Juniper: Application to person messaging will grow 40% by 2023 driven by RCS and OTT apps

A new study from Juniper Research forecasts that 3.5 trillion business A2P (Application-to-Person) messages will be delivered by 2023, up from an estimated 2.5 trillion in 2019, a 40% growth.

RCS Messaging

The research suggests that the rich media interactivity of RCS would make the emerging messaging technology popular for retail and marketing business use cases.

  • RCS traffic will accelerate to an average annual growth of 290% over the next four years
  • 56 Billion RCS Business Messages to be Delivered by 2023
  • Despite strong growth, RCS will account for only 2% of all A2P traffic by 2023 with users preferring the familiarity of SMS. As a result, the growth of RCS will be mostly driven by new traffic, rather than the migration of existing traffic from SMS.
OTT Business Messages

The research also found that OTT business messaging platforms, such as WhatsApp for Business, will deliver 236 billion messages by 2023. However, they will continue to suffer from a fragmented user base across multiple messaging applications. In response, the research cited the use of CPaaS (Communications-Platform-as-a-Service) solutions as essential to enable fallback onto the ubiquitous SMS protocol to ensure message termination. Additionally, it found these platforms will allow the collection of insightful data, including contact preferences, to enable A2P business users to optimise messaging campaigns.

Future growth of RCS traffic will be driven by users migrating away from dedicated mobile apps. The technology will develop to become the first point of contact for RCS users to engage with brands over mobile devices within 5 years.

Sam Barker, Juniper Research authorĀ