Mobile VAS has now become an essential component of the mobile telecommunications industry. Mobile VAS includes services above simple voice and data connectivity into everything beyond music, gaming, mobile payments, and location-based services. VAS has completely transformed the way people relate to their mobile handheld devices. In that regard, we will define the key factors driving the VAS market, the size and growth of the market, key players, and technological advancement in this blog post.

Market Size and Growth

The mobile value added services (VAS) market size is projected to reach US$ 2,640.9 billion by 2031 from US$ 869.4 billion in 2023. The market is expected to register a CAGR of 14.90% during 2023–2031.

The key growth drivers are as follows:

  • Increasing Smartphone Penetration: High smartphone subscribers have resulted in a massive user base for mobile VAS, with a wide scope for service providers for delivering several value-added services.
  • Increased Internet Penetration: The rising number of broadband networks and low-price internet plans also provided consumers with easier access to mobile VAS, resulting in a positive impact on the growth of the market.
  • High Variability of Offered Services: The difference in the range of services offered by the mobile VAS for different consumer preferences also helps expand the market and increase its growth.

Key Market Trends

  • Content-based VAS: The consumer's surging demand for music, videos, and games spurred such content-based VAS distribution and subscription services.
  • Mobile Payments: Mobile wallet and QR code payment services are increasing in popularity as they provide more convenience and security than traditional methods.
  • Location-Based Services: Several location-based services including location-based technologies such as navigation, local search, and personalized recommendation rose like rockets.

IoT Integration: The introduction of IoT devices in mobile VAS is bringing along innovation-based services, such as smart home control and applications for wearable devices.

Key Players and Market Share

The market of mobile VAS is dominated by a few major companies,

  • EITC
  • Airtel Robi Axiata Limited
  • Mobily
  • MTN CAMEROON
  • Numeko Bili im Teknoloji

As these players are well-set in the market, they offer a diversity of VAS to their customers with well-established ecosystems and a huge customer base.

Technological Advancements

  • 5G Connectivity: High-speed data and low latency are promoted through 5G network rollouts, therefore making the development of more complex VAS possible, such as AR and VR.
  • Artificial Intelligence (AI): AI-based VAS enhances the customer experience and helps improve service delivery efficiency through personalized recommendations and also chatbots.
  • Cloud Computing: Cloud-based VAS presents the opportunity for scalable and flexible service delivery with resultant lower costs and improved performance.
  • Blockchain Technology: Blockchain is researched for secure and transparent transactions in VAS, especially digital content and payment.

Conclusion

The mobile VAS market will still follow the trend of growth upwards, based on technological advancements, increased penetration of smartphones, and growth in demand for digital services. With those evolutions, leaders and significant players in this arena will have to put more emphasis on innovation, customization, and integration with other digital services which will help them be ahead in this competition.

Mobile Value Added Services (VAS) Market FAQs

1. What are the major growth drivers of the Mobile VAS Market?

Answer: Growth is driven by increasing smartphone penetration, growing data usage, and demand for personal service-based services in the entertainment, finance, and communication sectors.

2. How does Mobile VAS create engagement opportunities for businesses with customers?

Answer: -Mobile VAS provides business solutions, such as targeted marketing, live interactive dialogue with customers in real-time, and loyalty schemes that create a better bond with the customers increasing customer retention.

3. What is the role of technology in influencing the Mobile VAS offerings?

Answer: -Advancements in AI, machine learning, and big data analytics will continue to propel the smarter, more adaptive VAS solution design to user preferences and behavior.

4. How has COVID-19 impacted the Mobile VAS Market?

Answer: -The pandemic accelerated adoption towards more digital services, therefore causing greater demands in mobile entertainment, e-learning, and working-from-home solutions and, therefore boosting the VAS market immensely.

5. What are the regulatory problems of the Mobile VAS Market?

Answer: -regulatory scrutiny about data privacy and security issues haunts the market, forcing service providers to employ appropriate compliance arrangements without impairing consumers' trust.

Published By

Shubham Choudhry

Senior Market Research Expert at The Insight Partners