The Global Telecom API Market, By Service Type (Payment, SMS, MMS and RCS-E, Maps and Location, Voice/Speech, Identity Management, WebRTC and Others (Device Information and Do Not Distrub), By Type (Enterprise Developer, Internal Telecom Developer, Partner Developer and Long Tail Developer) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 933.0 Billion by 2027, exhibiting a CAGR of 23.6% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Telecom carriers play a major role in providing internet and network service between the customer and the developer. An API is a set of procedures and functions that enable developers to create applications using service, data, and modules provided by the API service provider. A telecom carrier can provide APIs to application developers to create mobile applications for a certain fee. This helps telecom carriers generate additional revenue from providing APIs to application developers. Telecom API helps developers create compatible applications for multiple devices under a particular network. A telecom carrier typically provides APIs geared toward SMS, MMS, location, voice, and payment, allowing the developer to integrate the required API in its application.
The global Telecom API Market was accounted for US$ 194.2 Bn in terms of value in 2019 and is expected to grow at CAGR of 23.6% for the period 2020-2027.
Less time to market and cost savings is expected to boost the global telecom API market growth over the forecast period
Developers, through the adoption of telecom API, can provide better service to their customers. Some telecom carriers provide additional bandwidth for streaming Internet data content for a particular mobile application depending upon the API chosen by the application developer. This helps to enhance the user interface for the application and increase its adoption in the market. As a result of this, the developer can launch the application with less time to market and reduce the cost of marketing. Developers are also able to decrease the cost by using the telecom-owned cloud system, and location and payment services. For instance, LocationSmart provides location-based advertising management tools that help the enterprise application developers create applications related to hospitality, retail, consumer goods, and transportation. Therefore, these factors are expected to drive growth of the global telecom API market during the forecast period.
Telecom API Market - Impact of Coronavirus (Covid-19) Pandemic
Companies have started to invest in the IT infrastructure owing to the imposed lockdown. The spending patterns of companies have also changed. Due to the COVID-19 pandemic companies have started spending less on employee travel and more on the IT infrastructure and sanitization of office premises. Moreover, several companies have started to see work from home as a cost-efficient model to run a business. In addition to this, companies have started to add telecom API’s such as messaging chat box and Payment options on their online platform to improve customer experience. According to our study, the spending on IT infrastructure is expected to increase during the forecast period, which can drive the growth of the Telecom API market.
Emergence of startups can present lucrative growth opportunities
Mobile operators in emerging economies are the key players in the digital economy. A startup can offer SMS-based localized content to its users by leveraging three operator APIs at the same time namely SMS, director operator billing, and location. Hence, startups and developers are building mobile services using operator APIs, which can present lucrative growth opportunities.
Concerns regarding data security are expected to hamper the global telecom API market growth over the forecast period
Despite its numerous advantage, telecom API numerous limitations when it comes to adoption. Concerns regarding data security remain a major challenge in the adoption of telecom API. There numerous incidences of malicious apps gaining access to consumers’ confidential information such as name, email ID, IMEI number, and residential address. Thus, these factors are expected to hamper the global telecom API market growth over the forecast period.
Economic growth in the Asia Pacific is expected to remain high in the coming years due to significant growth in the IT and industrial sectors. Due to the high purchasing power and increasing adoption of new technologies among the populations of Japan, South Korea, China, and India, the adoption of mobile and M2M technology is expected to rapidly increase in Asia Pacific. According to GSMA Intelligence, South Korea was the most advanced 4G market at the end of the year 2013. Furthermore, by the end of 2020, almost half of China’s population would have adopted 4G LTE. At present China, India, Japan, and Indonesia each have a huge mobile unique subscriber base. According to GSMA Intelligence, the mobile unique subscriber base in the Asia Pacific is expected to reach US$ 2.4 Bn in 2020 from US$ 1.7 Bn in 2013 at a CAGR of 5.5% during the period.
The MEA region is much diversified in terms of the adoption of mobile technology due to the underdevelopment of many countries in Africa. The Middle East has experienced higher advancement than Africa in terms of the adoption of 3G and 4G networks. According to GSMA Intelligence, the 3G and 4G connections in Middle East are expected to reach 63% of population by 2020, whereas the 3G connections in Sub-Saharan Africa are expected to reach 52% by 2020. However, the adoption of smartphones in Sub-Saharan Africa is expected to reach 525 Billion by 2020 from 72 Billion in 2013. Furthermore, according to Cisco VNI, the mobile data traffic growth per user in MEA is expected to reach 3,746 MB/month in 2019 from 353 MB/month in 2014, expanding at a CAGR of 63% from 2014 to 2019. Therefore, the market for mobile applications is expected to grow significantly in MEA in the near future.
Key players operating in the global telecom API market are AT&T, Inc., Comverse, Inc., Apigee Corp., Nexmo, Inc., LocationSmart, Fortumo OU, Alcatel-Lucent, Aepona Ltd., Orange S.A., Tropo, Inc., and Twilio, Inc.