The global mobile Value-Added Services (VAS) market was valued at approximately US$ 53.89 billion in 2018 and is projected to expand at a compound annual growth rate (CAGR) of 11.54% from 2019 to 2027, ultimately reaching around US$ 141.35 billion by 2027. This growth trajectory is largely fueled by the rising demand for digital content creation across various sectors, including animation, graphic design, healthcare, education, banking, and retail. Additionally, the need for telecom operators to enhance their revenue streams and the emergence of Over-The-Top (OTT) service providers are significant contributors to this market expansion. Notably, the Asia Pacific region is anticipated to capture the largest share of the mobile VAS market.
According to estimates from GSMA, the global count of unique mobile subscribers was nearing 5 billion by the end of 2017, with projections suggesting an increase to approximately 5.7 billion by the close of 2020. This indicates that nearly 75% of the global population would be utilizing mobile services. The remarkable surge in mobile subscribers during this timeframe is primarily linked to the developing economies within the Asia Pacific region, where a substantial portion of the world?s population resides. Furthermore, the widespread adoption of smartphones and the availability of high-speed internet connectivity have been pivotal in driving innovations in artificial intelligence and facilitating digital transformation. Over the past decade, mobile operators have invested nearly US$ 700 billion in enhancing telecommunication network infrastructure. By the end of 2016, there were around 4.8 billion GSM subscribers and 7.9 billion SIM connections globally, which has significantly impacted the mobile VAS market.
Regionally, the highest number of mobile subscribers is found in China and India, attributed to their vast populations. In contrast, Europe exhibits the highest subscriber penetration rates, indicating a dense subscriber base. The large populations in developing nations like India and China, coupled with the potential for increased subscriber density, are driving the installation of telecom towers. As subscriber density rises in specific areas, the existing tower infrastructure often becomes inadequate to manage the data traffic generated by the growing subscriber base. This situation necessitates either the deployment of additional towers or upgrades to existing ones with advanced equipment to improve traffic handling capabilities. Historically underserved regions are now receiving attention due to government initiatives and regulatory requirements mandating service provision, which is expected to further stimulate the telecom tower deployment market. Conversely, in more mature telecom markets where subscriber growth is plateauing, operators are adapting their business models to extract greater value from the expanding mobile ecosystem, which is also propelling growth in the mobile VAS sector.
The overall size of the mobile VAS market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative insights related to the mobile VAS market. This approach also includes an overview and forecast of the global mobile VAS market segmented by five primary regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Additionally, primary interviews were conducted with industry stakeholders and experts to validate the data and analysis. Participants in this process typically include industry professionals such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the mobile VAS domain.