Telecom API Industry Overview
The global telecom API market was valued at USD 185.11 billion in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 21.3% from 2023 to 2030.
A telecom application programming interface (API) is used to manage web-based services such as cloud-based, banking, and identity management telecom software by arranging programming instructions and standard protocols. The market provides cost-effective solutions by enhancing the system performance of existing web-based applications. These device and communication protocols facilitate agility in mobile application development as it enables the developers to focus on developing primary functions without the need to develop them from scratch.
Gather more insights about the market drivers, restrains and growth of the Telecom API Market
Growing penetration of the Internet of Things (IoT), wearable, and device integration in the telecom sector is anticipated to positively impact the market over the forecast period. Telecom APIs allow 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 anticipated 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 USD 25.2 billion by 2025 supporting the telecom API market growth over the forecast period.
Telecom API has prominent applications in all areas involving mobile applications and services such as location tracking apps, messaging apps, online mobile payments, and voice & video calls, among others. With the raising number of mobile service subscribers, the demand for mobile-based technologies has increased significantly in past years further increasing the demand for telecom APIs due to the scalability it offers. For instance, the data published by Global Systems for Mobile Communications Association (GSMA), by the end of 2021, 5.2 billion people subscribed to mobile services and is projected to reach 5.7 billion people by 2025. This may bring new opportunities for the telecom API in mobile-based applications.
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 opportunities areas for the telecom API service providers during the forecast year. Industry giants such as Google, Vodafone, and communications service providers (CSPs) and technology suppliers Group 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.
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Telecom API Market Segmentation
Grand View Research has segmented the global telecom API market based on type, end-user, and region:
Telecom API Type Outlook (Revenue, USD Billion, 2018 - 2030)
- Messaging API
- Web RTC API
- Payment API
- IVR API
- Location API
- Others
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
- US
- Canada
- Europe
- UK
- Germany
- France
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
Key Companies profiled:
- AT & T Intellectual Property,
- Verizon
- Telefonica S.A.
- TWILIO INC.
Key Telecom API Company Insights
The telecom API market is fragmented and characterized by high competition among the key players operating in a particular region. Each region or country is dominated by a few prominent players that mostly includes the CSPs of that particular region. These market players are focusing on adopting new organic & inorganic growth strategies such as mergers & acquisitions, partnerships, and joint ventures or collaborations in order to enhance their market presence.
In order to increase their market share and to gain a competitive edge over competitors in the market, telecom API provider companies are launching new products and complimentary services. For instance, in 2021, Reliance Jio, a CSP from India, accomplished Open API Platinum conformance certification, showcasing an increasing trend toward using Open APIs to help create open ecosystems for startups operating in the telecom sector. The key players participating in the market include CSPs, third-party solution developers, and system integrators, among others.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.