Increasing penetration
of smartphones, high proliferation of 3G & 4G broadband services, the
advent of 5G technology and increased customer spending on telecom services are
factors influencing the global Mobile Value Added Services (MVAS) Market.
According to the Global System for Mobile Communications (GSMA), approximately
700 million new mobile subscribers are estimated to enter the telecommunication
sector by 2025 globally. The
increase in internet subscribers has augmented growth of the mobile value-added
services market. Location-based mobile value-added services is the key factor
fuelling the mobile value-added service market growth. Through location-based
services, users can get real-time directions to locations, weather forecasts,
and updates on traffic from their mobile devices. Location-based services are
used by advertisers to generate notifications when the consumer is in the vicinity
of their indoor spaces such as outlets, cafes, restaurants, and movie theatres
and they can instantly give offer discounts on shopping to such
location-specific customers. Mobile messaging plays a significant role in
location-based services (LBS). The global mobile value-added services market
size was valued at $340 billion in 2018, and is anticipated to grow at a CAGR
of 12.34% throughout the forecast period of 2019-2025.
Owing to the growth in
the millennial population, increasing demand for high mobile internet
speeds, and supportive telecommunication infrastructure there has been a rapid
shift from e-commerce to m-commerce systems leading to commercial transactions being
conducted electronically through mobile phones. The digitization of key
industries such as transportation demonstrates the importance of mobile-based
services. For instance, Uber Technologies Inc., an American-based transportation network
company and Ola Cabs, an Indian-origin online transportation network company use the mobile location-based service
applications that will have a positive influence on the MVAS market.
Major Mobile
Value-added Services
Mobile Gaming &
Apps
Nowadays, mobile phone
games are becoming extremely sophisticated through exponential advancements in
display, storage, network bandwidth, interface, and operating system
functionality. Apple’s iOS and Google’s Android are the most widely used and
supported platforms on smartphones. Cross-platform HTML5 technology runs games on
devices such as iPhones, iPads, and Android devices. The content and games
provided by telecom operators as value-added services are free from the rules
and regulations of app
stores and Google Play stores. Pay-per-download,
free-to-play, subscriptions and advertising are the monetization models used within
commercial mobile games. Mobile games support multiple players via Wi-Fi, 3G,
4G, and Bluetooth. For instance, Tencent Games is the largest
publisher of mobile games in China, due to the size of the player base in the
country. It is known as the largest video game company in the world owing to its
market share.
Live
Streaming of TV Shows
Netflix’s subscription
service is changing the pace of the world as a business offering for VAS
services offered by the telecom operators worldwide with the online
subscription. User interactions via chat rooms play a major
role in the live streaming process. Online platforms such as Facebook Live, 17,
and Periscope include the live streaming of promotional activities and TV
shows. Major players in the telecom industry are offering more value-added entertainment
services to customers by working in combination with major content providers.
Online
Storage of Data
With the increase in
online social networking, more pictures and content is being shared among users
on different platforms. This is leading to mobile users requiring more storage
space on their smartphones. It is well connected with the cloud storage VAS
platform which gives more storage options for mobile users. People can get more
storage space by buying a subscription which enables download and storage of
content online, thereby making it accessible at any time and from anywhere, as
long as they have a data connection.
APAC Holding Major Share of the Mobile
Value-Added Services Market
The APAC region generated
approximately 38% of global revenues in the mobile value-added services market
in 2018. Emerging economies such as India and China have several potential
users for their diversified and personalized services. According to India Brand
Equity Foundation (IBEF), with 1,197 million subscribers, India has the
second-largest telecom network in the world as of 2018.Use
of MVAS services in the education sector resulted in one of the major factors
for growth of the market in this region. Research by Wipro Technologies and the
Internet and Mobile Association of India (IAMAI) found that there are the
multiple opportunities for both domestic mobile operators and global operators in
the Indian MVAS market.
The application segment that will be creating the most lucrative opportunities for the mobile value-added services market is the financial sector, which is projected to grow at a CAGR of 14.14% through to 2025. Financial transactions are done with mobile remittance services, mobile wallet services, and business correspondence model-based services, which are contributing to growth in MVAS revenues. The sharp rise in the utilization of mobile payments and social networking applications is boosting the MVAS market size. Advances in technology that enable secure payment processes on mobile devices in a simplified manner are anticipated to increase the usage of mobile payment transactions, which in turn, helps grow the market for mobile value-added services.
The
Major Players in the Mobile Value-Added Services Market:
Prominent players in the mobile value-added services market include Comverse, Mozat, Tapjoy, Onmobile, Lumata, Google, Apple, Comviva Technologies, AT&T, Vodafone, KongZhong, One97 Communication, and InMobi.
Mergers and
acquisitions are the key strategies adopted by market players to stay ahead of
their competitors. India-based mobile entertainment service provider Onmobile
Global Limited acquired Appland AB, a Sweden-based mobile distribution and
monetization company, in October 2018. This acquisition is intended to roll out
100 games club, increase subscriptions and boost revenues through marketing. Such joint ventures aid market players in
expanding their geographical boundaries and accentuating their footprint into
the global mobile value-added services market.
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