Shifting Trend For Multipurpose Mobile Devices
With the increasing penetration of smartphones and the rapid usage of the device amongst the users, the demand for value added services is growing in the users of the mobile phones who have a great need for connectivity and portability. Consumers have explored the device by not just limiting its application to phone calls, but also have turned the mobile devices into a multipurpose device. Owing to such a factor, users are now able to access apps, read the news, surf the web, check e-mails on the go and have great social media interaction. Moreover, with the growing demand for faster telecommunication services and high rate of internet penetration, the demand for value added services is anticipated to multiply at a rapid pace. Additionally, numerous benefits available with the arena of mobile value added services is also anticipated to contribute significantly towards the growth of the global mobile value added services market.
Growing Demand for Value Based Content
There is a rising demand amongst consumers for the study of various informative contents while on the go. Advancement in smartphone technology, advancements in mobile networks, and the increasing adoption of 5G mobile network technology, all of these factors have helped users access various type of contents as per their need. The contents can be accessed through various definitive mediums, such as, videos, audios, texts, and others. Owing to such a factor, content developers in association with mobile value added services providers are developing content so as to reach the users in its own definitive way. Moreover, with users spending more time for commutation, and the convenience of handheld devices being able to access to any data around the globe is also helping to raise the demand for large quantity of quality contents. The demand for value based content amongst consumers, which is streamlined as a value added service revenue generating model, is anticipated to drive the growth of the global mobile value added services market.
The global mobile VAS market is thriving on the back of growing mobile economy, which includes the growing mobile services industry, rising internet penetration, and rising number of individuals accessing the internet among others. According to GSM Association (GSMA), by the end of 2018, 5.1 billion people around the world subscribed to mobile services, which accounted for 67% of the global population. Further, it also stated that a total of 1 billion new subscribers have been added in the four years since 2013, representing an average annual growth rate of 5%. Furthermore, it also anticipated that around 710 million people are expected to subscribe to mobile services over the next seven years from 2019. GSMA also stated that in the year 2018, mobile technologies and services generated USD 3.9 trillion of economic value, which was around 4.6% of GDP globally, and is further anticipated to reach a contribution of USD 4.8 trillion by 2023, which is around 4.8% of the global GDP contribution. CLICK TO DOWNLOAD SAMPLE REPORT
The market is anticipated to record a CAGR of around 10.24% throughout the forecast period, 2019-2027. The global mobile VAS market is segmented by application into mobile browsing, location based services, entertainment services, mobile texting and others, out of which, entertainment services segment is anticipated to hold the largest market share. The entertainment services provided in the smartphones have become a key platform for the digital advertisement industry. The entertainment apps collect consumer data, which in turn helps the advertisers to customize their ad preferences for the consumers. Moreover, these apps also provide a source of revenue generation by the means of customized advertisements being placed in the apps.
Additionally, the global digital gaming market is anticipated to record a CAGR of around 16.5% over the forecast period (2019-2027). The spur in the digital gaming industry is also anticipated to impact positively towards the growth of the mobile digital gaming sub-segment of the entertainment services segment. All of these factors together are anticipated to drive the growth of the segment in the global mobile VAS market.
Concern For Data Privacy
Data privacy concerns observed in the mobile value added services ecosystem, which might limit the users and restrict from using these services is anticipated to act as a key restraint to the growth of the global mobile VAS market during the forecast period.
Our in-depth analysis of the global mobile VAS market includes the following segments:
By End User
On the basis of regional analysis, the global mobile VAS market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Europe is expected to hold largest market share on the back of growing mobile engagement levels in the region, especially with countries such as Finland and Germany, where the engagement levels are anticipated to multiply at a rapid pace. Moreover, growing mobile data usage in the region is also anticipated to contribute significantly towards the growth of the market in the region. According to the statistics by the GSMA, global mobile engagement index (GMEI) in Europe was recorded with an overall score of 4.5 in a scale of 0-10. Additionally, Finland recorded a score of 5.6 and the third highest rank globally, and Germany recorded a score of 4.2 with global ranking 17 in the global mobile engagement index. Sweden recorded the fourth highest ranking with a score of 5.4.
Additionally, Asia Pacific is anticipated to hold a significant market share on the back of growing mobile data usage in the region, spurred by increased smartphone adoption and availability of affordable high speed network. According to GSMA, mobile data usage in Asia Pacific is anticipated to grow at 7.9x times in-between 2018 and 2024.
The global mobile VAS market is further classified on the basis of region as follows:
Aakash Educational Services Ltd. (AESL) have announced the strategic tie-up with Samsung India to offer value added services to students so as to enable and enhance digital learning.
Telenor Group have released its financial results for the third quarter 2019 and stated that that group’s performance in Norway, in terms of mobile subscription and traffic revenues, grew by 3% owing to continued upselling to larger data bundles and increased demand for value added services.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.