Telecom API Market Outlook 2031
The Telecom API Market was USD 185.11 Billion in 2022 and is likely to reach USD 1.05 Trillion by 2031, expanding at a CAGR of 21.3% during 2023 – 2031. The growth of the market is attributed to the increasing demand for advanced telecom application solution that helps enhance the telecom service.
The telecom application programming interface (API) is a technology that offers to several communication-enabled applications, which are further linked to electronic devices such as smartphones.
The API provides a link between the telecom application and several electronic communication devices. The APIs are software-based technology that provides a range of mobile applications and services including mobile payments, messaging, location tracking, and voice or video calling. According to a report published by GSMA, the total number of mobile service subscriptions was nearly 5.2 billion in 2018 and is likely to reach 5.9 billion by the year 2025.
Increasing productivity of business organizations and wider communication services such as voice & video calls, speech, and video integration services due to the integration of 4G technology and APIs is a major aspect for the market development.
APIs play an important role in monetizing the Internet of Things (IoT) network as these technology act to link among numerous elements within a network as a point of interaction. To provide several high-end IoT solutions, the mobile operators are concentrating on the enhancing their roles in the value chain function, which in turn, can eliminate their dependency on other third-party solution suppliers.
The markets in developing regions including Africa and Asia Pacific are increasingly growing at a significant rate owing to the rising start-ups in these regions. Some globally leading telecom operators including Vodafone and Orange Group have collaborated with several start-ups to expand their presence in these markets.
Telecom API Market Trends, Drivers, Restraints, and Opportunities
- Increasing adoption of machine to machine (M2M) devices and rising demand for advanced application interface for telecom service are key drivers for the market growth.
- Growing number of smartphone users and high penetration of IoT that push to increase number of mobile service subscribers present another key factors boosting the market.
- Availability of affordable and low-cost mobile internet scheme especially in the developing regions are expected to propel the telecom APIs market growth.
- Concerns related to the possibility of the violation of data and private security of users are expected to hamper the market growth.
- COVID-19 and its adverse impact on the electronic manufacturing units possess a key challenge that can restrict the market growth.
- Rising production of several innovative and advanced featured electronic devices used for telecom service is projected to offer key opportunities for the market expansion.
Scope of Telecom API Market Report
The report on the global telecom API market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Telecom API Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (IVR, Location, Messaging, Payment, and WebRTC) and End-users (Partner Developers, Internal Telecom Developers, Long Tail Developers, and Enterprise Developers)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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AT&T, Inc., Google LLC, Telefonica S.A., Twilio Inc., and Verizon Communication, Inc.
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Global Telecom API Market Segment Insights
Messaging API segment is anticipated to account a large market share
Based on types, the market is divided into IVR, location, messaging, payment, and WebRTC. The messaging segment is anticipated to account for a large market share during the forecast period owing to the growing adoption of SMS and RCS services, which widely use messaging APIs. On the other hand, the IVR segment is expected to exhibit significant growth during the analysis period owing to the rising incidence of call centers service and wide adoption of API service across telecom operators, especially in developing countries.
Meanwhile, the location segment is projected to represent a substantial market share in the coming years due to the expanding demand for smartphone applications, which provide location tracking services.
Enterprise developer segment is estimated to account a large revenue share
On the basis of end-users, the telecom API market is classified into partner developers, internal telecom developers, long tail developers, and enterprise developers. The enterprise developers segment is estimated to constitute a large revenue share of the market during the forecast period owing to the increasing usage of A2P messaging tools in large-scale firms to introduce sales, offers, promotional activities, and other change in policies.
However, the partner developer segment is projected to exhibit a high growth rate representing a CAGR of 25.2% in the coming years. The partner APIs help in building the data-sharing platforms among the telecommunication service suppliers and the other developers to enhance their payment and streaming services.
North America is anticipated to account for a large market share
In terms of regions, the global telecom API market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to account for a large market share of the market in the coming years owing to the presence of several key global companies including Broadcom, Inc., Oracle Corp., AT&T, Inc., and Google LLC.
Factors such as high adoption of 4G technology and rising number of smartphones users in this region is majorly contributing to the regional market growth. On the other hand, the market in Asia Pacific is expand at a robust CAGR due to the high penetration of internet and rising expansion of the telecom industry in this region. As per the report of GSMA, the number of mobile internet users in Asia Pacific was around 1.8 billion in 2018 and is expected to reach 2.6 billion by 2025.
Segments
The global telecom API market has been segmented based on
Types
- IVR
- Location
- Messaging
- Payment
- WebRTC
End-users
- Partner Developers
- Internal Telecom Developers
- Long Tail Developers
- Enterprise Developers
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Some key players competing in the global telecom API market include AT&T, Inc., Google LLC, Telefonica S.A., Twilio Inc., and Verizon Communication, Inc. Many of these major players are actively engaged with third-party developers, telecommunication service providers, and others to enhance the API service. They are constantly adopting several market strategies such as mergers, acquisitions, partnerships, and collaborations to increase their market existence.
For instance, in April 2020, Infobip Ltd. announced that it entered into a partnership with Span, an IT company offering professional services as well as technological support to business clients and enterprises around the world. This partnership was considered to be a major strategy that could help develop a wide information system and connect with customer experiences. In April 2020, Small Cell Forum launched a 5G functional API to allow a 5G RAN/small cell vendor ecosystem. The 5G technical API specifications focus to enable building of small cells using elements from various vendors associated with 5G physical layer API specification.
In June 2020, Twilio Inc. introduced messaging insights, which offer real-time analytics within the Twilio Console. Using the technology, users can now monitor message delivery and involvement, manage troubleshoot problems, and adjust efficiency over service channels. The messaging insights was introduced to enhance detection and smooth functioning of four key areas such as troubleshoot delivery and errors, high-level overview, analyze responses, and optimize OTP conversion rates over each messaging channels such as MMS, SMS, and WhatsApp.
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