Telecom API Industry

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.

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.

Gather more insights about the market drivers, restrains and growth of the Global Telecom API market

Telecom API Market Segments:

Type Insights

Based on type, the telecom API market report is categorized into messaging API, webRTC API, payment API, IVR API, location API, and others. In 2022, the messaging API sub-segment held the largest market share contributing more than 35% to the total market, and is projected to expand at a CAGR of over 21.4% from 2023 to 2030. The high growth of messaging APIs is owing to the growing demand for SMS and RCS services that have the application of messaging APIs. The penetration of the SMS market is growing as an increasing number of companies are utilizing SMS services for personalized marketing efforts and enhancing customer engagement and experience. Thus, propelling the demand for messaging APIs.

End-user Insights

Based on end-user, the telecom API market is categorized into internal telecom developers, enterprise developers, partner developers, and long tail developers. The enterprise developer sub-segment holds the largest market share of over 35% owing to the high penetration and adoption rate of large-scale enterprises. In large-scale organizations, A2P messages are majorly used in the announcement of offers, promotional activities, and changes in company policies, among others. The broadcast the above messages, organizations mostly use bulk messaging tools & software that drive the market growth for telecom APIs.

Regional Insights

The Telecom API market in North America witnessed the largest market share in 2022 and accounted for over 29% in the forecast period. This growth can be attributed to the significant presence of various large market players such as Broadcom, AT&T Intellectual Property, Google, and Oracle Corporation, among others in this region. Moreover, the adoption of technologies such as 4G and improvement in 5G technology is a major factor contributing to the high telecom API market growth in this region. With the integration of 4G or 5G technology and APIs, communication services such as voice & video calls, and video & speech integration services are delivered competently, and the productivity of businesses is improved to a greater extent.

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Key Companies & Market Share 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. Some of the prominent players in the global telecom API market are:

• AT&T Intellectual Property,
• Google
• Verizon
• Telefonica S.A.
• TWILIO INC.

Segments Covered in the Report

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

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