Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Rich Communication Services market.
Trusted Business Insights presents an updated and Latest Study on Rich Communication Services Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Rich Communication Services market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Get Sample Copy of this Report @ Rich Communication Services Market 2020 and Forecast 2021-2027 Includes Business Impact Analysis of COVID-19
Report Overview: Rich Communication Services Market
The global rich communication services market size was valued at USD 6879.0 million in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 24.3% from 2021 to 2027. Rich communication services (RCS) are a set of protocols and advanced messaging standards that are designed to enhance the functionality of messaging application that is pre-installed in mobile phones. With advanced features like group chats, media sharing, video calls, and location sharing, RCS is expected to completely replace SMS and MMS messaging. Thus, the increasing adoption of mobile service subscribers is anticipated to be a major factor influencing market growth over the forecast period 2021-2027.
The rise in the number of smartphones across the globe is expected to positively influence the market for rich communication services in the near future. Increasing use of smartphones augments the demand for communication via messaging. Rich communication services offer features like read receipt and group chat that enhances the messaging experience for its users. Owing to such advanced features, increasing smartphones is expected to increase the adoption of RCS messaging services. Additionally, 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.
Apart from individual messaging benefits, the use of rich communication services by enterprises for Application to Person (A2P) messaging is anticipated to be the stand-out factor driving the market. Companies are increasingly spending on SMS marketing in order to reach a large customer base in a short period of time. In addition to large reach, SMSs also have the best Click Through Rate (CTR) as compared to any other marketing tool. The high CTR guarantees enterprises that the advertisement will surely be viewed by the target audience. RCS business messaging platform is developed to replace the existing A2P messaging platforms, thus, providing an impetus to rich communication services adoption across the globe.
The market for rich communication services has been equally supported by mobile manufacturers, telecom companies, and third-party application providers. Owing to the support of all the involved stakeholders, the adoption of rich communication services is majorly driven by the property of interoperability. In order to provide rich communication services implementation support for all the operators across the globe, the GSM Association (GSMA) has released the universal profile specification. The implementation of universal profile aids in providing a consistent messaging experience by enabling operator service interoperability. Thus, rich communication services implemented on any mobile phone across any operator network will have similar core functionalities, which will provide uniformity and better user experience.
The resistance of shift from Over-The-Top (OTT) services to rich communication services platform is one of the challenges that the market players have to address over the coming years. OTT messaging platforms such as WhatsApp, WeChat, Viber, and Skype, have a large customer base and are popular amongst their users. However, encouraging support from the telecom operators that enjoy a loyal customer base is expected to convince users to adopt rich communication services. The unavailability of end to end encryption is a major factor expected to inhibit the growth of the market for rich communication services.
Communication Type Insights: Rich Communication Services Market
In 2019, the A2P segment held the largest market share exceeding 74.0% and is projected to exhibit a healthy CAGR during the forecast period. A2P messages are sent by businesses using bulk messaging platforms that amplify their customer reach. The use of RCS business messaging platforms by numerous businesses for marketing their products and services is the primary factor contributing to the high revenue share of the segment.
The A segment is expected to witness a notable CAGR exceeding 40.0% in the RCS market over the next seven years. A messaging includes the messages that customers initiate to interact with a business, brand, or organization. Currently, the use of A is high among the media and entertainment industry, where users send their votes using text messages. However, considering the various customer engagement properties that rich communication services platforms provide, the use of A messages is expected to increase over the years. As companies are opting for platforms that enrich customer interaction, communication from both, the customer as well as business, is essential. With organizations aiming to enhance customer experience by solving customer queries related to the products and services on offer, A communication is bound to rise.
The retail segment held the largest market share of 21.5% in 2019 is anticipated to witness the highest CAGR from 2020 to 2027. This growth is attributed to the increasing adoption of technology by various retailers to enhance the customer shopping experience. RCS platforms offer retailers with options of providing product images in different creative formats along with insightful data with regards to customer preferences, thus, increasing their conversion chances.
The BFSI segment held a substantial share in 2019 and is expected to witness a CAGR exceeding 30.0% in the market for rich communication services over the next seven years. This growth is due to the increasing adoption of mobile banking services across the globe. Rich communication services platforms are designed to provide banks with features such as mobile payments, opening new accounts, request for credit/debit cards, locating banks and ATMs, and customer support. Rich communication services can also be used by banks and other financial institutes for web-based campaigns by linking with the institutes database and enhance the customer experience.
Regional Insights: Rich Communication Services Market
North America held a substantial revenue share of 19.9% in 2019 and is projected to exhibit a steady growth In the near future. This share is attributed to the presence of numerous RCS market players such as Syniverse Technologies LLC; Alphabet Inc.; Summit Tech; and Mavenir in the region. Moreover, increasing adoption of RCS platforms by companies such as Subway IP LLC and Express to run their advertisement campaigns is anticipated to fuel the growth of the market for rich communication services in the region. By opting for rich communication services A2P campaigns over SMS campaigns, these companies have witnessed an increase in their customer engagement.
Asia Pacific is expected to be one of the most lucrative regions for the market, expanding at a CAGR of over 35.0% during the forecast period. This surge is attributed to the increase in disposable income and the increasing number of smartphone users in the region. According to the India Brand Equity Foundation (IBEF), in 2017, the total smartphone shipments in India reached 124.0 million as compared to 102.0 million in 2015. Furthermore, smartphone users in India are projected to reach 442.0 million by 2022, which will boost the market over the forecast period.
Key Companies & Market Share Insights: Rich Communication Services Market
The competitive rivalry in the market is high due to the presence of several players. The market participants include smartphone companies, Mobile Network Operators (MNOs), bulk messaging service providers, and third-party application developers. Owing to the presence of several stakeholders, the market for rich communication services is highly fragmented and involves intense competitive rivalry.
Key players are focusing on geographically expanding their business and leveraging their product portfolio by opting for various inorganic strategies such as acquisition, collaborations, and mergers. For instance, in July 2019, Syniverse Technologies LLC announced its partnership with China Telecom Global to provide connectivity services in the Middle East & Africa for mobile operators.
Additionally, in order to enrich their market share and gain a competitive advantage in the market, various market players are providing technologically advanced solutions and supporting services. For instance, in March 2017, Mavenir launched its cloud-based rich communication services platform and hub. With the launch of its new platform, Mavenir provides communication service providers with an innovative approach to efficiently deploy advanced and secure communications. Some of the prominent players in the rich communication services (RCS) market include:
Key companies Profiled: Rich Communication Services Market Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global rich communication services market report based on communication type, vertical, and region:
Communication Type Outlook (Revenue, USD Million, 2018 – 2027)
Vertical Outlook (Revenue, USD Million, 2018 – 2027)
- Media & Entertainment
- Travel & Tourism
Quick Read Table of Contents of this Report @ Rich Communication Services Market 2020 and Forecast 2021-2027 Includes Business Impact Analysis of COVID-19
Trusted Business Insights
Media & Marketing Executive
Email Me For Any Clarifications
Connect on LinkedIn
Click to follow Trusted Business Insights LinkedIn for Market Data and Updates.
US: +1 646 568 9797
UK: +44 330 808 0580