The global rich communications services (RCS) market is predicted to reach USD 3.92 billion in 2024 and USD 7.61 billion by 2029, growing at a CAGR of 14.20% during the forecast period.
Rich Communication Services is a communication protocol between the mobile device and the communication operator that aims to replace simple text messages with richer content such as video, voice over IP (VoIP), chat, and sharing files. Rich communication services help to increase the reach of the communication experience by offering advanced communications via the operator. The main features of rich communication services are a superior user experience and improved communication speed. However, the expensive use of these services limits their adoption.
The GSMA, an association representing the interests of nearly 800 mobile operators worldwide, supports a universal RCS profile to deliver messages across the Android ecosystem and includes Apple iPhone applications to receive and send messages. RCS presents a platform to participate in testing future technologies and make RCS the default messaging experience worldwide. Companies implementing RCS will have the opportunity to offer a consistent GSMA universal profile and actively benefit from industry players who partner with the forefront of mobile communications.
The influence of social networks is the factor that favors the growth of the market for rich communication services. In addition, the growing adoption of broadband has benefited mobile network operators. As costs increase, the mobile network operator invests and adopts rich communication services to generate revenue by creating B2B applications and services through tailored payment solutions. The rich communication service delivers an added advantage to existing messaging technology, and the service providers are adopting these to provide users with differentiated data and multimedia services. In rich communication services, there are many challenges due to messaging technology and the increasing competition from high-level players (OTT) offering internet-based services. The growth of the RCS market is expected to be hampered due to organizations' lack of awareness of the implementation and use of the services.
The most critical factors driving the growth of VoLTE services will be operators who will decrease expenses and raise operator capacity by shifting calls from 3G and 4G networks to the 5G VoLTE network. With 5G wireless communication on the way, smartphone use will increase in various ways, raising the demand for the latest models to continually raise the bar and facilitating the growth of rich communication services.
The rich communications services market (RCS) offers immense growth opportunities by providing more straightforward solutions to consumers and business users. For small and medium-sized businesses and organizations, opportunities in these markets include integrated communications, mobile content management, and video services. The RCS for business users provides a business policy that allows customization while maintaining the business dashboard for corporate communications and applications. For consumers, RCS offers the ability to merge text and voice with the instant exchange of videos and messages on any network and device. In addition, it offers mobile network operators the opportunity to generate revenue from their existing services for their customers with improved communication services.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
14.20% |
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Segments Covered |
By Application, End User, Deployment, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
SAP SE, Alcatel-Lucent SA, Huawei Technology Co, Ericsson Inc., Nokia Networks, Comverse Technology Inc., Mavenir Systems Inc., GENBAND Inc., Acision UK Ltd Interop Technologies LLC, and Others. |
The Asia-Pacific region is presumed to be the leading market for these services, followed by the European nation. Growth in the Asia Pacific is expected to be fuelled by countries such as China, India, and Japan, which experienced significant adoption of these services during the forecast period and are the focus of major regional providers and start-ups. These services have an intense penetration in Spain, South Korea, and other countries that have integrated these services, such as Germany, Mexico, Argentina, the United States, France, Brazil, Romania, and Colombia. In North America, RCS is gaining ground as the default messaging client, along with VoLTE, to share the IMS stack, improving device and network efficiency and simplifying RCS services implementation.
The major companies operating in the global rich communication services market include SAP SE, Alcatel-Lucent SA, Huawei Technology Co, Ericsson Inc., Nokia Networks, Comverse Technology Inc., Mavenir Systems Inc., GENBAND Inc., Acision UK Ltd, and Interop Technologies LLC.
In early 2017, nearly 49 operators launched RCS via their network. Even though Google bought Jibe to optimize the service, interoperability continues to pose challenges. For example, AT&T has implemented an older standard that does not work with T-Mobile or the Verizon version in the United States.
Organizations are investing heavily to mitigate interoperability issues facing network operators. For example, in 2016, TIM and Vodafone PLC implemented tests to ensure open and interoperable standards, maximizing usability and offering the best services on the market.
By Application
Advertising Campaign
Content Delivery
Integrated Solutions
By End-User
Enterprises
Consumer
By Deployment
Cloud
On-Premises
By Region
North America
Europe
Asia-Pacific
LAMEA
Frequently Asked Questions
RCS, or Rich Communication Services, is an advanced messaging protocol that enhances traditional SMS by adding features like high-quality media sharing, read receipts, and typing indicators. It provides a more interactive and feature-rich messaging experience compared to basic SMS.
The rollout of 5G networks significantly contributes to the expansion of the RCS market by providing faster and more reliable connectivity. This enables users to experience the full capabilities of RCS, fostering its adoption for multimedia-rich communication.
RCS incorporates end-to-end encryption for enhanced security, making it comparable to other secure messaging platforms. This ensures that user data and communication are protected, meeting the evolving privacy expectations of users globally.
Key use cases include person-to-person communication with advanced features, business-to-consumer interactions, and application-to-person messaging. These use cases collectively drive the demand for RCS services across the globe.
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