Mobile Value Added Services market in India will grow at a CAGR of 22.13 percent over the period 2013-2018, with increasing adoption of smartphones and tablets forming the key growth factor, reports TechNavio, in its recent forecast.
As per the TechNavio’ analysts, the key vendors dominating this market space are CanvasM Technology Ltd., Comviva Technology Ltd., Hungama Digital Media Entertainment Pvt. Ltd., IMImobile Pvt. Ltd., One97 Communications Ltd., OnMobile Global Ltd., Spice Digital Ltd., and ValueFirst Digital Media Pvt. Ltd.
The report also covers a wide range of topics involving market size of MVAS market in 2016, SWOT analysis of key vendors, challenges ahead and key market trends.
In the past few years a lot of such analysis and predictions have been done linked to the VAS market growth and opportunities available for both the existing and the new players.
According to a report published by Wipro and IAMAI earlier this year, the MVAS market will reach $9.5 billion in 2015, with mEntertainment being the largest contributor to operator MVAS revenues.
Taking a look at the present status of VAS in the country, there are a wide range of services offered across categories such as Entertainment (games, caller tunes, music download,etc.), Information (stock updates, sms, etc) and M-Commerce(mobile banking and mobile payment).
From students to business professionals, and Urban to rural areas, the VAS market has extended its reach to a much larger segment, mainly supported with the growth of internet penetration in the country including the foray of 3G.
The other factors which supported its growth include increasing mobile user base, reduced tariffs of data plans, availability of smartphones & tablets at much cheaper rate, etc. Also, The MVAS market in India has also been witnessing the increasing funding for mobile governance applications from the Government of India, thereby adding further to its growth.
“Basic informational mobile services are set to decline in India. We have found that India’s consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services,” Ayan Mukerji, Senior Vice-President, Global Head – Media and Telecom, Wipro Technologies said.
Another report by PWC states that the Mobile VAS market has a potential to generate over INR 55,000 crore by 2015. As stated in the report, it is now time for India to evolve from the well established Mobile Messaging and commoditised voice play to focus on customer segmentation based data play.
Currently, India is considered to be a nation with one of the largest youth population with over 64% of its citizens below the age of 34 years and with literacy rate of around 80% amongst the age group of 15-24 years. Also, it is the second largest country in terms of mobile user base next to China.
However, the current VAS adoption is limited to a certain set of services with service providers facing challenges such as maintaining a balanced portfolio of services with high price vs low cost services, channelizing promotion of services to potential targeted users, investment into new 3G/4G verticals vs profitable applications on current 2G networks, etc. But, looking at the analysts latest predictions, growing inclination of youth towards internet and rising income, the combination seems to promise a good future ahead.
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