Also known as richer business messaging, it is an evolution of the existing SMS messaging standard, allowing the user of a much wider range of media, including high-resolution images and videos, chatbots, embedded apps like booking systems, end to end encryption, and more.
Why is RCS important for customer-facing brands and users?
RCS allows companies to greatly enhance the way they communicate with their customers, creating more interactive and engaging messaging - all the while using a delivery channel (messaging) that is trusted by the user and has consistently enjoyed greater engagement rates than, for example, business-to-consumer email.
The technology received a boost in September 2024 with Apple’s introduction of RCS support on its devices, following existing support on Android devices.
Why is RCS important for telcos and messaging brands?
RCS offers new revenue opportunities - if enterprises enhance the volume and capacity of their A2C communications, this leads to a greater chance to supply this capacity either according to existing agreements or by arranging new contracts.
The RCS market is experiencing significant growth. To take an example, in 2023 Google alone reported over one billion monthly active users with RCS enabled. Forecasts for the current size of the market vary from $1.5-5 billion depending on source and methodology, but analysts are unified in forecasting expansion – largely driven by Apple’s entry into the market, Juniper Research estimates 35% CAGR to take the market to $8 billion by 2025.