The global rich communication services market was valued at USD 7.71 billion in 2022 and is projected to reach USD 118.72 billion by 2031, expanding at a CAGR of 35.5% during the forecast period, 2023 – 2031. The growth of the market is attributed to the growing penetration of smartphones across the globe.
Rich communication service (RCS) is the communication protocol among the mobile telephone carriers and phone companies that intends to replace SMS messages with text-message system. The later system can transmit in-call multimedia and also offers offers phonebook polling. It is a part of larger IP multimedia subsystem.
The rich communication services (RCS) boost the pre-installed functionality of messaging application in the mobile phones. RCS is predicted to replace the SMS and MMS completely owing to its advanced features such as video calls, group chats, media sharing, and location sharing. It offers features to the users such as read receipt and group chat to improve the user’s messaging experience. The integration of afore-mentioned features is spurring the adoption of RCS across the globe.
Several businesses are increasing their expenditure on SMS marketing to increase their customer base. SMS is considered to have high click through rate (CTR) to acquire a large customer base. High CTR ensures companies that the advertisement is viewed by a large targeted audience.
The rich communication services market has been hugely supported by third party application providers, mobile manufacturers, and telecom companies. The property of interoperability propels the implementation of rich communication services due to the support of all majorly involved stakeholders.
The GSM Association (GSMA) has announced the universal profile specification to offer rich communication services application support for all the operators around the globe. After supporting operator service interoperability, the application of universal profile aids in offering a reliable messaging experience. Additionally, the rich communication services applied on any mobile phone at any operator network, is expected to contain same core functionalities that offer excellent consumer experience and consistency.
The reluctance of users to not shift from over-the-top (OTT) services to rich communication services platform is restraining the market growth. OTT services such as Skype, WeChat, Viber, and WhatsApp have huge customer base. Nevertheless, consistent support from telecom providers is expected to change the dynamics of the market.
Market Trends, Drivers, Restraints, and Opportunities
Carrier companies’ decision to roll-out rich communication services as a software update in the smartphones is anticipated to boost the market growth during the forecast period.
Rising usage of rich communication services by companies for A2P messaging is expected to increase the market growth.
Lack of end-to-end encryption in rich communication services is anticipated to hamper the expansion of the market during forecast period.
Ongoing research and development programs as well as huge number of investments by major market players is expected to present numerous opportunities for the market.
Scope of Rich Communication Services Market Report
The report on the global rich communication services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been involved in this report.
Rich Communication Services Market - Global Industry Analysis, Growth, Trends, Share, Size, and Forecast
Communications (A2P, P2A, and P2P) and Verticals (BFSI, Healthcare, Media & Entertainment, Retail, and Travel & Tourism)
Asia Pacific, Europe, North America, Latin America, and Middle East & Africa
Company Share, Market Analysis and Size, Growth Factors, Competitive Landscape, and Trends, and Revenue Forecast
Key Players Covered in the Report
Alphabet Inc., Global Message Service, Infobip Ltd., Mavenir, Vodafone Group PLC, and ZTE
Global Rich Communication Services Market Segment Insights
A2P segment anticipated to hold a large market share
Based on communications, the market is divided into A2P, P2A, and P2P. In 2020, the A2P segment accounted for a large share of the market and is expected to continue to do so in the coming years Several businesses are sending A2P messages using huge messaging platforms, which is increasing their reach across the globe. Rising usages of RCS messaging platforms by various companies for marketing their services and products is the key aspect contributing to the large revenue share of the market segment.
The P2A segment is projected to expand at a significant CAGR of around 40% in the rich communication services market during the forecast period. P2A messaging involves the messages that users initiate to interact with an organization, company, or brand.
Presently, the usage of P2A is high amongst the entertainment & media industry, where customers send their votes by text messages. Considering the numerus consumer engagement features it offers, the usage of P2A messages is estimated to expand in the foreseeable future.
Several companies are enrolling for platforms that enhance user interaction and communication among the users and businesses. Various companies are focusing on improving user experience by revolving consumer queries regarding the services and products, which is anticipated to propel the demand for P2A communication during the forecast period.
Retail segment anticipated to account a large market share
On the basis of verticals, the market is classified as BFSI, healthcare, media & entertainment, retail, and travel & tourism. The retail segment anticipated to account for a large market share and is expected to expand at a spectacular CAGR owing to the growing acceptance of latest technology by several retailers to improve the shopping experience for consumers.
The RCS platforms helps retailers to embed product images in formats with an insightful information in regards to consumer preferences, which in turn, increases the probability of customer conversion. The BFSI segment is speculated to hold a significant market share and is projected to expand at a CAGR of around 30% during the forecast period.
The growth of the market is attributed to the rising acceptance of mobile banking services around the world. RCS platform helps in opening account, provides customer support, handles request for credit and debit cards, and assists in locating banks and ATMs, among others. The BFSI sector uses RCS for web-based campaigns by connecting the user database and improves the user experience.
The market in North America anticipated to account a significant revenue share
In terms of regions, the global rich communication service market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is anticipated to account for a significant revenue share and is expected to grow at a steady rate owing to the presence of several RCS market players including Alphabet Inc., Summit Tech, Syniverse Technologies LLC, and Mavenir.
Companies such as Express and Subway IP LLC have increased the usage of RCS platforms to run their advertisement campaigns. This is expected to propel the market expansion of rich communication services market in this region. These businesses have experienced an enhancement in their user action by enrolling for RCS A2P campaigns instead of SMS campaigns.
The market in Asia Pacific is projected to expand at a CAGR of 35.% during the projected timeline. This growth is attributed to the increasing number of smartphone users in this region as well as the growing disposable income. Additionally, it is speculated that India may reach 442.1 million of smartphone users by the year 2022. This is expected to propel the market growth during the forecast period.
The global rich communication services market has been segmented based on
- Media & Entertainment
- Travel & Tourism
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Some major participants in the global rich communication services include Alphabet Inc., Global Message Service, Infobip Ltd., Mavenir, Vodafone Group PLC, and ZTE.
The market players involve mobile network operators (MNOs), third party application developers, smartphone companies, and bulk messaging service providers, among others. The market is broadly fragmented and includes extreme competition among the rivals due to the presence of numerous shareholders.
These market players are focusing on improving their product portfolio by enrolling in several inorganic strategies including mergers, acquisition, collaboration, and partnerships.
In July 2019, Syniverse Technologies LLC partnered with China Telecom Global to offer connectivity services for mobile operators in the Middle East and Africa.
In March 2017, Mavenir introduced its cloud-based RCS platform and hub. The launch of the cloud-based platform is to effectively deploy secure and advance communications.