Mobile Value-Added Services (VAS) Market Report, [2034]

MOBILE VALUE-ADDED SERVICES (VAS) MARKET OVERVIEW

The global Mobile Value-Added Services (VAS) Market size was valued approximately USD 983.51 Billion in 2025 and will touch USD 2955.21 by 2034, growing at a compound annual growth rate (CAGR) of 11.63% from 2025 to 2034.

Mobile Value-Added Services (VAS) are extra services offered by mobile operators or third parties, beyond basic calls and texts. These include mobile internet, banking, entertainment, gaming, and location services. VAS improves the user experience by providing various content and services, increasing customer engagement and generating more revenue for providers.

IMPACT OF KEY GLOBAL EVENTS

“Artificial Intelligence Advancements and Personalization”

AI is enhancing VAS by offering more personalized services, such as tailored recommendations and improved mobile banking. This helps mobile operators optimize networks and improve customer experience, driving market growth.

LATEST TREND

”5G Technology and Enhanced VAS Experiences”

The deployment of 5G networks is transforming the Mobile VAS landscape by enabling faster speeds and more reliable connectivity. This allows for the development of new services like AR/VR applications, enhanced mobile gaming, and real-time data services. As 5G continues to roll out, it is expected to drive innovation and growth in the VAS sector.

MOBILE VALUE-ADDED SERVICES (VAS) MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Short Message Service (SMS), Multimedia Messaging Service (MMS), Interactive Voice & Video Response, Wireless Application Protocol and Others.

Short Message Service (SMS): SMS, or text messaging, has been around for a long time and is still a big part of Mobile VAS. Even though there are newer ways to message like instant messaging, SMS is still great for quick notifications, marketing, and alerts because it works well on all phones and is really reliable.
Multimedia Messaging Service (MMS): MMS lets users send photos, videos, and audio along with text. As people use more mobile content, MMS is becoming more important. Even though apps like WhatsApp and social media are popular, MMS is still good for brands to send multimedia marketing messages.
Interactive Voice & Video Response (IVR/IVVR): IVR and IVVR are tech that let machines talk or show videos to users. They're often used for customer help, getting info, and handling transactions. With more businesses using voice and video, IVR and IVVR are getting more popular, especially in industries like telecom, banking, and customer service.
Wireless Application Protocol (WAP): WAP is a way for mobile phones to get online and do things like browse websites and use apps. Even though faster tech like 4G and 5G is more common now, WAP is still important in places where the mobile internet isn't as good.
Others: The "Others" category covers a bunch of other mobile services that don't fit into the other groups. Things like mobile payments, digital wallets, banking on phone, mobile games, and location-based services fall into this. As mobile services keep getting more varied, this category will probably grow because people want new things and technology keeps improving. These services are getting more popular as mobile networks become a bigger part of everyday life.

By Application

Based on application, the global market can be categorized into Consumer, Enterprise and Network Provider.

Consumer: Consumer mobile value-added services include entertainment, mobile banking, social media, games and other experience-enhancing content. This market is large and growing rapidly due to the increasing use of smartphones, the Internet and the increasing demand for digital content. With streaming, shopping, and mobile payments so prevalent today, the consumer market will continue to grow globally.
Enterprise: In the world of Mobile VAS for businesses, users have services such as tools to manage mobile employees, business applications, cloud storage, and anytime, anywhere collaboration. These are super important for running things smoothly, communicating better, and keeping up with the competition in today's digital world. As businesses use more mobile tech, they want more of these specialized services, especially cloud-based stuff and mobile security solutions.
Network Provider: Network providers use Mobile VAS to add extra perks to their services, like text-based promotions, location-based services, and internet packages. It also includes optimizing network services and enhancing customer satisfaction. Offering these extra services helps telecom companies stand out and make more money in a tough market. And with 5G, they'll be able to offer even cooler VAS solutions.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Increasing Smartphone Penetration”

The increasing penetration of smartphones worldwide is a key factor driving the mobile value-added services (VAS) market. Especially in emerging markets, smartphone adoption is increasing. As a result, the demand for mobile services such as entertainment, mobile banking, and communication services is increasing. The smartphone is the main platform for providing mobile value-added services, and as it becomes more widely used, the usage of value-added services is also rising. This trend is expected to drive the market growth by expanding the customer base and creating new business opportunities for service providers.

Restraining Factor

”High Operational Costs”

One obstacle to the mobile value-added services market is high operating costs. Providing and maintaining these value-added services requires significant investment in infrastructure, technology development and staffing. Mobile operators also have to pay for network upgrades, content rights purchases and customer support. These expenses can severely squeeze profit margins, especially for smaller companies in the market. This makes it difficult for service providers to offer competitive prices and expand their business, ultimately hampering the growth of the overall mobile value-added services market.

Opportunity

”Rising Demand for Mobile Payments and Digital Banking”

More and more people are using mobile payments and digital banking services, and that’s a great chance for the Mobile VAS market. Since people are relying on smartphones to handle their financial transactions, mobile operators can offer extra services like mobile wallets, money transfer options, and bill payment features. This move towards digital finance means mobile operators can make money in new ways. They can add these services to their VAS lineup, and it also helps them keep customers happy and loyal.

Challenge

”Network Infrastructure Limitations”

A challenge for the Mobile Value - Added Services (VAS) market is the state of network infrastructure. In lots of places with bad or not - fully - developed mobile networks, it’s a rproblem. Even though 5G sounds great and offers better features, many areas are still stuck with older networks. These older networks can’t deliver high - quality VAS properly. Services like video streaming and real - time gaming need a lot of data, and the slow networks make the user experience terrible. As a result, it’s holding back the growth of VAS, as fewer people want to use these services when they don’t work well.

MOBILE VALUE-ADDED SERVICES (VAS) MARKET REGIONAL INSIGHTS

North America

North America has a developed Mobile Value - Added Services (VAS) market. That’s because it has great mobile infrastructure and consumers there really want new services. 5G is everywhere in North America. People also love mobile entertainment like music, streaming videos, and mobile games. Mobile payments and digital wallets are on the rise too. Big telecom companies in North America are adding advanced VAS to keep customers happy and make more money. But there’s a lot of competition. So, these companies have to come up with new, personalized, and different VAS all the time.

Europe

The Mobile VAS market in Europe is growing steadily. Smartphones are super common, and people rely a lot on mobile banking and financial services. Mobile gaming, health services, and entertainment are also becoming more popular. People want services that are easy to use and tailored to them. In Europe, data privacy and security are really important. The GDPR sets strict rules. Telecom operators use these rules to build trust with customers. At the same time, they’re adding more VAS to their offerings. Mobile payment solutions and OTT services are becoming more popular across different European countries.

Asia

Asia has the biggest and fastest - growing Mobile VAS market. China, India, and Japan are leading the way. There's a huge rise in demand for Mobile VAS in areas like e - commerce, mobile gaming, mobile payments, and social media. Mobile payments and digital wallets are really popular in Asia. Many people skip regular banking and go for mobile - first financial services instead. Asia has a huge population and different consumer needs, which means big growth chances for Mobile VAS providers. But in some places, there are still problems with infrastructure and following rules.

KEY INDUSTRY PLAYERS

”Key Industry Players Focus on Advanced Technologies and Personalized Services”

The mobile value-added services market includes mobile companies, third-party services and technology companies. They're using AI, 5G, and cloud stuff to make their services better and more personal. Mobile firms have a big say because they run the networks, while third-party firms bring new ideas. Tech giants are joining in, making it harder for older mobile firms. It's all about making services better, offering more stuff, and keeping everything safe and reliable.

List of Top MOBILE VALUE-ADDED SERVICES (VAS) Market Companies

AT&T
Apple
Alphabet
Blackberry
Samsung Electronics

KEY INDUSTRY DEVELOPMENTS

December 2024: Ericsson has secured a significant deal worth Billions with Bharti Airtel to implement Open RAN-ready and centralized RAN solutions for network transformation, enhancing coverage and capacity. The contract also includes software upgrades for existing 4G radios, improving customer experience. Bharti Airtel’s CTO, Randeep Sekhon, emphasized the strategic partnership’s role in advancing network excellence.

December 2024: Cellfie Mobile and Vodafone Group have entered a new non-branded partnership, aiming to enhance Cellfie’s digital services with Vodafone’s expertise. This collaboration comes as Georgia’s telecommunications market experiences rapid growth and demands advanced connectivity solutions. Vodafone CEO Petr Dvořák emphasized the partnership’s potential to drive innovation and improve connectivity in Georgia.

December 2024: Nokia has extended its long-term partnership with Iliad Group, renewing a multi-year contract to support 3G, 4G, and 5G mobile networks across France, Italy, and overseas territories. The deal includes Nokia’s AirScale portfolio and cloud-native 4G/5G Core solutions to enhance Iliad’s network services. This partnership, which began in 2010, strengthens both companies' collaboration in mobile network development.

November 2024: Cisco and NTT DATA have expanded their partnership to provide simplified, secure, and cost-effective 5G connectivity solutions for mobile enterprises across 180 countries. The collaboration introduces a unified approach to meet the growing demand for flexible connectivity, leveraging eSIM technology. This co-innovation aims to transform how global businesses access wireless networks securely and efficiently.

July 2024: Members Mobile has partnered with i-new, a global MVNE, to launch a new mobile phone service for credit union members. This strategic collaboration aims to enhance affordability, quality, and user experience by leveraging i-new's investment and MVNE services. The five-year agreement is set to redefine mobile telecommunications for credit union members.

February 2024: Announced plans for Snapdragon X35 5G Modem-RF System, targeted at mobile devices using 5G technology. This could impact cloud gaming and AR/VR experiences.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Mobile Value-Added Services (VAS) market is booming right now. People want more mobile internet, entertainment, mobile payments, and personalized content. With 5G and AI, mobile companies are adding advanced services like augmented and virtual reality, and cloud-based solutions. Plus, more people are getting smartphones and internet, so they want more out of their phones beyond just talking and texting.

Looking ahead, the Mobile VAS market will keep growing thanks to 5G and AI. These will make services better and improve how users experience them. Subscription plans, mobile payments, and business solutions will likely lead the way, bringing in steady money for providers. Plus, with more attention on data privacy and security, new services will be developed with trust in mind, keeping customers happy as the market grows.