Rich Communication Services (RCS) Global Market Report 2024

The rich communication services (rcs) market has grown exponentially in recent years. It will grow from $5.55 billion in 2023 to $7.5 billion in 2024 at a compound annual growth rate (CAGR) of 35.3%. The expansion observed in the historical period can be ascribed to several factors, including the transition from traditional SMS to richer media formats, the widespread adoption of smartphones, increased accessibility to mobile internet, and a rising consumer demand for more advanced messaging features. Additionally, collaboration among mobile operators has played a pivotal role in driving this growth, fostering an environment conducive to the evolution of communication services towards richer and more interactive experiences.

The rich communication services (rcs) market is expected to see exponential growth in the next few years. It will grow to $25.15 billion in 2028 at a compound annual growth rate (CAGR) of 35.3%. The projected expansion during the forecast period is primarily driven by the deployment of 5G networks, heightened emphasis on enhancing customer engagement, seamless integration with AI-driven chatbots, the surge in conversational commerce, and the worldwide proliferation of the RCS ecosystem. Key trends anticipated in the forecast period encompass progress in mobile network technologies, increased integration with business communication systems, strategic partnerships with carriers, and widespread adoption of RCS across various communication channels.

The anticipated growth of the rich communication services (RCS) market is closely tied to the increasing adoption of mobile service subscribers. Mobile service subscribers, comprising individuals or businesses subscribing to mobile phone services from operators, benefit from a range of services, including voice calls, text messaging, and data services on their mobile devices. The appeal of RCS lies in its capacity to enhance the messaging experience by offering a more engaging, interactive, and feature-rich platform compared to traditional SMS texting. For example, data from the UK's Office of Communications in February 2023 revealed that the total number of active mobile subscribers in the UK reached 83.25 million by March 2022, marking a 2% increase since March 2021. Consequently, the upward trajectory in mobile service subscriber adoption is a key driver for the growth of the RCS market.

Government initiatives in the telecommunications sector are poised to contribute significantly to the expansion of the rich communication services (RCS) market. These initiatives, undertaken by governments, involve actions and programs designed to address specific issues, advance particular goals, or implement policies aimed at societal improvement, economic growth, enhanced public services, or overall citizen well-being. Government support can create a conducive environment, provide essential resources, and offer incentives that propel the growth of RCS, making it more accessible, secure, and appealing across diverse segments of the population. As an illustration, in 2021, the US-based National Telecommunications and Information Administration (NTIA) allocated $65 billion for broadband as part of the Infrastructure Investment and Jobs Act. Of this amount, $48.2 billion is managed by the NTIA's Internet Connectivity and Growth office, which is launching various broadband programs, including the flagship Broadband Equity, Access, and Deployment (BEAD) Program supported by $42.45 billion. Consequently, the increasing support from government initiatives in the telecommunications sector serves as a significant driver for the rich communication services (RCS) market.

The rich communication services (RCS) market is witnessing a prominent trend of technological advancement, with companies strategically adopting new technologies to maintain and enhance their market positions. An illustrative example of this trend is evident in the actions of Kirusa, a US-based communication solutions provider, which introduced the RichOTP service in September 2022. This innovative service enables companies to securely send OTPs (One-Time Passwords) to customers' mobile devices through messaging apps, offering a more reliable and secure alternative to traditional SMS messaging. RichOTP streamlines the delivery of OTPs, crucial for secure transactions and account verification, showcasing the market's focus on leveraging technological advancements for improved functionality.

Partnerships have become a key strategy for major companies operating in the rich communication services market, aiming to gain a competitive edge. These collaborations foster synergy by allowing companies to combine strengths and resources, resulting in more comprehensive, user-friendly, and competitive offerings within the rich communication services sector. A notable instance is the expanded partnership between Deutsche Telekom, a Germany-based telecommunications company, and Google, a US-based technology company, announced in February 2022. This strategic alliance enables German businesses to leverage Google's cloud technology while ensuring data sovereignty within Germany. The collaboration aims to develop more secure, reliable, and scalable cloud-native networks, exemplifying the significance of partnerships in enhancing market positions.

In September 2021, Gupshup, a prominent US-based conversational messaging platform, successfully completed the acquisition of Dotgo for an undisclosed amount. This strategic move serves to enhance and diversify Gupshup's portfolio by integrating Dotgo's expertise in conversational messaging. The addition of Dotgo's capabilities enables organizations and developers to create more sophisticated customer experiences. Furthermore, this acquisition positions Gupshup to extend its presence in the African market, leveraging Dotgo's established presence in the rich communication services (RCS) sector, particularly in mobile publishing.

Major companies operating in the rich communication services (rcs) market report are AT&T Inc., Vodafone Idea Limited, Deutsche Telekom AG, Google LLC, Verizon Communications Inc., SK Telecom Co. Ltd., ZTE Corporation, Global Message Services, HRMavenir Systems Inc., Infobip Ltd., Huawei Technologies Co. Ltd., T-Mobile Inc., Ericssion, Reliance Jio Infocomm Limited, Swisscom AG, Telefónica S.A., Bell Canada Enterprises Inc., TELUS Communications Inc., Rogers Communications Inc., China Mobile Communications Corporation, NTT Docomo Inc., SoftBank Group Corporation, KDDI Corporation, KT Corporation, LG Uplus Corp., Singapore Telecommunications Limited, StarHub Limited, M1 Limited, True Corporation Public Company Limited, TOT Public Company Limited, Total Access Communication PCL (DTAC), Advanced Info Service Public Company Limited.

North America was the largest region in the rich communication services (RCS) market in 2023. The regions covered in the rich communication services (rcs) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rich communication services (rcs) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Within the realm of RCS, three primary categories exist A2P, P2A, and P2P. A2P, denoting Application-to-Person messaging, functions as a corporate messaging tool where marketers utilize software applications to send text messages to mobile customers. This form of messaging is employed for transmitting alerts, notifications, and various automated messages. A2P finds applications across diverse environments, including on-premises and cloud solutions, catering to small and medium enterprises as well as large enterprises. Its utilization spans rich calls and messaging, content delivery, value-added services, marketing and advertising campaigns, and cloud storage. Industries such as healthcare, retail, e-commerce, BFSI, IT and telecom, as well as travel and tourism, leverage A2P messaging for effective communication and engagement.

The rich communication services (RCS) market research report provides rich communication services (RCS) market statistics, including rich communication services (RCS) industry global market size, regional shares, competitors with a rich communication services (RCS) market share, detailed rich communication services (RCS) market segments, market trends and opportunities, and any further data you may need to thrive in the rich communication services (RCS) industry. This rich communication services (RCS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The rich communication services (RCS) market includes revenues earned by entities by group messaging, rich media sharing, read receipts, typing indicators, chatbot and enhanced calling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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