According to data from FactMR, technological advancements including virtual reality (VR), augmented reality (AR) and high-definition video streaming are also critical for growing the market, says the study, while enhanced connectivity is enabling businesses – in both mature and emerging markets – to develop and offer better and more interactive mVAS offerings that elevate user experiences, which in turn is also driving use.
The increasing use of mVAS by enterprises to streamline communication with clients and customers is also propelling market growth (see panel below).
KEY SEGMENTS
The key verticals driving this surge of VAS are what any visitor to World Telemedia or regular reader of this magazine would expect (see chart). Media and entertainment (see article) leads the way, but there is growing interest in education and edutainment services (see article).
However, less ‘fun’ services are also becoming money-spinners for VAS players across the globe. Healthcare is increasingly relying on digital channels and this is creating a new market in VAS. Similarly, government and state services are also turning to mVAS platforms to reach the widest possible audience.
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 US.
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 AR 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 fore-casted 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.
PLATFORMS TO DOMINATE
The surge in interest in mVAS has seen service offerings morph into companies offering sophisticated VAS platforms that offer more than just a content or ser-vice type, but increasingly bring together a range of functions across delivery, content, data management and marketing.
VAS platforms typically operate on a subscription-based model, where customers can subscribe to various services and pay a recurring fee. Key components of a VAS platform include content and service aggregation; billing and payments – especially DCB and alt.payments –content delivery and management, as well as analytics and reporting to help hone and create new VAS offerings.
MVAS IN MENA
mVAS platforms have emerged as a pivotal force in the telemedia and telecoms landscape, particularly in the Middle East and North Africa (MENA) region. These platforms offer a suite of services that enhance the customer experience, drive revenue, and foster innovation.
As the region continues to experience rapid digital trans-formation, VAS platforms are playing a crucial role in meeting the evolving needs of consumers and businesses.
Across the MENA region, mVAS platforms deliver a range of advantages for both consumers and business.
For instance, VAS platforms enable telecom operators to provide a more personalised and engaging customer experience. By offering a wide range of services, such as music streaming, gaming, and mobile payments, operators can cater to diverse customer preferences and improve customer loyalty.
These platforms also offer a significant opportunity for telecom operators to generate additional revenue streams beyond traditional voice and data services. By partnering with content providers and service providers, operators can offer premium content and services to their customers, generating incremental revenue.
Additionally, VAS platforms can help telecom operators differentiate themselves from competitors and stay ahead of the curve. By investing in innovative VAS offerings, operators can attract new customers, retain existing ones, and position themselves as leaders in the market.
There are several increasingly prominent mVAS platform companies seeking to grow the MENA market, with several big names familiar to anyone who attends World Telemedia.
For example, Golden Goose offers a wide range of services, including mobile gaming, music streaming, and content delivery.
MobiMind is another major player in the MENA VAS market, specialising in mobile content and applications. MobiBox, meanwhile, provides VAS solutions to telecom operators and content providers, focusing on mobile gaming and entertainment.
FUTURE TRENDS IN VAS
The VAS market in MENA is a rapidly evolving landscape, part playing catch up with the more developed markets in Europe and parts of Asia and in part driven by the MENA region rapidly finding its own way with creating services and offerings specific to its customer base.
And this evolution is being driven forward, in the short term at least, by a range of technology advances. Key is the rollout of 5G networks and the growth of the Internet of Things (IoT). This is set to create new opportunities for VAS platforms. Services such as connected cars, smart homes and augmented reality will require innovative VAS solutions.
Similarly, AI and machine learning can be used to personalise VAS offerings, improve customer engagement, and detect fraud, while a shift towards more cloud-based VAS platforms – in part propelled by 5G roll out – can offer scalability, flexibility, and cost-effectiveness, making them attractive to telecom operators.
In conclusion, VAS platforms have become an indispensable component of the telemedia and telecoms landscape in the MENA region. By offering a wide range of services, enhancing customer experience, and driving revenue, these platforms are playing a crucial role in the digital transformation of the region.
As the market continues to  evolve, VAS platforms will likely play an even more significant role in shaping the future of telecommunications.
Enterprise mVAS on the rise
Mobile Value-Added Services (mVAS) have become an integral part of enterprise strategies, providing innovative solutions to enhance customer engagement, drive revenue, and streamline operations. Typically, this is being seen in:
- Customer engagement: Enterprises are using mVAS to create personalized and interactive customer experiences. For instance, loyalty programs, mobile ticketing, and interactive campaigns can be implemented through mVAS platforms, fostering stronger customer relationships.
- Marketing and promotions: mVAS offers a powerful channel for targeted marketing campaigns. Enterprises can send personalized offers, promotions, and notifications directly to customers’ mobile devices, increasing the effectiveness of their marketing efforts.
- Payment solutions: Mobile payments, such as mobile wallets and QR code scanning, have gained significant traction. Enterprises are integrating these mVAS solutions to provide convenient and secure payment options for their customers.
- Enterprise mobility: mVAS can be used to enable enterprise mobility, allowing employees to access corporate data and applications on their mobile devices. This enhances productivity and flexibility for remote workforces.
- IoT integration: mVAS platforms can be integrated with IoT devices to provide additional services and functionalities. For example, enterprises can offer remote monitoring, asset tracking, and smart home solutions through mVAS.
By leveraging mVAS, enterprises can unlock new revenue streams, improve customer satisfaction, and gain a competitive edge in the digital age.
