Thursday, May 23, 2024

    mVAS Market Growing at 14.9% and will hit $3.5bn by 2034

    Progress in mobile technology and growing demand for personalised experiences fostering growth in for mobile value added services, says FactMR study

    The global mobile value added service (mVAS) market is estimated to be worth US$880.4m in 2024 and is likely to grow at a 14.9% CAGR through 2034. The market is expected to surpass a valuation of US$3.5bn by 2034.

    For more insights into the market, request a sample of this report here

    What’s driving mVAS growth?

    According to data from FactMR, reduced prices of smartphones due to intense competition among manufacturers have raised the adoption of mobile phones in emerging countries filled with lower-income populations are driving the growth of mVAS globally.

    Technological advancements including virtual reality (VR), augmented reality (AR) and high-definition video streaming are also critical for growing the market.

    Enhanced connectivity, says the report, enables businesses to develop and offer better and more interactive mVAS offerings that elevate user experiences, which in turn is also driving up use.

    The increasing use of mVAS by enterprises to streamline communication with clients and customers is also propelling market growth. Furthermore, mobile apps and services facilitate project management, boost employee collaboration and enable data analysis.

    The global market

    East Asia is projected to account for a share of 36.5% in 2024. By 2034, the region is anticipated to acquire a market share of 38.4%. The regional market value is expected to reach US$1.35bn by 2034. North America’s market is estimated to attain a value of US$1.02bn by 2034. The region is projected to be led by the United States.

    Underexploited countries such as South Korea and Mexico are also forecast to show a high adoption rate for mobile value added services. Leading players can focus on their expansion efforts in these economies.

    Competitive landscape

    Leading market players are emphasising the development of compact and cost-effective mobile value added services to gain more customers. Furthermore, active players in the mobile value added service market are attempting to attract additional customers.

    In addition to this, leading players in the market are focusing on inorganic growth strategies like strategic mergers and acquisitions, and collaborations with technology partners to enhance their offerings and reach.

    In 2023, Google unveiled a new range of AI-powered features in its translation application at its Paris virtual event. These new features consist of more contextual translation options with examples and descriptions, an augmented-reality translation feature via Google Lens, and a redesigned app for Apple’s iOS operating system.

    Deutsche Telekom, Ericsson and Samsung, in June 2021 successfully executed a 5G end-to-end (E2E) network slicing pilot. This trial was conducted on Samsung S21 commercial equipment, which is combined with Virtual Reality headset at Bonn lab of Deutsche Telekom.

    The network provider’s market share is poised to ascend, projected to increase from 62.9% in 2024 to 63.3% by 2034, with an impressive Compound Annual Growth Rate (CAGR) of 14.9%. The segment is forecasted to achieve a substantial market valuation of US$2.2bn by 2034.

    This growth is fuelled by the escalating adoption of mVAS by network providers, leveraging it to fortify customer relationships, reduce acquisition costs and mitigate customer churn rates, contributing significantly to the segment’s expansion.

    Simultaneously, the enterprise segment is expected to experience robust growth with a CAGR of 14.6% through 2034. The surge is driven by a growing number of enterprises integrating mVAS to enhance operational efficiency and customer engagement. Utilising mVAS, enterprises seek to improve communication, receive real-time updates, personalized offers, and transaction notifications.

    Moreover, these services play a pivotal role in optimizing internal functions, project management, fostering employee collaboration, and facilitating data analysis, says the study.

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