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Global Cloud-based Value-added Services Market 2016-2020

Global Cloud-based Value-added Services Market 2016-2020

About VAS

VAS provided by telecom industry can be defined as the beneficial mobile services that are apart from the voice communication services. Traditionally, mobile service providers have been offering only voice communication services. The rapid advancements in technology have led to the evolution of other mobile services beyond the voice communication services to include non-core services. In other words, VAS adds more value to the core mobile services, thereby enabling mobile subscribers to use cell phones and tablets for several non-voice purposes such as sending SMS, MMS, and pictures; accessing the internet for reading news headlines and astrology, retrieving flight information, listening to music, and playing online games; and for m-commerce and mobile banking.

Technavio’s analysts forecast the global cloud-based value-added services (VAS) market to grow at a CAGR of 14.56% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global cloud-based value-added services (VAS) market for 2016-2020. To calculate the market size, the report covers the cloud-based VAS services provided by telecom companies.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Cloud-Based Value-Added Services (VAS) Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Cisco Systems
  • Huawei
  • IBM
  • Infosys
  • Ericsson
Other prominent vendors
  • CALLUP
  • Ethrix
  • Gintel AS
  • OCSBOX
Market driver
  • Increasing adoption of mobile broadband
  • For a full, detailed list, view our report
Market challenge
  • Low quality of wireless networks
  • For a full, detailed list, view our report
Market trend
  • Increasing adoption of IM MVAS applications
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Cloud-Based Value-Added Services (VAS) Market 2016-2020

Technavio recognizes the following companies as the key players in the global cloud-based value-added services (VAS) market: Cisco Systems, Huawei, IBM, Infosys, and Ericsson.

Other Prominent Vendors in the market are: CALLUP, Ethrix, Gintel AS, and OCSBOX.

Commenting on the report, an analyst from Technavio’s team said: “Increasing adoption of m-commerce will be a key trend for market growth. -commerce services include payment, banking, and retail money transactions carried out using mobile devices. Over the past few years, the adoption of m-commerce services has been increasing significantly. For instance, the m-pesa service in Kenya provided by Vodafone was used by almost 30% of the country's population in 2012. In 2010, the average monthly transactions done by the users of m-pesa in Kenya were $375 million. Moreover, m-pesa helps users save $3 per transaction. Similarly, in India, several mobile commerce players such as Spice, Oxicash, mChek, ngpay, and ICICI Bank are offering mobile commerce services in partnership with several telecom companies. Changing regulations in favor of m-commerce is increasing the adoption of this service in many countries.”

According to the report, one of the key drivers for market growth will be use of MVAS for day-to-day activities. The adoption of MVAS is increasing at a rapid pace and is being used by subscribers for their daily requirements. Some MVAS offer huge benefits and are convenient to use. For instance, the location-enabled VAS are being used to search locations, find directions to a particular destination, and offer location-based advertising. In addition, m-commerce VAS applications are enhancing the income of users. For instance, in Kenya, users save up to $3 on every mobile transaction performed using m-pesa. Similarly, m-krishi, developed by TCS, provides agricultural information to Indian customers, thereby helping farmers sell their products at market prices fixed by the government.

Further, the report states that one of the challenges for the market will be high bargaining power of communication service providers. In both developed and developing economies, communication service providers have a high bargaining power compared to other stakeholders present in the MVAS value chain. For instance, in China and India, communication service providers have a 60%-80% share of revenue generated by the use of MVAS. The MVAS developers obtain only 10%-25% revenue share in the above two countries. Hence, most of the small and medium-sized MVAS developers are paid less for their R&D activities, which hampers their product and services portfolio. In addition, though some MVAS developers are partnering with handset manufacturers and mobile service providers, their revenue share remains unchanged or changes marginally.

Companies Mentioned

Cisco Systems, Huawei, IBM, Infosys, Ericsson, CALLUP, Ethrix, Gintel AS, and OCSBOX.

  • Scope of the report
    • Market overview
    • Geographical information
      • Table Major countries considered
    • Vendor selection
    • Summation errors
    • Currency exchange rates
      • Table Major currency exchange rates considered
    • End-user segmentation
    • Target audience
    • Key figures
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Assumptions
  • Market landscape
    • Market overview
    • Global MVAS market
      • Table Various MVAS
      • Table Global MVAS market 2015-2020 ($ billions)
    • Global cloud-based VAS market
      • Table Benefits of cloud-based services
      • Table Global cloud-based VAS market 2015-2020 ($ billions)
  • Geographical segmentation
    • Cloud-based VAS market by geography
      • Table Geographical segmentation of cloud-based VAS market 2015 (% share)
      • Table Geographical segmentation of cloud-based VAS market 2015-2020 (% share)
      • Table Geographical segmentation of cloud-based VAS market 2015-2020 ($ millions)
    • Americas
      • Table Cloud-based VAS in Americas 2015-2020 ($ millions)
    • EMEA
      • Table Cloud-based VAS market in EMEA 2015-2020 ($ millions)
    • APAC
      • Table Cloud-based VAS market in APAC 2015-2020 ($ millions)
  • Market drivers
    • Adoption of MVAS in emerging economies
      • Table Smartphone penetration rate of various countries 2014 and 2015 (% of total population)
      • Table Drivers of cloud-based VAS market
      • Table Global mobile broadband networks and smartphone adoption 2015 and 2020
      • Table Mobile phone users by geography (in millions)
    • Shift from on-premises to cloud-based VAS
    • Several advantages of the cloud-based VAS
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • High bargaining power of communication service providers
    • Piracy issues
    • Low quality of wireless networks
    • Concerns over data security and privacy
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Rising adoption of location-enabled MVAS
    • Increasing adoption of m-commerce
    • Increasing adoption of IM MVAS applications
  • Five forces model
    • Table Five forces model
  • Vendor landscape
    • Competitive scenario
      • Table Key leading vendors of the cloud-based VAS market
  • Key vendor analysis
    • Cisco Systems
    • Huawei
      • Table Huawei: Categories and products
    • IBM
    • Infosys
    • Ericsson
  • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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