Mobile Value Added Services Market Size, Share, and Industry Analysis, By Solution (Short Messaging Service (SMS), Location Services, Multimedia Messaging Service (MMS), Mobile Email & IM, Mobile Money, Mobile Infotainment, Mobile Advertising, and Others); By Enterprise Type (Large Enterprises and Small and Medium Enterprises (SMEs); By Vertical (Healthcare, Government, Media and Entertainment, Retail, Education, Telecom and IT, Others), and Regional Forecast, 2024-2032

Mobile services provided by mobile phone operators, in addition to voice communication services, are called mobile value-added services (MVAS). Mobile subscribers can send SMS, mobile email, Multimedia Messaging Services (MMS), instant messaging, mobile money, and location-based communication services for a variety of non-voice purposes. For instance, according to Ericsson's mobility report, the number of mobile subscriptions grew by 8.3 billion, with a net addition of 40 million subscriptions in 2023. The number of mobile subscriptions has increased and the market for value-added services has grown significantly.

Carriers sell mobile value-added services as premium features or additions to required services. These services typically do more than extend the functionality of product package. These are used to improve the management and operational efficiency of a wide range of services. Additionally, it is beneficial for both service providers and customers as it enhances end-user functionality while maintaining improved analytics and data for commercial use.

The mobile value-added services market is driven by the increasing number of smartphone and tablet users, usage of mobile applications and mobile web, mobile internet usage, and increasing return on marketing spend, among others. Several providers have increased competition among internet service providers.

Today, people use smartphones to check various applications, email, browse the internet, and interact on social media. To improve user experience, mobile value-added services are services offered to their customers by telecommunications service providers. The price of mobile phones, tablets, smartphones, and related products has fallen significantly. For instance,

• In 2023, Union Finance Minister Nirmala Sitharaman announced a reduction in customs duties on several products and services to bring down the prices of electronics in the near future. Therefore, smartphones may become cheaper next year.

This allows mobile value-added service companies to expand their customer base by attracting middle-class and lower-middle-class people.

Impact of Generative AI on the Mobile Value-Added Services Market

Mobile value-added services (mVAS) have greatly profited from recent artificial intelligence (AI) advancements. AI has significantly improved communications mVAS services, increasing customer experience and operational efficiency. The AI-powered recommendation engine analyzes user behaviour and preferences and suggests relevant mVAS content and services. This drives upsell opportunities and encourages users to explore and subscribe to additional services. AI can optimize resource allocation by forecasting demand for precise mVAS services and allocating resources accordingly. This makes efficient use of network resources and reduces operational costs. Therefore, the above factors create huge opportunities for market growth.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on the Global Mobile Value-Added Services Market


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis By Enterprise Type

The mobile-added services market is segmented into large enterprises and small and medium enterprises (SMEs). The large enterprises segment dominates the market as mobile phones spread worldwide and the demand for mobile value-added services among large enterprises is rapidly increasing. Large enterprises are using mobile value-added services to reach customers that were previously inaccessible due to the lack of physical infrastructure and the high cost of serving in remote locations. In addition, large companies such as banks, healthcare providers, and consumer electronics manufacturers use mobile applications and other value-added services as a channel to provide customers with easy access to services and improve productivity and efficiency. For instance,

• According to industry experts, in 2023, around 87% of Indian adults stated their aspiration to do all their banking on a banking application and smartphone.

These are expected to be the major factors influencing the mobile value-added services market size during the forecast period.

Regional Analysis

The global mobile value-added services market has been studied across five regions: North America, Europe,  South America, the Middle East & Africa, and Asia Pacific. North America commands the highest share of the market due to the rising adoption of cloud-based solutions, increasing demand for smartphones, and the rapid adoption of technology.   

The Asia Pacific region demonstrates the highest CAGR in the market. The region has a large number of mobile phone users and 5G phone adoption is mainly used for various entertainment purposes such as mobile banking, news, and movies. For instance,

• According to Ericsson's report in 2023, around 31 million users have adopted 5G phones by 2023, which creates a great opportunity for the value-added service market.

Furthermore, the Asia Pacific market is expected to grow rapidly due to factors such as the increasing number of companies and industries introducing various mobile value-added services and the booming retail, e-commerce, IT and communications sectors in the region. The market share of mobile value-added services in the region is determined by the presence of a large number of mobile value-added service providers serving organizations and vertical markets and the advancement of value-added service technology.

Distribution of the Global Mobile Value-Added Services Market, By Region

• North America – 37%


• South America – 6%


• Europe – 27%


• Middle East and Africa – 9%


• Asia Pacific – 21%

Key Players Covered

The report provides the profiles of key players such as Huawei Investment & Holding Co. Ltd., Comviva Technologies, Apple, Inc., Reliance Industries Ltd., One97 Communications, OnMobile Global Limited, Samsung Electronics Co. Ltd., InMobi, Kongzhong Corp., Vodafone Group plc., Mobily, Thales, Baidu, Inc., and Amazon.com, Inc.

Key Industry Developments

March 2023:  Lusis Payments and Mastercard, a global provider of payments technology and software, partnered to offer a wide range of Mastercard professional services to processors, issuers, and other payment technology providers over a single API connection. To address this difficulty, Mastercard Direct Services Access (DSA) delivers a single point of connection to a comprehensive range of value-added services that are digitally deployed across the payments ecosystem.