Mobile Business Messaging to Reach 2.7 Trillion Globally in 2020; Driven by Surge in Online Retail

A new study from Juniper Research has found that global mobile business messaging traffic will increase by 10% this year to 2.7 trillion, up from 2.5 trillion last year. The mobile business messaging market is comprised of three main messaging protocols: SMS, RCS (Rich Communication Services), and OTT (Over-the-Top) messaging applications.

The new research, A2P Messaging: SMS, RCS & OTT Business Messaging 2020-2025, found that this growth will be driven by the retail sector, with rising eCommerce sales during the COVID-19 pandemic leading to an increase in the number of messages sent to customers. Within retail, mobile business messaging is used to issue order confirmations, dispatch notifications, tracking information and delivery updates.

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Investment Slows in New Messaging Technologies

The report found that SMS has proven resilient during the pandemic; owing to the messaging format’s ubiquitous nature; estimating that SMS will comprise 98% of all mobile business messaging traffic in 2020. However, the research noted that investment into alternative protocols, including RCS and OTT messaging, has slowed due to the COVID-19 pandemic and anticipated further economic downturn.

Retail Business Messaging to Grow by 20% this Year

The report forecasts that mobile business messaging traffic attributable to the retail sector will grow by 20% this year, with volume increasing from 336 billion in 2019 to 408 billion in 2020. Consumers’ increased reliance on online retail service has been the primary cause of growth this year. Additionally, it predicts that retailers will be early adopters of media-rich messaging services, with brands embracing rich media to provide interactive elements, such as real-time order tracking, to its users.

Research author Scarlett Woodford noted: ‘The COVID-19 pandemic has greatly accelerated digital transformation in the retail sector, as footfall in physical locations is predicted to remain stunted by public concern. To fully capitalise on this, brands must create personalised retail experiences through rich media content, subsequently driving consumer loyalty and increasing profits.’

Source: Juniper Research media announcement