The VAS market is a dynamic and fast-growing sector. In 2021, the market size was valued at USD 251.9 billion and is projected to reach USD 733.83 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 14.30% during the forecast period (2024 – 2029). This growth is driven by the increasing number of VAS subscribers and the rising demand for smartphones, which serve as the primary medium for these services.
Key Drivers of the VAS Industry
Increasing Smartphone Penetration
One of the primary drivers of the VAS market is the global proliferation of smartphones. As more people adopt smartphones, the demand for advanced mobile services continues to rise. These devices offer a platform for a multitude of applications, from mobile banking to entertainment, all of which are integral components of VAS.
Technological Advancements
The advent of 5G technology is set to revolutionize the VAS landscape. With faster, more reliable connections, 5G enables a host of new applications and services that were previously unattainable. For example, enhanced mobile gaming experiences, real-time video streaming, and advanced telehealth services are all made possible with 5G.
Growing Demand for Mobile Applications
As digitalization spreads and consumer technology adoption soars, the use of mobile applications has become commonplace. This surge in app usage is beneficial for the VAS market, providing opportunities for telecom operators to offer new and innovative services to their customers.
VAS Market Segmentation
The VAS market is diverse, encompassing various types of services, products, and applications. Understanding this segmentation is key to grasping the market’s full potential.
By Type
- Short Message Service (SMS)
- Voice
- Data and Value-Added Services (VAS)
SMS remains a popular communication medium due to its simplicity and wide reach. Meanwhile, voice and data services continue to evolve, offering enhanced functionality and user engagement.
By Product
- Mobile Games
- Mobile Music
- Mobile Wallets
- Mobile Commerce
- Mobile Advertising
- Email and Instant Messaging (IM)
Among these, mobile wallets are experiencing rapid growth. They provide users with convenient financial services, including banking, ticketing, and money transfers, all through their mobile devices.
By Store
- Google Play
- App Store (iOS)
- Others
Google Play dominates the market, followed closely by the App Store. Both platforms are essential for distributing VAS applications to a global audience.
By Verticals
- BFSI (Banking, Financial Services, and Insurance)
- IT & Telecommunication
- Media & Entertainment
- Retail
- Healthcare Government
- Others
The healthcare sector has seen significant growth in VAS usage, leveraging mobile technology to deliver better services and information to patients.
Regional Insights
North America
North America leads the global VAS market, with a valuation of USD 110.58 billion in 2021. The region benefits from advanced telecommunication infrastructure and a high rate of smartphone adoption.
Europe
Europe is another major player in the VAS market, with a strong subscriber base across various economic sectors. The region’s growing demand for mobile services in retail, BFSI, and IT further fuels market growth.
Asia-Pacific
Asia-Pacific is expected to witness the fastest growth in the VAS market. The region’s large population and increasing smartphone penetration make it a hotspot for mobile services. Countries like China, India, and Japan are leading this growth.
Top Players in the VAS Market
The Value-Added Services (VAS) market is a broad landscape encompassing a variety of service providers. Here are some of the top players across the globe:
- Tech giants: These companies not only provide the mobile operating systems (OS) that power most smartphones but also offer a range of VAS themselves.
- Google LLC: With its Android OS dominating the mobile market, Google offers a suite of VAS ranging from Google Maps to Google Pay.
- Apple Inc.: Apple’s iOS ecosystem, coupled with services like Apple Pay and the App Store, positions them as a major player.
- Telecom operators: These traditional players are increasingly offering VAS beyond just basic connectivity
- Vodafone Group Plc: A multinational telecom conglomerate, Vodafone provides a variety of VAS including mobile TV, music streaming, and cloud storage.
- Bharti Airtel Limited: An Indian telecommunications services company, Airtel offers VAS such as mobile recharge, bill payments, and entertainment services.
- AT&T Inc.: An American multinational telecommunication holding company, AT&T offers VAS including DirecTV Now (streaming service) and mobile security solutions.
- VAS specialists: These companies focus specifically on developing and delivering VAS to mobile operators and enterprises.
- OnMobile: An Indian company that provides VAS solutions including mobile marketing, music streaming, and enterprise mobility solutions.
- Comviva Technologies Limited: A global leader in providing mobile solutions, with a comprehensive portfolio of VAS across various categories.
Recent Developments
- Allot Ltd. has been at the forefront of providing network intelligence and security solutions, enhancing value for over 1000 businesses worldwide.
- Weiyouxin Technology secured funding to enhance its SaaS software operating services, indicating a growing interest in VAS development.
Conclusion
The VAS market is a vibrant and rapidly evolving sector with immense potential. As technology advances and consumer demand grows, VAS providers must innovate and adapt to stay competitive. By addressing challenges and leveraging growth opportunities, the industry can continue to thrive and deliver value to users worldwide.