The Growing Significance of RCS Messaging

A new whitepaper commissioned by 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.

“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,” said Charlotte Palfrey, Senior Analyst for Advanced Messaging and Communications at Omdia.

“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,” said Ivan Ostojić, Chief Business Officer at Infobip.