Mobile Value-Added Services (MVAS) Market size is set to grow by USD 1.00 trillion from 2024-2028, Rapid increase in smartphone penetration to boost the market growth, Technavio

NEW YORK, July 15, 2024 /PRNewswire/ -- The global mobile value-added services (MVAS) market  size is estimated to grow by USD 1.00 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 18.33%  during the forecast period.  Rapid increase in smartphone penetration is driving market growth, with a trend towards increasing popularity of ar in location-based games. However, constraints in content monetization  poses a challenge. Key market players include Alphabet Inc., America Movil SAB de CV, Apple Inc., AT and T Inc., Call Up, Cisco Systems Inc., Comviva Technologies Ltd., Huawei Technologies Co., Ltd., Infosys Ltd., InMobi Pte. Ltd., International Business Machines Corp., Monty Mobile, MyRepublic Ltd, OnMobile Global Ltd., Reliance Industries Ltd., Samsung Electronics Co. Ltd., Singapore Telecommunications Ltd., Telcovas Solutions and Services Pvt Ltd, Telefonaktiebolaget LM Ericsson, and Vodafone Group Plc.

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Key Market Trends Fueling Growth

The adoption of Augmented Reality (AR) in location-based games is on the rise, with virtual content being overlaid onto real-world surroundings and objects. These games, accessible via smartphones and wearables like smart glasses, have gained popularity due to their platform flexibility. Following the success of Pokemon Go, location-based AR games have attracted game developers. Google's March 2018 announcement of the Google Maps Platform to enhance location-based gameplay further boosts the quality of offerings. IMAX Corporation's partnership with Tribeca Enterprises LLC for immersive movie experiences showcases the potential of AR in storytelling. In July 2021, XRSpace introduced a new VR platform with hand tracking control, 5G connectivity, and a strong optical system. The merging of AR with Location-Based Services (LBS) is expected to attract investments from major Mobile Value-Added Services (MVAS) providers like Alphabet and Apple, fueling the mobile games segment and the growth of the MVAS market. 

The Mobile Value-Added Services (MVAS) market is witnessing significant growth with the increasing usage of mobile phones and digitalization. Services like MMS, mobile email, mobile money, location-based, mobile advertising, mobile infotainment, and mobile commerce are trending. Technology advancements in mobile phones, smartphones, and mobile internet have made these services more accessible. MVA services include mobile games, music, wallets, mobile commerce, advertising, email and IM, mobile banking, ticketing, and coupons. Network operators and handset manufacturers are collaborating with technology companies like OnMobile, Comverse, InMobi, and consulting firms to offer secure connections and consumer authentication. The telecom sector is investing in MVA services to enhance ARPU and cater to the needs of enterprises and consumers. However, privacy concerns remain a challenge. Government efforts to regulate these services and ensure secure connections are essential. Mobile applications and the mobile web are driving the growth of MVA services, making them brand-new commodities in the digital world. 

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Market Challenges

•         Mobile service providers face a significant challenge in generating revenue due to the decline in voice call tariffs and the rise of free voice and video calling services from OTT content providers. To compensate for this loss, providers aim to monetize OTT content through subscription-based models. However, this shift may present challenges as customers have grown accustomed to free content. Retaining subscribers requires continuous content improvement and innovation. Vendors like Reliance Industries and AT&T are considering this transition, but the success of subscription-based Mobile Value-Added Services (MVAS) depends on the quality and value proposition offered to customers. Thus, the growth of the global MVAS market may be hindered by the need to monetize content to replace voice call revenue.

•         Mobile Value-Added Services (MVAS) market is witnessing significant growth due to the increasing usage of smartphones and mobile internet. Network operators and handset manufacturers are key players in this market, collaborating to offer innovative MVA services like mobile games, music, wallets, commerce, advertising, email and IM, mobile banking, ticketing, coupons, and money transfer. However, complex implementation and secure connections are major challenges. Telecom operators and service providers are investing in consulting to overcome these hurdles. Digitalization and technology advancements have led to brand-new commodities in MVA services, benefiting enterprises and consumers alike. Government efforts towards promoting secure connections and consumer authentication further boost the market. Market participants engage in strategic activities to stay competitive in this dynamic industry. MVA services span various verticals including mobile commerce, mobile advertising, mobile banking, and mobile ticketing.

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Segment Overview 

This mobile value-added services (mvas) market report extensively covers market segmentation by

1. Product 
• 1.1 Mobile advertising
• 1.2 Mobile games
• 1.3 Mobile music and video streaming
• 1.4 Mobile money and m-commerce
• 1.5 Mobile publications
2. End-user 
• 2.1 Large enterprises
• 2.2 Small and medium enterprises
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Mobile advertising-  The Mobile Value-Added Services (MVAS) market encompasses various segments, with mobile advertising being a significant revenue generator. This segment includes income from SMS and MMS ads, push messages, in-app advertising, and image text and banner ads. Major tech companies like Alphabet and Apple provide optimized mobile advertising platforms for smaller screens. Advertisements are tailored to consumer data, such as browsing patterns, location, and shopping habits. In-app advertising, particularly in developed markets, led the mobile advertising segment in 2023. Video ads, placed in OTT apps and social media, are increasingly popular due to mobile broadband penetration. However, developing markets like Africa and South America still rely on SMS and MMS ads, with growth in mobile internet expected to shift focus towards internet-based advertising. The expansion of mobile games, mobile banking, and m-commerce may slightly decrease mobile advertising's market share during the forecast period.

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Research Analysis

The Mobile Value-Added Services (MVAS) market encompasses a range of applications and services that enhance the functionality of mobile phones. These include Multimedia Messaging Service (MMS) for sending multimedia messages, Mobile email for accessing email on the go, Mobile money for financial transactions, Location-based services for finding directions and information, Mobile advertising for targeted marketing, Mobile infotainment for entertainment, and Mobile commerce for buying and selling goods and services. Technology plays a crucial role in the MVAS market, with Augmented Reality (AR) and Virtual Reality (VR) technologies driving innovation. The market is growing rapidly, driven by the proliferation of mobile phones, smartphones, and mobile internet. However, concerns over privacy and security remain, as well as the complex implementation of some services. The Telecom sector, Network operators, Handset manufacturers, and Mobile application developers are key players in the MVAS market. Services such as Mobile banking, Mobile ticketing, Mobile coupons, Mobile games, Mobile music, Mobile wallets, and Mobile advertising are becoming increasingly popular. The Average Revenue Per User (ARPU) for MVAS is a key metric for tracking the financial performance of the market. The MVAS market is expected to continue growing, driven by the increasing use of mobile phones for various purposes, the growth of mobile internet, and the development of new and innovative services.

The Mobile Value-Added Services (MVAS) market encompasses a range of offerings including MMS, mobile email, mobile money, location-based services, mobile advertising, mobile infotainment, and more. These services are delivered to mobile phones, including smartphones, through technology provided by telecom sector players such as network operators and handset manufacturers. MVAS have become essential brandnew commodities in the digitalization era, driving revenue growth for telecom operators and service providers through increased ARPU. MVA services include mobile games, music, wallets, commerce, advertising, email and IM, mobile banking, ticketing, coupons, and money transfer. Technology advancements have enabled secure connections, consumer authentication, and complex implementation of these services. However, privacy concerns remain a challenge. OnMobile, Comverse, InMobi, and other market participants engage in strategic activities to offer innovative MVA services to enterprises and consumers. Government efforts to regulate and promote digital transactions have further fueled market growth. Mobile commerce, mobile applications, and the mobile web continue to drive significant opportunities in this space.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Mobile Advertising
• Mobile Games
• Mobile Music And Video Streaming
• Mobile Money And M-commerce
• Mobile Publications
• End-user
• Large Enterprises
• Small And Medium Enterprises
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio