called iLocator, is already being used for various State Emergency Services such as Mumbai100, UP112, CG112, MERS112, MP100 being implemented in Gujarat112. The entire platform is in line with Aatmanirbhar Abhiyan of Govt of India.
Jan. 18, 2021 – Netcracker Technology announced that its long-time partner Tiscali, an Italian communications service provider, had supported its BSS functions with 5G and other services, including online rating & charging, across its lines of business to progress.
Tiscali is a long-time Netcracker customer with the largest fiber coverage available in Italy, providing high-speed Internet access, voice, mobile, and other value-added services to business and residential customers.
Jan. 19, 2021 – Allot Ltd. (the UK), a leading global provider of innovative network intelligence & security-as-a-service (SECaaS) solutions supporting communication service providers (CSPs) and enterprises, announced that a tier-1 CSP in Europe has selected its Allot HomeSecure and BusinessSecure to provide consumers and SMBs with cybersecurity and content control services. This deal follows the service provider's successful implementation of Allot's NetworkSecure to protect the CPEs/routers and devices in homes and businesses.
The mobile value-added services market analysis features unique and relevant factors estimated to significantly impact the mobile industry during the review period. This detailed mobile value-added services market forecast can help industry players to understand the market better, elaborating on the historical and current mobile value-added services market trends. Additionally, the analysis of COVID-19 impacts on the mobile VAS market is also included in the report.
Regional analysis in this report unlocks several untapped mobile value-added services market opportunities in regional and domestic markets. Detailed company profiling in the report enables users to evaluate company shares, emerging products, and the scope of the product in emerging markets, pricing strategies, innovation possibilities, and much more.
|Market Size||USD 309.1 Billion (2025)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, By Product, By Store|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Singtel, MyRepublic Limited, PROTECH, InMobi Pte. Ltd, Vodafone Group PLC, OnMobile Global Limited, CALLUP, Kongzhong Corporation, Stonehenge Telecom, Streamwide SA, Symsoft, Comviva, TelcoVas, Giesecke+Devrient Mobile Security GmbH, and Sangoma Technologies|
|Key Market Opportunities||Regional analysis in this report unlocks several untapped mobile value-added services market opportunities in regional and domestic markets. Detailed company profiling in the report enables users to evaluate company shares, emerging products, and the scope of the product in emerging markets, pricing strategies, innovation possibilities.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Stonehenge Telecom, Symsoft, Giesecke+Devrient Mobile Security GmbH, Streamwide SA, CALLUP, Comviva, TelcoVas, and Sangoma Technologies are the competitors shaping the market.
The VAS segment is projected to develop at the uppermost CAGR in the forecast period.
The segments of banking, financial services, and insurance (BFSI), media & entertainment, healthcare, IT & telecommunication, retail and government are created in the market on the basis of vertical.
The UK is expected to conquer the biggest portion of the market share in the forecast period.
At a CAGR of 15.3%, the market is expected to see an exceptional growth level in the forecast period.
The mounting ownership of smartphones, coupled with the escalating demand for tailored services, is expected to motivate the market.
The lack of well-developed telecom infrastructure is expected to hold the development of the market.