Business messaging revenue will reach $78 billion by 2027

 

According to a study by Juniper Research, which attributes the growth to the growing adoption of Rich Communication Services (RCS), the mobile business messaging market will be valued at $78 billion by 2027.

Operators hope this combination will allow them to better compete with companies like WhatsApp and Facebook Messenger and open up a new revenue stream.

According to a study by Juniper Research, which attributes the growth to the growing adoption of Rich Communication Services (RCS), the mobile business messaging market will be valued at $78 billion by 2027.

Apple RCS

RCS is a natively supported messaging standard that combines the ubiquity of SMS with the rich media capabilities of over-the-top (OTT) messaging platforms.

SMS revenue was once a significant source of revenue that has been eroded by the widespread use of OTT services and inclusive text bundles.

Business messaging is an important target market, allowing organizations to send messages that can be easily verified, helping to reduce fraud.

Nearly half of phones will be using RCS by 2026, while Juniper expects volumes to grow from 161 billion in 2022 to 639 billion in 2027. Juniper says organizations processing sensitive data, such as banking and healthcare, are expected to increase traffic migrating from SMS to more secure channels in the near future.

One potential barrier, however, is the fact that Apple doesn’t yet support RCS, and hasn’t shown any inclination to do so at this time — despite Google’s best efforts. (opens in new tab) to convince him to sign up.

“Apple must support RCS to enable smooth and secure communication between mobile operating systems,” said Scarlett Woodford, author of the report. “The RCS protocol will likely be implemented through the existing iMessage interface on iOS devices, to take advantage of user awareness and maximize adoption.”