According to the Global Systems for Mobile Association (GSMA), the number of unique mobile subscribers surpassed 5 billion units in May 2019 globally. This is owing to radical technical advancements catalyzed by an exponentially increasing population. Increase in the number of mobile subscribers is leading to a growth in mobile value added services (MVAS) which want to attract potential customers. The global mobile value added services market size was valued at $340 billion in 2018, and is expected to grow at a CAGR of 12.34% through the forecast period 2019 to 2025. Increased internet speed across both the developing and developed countries is one aspect that is leading to growth in the mobile value added services market.
The APAC region is dominating the current mobile value added services market, and accounted for a share of 38.4% in 2018. The increasing prevalence of smartphones in emerging economies such as China and India is 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 Reliance Group launched its telecommunication service termed Reliance Jio, the Reliance group provided its data services to people at a very economical cost which gave this telecommunication service to gain a massive consumer base in India during the second half of this decade. Growth in the Indian mobile value added services market is also supported by government initiatives such as Start-Up India, Skill India and Digital India.
Mobile Value Added Services Market Outlook:
Financial services coupled with the e-commerce, banking, and insurance sectors is the key application segment in the mobile value added services market. The finance application in the mobile value added services is growing at a CAGR of 14.14% during the forecast period. The massive uptake of e-commerce services is supporting the mobile value added services market growth. Globally, the reach of e-commerce sector is expanding at a robust pace, it is predicted that the e-commerce sector will soon over-take the dominance of retail sector. This growth of e-commerce sector is resonated due to the growing telecommunication and the Internet services which is coupled with additional mobile value added services which is attracting the customers at a rapid pace. Moreover, growing internet applications in the Banking, Finance, and Insurance (BFSI) verticals are major factors responsible for increased traction in the mobile value added services.
Mobile Value Added Services Market Growth Drivers
· Reduced Costs of Consumer Electronics: Innovations in the electronics industries are in line with Moore’s law which states that the capabilities of integrated circuit doubles about every two years, which thereby reduces the costs involved in manufacturing consumer electronics products. The costs of mobile phones, smartphones, tablets, and related products have significantly reduced and thereby allowed the mobiles value added service providers to expand their consumer base to include the middle and lower middle communities of the society. Thus, the growing smartphone using population is poised to induce considerate market revenue in the global mobile value added services.
· Heavy Penetration of the Internet: The presence of multiple vendors in the market has augmented competition among Internet providers. This, in turn, has reduced the overall Internet costs and increased the potential consumer base. According to the Global Systems for Mobile Association, great opportunities are still available in the global mobile internet market. The market is expected to add around 1.75 billion new users over the next few years and reach a total of five billion mobile internet users by 2025. With such an increase in the demand for mobile internet, the mobile value added service providers are anticipated to harness considerable revenue in the near future.
Mobile Value Added Services Market Trends:
· 5G: Advances in technology is expected to escort the fifth generation or 5G, which is still a nascent technology in the global telecommunications industry. Adoption of 5G is expected to add billions of new, secure and instantaneous connections. With a growing population and increasing demand for smartphones, the emerging 5G technology is expected to entice a huge volume of people, and lead to increased revenues for the global mobile value added services market.
· Over-the-top (OTT) media services: Internet-based video and music streaming to the viewer directly over the Internet is the most prevalent trend in the current media market. Services such as Netflix, Hotstar, Amazon Video, and Hulu are some of the most popular OTT platforms among the millennial population, where customers can avail monthly, quarterly, or yearly services as per their discretion. The ease of access to exciting and fresh content at feasible costs is driving the OTT market growth which is a part of mobile value added service.
· Life-time Services: A few of the mobile value added service providers are providing life-long services to their customers. These include free up-gradation of services and life-time assistance services. This marketing strategy by the MVAS companies are highly effective in developing economies such as the India and Africa.
Mobile Value Added Services Market Key Players Perspective
The key players in the market are leveraging upon the rapidly growing mobile subscribers on a daily basis, also the increasing population is also playing an important role in the MVAS market growth. The key players involved in the mobile value added services (MVAS) market are Comverse Technology, Mozat, Tapjoy, Onmobile Global Limited, Lumata Digital, Google LLC, Apple Inc., Comviva Technologies, AT&T Inc., Vodafone Group plc, KongZhong Corp, One97 Communications Limited, and InMobi.
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