Rich Communication Services Market Size, Share & Trends Analysis Report By Type (A2P, P2A, P2P), By Enterprise Size (SMEs, Large Enterprises), By End Use, By Region, And Segment Forecasts, 2024 - 2030

Rich Communication Services Market Trends

The global rich communication services market size was valued at USD 2.68 billion in 2023 and is projected to grow at a CAGR of 25.3% from 2024 to 2030. The widespread usage of smartphones globally and increasing demands to improve communication experience across major industries such as retail, hospitality, and healthcare are expected to be major drivers of market expansion. 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.

The growth of the rich communication services market is expected to be further accelerated by their integration on iPhones. At the WWDC event in June 2024, the company announced it would finally adopt RCS on iOS 18, enabling iOS and Android users to share and transfer high-quality media seamlessly. It would create significant awareness among Apple device users regarding the features of this messaging protocol. According to data obtained from 473 billion communication interactions on Infobip's platform in 2023, there was a 358% increase in the number of RCS messages over the previous year, highlighting the strategic importance of RCS in improving process efficiency and driving customer engagement across major industries. Consequently, several market developments in recent years are expected to shape industry expansion positively. For instance, in September 2024, Twilio, a customer engagement platform, announced the global launch of the Rich Communication Services (RCS) platform through its Programmable Messaging and Verify APIs. Twilio's solution offers features such as branded messaging to improve trust and loyalty among a company's audience and interactive features such as interactive carousels, quick reply to options, and location sharing.

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.

The P2A segment is expected to register the fastest CAGR over the forecast period. P2A messaging enables customers to initiate interactions with a brand or business, with its usage being widespread in the media and entertainment sector. The range of customer engagement features provided by RCS platforms is anticipated to drive the use of P2A messages in the coming years. As organizations constantly aim to elevate customer experience by quickly and efficiently solving customer queries for their products or services, the popularity of P2A communication is anticipated to grow substantially. Banks and finance use P2A communications to enable secure interactions such as transaction alerts and OTP inquiries. This messaging has also become very popular in the medical industry, as patients can request prescription refills, book appointments, and get health tips, improving patient outcomes.

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.

The SMEs segment is expected to advance at the fastest growth rate from 2024 to 2030. The increasing presence of start-ups and small businesses selling products and services has necessitated clear and innovative communication tools to drive brand awareness among consumers, which drives market expansion. Small business owners primarily focus on customer acquisition through advanced messages that can inform the audience about their products while allowing them to ask questions or participate in polls. These features help in driving engagement, leading to higher chances of customer retention and increased sales.

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.

The travel & tourism end-use segment is expected to witness the fastest growth during the forecast period. There has been a sharp growth in the number of travelers visiting both international and domestic locations, owing to convenience offered by transportation modes and the presence of economical travel packages. According to the 2020 Customer Expectations Report published by Gladly, around 80% of consumers stated that personalized service from travel brands is of greater importance to them than personalized marketing. This has encouraged tourism and travel enterprises to utilize rich messaging services to improve customer experience. RCS Business Messaging can be used to provide personalized trip planning, ensure seamless booking and real-time updates, and offer proactive customer service. Additionally, tour operators and travel agents can send interactive maps, high-quality images, and location pins for places of interest, which heightens the travel experience. Such features are anticipated to boost the deployment of RCS in this segment 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.

U.S. Rich Communication Services Market Trends

The U.S. held a dominant share of the regional market in 2023. The U.S. has witnessed a high adoption rate of smartphones owing to the presence of major Android brands and Apple and their competitive pricing. The increasing focus on replacing SMS and MMS with more robust messaging standards is expected to drive awareness regarding Rich Communication Services in the economy. Furthermore, the benefits offered by RCS to marketers in terms of promoting their products and services and communicating with customers in more interactive terms are expected to enable substantial expansion of this market.

Europe Rich Communication Services Market Trends

Europe accounted for a notable share of the global market in 2023. The rapid development of the communication infrastructure in the region, coupled with the high smartphone usage, has created opportunities for network carriers to offer advanced messaging services for individuals and enterprises. Additionally, the healthcare sector in the region is constantly focusing on enhancing patient outcomes by improving communication quality and automating various manual processes, which can be effectively addressed by the use of RCS messaging protocols. Furthermore, Europe is well-known for its tourist attractions, attracting millions of people to destinations such as Switzerland, France, and the UK. As a result, hotels and airlines are utilizing RCS solutions to elevate the customer experience by sending boarding passes, promotional offers, and check-in notifications.

Germany held a substantial share of the European rich communication services market. Significant technological innovations and a growing adoption of innovative promotional campaigns by major brands are expected to maintain a strong demand for RCS messaging in the economy. For instance, Telekom Deutschland leveraged the features of RCS, in partnership with Infobip, to launch innovative marketing ideas aimed at promoting their offer on Spotify Premium among German consumers. Through the use of Infobip’s ‘Moments’ and ‘Conversations’ features, Telekom Deutschland was able to significantly increase its engagement and conversion rate, thus creating a highly successful campaign.

Asia Pacific Rich Communication Services Market Trends

Asia Pacific is expected to register the fastest CAGR during the forecast period in the global market. Rising smartphone usage in the region and an increasing focus of brands to boost customer engagement through innovative marketing techniques has highlighted the need for advanced messaging standards such as RCS. Additionally, the growing presence of start-ups and small- and medium-sized businesses in economies such as China and India has necessitated the use of communication tools that can ensure meaningful and interactive conversations between the business and the customer. In addition to marketing, other sectors, such as tourism and healthcare, have also become aware of the benefits of Rich Communication Services, driving market growth in the region.

The RCS market in India accounts for a significant contribution to the regional market and is poised to witness substantial growth in the coming years. A constant increase in smartphone usage in the country over the past decade and a rising need to improve the quality of communication have resulted in the rapid emergence of Rich Communication Services messaging standards. Furthermore, companies are launching advanced services for businesses to increase their customer interaction and engagement rates, which helps create widespread awareness about this messaging technology. For instance, in May 2024, Troika Tech Services, a digital marketing agency based in Mumbai, launched its RCS Chat and WhatsApp Business API services to help transform how organizations interact and communicate with their customers. Similar initiatives by other companies are expected to positively drive this market in the country.

Key Rich Communication Services Company Insights

Some key companies involved in the rich communication services market include AT&T, Vodafone, and Verizon, among others.

• AT&T is a major provider of telecom, media, and technology-focused services. AT&T offers data/broadband and internet services, wireless communications, long-distance and local telephone services, managed networking, telecommunication equipment, and wholesale services, among other solutions. The company’s Advanced Messaging RCS, which leverages the Google Messages application, allows sharing of high-quality pictures, creating larger group chats, and sending longer videos. It also allows senders to see when their messages are delivered, when they are read, and when someone is typing a response.

• Verizon Communications provides communications, information, technology, and entertainment solutions to consumers, businesses, and government organizations. The company develops wireless and wireline communications services and products, including corporate networking solutions, security and managed network services, data center and cloud services, voice, data, broadband services, and local and long-distance voice services. The company offers an Advanced Messaging feature that provides benefits such as sending larger messages with up to 8,000 characters, typing indicators, creating large group chats, conversing with chatbots of companies, location sharing, and high-quality media sharing.

Recent Developments

• In September 2024, Vodafone Germany announced its partnership with HORISEN and DIMOCO Payments to launch an advanced public transportation ticketing solution in the country that leverages HORISEN’s Business Messenger Platform. The solution would allow travelers to book their tickets using Vodafone’s RCS service and make payments using their phone bill. The initiative is part of Vodafone Germany’s UPLIFT project that aims to explore and develop future-ready solutions in areas including data analytics, sustainability, AI, and augmented reality.

• In June 2023, AT&T announced that it would discard its backend and move to Google’s Jibe platform for Rich Communication Services. This development has led to the default messaging on Android for AT&T through the Jibe platform. It is expected to address issues such as occasional send-and-receive errors faced by the carrier previously.

Rich Communication Services Market Report Scope

Global Rich Communication Services Market Report Segmentation

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 2030. For this study, Grand View Research has segmented the rich communication services market report based on type, enterprise size, end use, and region.

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • A2P

  • P2A

  • P2P

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • SMEs

  • Large Enterprises

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Retail

  • Media & Entertainment

  • BFSI

  • Healthcare

  • Travel & Tourism

  • Others     

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Japan

    • India

    • China

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE