Global mobile value-added service (VAS) revenues are set to grow at a slow pace, with CAGR of 10 percent, over the next five years.
That’s according to new projections published this morning by Ovum and shared with MMW.
In its latest market forecast, Ovum indicated that the increase in global mobile VAS revenues would be driven mainly by the African and Asia-Pacific markets.
“The largest share of revenues will come from the Asia-Pacific region, at 13 percent CAGR,” says Neha Dharia, analyst for Consumer Telecoms at Ovum and author of the report. “The second region with significant growth is the Middle East and Africa, with a CAGR of 12 percent.”
The African market shows the greatest potential, given that it is still in the early stages of development and has lower revenues than the rest of the world. Ovum says this growth is heightened by the fact that Africa is a mobile-first market, which leads to more services being consumed on mobile than on the PC.
Meanwhile, the Asia-Pacific region will contribute the majority of mobile VAS revenues based on the large-scale consumption of operators’ mobile services, particularly personalization services.
According to Ovum’s research, telcos in North America and Asia-Pacific are attempting to grow VAS revenues by creating a range of new VASs.
“The mobile VAS market is dynamic, and allows telcos to innovate and find new revenue-generating services. Over the next five years, this innovation will focus mainly on mobile payments, connected home, security, and utility services,” concludes Dharia.