Affordability of smartphones, increasing Internet penetration, and growing demand for entertainment services are expected to drive the market.
Infoholic Research LLP, a global market research and consulting organization, has published a study titled “Mobile Value-added Services in Cloud Market: Global Drivers, Restraints, Opportunities, Trends, and Forecasts up to 2023” (January 2018).
According to Infoholic Research,, in the past decade, digital services have transformed the way several businesses work. The emergence of public cloud services has resulted in higher adoption rates in recent years, and it is also disrupting the mobile VAS marketplace. The telecom companies across the globe are witnessing a constant growth in the adoption of smartphones and mobile Internet services, which has resulted in the creation of Cloud-MVAS in recent years.
The global communication industry is booming in recent years with 35% of the smartphones penetration in 2016. It is expected that mobile devices will account for 73% of the Internet consumption in 2018. The users are mostly accessing content, socializing, buying, and working within their enterprises using mobile phones. The adoption of smartphones and Internet services has resulted in the increased use of mobile apps, which is posting tremendous opportunities through Cloud-MVAS.
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The traditional Communication Service Providers (CSPs) are losing their presence in the market due to the on-going disruptiveness in MVAS offerings along with the increasing role of third-party OTT players. Thus, the users are moving toward Digital Service Providers (DSPs), which has reached a pivotal position in the industry digitization. Several telecom companies have started offering DSP services to provide better and improved experience to their customers.
The mobile value-added services in cloud market is estimated to grow at a CAGR of 21.9% during the forecast period 2017–2023.
The players are classified into four major categories such as content providers, content aggregators, network providers, and technology enablers. Value chain players are focusing on offering sophisticated services due to increasing demand for cloud MVAS. The increasing smartphones and Internet penetration, high network services, and enterprises’ strategies toward the mobile platform have brought a bundle of business opportunities for network providers. In addition, network providers are enhancing the partnership with content providers, technology enablers, and content aggregators. Content providers are gaining more popularity in recent times due to the increasing demand for content-based cloud VAS on mobiles. Consumers are demanding for more integrative and informative content services, and they are likely to spend most of their free time on browsing information via smartphones, which is driving the growth of content providers. Content aggregators play a vital role in gathering information from various sources and put them on customer-dedicated platforms. The technology layer present within the technology enabler platforms includes cloud-based VAS platform. These platforms offer mobile application deployment, hosting deployment, MIS & reporting, operating billing, collection, and payment settlement engine. The network providers are expected to gain significant market revenue, which is estimated to be $113.11 billion by 2023, growing at a CAGR of 21.8% during the forecast period 2017–2023.
Cloud-based VAS is used by consumers for a variety of data needs. The industries or categories covered in the report are BFSI, education, government, healthcare, media & entertainment, retail, telecom & IT, and others. In recent years, governments have increased their adoption rate of cloud-MVAS to improve citizen-centric services and e-governance services. Furthermore, they are investing in offering public Wi-Fi services, which is helping service providers to enhance their customer base. The telecom & IT segment is expected to grow at a CAGR of 26.4% during the forecast period 2017–2023. The growing telecom users base in developing and underdeveloped markets of Africa and Asia is expected to drive the innovation.
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MVAS is classified into two major services: consumer VAS and enterprise VAS. The adoption and usage of these services are majorly driven by increasing Internet penetration and smartphones user base. Currently, the consumer cloud VAS segment is expected to contribute a higher share to the cloud VAS market when compared to enterprise VAS. These segments are largely driven by the growing economies that are primarily dependent on traditional value-added services via SMS, IVR, USSD, and others due to the lack of connectivity and lower Internet penetration. The consumer VAS market revenue is estimated to be $48.4 billion in 2017 and is expected to reach $171.7 billion by 2023, growing at a CAGR of 23.5% during the forecast period 2017–2023.
Cloud-based mobile value-added services are accessible via delivery platforms such as SMS, voice, video, digital platforms, and others. The SMS market revenue is estimated to reach $111.74 billion by 2023, growing at a CAGR of 21.5% during the forecast period 2017–2023. SMS is an effective delivery platform since all kinds of mobile phones support SMS services. The transaction business SMS and bulk message services are expected to drive the SMS market, followed by A2P SMS delivery platforms that reach billions of customers in brief time and less investment; and moreover, urban area users prefer instant message application.
Cloud MVAS is expected to be adopted at a higher rate across various regions. The Americas and European regions are the leading acquirers of cloud MVAS, and APAC and Middle East & Africa are expected to be the fast-growing regions due to the less penetration of cloud VAS. The Latin American and Middle East countries are expected to post a huge demand for cloud MVAS due to the enormous potential for such services. The US, Brazil, Mexico, the UK, Germany, China, and Israel are expected to grow at a higher CAGR during the forecast period.
“The mobile VAS in cloud market is expected to become an alternative revenue source for telecom companies as the revenue is declining from the major revenue contributor, i.e., calls. The market is expected to become highly competitive due to the increasing interest and entry of technology companies, start-ups, and others to the MVAS market.” Srujan, Research Analyst at Infoholic Research
The report covers the present scenario and growth prospects of the mobile value-added services in cloud market during the forecast period 2017–2023. The report provides an in-depth analysis and forecast about the industry covering the following key features:
- The report is analyzed based on VAS types, industries, players, delivery platforms, and regions.
- VAS types include consumer VAS and enterprise VAS.
- Industries include telecom & IT, media & entertainment, BFSI, retail, education, healthcare, government, and others.
- The players segment includes network providers, content providers, content aggregators, and technology enablers.
- The delivery platforms include SMS, voice, video, WAP & App, and others.
- The report covers the implementation of mobile VAS in cloud market in four regions, namely Americas, Europe, Asia, and Rest of the World.
- The report also covers drivers, restraints, and opportunities (DRO) affecting the market growth during the forecast period (2017–2023).
- It also contains an analysis of vendor profiles, which include financial health, business units, key business priorities, SWOT, strategies, and views.
- The report covers competitive landscape, which includes mergers & acquisitions, joint ventures & collaborations, and competitor comparison analysis.
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