Mobile Value-added Services Market by Solution (Short Messaging Service (SMS), Multimedia Messaging Service (MMS), Location Based Services, Mobile Email & Instant Messaging, Mobile Money, Mobile Advertising, and Mobile Infotainment), End User (Small & Medium Enterprises and Large Enterprises), Vertical Type (BFSI, Media & Entertainment, Healthcare, Education, Retail, Government, Telecom & IT, and Others), and Regional Analysis: Global Opportunity Analysis and Industry Forecast, 2020–2027

Mobile Value-added Services Market Analysis

The global mobile value-added services market was valued at $479.0 billion in 2019, and is projected to reach $1,464.1 billion by 2027, at a CAGR of 15.3%. 

Market Synopsis

Increase in the usage of mobile applications and mobile web is one of the major factors driving the growth of the mobile value-added services market. Increase in the usage of social networking applications and adoption of mobile payments is helping support the mobile value-added services market size.

Lack of guidelines and regulatory framework for the various market players of mobile value-added services (MVAS) that are accountable for consumer rights, data privacy and legal liabilities may limit the users and might restrict them from using mobile value-added services.

Asia-Pacific was the highest revenue contributor, accounting for $153.9 billion in 2019 and is estimated to grow with a CAGR of 14.90%. 

Mobile Value-added Services Market Overview

Valued-added services are referred to as non-core services offered in a telecom industry. Mobile value-added service is a feature that can be added to a core product, offered by mobile operators through third-party mobile service providers as well as on their own apart from voice communication services. For instance, text messages, missed call alerts, call forwarding, call block are considered as mobile value-added services and are added to enhance the user experience.

Impact Analysis of COVID-19 on the Global Mobile Value-added Services Market

The coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. With the continuing spread of the novel coronavirus pandemic, organizations across the globe are gradually flattening their recessionary curve by leveraging technology. Many businesses will go through response, recovery and renew phases. Building business resilience and enabling agility will aid organizations to move forward in their journey out of the COVID-19 crisis towards the next normal. The mobile value-added services (VAS) market is predicted to witness a positive impact during the forecast period owing to the widespread growth of the COVID-19 pandemic. For instance, stay-at-home orders have introduced many people to apps that enable them to order takeout food or groceries online, and when they do go to the store, more people are choosing to pay with their phones instead of touching cash or credit cards. Moreover, the mobile value-added services like video calling services have also increased as a result of the contactless measures undertaken by the government bodies to minimize the spread of coronavirus. 

Increasing Usage of Mobile Applications to be an Important Factor for the Growth the Market

Increase in the usage of mobile applications and mobile web is one of the major factors driving the growth of the mobile value-added services market. Increase in the social networking applications and mobile payments is helping support the mobile value-added services market size. Rising demand for entertainment services on mobile software’s is also a key-trend being witnessed in the mobile value-added services market, thereby resulting in the growth of online video content, live TV shows & events and localized vernacular content. 

To know more about global mobile value-added services market drivers, get in touch with our analysts here.

Lack of Guidelines of Mobile Value-added Services may Affect the Growth of the Market

Lack of guidelines and regulatory framework for various market players of mobile value-added services (MVAS) may limit the users and restrict them from using mobile value-added services. With the increase in technological advancements and new innovations, it is important to safeguard the data and information of value-added service users. Lack of privacy is the key challenge faced by mobile value-added service market. Furthermore, lack of government initiatives and limited ways of consumer authentications for the services that involve exchange of sensitive information such as payments may also limit the market’s growth.

Advancements in Technology to Create Major Investment Opportunities

Mobile value-added services are the additional features provided by the service operators at a premium to their customers along with other voice communication services. Increase in the usage of mobiles, smartphones and tablets along with the rollout of technologies like 4G and 5G network services in the market has created significant opportunities for the mobile value-added service providers. Moreover, the recent COVID-19 pandemic has accelerated digitization and remote activities and is further expected to provide plenty of opportunities for value-added services. In addition to this, rising demand for entertainment services on mobile handsets is also a key trend being witnessed in the market, thereby resulting into the development of key opportunities in on-demand music & video content, live TV shows & events and localized vernacular content.

Mobile Value-added Services Market, by Solution

On the basis of solution, mobile value-added services are segmented into short messaging service (SMS), multimedia messaging service (mms), location-based services, mobile email & instant messaging, mobile money, mobile advertising, and mobile infotainment. Among these, short messaging services is anticipated to hold the maximum share of the global market revenue.

Source: Research Dive Analysis

Short messaging services is expected to hold a significant market share in the forecast period. The short messaging service (SMS) sub-segment was the highest contributor to the market, with $94.1 billion in 2019, and is estimated to grow at a CAGR of 14.2% during the forecast period. The increased usage of short messaging services with the increased use of smartphones is rising the markets growth. Moreover, brands have increasingly found value in SMS marketing due to the fact that it earns higher open rates, engagement and click-through rates.                                                         

Mobile Value-added Services Market, by End-User

On the basis of end-user, mobile value-added services are bifurcated into small & medium businesses and large enterprises. Among these, large enterprises is anticipated to hold the maximum share of the global market revenue.

Source: Research Dive Analysis

The large enterprises sub-segment was the highest contributor to the market, with $286.6 billion in 2019, and is estimated to grow at a CAGR of 12.4% during the forecast period. Due to the large-scale business economy, large companies are able to reduce the cost of business, while also maximizing their profit margins. This major advantage of large business economy is creating opportunities and paving the growth of the large enterprises.                                                         

Mobile Value-added Services Market, by Vertical type

On the basis of vertical type, mobile value-added services are segmented into BFSI, media & entertainment, healthcare, education, retail, government, telecom & IT, and others. The government sector sub-segment is predicted to be the fastest growing.

Source: Research Dive Analysis

The government sub-segment was the highest contributor to the market, with $104.4 billion in 2019, and is estimated to grow at a CAGR of 14.0% during the forecast period. Increasing Internet services, advanced SMS services, and demand for high-end content from the consumers are predicated to boost the MVAS market growth in the near future. For instance, in India, the telecom players along with the government are investing in improving the infrastructure connectivity in rural regions to offer their services. In the urban region, MVAS players focus on providing additional VAS on mobile platforms due to the introduction of digital technologies.                  

Mobile Value-added Services Market, Regional Insights

The mobile value-added services market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Source: Research Dive Analysis

The Market for Mobile Value-Added Services in Asia-Pacific to be the Most Dominant

Asia-Pacific was the highest revenue contributor to the global market, accounting for $153.9 billion in 2019 and is estimated to reach $455.8 billion by 2027, with a CAGR of 14.9%. The increasing prevalence of smartphones in emerging economies such as China and India are driving the APAC MVAS market. Additionally, the reduced smartphone prices due to increased competition among manufacturers and service providers are further expected to expand the consumer base and thereby aid the mobile value-added services market. According to the India Brand Equity Foundation, India currently has the second-largest consumer base in the telecommunications market, with nearly 1.2 billion registered subscribers.

The Market for Mobile Value-Added Services in Europe to be the Fastest Growing

The market in Europe is the fastest growing, accounting for $124.9 billion in 2019 and estimated to reach $394.9 billion by 2027, at a significant CAGR of 15.8%. Europe is expected to be the fastest growing due to the increased internet penetration across the region. The European enterprise MVAS market is fairly evolved, combining technological innovation with demand forces that continue to facilitate the further expansion of services. The increasing penetration of long-term evolution (LTE) and smartphones, the adoption of MVAS platforms, IoT and connected devices and the emergence of FMC networks are the pivotal factors that will drive the growth of MVAS at enterprises over the coming years in Europe.

Competitive Scenario of Global Mobile Value-added Services Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the significant mobile value-added service market players are Mozat, Apple Inc., Vodafone Group plc, Samsung Electronics Co. Ltd., Reliance Industries Ltd., Huawei Investment & Holding Co. Ltd., Onmobile Global Limited, Comviva Technologies, Alphabet Inc., and One97 Communication. Market players prefer inorganic growth strategies to expand into local markets. Mobile value-added service market players are emphasizing more on merger & acquisition and advanced product development. These are the frequent strategies followed by established organizations. 

Porter’s Five Forces Analysis for Mobile Value-added Services Market:

• Bargaining Power of Suppliers: Mobile value-added services market contains huge concentration of distributors/suppliers and hence, the distributors/supplier control is expected to be moderate, resulting in moderate bargaining power of dealers.
  Hence, the bargaining power of the supplier is moderate.  
• Bargaining Power of Buyers: Buyers will have high bargaining power, significantly because of high players operating in the mobile value-added services market.
  Hence, the bargaining power of the buyer is high.
• Threat of New Entrants: In the modern world, new entrants may face multiple new barriers, like legal and government policies.
  Hence, the threat of the new entrants is moderate.
• Threat of Substitutes: There are many alternate products released by different companies for mobile value-added services. For instance, video calling services like google meet, zoom, WhatsApp video calling and many more.
  Thus, the threat of substitutes is high.
• Competitive Rivalry in the Market: Robust presence of key players such as Apple Inc., Vodafone Group plc, and Samsung Electronics Co. Ltd. is creating massive rivalry in the local as well as international market. Also, high spending on research, business expansion, and strategic tie-ups are some of the main factors rising competitive rivalry among the companies.
  Competitive rivalry in the market is high.