Cloud-based value added services (VAS): Key market research findings
- Increasing number of MVAS developers fuel market growth
- Falling prices of MVAS applications
- Key vendors – Cisco, Huawei, IBM, Infosys, and Ericsson
Based on the research carried out by our analysts, the global cloud-based VAS market is expected to grow at a CAGR of almost 15% between 2016 and 2020. The growth of the market can be attributed primarily to the increased number of MVAS developers. The number of MVAS developers and MVAS platform providers is on an upsurge as the initial investment for establishing a MVAS company and entry barriers for new vendors are very low. Furthermore, the demand for innovative and advanced MVAS is very high. Thus, many MVAS developers are entering the market witnessing its immense growth potential in the future. In 2015, the Americas accounted for almost 43% of the overall market share to become the dominant shareholder in the global market. The high penetration of smartphones, the wide coverage of mobile broadband services, and the bundling of MVAS with handset and mobile services in the region are expected to propel growth of the cloud-based VAS market in the Americas over the next four years.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The adoption of location-enabled VAS is increasing at a rapid pace. This is mainly due of the high penetration of smartphones and tablets. Users are increasingly using mobile devices to obtain real-time directions to nearby locations, weather forecasts, and traffic updates. In addition, since location-based advertising is cost effective, many mobile advertisers are targeting smartphone users for the marketing of their products and services. In the US, the Find My Friends LBS application provided by Apple is one of the most downloaded and used applications,” says Ishmeet Kaur, Lead Analyst, ICT, Technavio Research.
The prices of MVAS applications is dropping significantly owing to the increased demand and intensifying competition among MVAS providers. In addition, mobile OS providers and MVAS application developers are collaborating to develop low-cost advanced MVAS applications for end-users. Mobile OS providers in the market are offering software development kits to MVAS application developers. As a result, MVAS application developers are developing MVAS applications without much investment in less time.
The key vendors in the global cloud-based VAS market include Cisco, Huawei, IBM, Infosys, and Ericsson. Leading companies are leveraging cost improvements, services integration, enhanced functionality, and convergence across service types heretofore constrained by different types such as device type, network type, and service provider. However, ensuring cloud service delivery is a continuous challenge because of security issues, piracy concerns, and the threat of cybercriminals damaging data such as consumer data and enterprise data. Vendors in the cloud-based VAS market are working towards overcoming such issues over the next few years.
A more detailed analysis is available in the Technavio report, Global Cloud-based VAS Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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