Mobile Value added Services Market Anticipated to Generate a Revenue of $1,464.1 billion, Growing at a CAGR of 15.3% from 2020 to 2027Download Sample Reports Overview
The global mobile value-added services market is estimated to reach $1,464.1 billion by 2027, rising from $479.0 billion in 2019, and, at a CAGR of 15.3%.
Impact Analysis of COVID-19 on the Global Mobile Value-added Services Market
The coronavirus outbreak in 2019 has positively affected the mobile value-added services industry worldwide. Fear of contracting the COVID-19 disease along with strict social distancing rules implemented by developed as well as developing nations in order to prevent the virus transmission has led to a work from home structure for most employees and students. 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. As a result, the mobile value-added services (VAS) market will witness a positive impact during the forecast period owing to the widespread growth of the coronavirus pandemic.
Global Mobile Value-Added Services Market Analysis
Rising demand for entertainment services on mobiles 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. These are few factors driving the growth of the mobile value-added services.
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 markets growth. Lack of privacy concerns is the key challenge faced by mobile value-added service market. With the increase in technological advancements and new innovations, it is important to safeguard the data and information for value-added service users.
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.
Mobile Value-added Services Market, Segmentation
The global mobile value-added services market is segment based on solution type, end-user type, vertical type and region.
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. The short messaging service (SMS) segment was the highest contributor to the market, with $94.1 billion in 2019, and is estimated to reach $265.7 billion by 2027, at a CAGR of 14.2% during the forecast period.
The increase in use of smartphone is rising the usage of short messaging services gradually. Moreover, SMS marketing has gained popularity due to the fact that it earns higher open rates, engagement and click-through rates.
On the basis of end-user, mobile value-added services are bifurcated into small & medium businesses and large enterprises. The large enterprises segment was the highest contributor to the market, with $286.6 billion in 2019, and is estimated to reach $715.0 billion by 2027, at a CAGR of 12.4% during the forecast period.
Large companies are able to reduce the cost of business, while also maximizing their profit margins due to their large-scale business economy. This major advantage of large-scale business economy is creating enormous opportunities and paving the growth of the large enterprises.
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 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 usage of internet services, SMS services, and demand for high-end content from the users are predicated to boost the mobile value-added services market growth in the upcoming years. 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.
The application security market was investigated across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor, 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. Europe is the fastest growing, accounting for $124.9 billion in 2019, and is estimated to reach $394.9 billion by 2027, at a significant CAGR of 15.8%. Europe is expected to lead the global market due to growing Internet penetration across the regions. The European enterprise MVAS market is fairly evolved, combining technological innovation with demand forces that continue to facilitate the further expansion of services.
Key Players in the Global Mobile Value-added Services Market
- Apple Inc.
- Vodafone Group plc
- Samsung Electronics Co. Ltd.
- Reliance Industries Ltd.
- Huawei Investment & Holding Co. Ltd.
- Onmobile Global Limited
- Comviva Technologies
- Alphabet Inc.
- One97 Communication
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
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 for mobile value-added services.
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.