Mobile Value-added Services Market Analysis and Forecast to 2030 - By Service Type, Deployment Mode, Enterprise Size (Small & Medium Enterprises and Large Enterprises), End User and Geography

According to Stratistics MRC, the Global Mobile Value-added Services (MVAS) Market is accounted for $1155.2 billion in 2024 and is expected to reach $2785.5 billion by 2030 growing at a CAGR of 15.8% during the forecast period. Mobile value-added services (MVAS) refer to non-core services offered by mobile network operators that enhance the user experience beyond voice communication and basic messaging. These services include mobile banking, entertainment, location-based services, mobile advertising, and more. MVAS leverages the mobile network infrastructure to deliver diverse functionalities, catering to consumer demands for convenience, entertainment, productivity, and information access on mobile devices.

According to the GSMA, there were over 6.6 billion unique mobile phone users globally in 2023, with smartphones accounting for over 80% of new connections. This growing smartphone user base creates a strong foundation for MVAS adoption.

Market Dynamics:

Driver:

Increasing smartphone penetration

The rapid growth in smartphone adoption worldwide is a key driver for the mobile value-added services market. As more consumers gain access to smartphones, there is increased demand for mobile apps, content, and services beyond basic voice and messaging. Smartphones enable rich multimedia experiences and advanced functionalities that mobile value-added services can leverage. The expanding smartphone user base, especially in emerging markets, creates a larger addressable market for MVAS providers to offer innovative services like mobile payments, location-based services, and mobile advertising. This growing smartphone penetration fuels the development and consumption of diverse mobile value-added services.

Restraint:

Device compatibility issues

The wide variety of mobile devices with different operating systems, screen sizes, and hardware capabilities makes it difficult to develop and deliver consistent MVAS experiences across all platforms. Ensuring compatibility with both high-end smartphones and low-end feature phones requires additional development efforts and costs. Compatibility issues can lead to poor user experiences, limiting adoption of certain value-added services. The need to support multiple device types and OS versions also increases complexity for MVAS providers, potentially slowing innovation and time-to-market for new services.

Opportunity:

Expansion of IOT ecosystem

The growing Internet of Things (IoT) ecosystem presents a significant opportunity for the mobile value-added services market. As more devices become connected, there is increased potential for innovative MVAS that leverage IoT data and capabilities. Mobile value-added services can play a crucial role in managing, monitoring, and controlling IoT devices through smartphone apps. The integration of MVAS with IoT enables new use cases in areas like smart homes, connected cars, and industrial IoT. This convergence allows MVAS providers to expand their offerings beyond traditional mobile services and tap into the rapidly growing IoT market, creating new revenue streams and enhancing user experiences.

Threat:

Security and privacy concerns

Security and privacy concerns pose a significant threat to the mobile value-added services market. As MVAS often involve handling sensitive user data, including personal information and financial details, there is an increased risk of data breaches and unauthorized access. Users may be hesitant to adopt certain value-added services if they perceive potential security vulnerabilities. Stringent data protection regulations and compliance requirements can also increase operational costs for MVAS providers. The need to continuously update security measures to combat evolving cyber threats adds complexity to service development and maintenance.

Covid-19 Impact:

The COVID-19 pandemic accelerated digital transformation and increased reliance on mobile services. This led to higher demand for certain MVAS like mobile payments, remote work tools, and entertainment services. However, economic uncertainties also impacted consumer spending on non-essential services. The pandemic highlighted the importance of mobile connectivity and value-added services in maintaining business continuity and social connections during lockdowns, potentially driving long-term MVAS adoption.

The messaging services segment is expected to be the largest during the forecast period

The messaging services segment is estimated to dominate the mobile value-added services market due to their widespread adoption and versatility. Messaging services offer a reliable and cost-effective means of communication, making them popular across all demographics. The integration of advanced features like rich media sharing, chatbots, and business messaging within messaging platforms further enhances their value proposition. As messaging evolves to include more interactive and transactional capabilities, it continues to be a core component of mobile value-added services, driving significant revenue for service providers.

The small & medium enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period

The SME segment is poised for rapid growth in the mobile value-added services market due to increasing digitalization efforts among smaller businesses. SMEs are recognizing the potential of mobile services to enhance their operations, customer engagement, and competitiveness. Mobile value-added services offer cost-effective solutions for SMEs to implement mobile marketing, customer relationship management, and mobile payment systems. The flexibility and scalability of MVAS allow SMEs to adopt advanced technologies without significant infrastructure investments. As more SMEs embrace digital transformation, the demand for tailored mobile value-added services in this segment is expected to surge, driving high growth rates.

Region with largest share:

Asia Pacific is set to maintain its dominance in the mobile value-added services market, driven by its large and growing mobile user base, rapid smartphone adoption, and digital-first economies. Countries like China and India offer massive markets with increasing mobile internet penetration. The region's tech-savvy population and mobile-centric culture create a high demand for innovative MVAS. Strong investments in 5G infrastructure and emerging technologies further boost the market.

Region with highest CAGR:

Asia Pacific is expected to experience the highest CAGR in the mobile value-added services market, fueled by several factors. The region's emerging economies are witnessing rapid urbanization and rising disposable incomes, leading to increased spending on mobile services. The ongoing digital transformation across industries is driving demand for business-oriented MVAS. Governments' push for digital initiatives and smart city projects creates opportunities for innovative mobile services. These factors, combined with improving mobile infrastructure and increasing smartphone affordability, position Asia Pacific for accelerated growth in the MVAS market.

Key players in the market

Some of the key players in Mobile Value-added Services (MVAS) market include AT&T, Apple, Mahindra Comviva, OnMobile, Tencent, Kongzhong Corporation, MyRepublic Limited, Singtel, Verizon, China Telecom, China Unicom, China Mobile, Reliance Jio, Bharti Airtel, Vodafone Idea, InMobi Pte. Ltd and Google.

Key Developments:

In May 2024, Apple announced new features for its iMessage service, including enhanced multimedia messaging and integration with Apple Pay for seamless mobile transactions. These updates are part of Apple's strategy to strengthen its MVAS portfolio.

In April 2024, Mahindra Comviva launched a new version of its mobiquity(R) Money platform, which includes advanced features for mobile banking and payments. The platform aims to enhance financial inclusion by providing secure and convenient mobile financial services.

In March 2024, OnMobile introduced ONMO, a cloud gaming platform that leverages AI and cloud streaming technologies. This platform is designed to offer a rich gaming experience on mobile devices, aligning with the growing demand for mobile entertainment services.

Service Types Covered:

• Messaging Services
• Location-Based Services
• Mobile Email
• Mobile Money
• Mobile Advertising
• Mobile Infotainment
• Other Service Types

Deployment Modes Covered:

• Cloud-based
• On-premises
• Hybrid

Enterprise Sizes Covered:

• Small & Medium Enterprises (SMEs)
• Large Enterprises

End Users Covered:

• IT & Telecom
• Banking, Financial Services & Insurance (BFSI)
• Healthcare
• Education
• Media & Entertainment
• Manufacturing
• Retail & E-commerce
• Government & Public Sector
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances