Rich Communication Services Market growing at a CAGR of 25.3% from 2024 to 2030

Key Market Trends & Insights

• North America led the market with 35.0% of the global revenue share in 2023.
• The U.S. held a dominant share of the regional market in 2023.
• In terms of type, the A2P communication segment led the market with a revenue share of 65.4% in 2023.
• In terms of enterprise size, large enterprises segment accounted for a leading revenue share in the global market in 2023.
• In terms of end use, the retail segment held a leading revenue share in 2023.

Market Size & Forecast

• 2023 Market Size: USD 2.68 Billion
• 2030 Projected Market Size: USD 12.46 Billion
• CAGR (2024-2030): 25.3%
• North America: Largest market in 2023

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Smartphone companies are increasingly launching device models that offer support for Rich Communication Services (RCS), enabling consumers to receive and send high-quality video and audio messages, engage in personalized interactions with brands, share large files, and create group chats involving a large number of people. These features are not possible with conventional SMS and MMS platforms, leading network operators and service providers to shift their preferences toward RCS.

The use of smartphones and mobility services has impacted commercial and industrial organizations. The rapid emergence and popularity of technologies such as artificial intelligence (AI) and the Internet of Things (IoT) contribute to this trend. Furthermore, the increasing deployment of cloud services and mobility devices has led to enterprises’ large-scale adoption of mobility services, as they offer convenient access to business information, an optimized network, and improved customer experience to boost productivity. The healthcare sector is also significantly benefiting from using RCS messaging, as it improves communication quality and speed in several ways and automates manual processes, leading to increased productivity and better patient outcomes. For instance, patients can schedule appointments by confirming or modifying automated reminders sent by healthcare providers. Additionally, patients can receive important instructions and suggestions before or after their appointment, thus improving the quality of consultations. Such capabilities of RCS platforms are expected to drive market growth during the forecast period.

Type Insights

The A2P communication segment led the market with a revenue share of 65.4% in 2023. The increasing use of bulk messaging platforms among businesses to boost their customer reach is a major factor driving this segment’s contribution to the overall market. RCS business messaging platforms are being extensively utilized to market products and services to audiences more interactively and innovatively. In June 2024, Infobip, a communications platform, announced that it would bring Application-to-Person Rich Communication Services (A2P RCS) to the North American market via a new API (Application Programming Interface). The API is anticipated to help businesses reach their customers in different ways through branded multimedia messages, improving engagement and driving conversions. As brands continuously launch initiatives to ensure better sales and higher profits for their solutions, the segment is anticipated to maintain a steady growth rate.

Enterprise Size Insights

Large enterprises accounted for a leading revenue share in the global market in 2023. Various business divisions dedicated to marketing and advertising, along with ample resources and funding, lead to a larger share of this segment. Furthermore, large organizations are early adopters of technological advances and implement them efficiently in their processes, leading to a better and more well-rounded implementation of services such as advanced messaging. These enterprises can send rich media messages through these services, such as video demos, product catalogs, and personalized promotions, to their customers, which help drive revenue. In September 2024, Vonage, specializing in cloud communication services, launched the Vonage RCS business messaging solution to transform customer brand interactions via secure, engaging, and verified real-time communication features on their preferred channels.

End Use Insights

The retail segment held a leading revenue share in 2023. Growing competition in the retail industry has resulted in the increased adoption of technology by retailers to offer a customized and interactive shopping experience to their customers. RCS platforms allow retailers to provide product images in various creative formats as well as videos, along with extensive insights concerning customer preferences, which helps in increasing their chances of conversion. According to a report by Morning Consult conducted in December 2022, more than 60% of the surveyed adults stated mobile features to be an important aspect of their shopping experience, highlighting the need for retailers to improve their mobile commerce experience to remain competitive. Moreover, an article by Sinch stated that brands sent 25,000 times more RCS messages in 2023 than in 2022, signifying their potential to dictate how retail companies connect with their audience. These factors are anticipated to maintain this segment’s contribution to the market in the coming years.

Regional Insights

North America led the market with 35.0% of the global revenue share in 2023. The high percentage of smartphone adoption in the region, coupled with the presence of various service providers leading to increased competition, is expected to drive developments in the regional RCS market. Carriers such as AT&T and Verizon are striving to offer distinct features through their Rich Communication Services solutions to generate a higher subscriber base. These include the ability to create larger group chats, send high-quality audio and videos, share large files, and keep track of when the receiver has read the message. Frequent regulatory modifications, supportive policies by governments, and a growing focus on digital transformation further aid market expansion in the region.

Rich Communication Services Market Report Scope

Report Attribute	Details
Market size value in 2024	USD 3.22 billion
Revenue Forecast in 2030	USD 12.46 billion
Growth Rate	CAGR of 25.3% from 2024 to 2030
Base year for estimation	2023
Historical data	2018 – 2022
Forecast period	2024 – 2030
Quantitative units	Revenue in USD billion and CAGR from 2024 to 2030
Report Coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments Covered	Type, enterprise size, end use, region
Regional scope	North America, Europe, Asia Pacific, Latin America, MEA
Country scope	U.S., Canada, Mexico, Germany, UK, France, China, Japan, India, Australia, South Korea, Brazil, South Africa, Saudi Arabia, UAE
Key companies profiled	AT&T Intellectual Property; Vodafone Group Plc; Google LLC; Verizon; Telefónica S.A.; Orange; China Mobile Hong Kong Company Limited; KDDI CORPORATION; Telit Cinterion; Telstra Group Limited
Customization scope	Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
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