The rising penetration towards smartphones followed by growing number of online marketing & advertising companies is majorly driving the Rich Communication Services (RCS) market globally. The Global Rich Communication Services (Rcs) Market was valued at USD 1,157 million in 2020, and is projected to reach at USD 12,276 million by 2027, growing at a CAGR of 34.5% from 2021 to 2027.
High penetration rate of smartphones and surge in the need of next-generation messaging service, are the prominent factors driving the growth of Rich Communications services globally. Rich communication services in smartphones facilitates consumers to make payments, submit surveys, book appointments, and receive credit card fraud notifications, delivery notifications, boarding passes among many others. Other than these, rich communication services are a crucial part of the innovative and new advanced messaging standard which is designed to highly improve the messaging functions that is preinstalled in mobiles by default. Additionally, advanced features such as video calls, media sharing, location sharing, and many other features provided by the rich communication services are likely to gain market traction. For instance, AT&T, world’s largest telecommunications company, RCS portfolio includes advanced messaging, a next-generation messaging service, which enables an individual to send high-resolution photos and larger video files, up to 10MB, per attachment. To provide all the features that RCS messaging offers, several mobile device brands such as LG, Motorola, HTC, Sony, ZTE, Micromax, Cherry Mobile, General Mobile, LeEco, QMobile among many others have collaborated with Google to make Android Messages as the default messaging app on their devices.
Apart from individual messaging benefits, the use of rich communication services by enterprises for Application to Person (A2P) and Person to Person(P2P) messaging is expected to drive the market. Business and brands, now require more interactive ways for communicating with their customers. With the rising competition, companies are now more and more focussed on intensively connecting with customers. RCS plays an increasingly prominent role in marketing and advertising efforts to provide more authentic and personalized engagement opportunities. It helps the organizations to visually brand their messages, allowing them to keep their corporate identity and branding while communicating with the customers. It also offers companies with some degree of customization, such as the ability to use logos, custom colours and company brand allowing companies to send business messages that replicates the feel and look of their websites, apps and other digital offerings. Moreover, text messages are much more affordable for companies as compared to cost-per-click advertising such as Adwords. Therefore, many leading global brands, including Booking.com, Deutsche Telekom, Boston Pizza, Ezy Park, ITV, SnapTravel, 1-800-Flowers.com, Ocado, and many more, have launched RCS Business Messaging at Mobile World Congress, Barcelona 2018.
The market for RCS is equally supported by telecom companies, mobile manufacturers, and third-party application companies. In order to provide rich communication services implementation support for all the operators globally, the GSM Association has released the universal profile specification. This universal profile specification helps in offering a consistent messaging experience by enabling operator service interoperability. Therefore, RCS implemented on any mobile phone across any operator network will have similar core functions, which will provide uniformity and better user experience. Moreover, the carrier companies’ decision to roll-out rich communication services as a software update in the existing smartphones is expected to further fuel the market.
Global Rich Communication Services Market by Region Outlook (Revenue, USD Million, 2021-2027)
Based on region, Asia Pacific is the fastest growing region in the global rich communication market and is expected to show a high growth rate in the forecast period. Rising population, increasing smartphone connections, expanding retail industry, rapid adoption of digitization and the use of advanced SMS systems for customer relationship management and marketing are driving the growth of RCS in this region. According to the India Brand Equity Foundation (IBEF) smartphone, India is expected to have 829 million smartphones by 2022. In addition, several communications and mobile engagement providers in this region have collaborated with various telecom operators to offer rich and personalized multimedia content to their customers. For instance, Karix Mobile had partnered with Google and Reliance JioInfocomm to support RCS. Furthermore, the advent of 5G, various telecom operators in the region are expected to offer RCS as part of their 5G services owing to reduced latency, data, and delivery issues of media content.
Global Rich Communication Services Market by Communication Type Outlook (Revenue, USD Million, 2021-2027)
Global Rich Communication Services Market by Organization Size Outlook (Revenue, USD Million, 2021-2027)
Global Rich Communication Services Market by End-Use Industry Outlook (Revenue, USD Million, 2021-2027)
Company Profiles and Competitive Intelligence
The key players operating in the market are: