A growing number of mobile carriers worldwide are increasing their video messaging and telephony offerings. According to a new study from ABI Research, the market value for mobile video telephony services including video mail, video calling, and video sharing services, will grow from $1 billion in 2007 to over $17 billion by 2012, a CAGR of 74%.

However the conditions that will drive or inhibit growth of these services by region are complex. According to principal analyst Dan Shey, “The Web 2.0 phenomena and sites that allow posting of mobile video will increase demand for mobile video services. However, global demand inhibitors include income levels, messaging and video viewing alternatives, and handset capabilities. And then there is the uncertainty factor for operators of video services on network utilization which will affect their promotion and pricing strategies.”

According to the report, the industrialized regions of North America, Western Europe and Asia Pacific will command 90% of the video services revenues. While only 10% of the service revenues will come from the developing regions of the world, the opportunity for video services serving customers from developed regions should not be discounted.