Rich Communication Services (RCS) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.29 Billion |
| Market Size (2029) | USD 7.12 Billion |
| CAGR (2024 - 2029) | 25.37 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Rich Communication Services (RCS) Market Analysis
The Rich Communication Services Market size is estimated at USD 2.29 billion in 2024, and is expected to reach USD 7.12 billion by 2029, growing at a CAGR of 25.37% during the forecast period (2024-2029).
- Rich communication services is a set of protocols and advanced messaging standards to enhance the performance of message applications that are installed in mobile phones, which provide rich communication services.
- The demand for premium communication services is expected to grow in the coming years as the number of mobile phones increases worldwide. Demand for SMS communication is increasing due to the rising use of smartphones. High communications services offer features to enhance the user's experience of communicating, such as read receipt and group chat. The adoption of RCS messaging services is expected to be strengthened by the increasing number of smartphones with such advanced features.
- SMS and MMS are supposed to be completely replaced by RCS. Messages with advanced features such as group chat, media sharing, video call, or location sharing. Therefore, a significant influence on market growth in the coming years is expected to be the increased uptake of mobile phone subscribers.
- The strong growth in the telecommunications services market is likely to be driven by increased subscribers, who are increasingly adopting cell phones. A mobile service subscriber is an agreement for a public mobile phone service using cellular technologies to provide users with access to the switched Public Telephone Network PSTN. Both prepaid and postpaid subscribers are covered by this provision, as well as Analog and Digital mobile technologies.
- However, limited end-to-end encryption and increasing competition by over-the-top platforms, along with Interoperability and Privacy concerns due to lack of end-to-end encryption, hinder the rich communication services market growth.
Rich Communication Services (RCS) Market Trends
Increasing Development and Adoption of Mobility Service Along with (VO-LTE) Technology to Witness the Growth
- The growing demand for rich communication services due to its benefits, such as the simultaneous use of calls and web surfing while sending messages with images, is a result of an increasing uptake of voice over long-term evolution (LTEVO).
- Smartphones and mobility services are having a profound effect in every workplace. The development of cutting-edge technologies such as the Internet of Things (IoT) and artificial intelligence (AI) has contributed to this. The use of communication devices at any location and time shall be referred to as mobility services. Mobility services are becoming more and more widely adopted by enterprises, thanks to their widespread use of mobility devices and cloud services.
- Mobility solutions offer an optimized network, easy access to business information, and better customer experiences in order to improve productivity. Rich communication services meet the growing need for mobility and diversity of communication in organizations.
- The benefits of rich communication service messaging in mobility services, e.g., file sharing when you bring your own device through the bring-your-own-device (BYOD) program, are many. Consequently, the use of software-defined networking technologies in secured enterprise environments is driven by a growing demand for VOLTE along with mobility services.
North America to Hold the Largest Market Share
- In this region, owing to the high network penetration of 5G and the growing use of artificial intelligence & other smart connected devices. Moreover, the surge in need for next-generation messaging service, chatbots shifting the inclination of customer service from conversational interactions, and rich communication service provide opportunities for mobile network operators (MNOs) to set up service on the latest technical advances being developed for the native messaging channel.
- The growth of the market for high communication services in this region is expected to be driven by an increase in the number of businesses adopting RCS platforms, like Subway IP LLC and Express, which are running their advertising campaigns. These companies have seen an increase in their customer engagement through the use of rich communication services, A2P, as opposed to SMS campaigns.
- North American region to one of the highest penetration of SMS applications and smartphones and users in the world. CTIA reported that 99.7% of the American population lived in areas with fourth-generation LTE coverage in 2019; also, the number of mobile subscriptions was estimated to reach 320 million by 2025, according to Ericsson.
- Furthermore, in 2025, 74% of North America's mobile subscriptions are projected to be made up of 5G. In 2019, there were 91% LTE installations across the region. In view of this adoption rate, a considerable demand for various smartphone communication applications will be generated in the region.
- This growth is a result of the increasing acceptance of mobile banking services within the region. Rich communication service platforms are designed to provide banks with functionalities such as mobile payments, opening new accounts, applying for credit or debit cards, searching branches and ATMs, and customer support.
Rich Communication Services (RCS) Industry Overview
The competitive landscape within the market remains moderate, with companies actively exploring the numerous opportunities presented by the rich communication services sector. Organizations are forging strategic partnerships with technology firms and network operators to harness advanced technological capabilities and foster innovation.
In February 2023, Vodafone unveiled its ambitious plans to extend its collaboration with Google across the European market, encompassing mobile messaging services, Pixel devices, and Vodafone's TV platform. This enhanced partnership will enable Vodafone customers to relish enriched messaging experiences through the utilization of Google Jibe Cloud, which will empower Vodafone's implementation of Rich Communications Services (RCS).
In October 2022, Sinch AB (publ) announced the integration of the KakaoTalk channel into its Conversation API. This addition significantly broadens the array of communication channels available for enterprises seeking to engage in omnichannel conversations with their global consumer base. The extended channels now encompass SMS, RCS, WhatsApp, Viber, Business, Facebook Messenger, and the latest inclusion, KakaoTalk.
Rich Communication Services (RCS) Market Leaders
-
Huawei Technologies Co. Ltd
-
Telefonaktiebolaget LM Ericsson
-
Mavenir Systems
-
Google LLC
-
Samsung Electronics Co Ltd
*Disclaimer: Major Players sorted in no particular order
Rich Communication Services (RCS) Market News
- July 2023: ZTE incorporated native AI-based traffic stimulation to enhance the consumer experience while also enabling seamless cloud-network-application coordination within the core infrastructure for verticals. This integration is driving 5G advancements, introducing new use cases such as Vehicle-to-Everything (V2X) communication and the integration of communication, sensing, and computing, which is propelling the low-altitude economy forward.
- June 2023: AT&T made a strategic move by transitioning to Google's RCS platform, providing advanced texting features to its Android users. This adoption allows AT&T's Android user base to enjoy the benefits of Rich Communication Service (RCS) immediately. RCS, the messaging service utilized within the Messages by Google app, offers a feature-rich communication experience that is reminiscent of Apple's iMessage, available to iOS users. However, it's important to note that these additional RCS features are only accessible when both the sender and recipient are RCS users or during group chats where all participants are utilizing RCS.
Rich Communication Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the market
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Stakeholder Analysis
4.4 Assessment of the Impact of COVID-19 on the RCS Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Investments in the field of advertising and marketing
5.1.2 Recent developments associated with Android phones enabling RCS messaging to rapidly drive adoption
5.1.3 Direct Association of the Service Providers
5.1.4 Ongoing efforts to regulate OTT messaging to also open up new opportunities
5.1.5 Increasing Development and Adoption of Mobility Service Along with (VO-LTE) Technology to Witness the Growth
5.2 Market Restraints
5.2.1 Interoperability and Privacy concerns due to lack of end-to-end encryption
6. RCS MESSAGING � TIMELINE and IMPLEMENTATION
6.1 Evolution of RCS
6.2 Current use-cases and implementation studies
6.2.1 Barclays & HDFC Banks focus on switching to RCS to drive customer engagement
6.2.2 Virgin Trains and Japan Railway company launch RCS to provide customer support in the travel industry
6.2.3 Google bypasses local operator support to launch RCS in major European countries
6.3 Major Applications
7. ANALYSIS ON THE IMPACT OF RCS ADOPTION ON NATIVE SMS
7.1 Breakdown of A2P SMS and OTT Messaging for 2016-2021
7.2 Share of A2P of the overall Digital Advertising revenue
7.3 Anticipated changes in the P2P landscape
8. MARKET SEGMENTATION
8.1 End-User
8.1.1 BFSI
8.1.2 Media and Entertainment
8.1.3 Travel and Hospitality
8.1.4 Retail
8.1.5 Healthcare
8.1.6 Other End-User verticals
8.2 Geography***
8.2.1 North America
8.2.2 Europe
8.2.3 Asia
8.2.4 Latin America
8.2.5 Middle East and Africa
9. COMPETITIVE LANDSCAPE
9.1 Company Profiles*
9.1.1 Telefonaktiebolaget LM Ericsson
9.1.2 Google LLC
9.1.3 Huawei Technologies Co Ltd
9.1.4 Mavenir Systems
9.1.5 Samsung Electronics Co Ltd
9.1.6 ZTE Corporation
9.1.7 Global Message Services
9.1.8 Sinch AB
9.1.9 Juphoon System Software Co Ltd
9.1.10 Summit Tech
9.1.11 AT&T Inc
9.1.12 T-Mobile USA Inc
9.1.13 Verizon Wireless
9.1.14 SK Telecom Co Ltd
9.1.15 Telstra Corporation Limited
9.1.16 Vodafone Group PLC
10. RCS ROADMAP FOR MAJOR MNOS
11. MARKET OUTLOOK
Rich Communication Services (RCS) Industry Segmentation
Rich communications service (RCS) is the platform that enables enriched communication services/experiences beyond simple text, a universal solution providing consumers with instant messaging, live video, and file sharing across all types of communication devices. The study tracks the current adoption and anticipated future trends related to RCS, which is a protocol between mobile operators and phones that is expected to replace traditional SMS-based communications.
The rich communication services market is segmented by end-user vertical (BFSI, media and entertainment, travel and hospitality, retail, healthcare, and other end-user verticals) and geography (North America, Europe, Asia Pacific, and the Rest of the World).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| End-User | |
| BFSI | |
| Media and Entertainment | |
| Travel and Hospitality | |
| Retail | |
| Healthcare | |
| Other End-User verticals |
| Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa |
Rich Communication Services Market Research Faqs
How big is the Rich Communication Services Market?
The Rich Communication Services Market size is expected to reach USD 2.29 billion in 2024 and grow at a CAGR of 25.37% to reach USD 7.12 billion by 2029.
What is the current Rich Communication Services Market size?
In 2024, the Rich Communication Services Market size is expected to reach USD 2.29 billion.
Who are the key players in Rich Communication Services Market?
Huawei Technologies Co. Ltd, Telefonaktiebolaget LM Ericsson, Mavenir Systems, Google LLC and Samsung Electronics Co Ltd are the major companies operating in the Rich Communication Services Market.
Which is the fastest growing region in Rich Communication Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Rich Communication Services Market?
In 2024, the North America accounts for the largest market share in Rich Communication Services Market.
What years does this Rich Communication Services Market cover, and what was the market size in 2023?
In 2023, the Rich Communication Services Market size was estimated at USD 1.71 billion. The report covers the Rich Communication Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Rich Communication Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Rich Communication Services Industry Report
Statistics for the 2024 Rich Communication Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Rich Communication Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
