The global rich communication service (RCS) market is projected to experience significant growth during the forecast period. Text messaging remains the most widely used mode of communication, leading organizations to adopt two-way automated enterprise-to-person text messaging, also known as A2P mobile texting.
RCS, a successor to SMS, offers features such as read receipts, typing indicators, improved group conversations, and high-quality photos. Based on the Universal Profile standard, RCS allows phones to send and receive RCS messages. Major smartphone OEMs and telecom providers are investing in RCS platforms, with Google launching RCS in the UK and France in 2019. AT&T, Sprint, T-Mobile, and Verizon have also expressed interest in replacing SMS with RCS by 2020 under the Cross-Carrier Messaging Initiative (CCMI).
Despite the rise of over-the-top messaging apps, SMS remains popular due to its 98% open rate and 90% of recipients opening messages within three minutes. Text messages are cost-effective, with a 10% click-through rate, making them a preferred method for information dissemination.
The COVID-19 pandemic has highlighted the importance of A2P communication channels for maintaining business continuity. RCS Business Messaging is expected to see a rise in market size due to its large user base. With features like horizontally scrollable carousels and deep-linking for web campaigns, RCS is well-suited for industries like banking.
The global demand for RCS is predicted to grow exponentially with the introduction of 5G technology, as telecom operators are expected to offer RCS as part of their 5G services. The market is segmented by protocol (A2P, P2A, P2P) and end-user industries such as BFSI, media & entertainment, travel & hospitality, retail, healthcare, and others.
Key players in the RCS market include Google LLC, Vodafone Group PLC, and Telefonaktiebolaget LM Ericsson. Orion Market Research (OMR) offers comprehensive reports covering over 15 major industries and more than 90 sectors, with analysis of over 120 countries. OMR’s expert analysts provide pre- and post-purchase support for all reports.