Telecom API Industry Overview
The global telecom API market size was valued at USD 162.27 billion in 2021 and is estimated to expand at a compound annual growth rate (CAGR) of 20.6% from 2022 to 2030.
Telecom API is used to operate web-based services such as banking, identity management, and cloud-based telecom software by compiling programming instructions and standard protocols. Telecom API provides cost-effective solutions by enhancing the system performance of existing web-based applications. These tools and communication protocols facilitate agility in mobile application developments as it allows the developers to focus on developing primary functions without a need to develop them from scratch. API has prominent applications in all the areas involving mobile applications and services such as voice & video calls, online mobile payments, messaging apps, and location tracking apps, among others.
With the increasing number of mobile service subscribers, the demand for mobile-based technologies has grown significantly in past years further increasing the demand for telecom APIs due to the scalability it offers. For instance, as per the data published by GSMA, by the end of 2021, 5.2 billion people subscribed to mobile services, and it is projected to reach 5.7 billion people by 2025, thus, bringing new opportunities for telecom API in mobile-based applications.
Gather more insights about the market drivers, restrains and growth of the Global Telecom API Market
Growing penetration of the Internet of Things (IoT), device integration, and wearable devices in the telecom sector is expected to positively impact the market over the forecast period. Telecom APIs enable end-to-end IoT solutions as they act as a singular point of interaction between several nodes within a network and hence reducing the multiple third-party service providers for system integration. With growing IoT penetration, the market for telecom API is expected to grow at a phenomenal rate. For instance, according to The State of Mobile 2021 report, a research study published by the GSMA, the total number of global IoT connections is expected to reach 25.2 billion by 2025 supporting the market growth over the forecast period.
The recent increasing number of start-ups launched in the field of telecom API in emerging markets such as the Asia Pacific and Africa are expected to open new opportunity areas for the telecom API service providers during the forecast year. Industry giants such as Google, Vodafone, and communications service providers (CSPs), and technology supplier groups have developed partnerships with start-ups from these emerging markets to create a nurturing ecosystem for the growth of telecom startups by offering their APIs for application developments thus, propelling the market growth.
Despite the phenomenal benefits offered by telecom API, data security concerns amongst the end-users are hindering the market growth. For instance, based on a recently published report on data security, it is observed that for enterprise and commercial web applications, API attacks will become the most-frequent attack resulting in data breaches, wherein malicious parties will get access to end-user data such as the name, contact details, and IMEI number of the device on which the application is operating.
The increasing adoption of machine-to-machine (M2M) devices is also estimated to propel the telecom application programming interface (API) market from 2022 to 2030. APIs are critical for M2M communication as they identify the message format that can be used for device control. Moreover, increasing adoption of mobile commerce is expected to increase the demand for telecom APIs in applications such as payment API and location API. Various mobile payment gateways such as Stripe, Zooz, PayPal, and Amazon Pay, among others allow the user to purchase products through cards using the payment API for processing the transactions.
In 2020, due to the COVID-19 crisis, many leading CSPs and technology provider companies operating in the telecom API market had to change their strategies owing to the increasing demand for connectivity. Large organizations adopted new growth strategies to expand in new markets and change business models in the functions such as security, sales, and support. The market witnessed unprecedented growth in smartphone data usage, thus, impacting the market positively.
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Telecom API Market Segmentation
Grand View Research has segmented the global telecom API market report based on type, end user, and region:
- Telecom API Type Outlook (Revenue, USD Billion, 2018 – 2030)
- Messaging API
- WebRTC API
- Payment API
- IVR API
- Location API
- Telecom API End-User Outlook (Revenue, USD Billion, 2018 – 2030)
- Enterprise Developers
- Internal Telecom Developers
- Partner Developers
- Long Tail Developers
- Telecom API Regional Outlook (Revenue, USD Billion, 2018 – 2030)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Market Share Insights
- June 2020: Twilio Inc. declared Messaging Insights, giving ongoing investigation inside the Twilio Console. For no extra expense or code, clients can now screen message conveyance and commitment, investigate issues, and improve adequacy across channels.
- April 2020: Small Cell Forum (SCF) delivered 5G utilitarian API to empower a 5G RAN/small cell seller environment. Capitalizing upon the extent of 5G actual layer API particular, the 5G specialized API determinations permit little cells to be built piece-by-piece, utilizing parts from various sellers.
Key Companies profiled:
Some prominent players in the global telecom API market include:
- AT&T, Inc.
- Google LLC
- Verizon Communication, Inc.
- Telefonica S.A.
- Twilio Inc.
- Zoho Corporation Pvt. Ltd.
- Zoom Video Communications, Inc.
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