New research reveals the growing significance of RCS messaging
9.10.2024 10:00:00 CEST | Business Wire | Press release
A new whitepaper commissioned by global communications platform Infobip shows Rich Communication Services (RCS) traffic will quadruple over the next five years. Data from tech analyst Omdia shows RCS Application to Person (A2P) and Person to Person (P2P) traffic will increase from 1.5 trillion messages this year to more than 6 trillion messages in 2029. As a result, A2P RCS will generate revenues of $4.2 billion by 2029.
RCS is the next iteration of SMS, enabling consumers and businesses to send and receive rich messages via a data connection or Wi-Fi using the standard SMS inbox. Following Apple’s adoption of the telco messaging service in its latest iOS 18 update, Omdia expects RCS to have a cross-platform reach of an estimated 2.5 billion monthly active users by end-2024.
The research shows that the Americas and Asia & Oceania will be the primary drivers of A2P RCS traffic and revenue over the coming years:
Region | Revenue 2024 | Revenue 2029 | Traffic 2024 | Traffic 2029 |
Asia & Oceania | $169m | $2.2bn | 5.6bn | 64bn |
Americas | $113m | $1.5bn | 4.7bn | 54bn |
Europe | $22m | $324m | 800m | 11bn |
Middle East & Africa | $13m | $220m | 545m | 8 bn |
Source: Omdia
Charlotte Palfrey, Senior Analyst, Advanced Messaging and Communications at Omdia, said: “RCS offers significant benefits for enterprises and telcos. Enterprises should leverage Gen AI to enhance RCS experiences, making campaigns more personalized, engaging and effective in driving conversion. At the same time, telcos must work with the messaging ecosystem to raise RCS awareness among enterprises and consumers. Additionally, telcos should utilize RCS internally for marketing and customer care functions to demonstrate RCS’s capabilities and benefits.”
Ivan Ostojic, Chief Business Officer at Infobip, said:“RCS has many benefits, and with the Apple upgrade, it now has universal availability. Consumers do not need to download a chat app to send and receive photos or videos. Meanwhile, enterprises can take consumers through the entire customer journey from initial marketing pitch to purchase and support. This is also a significant opportunity for telcos to seize the benefits of RCS Business Messaging and deliver rich conversational messaging for customers.”
Infobip enables enterprises and telcos to benefit from RCS Business Messaging through its Messaging-as-a-Platform (MaaP) service. Infobip’s MaaP solution provides messaging benefits, including throughput control, content and spam control, while Infobip’s CPaaS offering enables connectivity with other Mobile Network Operators. Benefits include detailed billing and reporting, faster brand and partner approval, additional user control, and managed service options.
Learn more about the research here: https://www.infobip.com/downloads/rcs-igniting-business-messaging
About Infobip
Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey. Accessed through a single platform, Infobip’s omnichannel engagement, identity, user authentication and contact centre solutions help businesses and partners overcome the complexity of consumer communications to grow business and increase loyalty.
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