Mobile Value-added Services (VAS) Market Size, Share, Growth, and Industry Analysis, By Types (Lending Services, Call Completion Services, RBT Services, Mega Promo / SMS Challenges, AI Analytics in VAS, Mobile advertisement), By Applications Covered (BFSI, Media and Entertainment, Healthcare, Education, Retail, Others), Regional Insights and Forecast to 2033

Mobile Value-added Services (VAS) Market Size

The global mobile value-added services (VAS) market was valued at USD 162,058.2 million in 2024 and is expected to reach USD 184,276.4 million in 2025, further expanding to USD 515,061.4 million by 2033, with a projected CAGR of 13.71% from 2025 to 2033.

The U.S. mobile value-added services (VAS) market is set for significant growth, driven by rising smartphone penetration, increasing demand for digital content, and advancements in 5G technology. Expanding mobile commerce and personalized services further boost market expansion.

Key Findings

• Market Size: Valued at 184,276.4M in 2025, expected to reach 515,061.4M by 2033, growing at a CAGR of 13.71%
• Growth Drivers: 75% mobile internet access, 50% global digital wallet use, 30% surge in micro-loans, 60% AI analytics adoption in telecom.
• Trends: 70% mobile e-commerce share, 80% OTT mobile streaming, 60% telecoms use AI bots, 50% mHealth apps growth, 45% mobile fintech rise in India.
• Key Players: Comviva, Kirusa, Unifun, 6d Technologies, InMobiles
• Regional Insights: 40% VAS revenue from North America, 80% Asia mobile transactions, 30% Europe wallet growth, 60% MEA mobile payment usage, 50% Africa OTT demand.
• Challenges: 30% rise in cyberattacks, 25% OTT competition impact, 35% regulatory barriers, 40% SME struggle with VAS costs, 20% cross-border issues.
• Industry Impact: 70% digital ad revenue via mobile, 60% increase in AI-based engagement, 30% growth in VAS-led telecom plans, 45% rise in mobile learning.
• Recent Developments: 200M invested in fintech VAS, 60% expansion in AI VAS tools, 40% rollout of 5G VAS services, 30% growth in mobile gaming platforms.

The mobile value-added services (VAS) market is expanding rapidly due to the increasing penetration of smartphones, 5G networks, and mobile applications. With the rise of mobile commerce, OTT platforms, and cloud-based services, telecom operators and content providers are leveraging VAS to enhance user engagement and generate additional revenue streams. Services such as mobile banking, entertainment, advertising, and gaming are witnessing high demand. The growing adoption of AI-powered chatbots, personalized marketing, and cloud-based VAS platforms is further reshaping the industry. Emerging technologies, including blockchain and edge computing, are expected to revolutionize mobile VAS applications in the coming years.

Mobile Value-added Services (VAS) Market Trends

The mobile value-added services (VAS) market is witnessing a shift towards AI-driven, cloud-based, and 5G-enabled services that enhance customer experience and drive monetization for telecom operators. With over 5 billion smartphone users globally, VAS adoption is growing rapidly, particularly in entertainment, mobile payments, and location-based services.

One major trend is the rise of mobile commerce (m-commerce), with over 70% of e-commerce transactions now taking place on mobile devices. Retailers are integrating VAS-driven payment solutions, in-app advertising, and personalized promotions to enhance customer engagement. Mobile payment services, including Google Pay, Apple Pay, and Paytm, are gaining traction as contactless transactions become mainstream.

Another key trend is the expansion of OTT platforms leveraging VAS for revenue generation. With video streaming services like Netflix, Disney+, and Amazon Prime Video experiencing record mobile traffic, telecom providers are bundling VAS-based subscription plans to boost customer retention. Short-form video content on platforms like TikTok and Instagram Reels is further driving mobile data consumption.

The emergence of 5G networks is also transforming the VAS landscape, enabling high-speed gaming, augmented reality (AR), virtual reality (VR), and ultra-HD video streaming. 5G-enabled VAS applications, such as cloud gaming and real-time IoT connectivity, are expected to revolutionize user experience. AI-driven chatbots and voice assistants are also gaining popularity in customer service, offering automated responses and personalized interactions.

Additionally, mobile-based healthcare services are expanding, with telemedicine, remote diagnostics, and wellness apps becoming integral to digital health ecosystems. The rise of mHealth (mobile health) applications, powered by AI and IoT, is creating new revenue streams for VAS providers.

Mobile Value-added Services (VAS) Market Dynamics

The mobile value-added services (VAS) market is shaped by several factors, including growing smartphone penetration, advancements in 5G technology, increased demand for digital entertainment, and the adoption of AI-driven personalization. Telecom operators, content providers, and financial institutions are leveraging VAS to boost revenue, enhance customer retention, and differentiate services. However, challenges such as data security concerns, regulatory restrictions, and rising competition from OTT players impact market expansion. Opportunities lie in emerging technologies like blockchain, cloud computing, and edge AI, which can enhance VAS monetization, improve security, and optimize service delivery.

OPPORTUNITY

Growth in 5G-Enabled VAS Applications

The rollout of 5G technology is creating new opportunities for next-gen VAS services, including cloud gaming, immersive AR/VR experiences, and ultra-HD video streaming. With 5G’s ultra-low latency, telecom operators can introduce real-time mobile cloud computing, IoT-based smart city applications, and AI-powered mobile automation. The integration of edge computing and AI-driven analytics will further enhance VAS capabilities.

DRIVERS

Increasing Smartphone Penetration and Mobile Internet Usage

With over 7 billion mobile connections worldwide, smartphone penetration continues to drive demand for mobile value-added services. Over 75% of global internet users access the web via mobile devices, leading to increased consumption of streaming content, gaming applications, and mobile commerce services. Developing economies, including India, Brazil, and Nigeria, are witnessing exponential smartphone adoption, further fueling VAS demand in fintech, e-learning, and on-demand entertainment.

Market Restraints

"Data Privacy and Security Concerns"

With mobile VAS relying heavily on personal data, concerns over data breaches, fraud, and unauthorized access remain a major challenge. Cyberattacks targeting mobile banking, digital payments, and OTT platforms have increased by over 30% in the past two years. Governments are implementing stringent data protection regulations, such as GDPR and CCPA, impacting how VAS providers collect, store, and process consumer information. Telecom operators must enhance security frameworks to maintain user trust.

"Rising Competition from OTT Service Providers"

OTT platforms, such as Netflix, YouTube, and Spotify, are bypassing telecom operators by offering direct-to-consumer VAS, reducing mobile carriers' revenue share. The increasing popularity of ad-supported streaming services and subscription-based content platforms has shifted consumer spending away from traditional mobile VAS offerings. To counteract this, telecom providers are forming partnerships with OTT players to bundle premium VAS with mobile data plans.

Market Challenges

"Regulatory Compliance and Licensing Issues"

The mobile VAS market is subject to strict regulatory frameworks, with telecom authorities enforcing rules on content distribution, digital payments, and data privacy. In some regions, VAS licensing fees and revenue-sharing agreements with telecom operators make it challenging for new entrants to scale operations. Cross-border payment restrictions and inconsistent regulations further limit VAS providers from expanding globally.

"High Operational Costs for VAS Providers"

Developing and maintaining high-quality mobile VAS platforms requires significant investment in infrastructure, AI algorithms, and cybersecurity frameworks. The rising costs of content licensing, cloud hosting, and AI-powered analytics have made it difficult for smaller VAS providers to compete with established telecom giants. Additionally, OTT players are offering freemium services, forcing VAS providers to invest heavily in customer acquisition and engagement strategies.

Segmentation Analysis

The mobile value-added services (VAS) market is categorized based on service type and application, catering to diverse industries and consumer needs. The type segment includes lending services, call completion services, ringback tone (RBT) services, mega promo/SMS challenges, AI analytics in VAS, and mobile advertisement. Each type plays a crucial role in enhancing user engagement and generating revenue for telecom operators and content providers. The application segment is classified into BFSI, media & entertainment, healthcare, education, retail, and others, reflecting the wide range of industries leveraging VAS for operational efficiency, customer engagement, and monetization.

By Type

• Lending Services: Mobile-based lending services are growing rapidly, especially in emerging markets, where financial inclusion is a priority. Mobile loans and micro-credit services have gained traction in countries like India, Kenya, and the Philippines, where digital lending apps are offering instant credit approvals via mobile wallets and telecom partnerships. Platforms like M-Pesa, Tala, and Paytm have witnessed a 30% increase in mobile loan applications as consumers seek quick access to small-ticket loans without traditional banking hurdles. Telecom operators are integrating AI-powered risk assessment models to facilitate seamless lending solutions for underserved populations.

• Call Completion Services: Call completion services, including missed call alerts (MCA), call forwarding, and voicemail transcription, remain essential VAS offerings. Over 40% of mobile users globally rely on missed call notifications to ensure connectivity even in low-network areas. Businesses are utilizing call-back services and automated voice-based customer interactions to optimize client engagement. Telecom providers are also integrating VoIP-based call forwarding solutions, enabling seamless communication across devices. The demand for intelligent call management services is rising, especially in the enterprise and customer support sectors, where automated voicemail-to-text conversions enhance efficiency.

• Ringback Tone (RBT) Services: The ringback tone (RBT) market continues to thrive, particularly in music-centric regions like Southeast Asia and Africa, where personalized RBTs are a key mobile entertainment VAS. Over 500 million mobile users globally subscribe to RBT services, with telecom operators monetizing exclusive ringtone downloads and premium caller tunes. Artists and music labels collaborate with telecom providers to launch music-based VAS promotions, generating additional revenue streams. In China and India, RBTs are being used for brand advertisements, with companies leveraging audio-based marketing via mobile networks.

• Mega Promo / SMS Challenges: Mega promotions and SMS-based challenges are popular marketing strategies for telecom operators to boost customer engagement and service subscriptions. In regions like Latin America and the Middle East, mobile users actively participate in quiz-based SMS challenges, lucky draws, and promotional contests to win rewards and cashback. These services help telecom providers increase ARPU (average revenue per user) while encouraging customer retention. The shift towards AI-driven personalized SMS campaigns has enhanced the effectiveness of mega promo strategies, making them a valuable revenue-generating VAS component.

• AI Analytics in VAS: The integration of artificial intelligence (AI) in mobile VAS is revolutionizing user engagement. AI-powered chatbots, predictive analytics, and automated customer support solutions are becoming standard offerings. Over 60% of telecom operators now leverage AI-driven analytics to optimize mobile data usage, personalize content recommendations, and detect fraudulent transactions. The use of AI in mobile advertising, sentiment analysis, and predictive marketing has improved customer targeting and ad conversion rates. The rise of AI-powered voice assistants like Google Assistant and Siri has also enhanced mobile VAS offerings in customer support and interactive voice response (IVR) solutions.

• Mobile Advertisement: Mobile advertising services within VAS are witnessing exponential growth, driven by the increasing adoption of programmatic ads, location-based targeting, and in-app promotions. Mobile ads contribute to over 70% of digital advertising revenue, with platforms like Facebook, Google, and TikTok leveraging mobile-based VAS to enhance ad reach. Rich media ads, video ads, and in-game advertising have become key revenue sources for mobile advertisers. Telecom operators are integrating ad-supported data plans, where users receive free data in exchange for watching sponsored content, creating a new monetization model for VAS providers.

By Application

• BFSI (Banking, Financial Services, and Insurance): The BFSI sector is a major adopter of mobile VAS, leveraging services such as mobile banking, digital wallets, AI-powered chatbots, and fraud detection solutions. With over 1.2 billion mobile banking users worldwide, telecom operators are partnering with financial institutions to offer secure, mobile-first banking experiences. Mobile-based two-factor authentication (2FA), OTP verification, and voice biometrics are enhancing digital transaction security. Fintech companies are integrating mobile lending and micro-financing solutions within telecom networks to expand financial inclusion in emerging markets.

• Media and Entertainment: The media and entertainment industry dominates mobile VAS adoption, with the rapid expansion of OTT streaming, mobile gaming, and interactive content. Over 80% of video streaming consumption now occurs on mobile devices, with Netflix, YouTube, and TikTok driving global mobile data traffic. Telecom operators are bundling premium OTT subscriptions with mobile plans, creating VAS-driven revenue models. Mobile gaming subscriptions and cloud gaming services, such as Google Stadia and Xbox Cloud Gaming, are also gaining popularity, with in-game VAS monetization models becoming the norm.

• Healthcare: The healthcare sector is increasingly integrating mobile VAS solutions for telemedicine, remote diagnostics, and AI-driven health monitoring. Mobile health (mHealth) applications have witnessed a 50% increase in adoption, with remote patient monitoring, mobile consultations, and AI-powered medical chatbots leading the segment. Pharmaceutical companies and hospitals are leveraging SMS-based medication reminders, virtual health assistants, and wearable health tracking devices as part of their mobile healthcare VAS strategies.

• Education: The education industry is seeing a surge in mobile-based learning platforms, with over 500 million users accessing online courses, virtual classrooms, and AI-powered tutoring services via smartphones. E-learning apps, mobile exam portals, and digital libraries are becoming essential VAS offerings for students and professionals. The rise of edtech platforms such as Coursera, Udemy, and Duolingo has increased demand for mobile-based subscription models, AI-powered content recommendations, and language learning VAS applications.

• Retail: Retailers are utilizing mobile VAS solutions for mobile payments, personalized promotions, and AI-driven customer engagement. With mobile commerce accounting for 70% of total online sales, retailers are investing in VAS-driven loyalty programs, SMS-based offers, and mobile chatbot-driven customer interactions. Geo-targeted advertising, location-based push notifications, and mobile wallet integration have enhanced the retail VAS ecosystem. The adoption of QR code-based payments and AI-driven personalized shopping assistants is further driving VAS expansion in the retail sector.

• Others: Other industries, including transportation, logistics, and government services, are integrating mobile VAS for fleet tracking, digital identity verification, and public service communications. AI-powered fraud detection in telecom services, mobile-based disaster alert systems, and automated service requests via USSD codes are transforming how businesses and governments utilize mobile VAS for operational efficiency.

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Regional Outlook

The mobile value-added services (VAS) market is growing globally, driven by increasing smartphone penetration, expanding 5G networks, and rising demand for mobile-based digital solutions. North America remains a leader in mobile commerce, OTT services, and AI-powered VAS. Europe benefits from strict data protection laws and increased adoption of mobile banking. Asia-Pacific is witnessing exponential growth in mobile gaming, fintech, and digital advertising, with China and India leading the market. The Middle East & Africa are emerging as high-potential markets, particularly in mobile payments, telecom expansion, and enterprise VAS solutions.

North America

North America is one of the largest mobile VAS markets, with the U.S. and Canada accounting for over 40% of global VAS revenue. The rise of 5G, AI-based advertising, and mobile cloud gaming is driving demand. Over 90% of U.S. smartphone users access mobile banking, e-learning, or entertainment VAS daily. OTT subscriptions on platforms like Netflix, Hulu, and Disney+ surpassed 500 million in 2023, making entertainment VAS a dominant segment. Mobile payments are also surging, with over 50% of transactions in the U.S. conducted via digital wallets like Apple Pay and Google Pay.

Europe

Europe is seeing strong adoption of mobile VAS, driven by stringent privacy laws, mobile financial services, and AI-driven customer engagement. Countries like Germany, France, and the UK lead the market, with over 70% of mobile users relying on VAS for digital payments, gaming, and media consumption. Mobile banking apps saw a 30% increase in downloads in 2023, with over 100 million Europeans using digital wallets. RBT and SMS-based promotions remain popular in Southern Europe, while Northern Europe is investing heavily in AI-powered mobile automation and cybersecurity-focused VAS.

Asia-Pacific

Asia-Pacific is the fastest-growing mobile VAS market, with India, China, Japan, and South Korea leading the industry. China alone accounts for over 500 million mobile gaming subscribers, while India’s mobile fintech market saw a 45% rise in digital wallet usage in 2023. Platforms like Alipay, WeChat Pay, and Paytm dominate mobile payments, contributing to over 80% of mobile transactions in the region. The demand for mobile-based education, entertainment, and e-commerce VAS is growing, with over 300 million students using mobile learning apps across India and Southeast Asia. 5G adoption is accelerating cloud gaming and VR-based mobile services.

Middle East & Africa

The Middle East & Africa (MEA) mobile VAS market is expanding, driven by rising smartphone adoption, mobile banking, and telecom growth. Over 60% of Africa’s mobile users now rely on mobile payments, particularly in Nigeria, Kenya, and South Africa. Platforms like M-Pesa process over $10 billion in transactions annually. The Middle East is experiencing strong demand for premium OTT services, cloud-based gaming, and AI-driven telecom automation. Saudi Arabia and the UAE lead the region in 5G-based VAS expansion, with government-backed investments supporting mobile fintech and AI-powered mobile marketing.

LIST OF KEY MOBILE VALUE-ADDED SERVICES (VAS) MARKET COMPANIES PROFILED

Investment Analysis and Opportunities

Investment in the mobile VAS market is increasing as 5G, AI, and mobile financial services continue to expand. Venture capital and telecom operators are pouring funds into mobile gaming, AI-driven advertising, and digital banking solutions. In 2023, Comviva secured a $200 million investment to enhance its mobile fintech and telecom AI services. Similarly, Kirusa expanded its mobile cloud infrastructure with a $150 million funding round.

Governments are also investing in mobile VAS, particularly in fintech, education, and healthcare. The Indian government launched a $1 billion fund to support mobile-based financial inclusion, while the EU allocated $500 million for AI-driven mobile security initiatives. China’s AI-powered telecom investments exceeded $2 billion in 2023, boosting demand for AI-based mobile analytics, chatbot services, and smart advertising.

The emergence of blockchain-based VAS, edge computing for real-time mobile interactions, and IoT-integrated mobile commerce solutions presents significant opportunities. Telecom operators are increasingly partnering with OTT platforms, launching VAS-driven mobile plans bundled with premium streaming, gaming, and cloud services.

NEW PRODUCTS Development

Leading companies are introducing next-gen mobile VAS products to drive AI automation, 5G capabilities, and personalized mobile experiences. Comviva launched an AI-powered mobile banking suite that enables real-time fraud detection and transaction analysis. Kirusa introduced a cloud-based RCS messaging platform, integrating AI chatbots and voice authentication for telecom operators.

In 2023, Unifun unveiled a mobile gaming VAS platform, offering 5G-enabled cloud gaming and AR-based entertainment services. 6d Technologies launched an AI-driven mobile advertising engine, allowing real-time customer segmentation and predictive ad targeting. Apliman developed a blockchain-based mobile wallet, offering enhanced security and instant cross-border payments.

Major telecom operators are also introducing AI-powered personalized VAS solutions, such as automated voice assistants, real-time location-based services, and smart data monetization tools. OTT giants like Netflix and Amazon are integrating mobile VAS into their subscription models, creating bundled entertainment and telecom services.

Recent Developments by Manufacturers

• Comviva partnered with Vodafone to launch AI-powered mobile financial services in Europe, enhancing mobile payment security and fraud prevention.
• Kirusa expanded its cloud-based VAS services across Africa and the Middle East, integrating AI-driven customer engagement tools.
• Unifun introduced a new mobile cloud gaming platform, offering 5G-optimized online multiplayer gaming experiences.
• 6d Technologies secured a strategic deal with Airtel, implementing AI-powered mobile advertising solutions across multiple markets.
• Optasia launched a blockchain-based mobile lending service, improving credit access for unbanked populations in Southeast Asia and Africa.

REPORT COVERAGE

The Mobile Value-Added Services (VAS) Market Report provides a comprehensive analysis of industry trends, market drivers, challenges, and opportunities. The report highlights key segments, including lending services, call completion, AI analytics, and mobile advertising, along with applications in BFSI, media, healthcare, retail, and education.

The report examines regional insights across North America, Europe, Asia-Pacific, and the Middle East & Africa, detailing market trends, investment patterns, and VAS adoption rates. It also includes a competitive landscape analysis, profiling industry leaders such as Comviva, Kirusa, InMobiles, and Unifun, along with their market positioning, product innovations, and strategic partnerships.

Additionally, the report covers emerging technologies such as AI-driven customer analytics, 5G-based VAS monetization models, and blockchain-enabled mobile payments. The study is based on primary research, government regulations, telecom industry reports, and corporate financial statements, ensuring accurate, data-driven insights for stakeholders and investors.