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Mobile Value Added Services (VAS) Market worth US$ 10,303.88 million by 2027 at a CAGR of 12.04% - Exclusive Report by The Insight Partners

10-20-2022 04:36 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: The Insight Partners

Mobile Value Added Services (VAS) Market worth US$ 10,303.88

The global mobile VAS market is estimated to account US$ 53.89 Bn in 2018 and is expected to grow at a CAGR of 11.54% during the forecast period 2019 - 2027, to account for US$ 141.36 Bn by 2027.

Availability of affordable data plans and tariffs with low cost smartphones are two of the major factors behind increased usage of data especially in developing countries. The continuous decline in prices of 4G enabled android smartphones is the reason for increasing penetration of mobile phones among the lower income population in countries. Mobile subscriber base and mobile internet subscriber base is expected to reach new milestones over the forecast period to 2027, especially due to fast adoption of 4G, launch of 5G technology, new internet users and introduction of other advanced services/applications with AR/VR, IoT and AI. MVAS adds value to the core services and spur the subscribers in using their primary services more thus driving the Average Revenue per User (ARPU).

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Mobile Value Added Services (VAS) Market: Competitive Landscape and Key Developments
As the overall digital market grows, an additional billion middle-tier customers for telecommunication companies, mainly in emerging markets, is expected for new over-the-top (OTT) entrants is opening. These digital natives are offering the same staple services of voice, messaging, and video calls that used to be the domain of traditional telcos. In particular, OTT players such as Apple's FaceTime, Google Hangouts, Skype, Tencent QQ or Tencent's WeChat, and WhatsApp threaten to cannibalize these staple offerings with innovative, easy-to-use, and even more-attractive messaging and communication services. The major companies operating in the market include Airtel, Beeline, DBT Telecom FZ, DU United Arab Emirates, Mobifone, Mobile Telesystems, Mobily, MTN, Numeko Technologies, Omantel, Ooredoo, Optimum Telecom Algeria, Orange, Saudi Telecom Group, and Vodafone.

The telecommunication sector was foreseen to be one of the most lucrative industries for revenue generations and job creations historically. However, fierce competitions, and pricing pressures led to the downfall of the entire sector causing huge losses to the telecom operators. These telecommunication operators needed to provide differentiated services to their customers at optimized costs to stay afloat and competitive in the market Value-added services or VAS provide the much need thrust to the telecom sector for driving up their revenues and profit. In the contemporary times, the VAS is defined as the premium features or any add-on features apart from the basic voice services that are provided to the end-users by the telecommunication companies. The VAS is intended at diversifying the offerings and also provide administrative synergy amongst the array of services. MVAS is beneficial for both the parties involved as it brings business to the service providers and also add end-users functionality while obtaining enhanced analytics for use in businesses.

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Telecom companies, therefore, face flat growth because of market saturation and maturity as well as commoditization of mobile devices and connectivity services. MVAS adds value to the core services and spur the subscribers in using their primary services more thus driving the Average Revenue Per User (ARPU). The MVAS stand individually in their operations and profitability and also stimulate demand for standard services. Further, drastic changes in the telecom business environment has compelled companies to invest in the development of VAS. VAS is thus viewed as one of the strategic initiatives taken by the telecom service providers enabling them to cross-sell additional services and simultaneously drive up ARPU. VAS also enables in ensuring customer loyalty as the customers are attracted to the companies offering more services.

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Contact Us:
If you have any queries about this report or if you would like further information, please contact us:
Contact Person: Sameer Joshi
E-mail: sales@theinsightpartners.com

About Us:
The Insight Partners is a one-stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Healthcare, Manufacturing and Construction, Media and Technology, Chemicals, and Materials.

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