Rich Communication Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Rich Communication Services Market is expected to regsiter a CAGR of 12.5 % over the forecast period 2021 - 2026. Text messaging is still the most direct and widely used form of communication. As a result, two-way automated enterprise-to-person text messaging, known as A2P mobile messaging, has become essential for businesses.

• Rich Communication Services (RCS) is a successor to SMS that supports read receipts, typing indicators, improved group chats, and high-quality images. RCS relies on a standard called Universal Profile, which defines a way to tell other phones that it can spend and receive RCS. Various prominent smartphone vendors and telecom operators are increasingly developing, investing, and offering RCS platforms.
• For instance, in November 2019, Google rolled out RCS in the United Kingdom and France. In addition to this, AT&T, Sprint, T-Mobile, and Verizon announced that they are also looking to replace SMS with RCS by 2020, and technology will be built on an RCS implementation for Android under the Cross-Carrier Messaging Initiative (CCMI) where Google will not be involved.
• Despite the growing popularity of OTT messaging apps, SMS is still prevalent amongst the population. Even though a significant number of users are declining since the last few years due to various other messaging apps, but SMS remains one of the prominent sources of messaging, information sharing, advertising, and CRM tool. According to Salesforce, text messages have a 98% open rate, and about 90% of the recipients open SMS messages within three minutes.
• Moreover, text messages are nearly 56 times more affordable compared to cost-per-click advertising such as Adwords, according to Burst SMS. Also, text messages command a 10% click-through rate; owing to such cost-effective means, the demand for SMS in terms of information dissemination is significantly high.
• A2P communication channels have become critical to assure business continuity during COVID-19 lockdowns since the number of in-person interactions has been dramatically reduced.The economy has started to adapt to the new conditions created by the pandemic, and as a result, the demand for A2P services has also changed.

Scope of the Report

Rich communications service (RCS) is the platform which 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 the traditional SMS-based communications

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Key Market Trends

BFSI to Witness the Highest Growth Rate Over the Forecast Period

• With a huge number of user base, RCS Business Messaging foresees an even larger market size in the forcast period. The speciality of the technology lies in the newness along with existing features of SMS, RCS is a new channel to gain traction in the worldwide market with a notable number of consumers already using its functions.
• RCS can benefit banks to a great extent as it will let them include a horizontally scrollable carousel of up to 10 vertical rich cards, branch locator, suggestive replies, and many more.
• Some important features of the RCS Business Messaging which makes the technology well suited for banks are deep-linking for web-based campaigns and/or emails. It also encompasses features like read recipients, delivery receipts, on-screen event tracking, and customised information of customers on the basis of their responses to a message.
• With the advent of 5G, the global demand for RCS is expected to see exponential growth owing to reduced latency, data, and delivery issues of media content; various telecom operators are expected to offer RCS as part of their 5G services over the coming years.
• Currently, a large share of the active RCS users is limited to the US, South Korea, Japan, Germany, where operators are offering the service, along with these countries Mexico, UK and France are also at the forefront due to an ongoing effort by Google. These demographics are expected to change rapidly with strong 5G support over the coming years.

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