Skip to main content

Rich Communication Services will Boost Messaging

The business case for an Application to Person (A2P) messaging market is starting to evolve, with enterprise use cases being developed based on the requirements of informed CIOs and CTOs across industry sectors.

Notably, the commercial requirements of these organizations will emerge in response to marketplace demand and will vary depending on the application and associated use case.

To date, traditional one-way notifications represent the common A2P messaging use case. Looking to the future, that could change as adoption increases exponentially.

A2P Messaging Market Development

According to the latest worldwide market study by Juniper Research, the total value of the mobile business messaging market will increase from $48 billion in 2022 to $78 billion by 2027.

Juniper analysts found that this 63 percent growth will be driven by enterprise adoption of Rich Communication Services (RCS), with more organizations harnessing the end-to-end encryption and verified sender identities RCS provides to reduce messaging fraud.

RCS is a mobile messaging protocol that incorporates rich media content -- such as high-quality images, videos, and carousels, within a smartphone's default mobile messaging application. 

Juniper now forecasts the global number of RCS business messages received will increase from 161 billion in 2022 to 639 billion by 2027, as enterprises in industries handling sensitive data -- such as banking and healthcare -- migrate away from Short Message Service (SMS) to more secure channels.


Moreover, while user verification over RCS acts as a first step in messaging fraud prevention, Juniper notes that malicious individuals and rogue organizations may identify ways to bypass this requirement.

In response, Juniper urges internet firewall technology vendors to prioritize the accurate detection of spam content via multimedia messaging -- including embedded images and external hyperlinks.

Juniper also noted that the U.S. market will represent potential growth for RCS with all tier-one network operators -- including AT&T, T-Mobile, and Verizon -- supporting rich media messaging solutions.

The market study found that the total number of RCS business messages received in the U.S. will surpass 170 billion by 2027 -- that is, assuming Apple introduces support for this advanced mobile messaging protocol on their iOS platform within the next three years.

Outlook for Global RCS Applications Growth

"Apple must support RCS to facilitate smooth and secure communications between mobile operating systems. The RCS protocol is likely to be deployed over the existing iMessage interface on iOS devices, in order to capitalize on user familiarity and maximize adoption," said Scarlett Woodford, senior analyst at Juniper Research.

That said, let's not forget that the Asia-Pacific and European markets were the early adopters that pioneered first-generation text messaging interoperability. In contrast, North America was a late participant in the initial SMS market growth.

Mobile service providers in the U.S. market can follow the RCS trailblazers in other markets across the globe. Note, that the RCS technology first surfaced more than a decade ago, when the Global System for Mobile Communications (GSMA) association introduced it to the world.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es