Rising penetration of smartphones along with enhancing standards for digital marketing campaigns are acting as major drivers towards significant growth of rich communication services. Moreover, implementation of universal communication protocol specification by GSM Association (GSMA) to provide a consistent messaging platform experience enabling operator service interoperability has also caused higher adoption towards rich communication services. Factors such as advanced features like group chatting, read receipts, location sharing, media sharing and many others have caused major usage of such services compared to traditional SMS protocols.
The report: “Rich Communication Services (RCS) Market - Forecast (2022-2027)”, covers an in-depth analysis of the following segments of the Rich Communication Services (RCS) Market.
By Deployment Type: Cloud, On-Premises.
By End Users: Healthcare, Media and Entertainment, Education, Banking and Financial Services, Retail and Ecommerce, IT and Telecom and Others.
By Type: P2P, A2P, P2A.
By Services: Cloud Storage, VoLTE, Mobile commerce, Rich Calls & Messaging, Others.
By Organization Size: Large Enterprises, Small and medium sized enterprises.
By Solutions: VoIP, Web Conferencing, Content sharing/file transfer, Unified Messaging, Multimedia, Online Storage, SIP Options, Others.
By Geography: North America (U.S, Canada and Mexico), Europe (U.K, Germany, Italy, France, Spain, Netherlands and Rest of Europe), Asia Pacific (China, Japan, India, South Korea,Australia and Rest of APAC),South America (Brazil, Argentina and Rest of South America), RoW (Middle East and Africa).
Rich Communication Services Market Segment Analysis - By Deployment Type
Cloud deployed models are anticipated to have a major share in the rich communication services market during the forecast period 2021-2026 at 26.5% CAGR. Deployment of cloud communication protocol service models have been increasing due to its capability of higher scalability, speed as well as ease of deployment ensuring better communication standards. Usage of cloud deployed communication service for digital marketing acts as a cost efficient solution due to overcoming the high costs and complexity associated with network infrastructures of on premises.
Rich Communication Services Market Segment Analysis - By Services
Rich Communication service has multiple advantages over the current system where multiple clients, services and identities, numbers across devices. RCS helps to unify the different clients, provides an opportunity to deploy one identity and one number, centralized data management, presence and capability indication, guided communication and provides inter-operator support. Cloud storage services have been widely leveraged by various network providers to ensure faster messaging platform delivery as well as due to lower pricing models with subscriptions which is driving the segment at 26.2% CAGR through 2026. Furthermore, cloud based communication protocol services offers comparatively better security standards along with efficient chatting efficiency irrespective of network or carriers, thus boosting its market growth. Such benefits have been essentially contributing towards high market growth of cloud rich communication services.
Rich Communication Services Market Segment Analysis - By Geography
North America has contributed with a major share during 2020 at 34.6% and is anticipated to have a significant growth in the global rich communication services market during the forecast period from 2020 to 2025. Presence of some key players such as Mavenir, D2 Technologies and Summit Technology Inc. is acting as major drivers for the growth of rich communication services market especially for digital marketing and messaging platform services. High investments towards research and development activities along with the growing adoption to improve advertising and marketing campaigns have been fueling the growth for rich communication services market in this region. Moreover, rising adoption of rich communication services by network providers along with rising smartphones user penetration are also responsible for creating high market demands in the region. Major companies in U.S such as Google and many others have been highly investing towards incorporating rich communication protocol service platforms installed within their android devices, thus causing significant market growth.
Increasing smartphones penetration
The rising penetration towards smartphones globally has been acting as one of the major driving factors towards significant growth of rich communication services market. Due to such rising adoption of smartphones, the need towards improved and more efficient communication services have been eventually raising by the customers. Usage of rich communication services has been widely adopted by mobile service operators due to its capability of offering audio and video file sharing, voice messages, group chats and many others. Such factors have helped towards overcoming drawbacks of traditional SMS messaging, thus improving messaging standards within smartphones. Moreover, with capabilities of providing differentiated data and multimedia services, various carrier service providers have stated shifting towards rich communication services preinstalled within smartphones. Such factors are essentially making communication process much more multimedia rich with improved user experience, thus leading to increasing smart phone users in the market. Since smartphones have been widely adopted mainly for enhancing communication processes, thus propelling high demands in the rich communication services market.
Improved advertising brand campaigns
Improved advertising brand campaigns have been acting as one of the major drivers towards boosting the market growth of rich communication services. Usage of rich communication services helps the advertising companies to improve their services through automation of customer interactions compared to lengthy calls of sales agents. This helps in enhancing customer satisfaction along with saving costs of paying agents for interacting through calls, thus making it a cost efficient alternative. Moreover, leveraging rich communication services helps the customers to get access to verified senders, thus enhancing brand consistency and security unlike traditional SMS. Additionally, such services help customers to experience a more dynamic and personalized conversation without requirements for diverting to a brand’s custom app or mobile web page. Such features have been essentially helping advertising and marketing companies to improve brand awareness, thus propelling the market demands towards rich communication services.
Security concerns
Security and privacy concerns are some of the major factors that are restraining the growth of rich communication services market. With growing rates of cyber attacks and security breaches, security and privacy have been becoming the most important aspects to ensure effective data communication. Moreover, end to end encryption feature has been getting wider deployments across various messaging applications such as WhatsApp, Telegram and many others to improve security perspective unlike rich communication messaging services. Since the messages sent using rich communication services are not encrypted, there are high chances of messages getting intercepted and viewed by third parties. With growing concerns related to data misuse, hacking or exploitation from cybercriminals, adoption towards rich communication services have been slowing down as the messaging data can be easily accessed by the network providers. Such factors have been creating high security and privacy concerns among the consumers, thus hampering the market growth of rich communication services.
Partnerships and acquisitions along with product launches are the key strategies of the players in the Rich Communication Services market. The major key players in the Rich Communication Services market include Alcatel-Lucent S.A, Infinite Convergence Solutions Inc., Mavenir, Neusoft Corporation, Vodafone Group Plc, Deutsche Telekom AG, Interop Technologies, Google, Summit Technology Inc. and D2 Technologies.
Report Coverage
The report: “Rich Communication Services (RCS) Market - Forecast (2022-2027)”, covers an in-depth analysis of the following segments of the Rich Communication Services (RCS) Market.
By Deployment Type: Cloud, On-Premises.
By End Users: Healthcare, Media and Entertainment, Education, Banking and Financial Services, Retail and Ecommerce, IT and Telecom and Others.
By Type: P2P, A2P, P2A.
By Services: Cloud Storage, VoLTE, Mobile commerce, Rich Calls & Messaging, Others.
By Organization Size: Large Enterprises, Small and medium sized enterprises.
By Solutions: VoIP, Web Conferencing, Content sharing/file transfer, Unified Messaging, Multimedia, Online Storage, SIP Options, Others.
By Geography: North America (U.S, Canada and Mexico), Europe (U.K, Germany, Italy, France, Spain, Netherlands and Rest of Europe), Asia Pacific (China, Japan, India, South Korea,Australia and Rest of APAC),South America (Brazil, Argentina and Rest of South America), RoW (Middle East and Africa).
Key Takeaways
- Cloud models are anticipated to have a significant growth during the forecast period in the rich communication services market due to its capabilities of providing faster data delivery within low cost service features.
- Key market players such as Summit Technology Inc. and Mavenir have been helping towards significant growth of rich communication services market in North America.
- Increased global smart phone penetration along with capability of improving advertising brand campaigns are some of the major driving factors towards significant growth of rich communication services market.
Rich Communication Services Market Segment Analysis - By Deployment Type
Cloud deployed models are anticipated to have a major share in the rich communication services market during the forecast period 2021-2026 at 26.5% CAGR. Deployment of cloud communication protocol service models have been increasing due to its capability of higher scalability, speed as well as ease of deployment ensuring better communication standards. Usage of cloud deployed communication service for digital marketing acts as a cost efficient solution due to overcoming the high costs and complexity associated with network infrastructures of on premises.
Rich Communication Services Market Segment Analysis - By Services
Rich Communication service has multiple advantages over the current system where multiple clients, services and identities, numbers across devices. RCS helps to unify the different clients, provides an opportunity to deploy one identity and one number, centralized data management, presence and capability indication, guided communication and provides inter-operator support. Cloud storage services have been widely leveraged by various network providers to ensure faster messaging platform delivery as well as due to lower pricing models with subscriptions which is driving the segment at 26.2% CAGR through 2026. Furthermore, cloud based communication protocol services offers comparatively better security standards along with efficient chatting efficiency irrespective of network or carriers, thus boosting its market growth. Such benefits have been essentially contributing towards high market growth of cloud rich communication services.
Rich Communication Services Market Segment Analysis - By Geography
North America has contributed with a major share during 2020 at 34.6% and is anticipated to have a significant growth in the global rich communication services market during the forecast period from 2020 to 2025. Presence of some key players such as Mavenir, D2 Technologies and Summit Technology Inc. is acting as major drivers for the growth of rich communication services market especially for digital marketing and messaging platform services. High investments towards research and development activities along with the growing adoption to improve advertising and marketing campaigns have been fueling the growth for rich communication services market in this region. Moreover, rising adoption of rich communication services by network providers along with rising smartphones user penetration are also responsible for creating high market demands in the region. Major companies in U.S such as Google and many others have been highly investing towards incorporating rich communication protocol service platforms installed within their android devices, thus causing significant market growth.
Rich Communication Services Market Drivers
Increasing smartphones penetration
The rising penetration towards smartphones globally has been acting as one of the major driving factors towards significant growth of rich communication services market. Due to such rising adoption of smartphones, the need towards improved and more efficient communication services have been eventually raising by the customers. Usage of rich communication services has been widely adopted by mobile service operators due to its capability of offering audio and video file sharing, voice messages, group chats and many others. Such factors have helped towards overcoming drawbacks of traditional SMS messaging, thus improving messaging standards within smartphones. Moreover, with capabilities of providing differentiated data and multimedia services, various carrier service providers have stated shifting towards rich communication services preinstalled within smartphones. Such factors are essentially making communication process much more multimedia rich with improved user experience, thus leading to increasing smart phone users in the market. Since smartphones have been widely adopted mainly for enhancing communication processes, thus propelling high demands in the rich communication services market.
Improved advertising brand campaigns
Improved advertising brand campaigns have been acting as one of the major drivers towards boosting the market growth of rich communication services. Usage of rich communication services helps the advertising companies to improve their services through automation of customer interactions compared to lengthy calls of sales agents. This helps in enhancing customer satisfaction along with saving costs of paying agents for interacting through calls, thus making it a cost efficient alternative. Moreover, leveraging rich communication services helps the customers to get access to verified senders, thus enhancing brand consistency and security unlike traditional SMS. Additionally, such services help customers to experience a more dynamic and personalized conversation without requirements for diverting to a brand’s custom app or mobile web page. Such features have been essentially helping advertising and marketing companies to improve brand awareness, thus propelling the market demands towards rich communication services.
Rich Communication Services Market Challenges
Security concerns
Security and privacy concerns are some of the major factors that are restraining the growth of rich communication services market. With growing rates of cyber attacks and security breaches, security and privacy have been becoming the most important aspects to ensure effective data communication. Moreover, end to end encryption feature has been getting wider deployments across various messaging applications such as WhatsApp, Telegram and many others to improve security perspective unlike rich communication messaging services. Since the messages sent using rich communication services are not encrypted, there are high chances of messages getting intercepted and viewed by third parties. With growing concerns related to data misuse, hacking or exploitation from cybercriminals, adoption towards rich communication services have been slowing down as the messaging data can be easily accessed by the network providers. Such factors have been creating high security and privacy concerns among the consumers, thus hampering the market growth of rich communication services.
Rich Communication Services Market Landscape
Partnerships and acquisitions along with product launches are the key strategies of the players in the Rich Communication Services market. The major key players in the Rich Communication Services market include Alcatel-Lucent S.A, Infinite Convergence Solutions Inc., Mavenir, Neusoft Corporation, Vodafone Group Plc, Deutsche Telekom AG, Interop Technologies, Google, Summit Technology Inc. and D2 Technologies.
Partnerships/Product Launches/Acquisition
- In April 2020, CM.Com had announced the launch of rich communication services with partnership with Vodafone across Germany. With this partnership, the company will offer tools to leverage rich communication service channel through configuring rich features, chat bots as well as customer contact tooling. This will help to implement next generation SMS messaging with features such as verified sender and rich media across Germany.
- In November 2019, Google announced the launch of its rich communication messaging services on android users across U.S. This service was initiated as a part of replacing traditional SMS text messaging with more enhanced and useful chatting features. Such roll out of the service will be providing the android users to have more seamless conversations with improved and better messaging capabilities.
Table of Contents
1. Rich Communication Services Market Overview
2. Rich Communication Services Market - Executive Summary
3. Rich Communication Services Market - Market Landscape
4. Rich Communication Services Market - Market Forces
5. Rich Communication Services Market - By Strategic Analysis (Market Size -$Million/Billion)
6. Rich Communication Services Market - By End User Industry (Market Size -$Million/Billion)
7. Rich Communication Services Market - By Solution (Market Size -$Million/Billion)
8. Rich Communication Services Market - By Services (Market Size -$Million/Billion)
9. Rich Communication Services Market - By Type (Market Size -$Million/Billion)
10. Rich Communication Services Market - By Deployment Type (Market Size -$Million/Billion)
11. Rich Communication Services Market - By Organization Size (Market Size -$Million/Billion)
12. Rich Communication Services Market - By Geography (Market Size -$Million/Billion)
13. Rich Communication Services Market - Market Entropy
14. Rich Communication Services Market - Company Analysis
Executive Summary
The Rich Communication Services (RCS) was first introduced in 2007 by GSM Association (GSMA) in order to offer rich services to users by transitioning from traditional Public Switched Telephone Network (PSTN) to Internet Protocol (IP) based networks. The project offers inter operable services among the wide telecom operators and enable communication experience beyond voice and messaging by delivering consumer with several services including instant messaging, content/ file sharing, group chat, video conferencing etc. across multiple devices. The key network on which rich communication services are based is Internet Protocol Multimedia Subsystems (IMS) core that facilitate the functional operability of rich services.These services have paved a new path for telecom operators to remain relevant amidst the rising threat from Over the Top (OTT) services. It enables operators to generate revenues via developing apps and providing B2B services. The scope offered by RCS is multi-dimensional that is a route to develop user oriented services like chat based games, advertisements, promotions and mobile learning.
The highest share was occupied by Unified Messaging with 18% value followed by Voice over Internet Protocol (VoIP) & Multimedia with 14% share. The market since its introduction has remained competitive with operators launching the services across the world while established giants are striving for better market share by offering more customer oriented services.
Under the umbrella of the Global System for Mobile Communications Association (GSMA), a group of industry players are working together on the Rich Communication Suite (RCS) initiative, promoting standards for delivering an interoperable, convergent, access-technology-independent rich communication experience to end users.
RCS has members worldwide and unites network operators and system integrators with vendors of end-user terminals, device client software, network equipment and end-user applications. It provides a common base for addressing multiple customer requirements and allows service providers to attract new subscriptions and increase communication-services use.
RCS or Joyn services as marketed by GSMA helps users to share instant messages, share photos and videos while speaking and it works on any device or network. RCS however has split into 3 different segments based on the operator plans like formal RCS service providers (North America), RCS-e (mainly in Europe) and service providers supporting RCS-like services (Europe and APAC). Movistar, Orange, Vodafone, China Mobile, SK Telecom are the top MNOs providing RCS to their customers. Some of the key insights or takeaways from the market are:
Rich Communication service has multiple advantages over the current system where multiple clients, services and identities, numbers across devices. RCS helps to unify the different clients, provides an opportunity to deploy one identity and one number, centralized data management, presence and capability indication, guided communication and provides inter-operator support.
Methodology
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