Soaring Demand for Mobile Internet Services to Propel Global Telecom API Market

  • August 12, 2015
  • Transparency Market Research
  • News

Telecom API refers to the Application Programming Interface (API) platform offered by telecom carriers, network service providers, and aggregators for mobile applications to be developed by application developers. Telecom API enables application developers to integrate several services such as payment, SMS, voice, and WebRTC into mobile applications. This enhances customer experience and leads to increasing adoption of such applications among telecom subscribers. Use of Telecom API helps telecom carriers offer increased applications through application stores, thus attracting new customers and retaining existing customers for telecom carriers. For such goals, telecom carriers are investing on setting up their own API platforms in association with service providers and aggregators. This aids telecom carriers in generating a strong developer base and develop new applications for customers.The global telecom API market generated revenue of US$54.80 billion in 2014 and is expected to generate US$323.44 billion by 2022, growing at an impressive 23.6% CAGR from 2015 to 2022.


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Telecom API to Open Additional Revenue Generation Avenues for Telecom Carriers

Rising adoption of smartphones and demand for LTE 4G communication networks and mobile internet is augmenting the use of mobile applications among telecom subscribers. This, in turn, is fueling demand for telecom API platforms among application developers. Telecom API also opens avenues for additional revenue for telecom carriers, which allows them to compete against Over-The-Top (OTT) developers. Additionally, telecom API aids telecom carriers for higher adoption of their services, including SMS, MMS, and voice. Increasing demand of 4G LTE communication will boost mobile internet traffic, which in turn will boost RCS, WebRTC, and maps and location API services.

The global telecom API market is segmented on the basis of service, end user, and geography. Based on service type, the market is divided into payment, MMS and RCS, voice/speech, WebRTC, SMS, maps and location, and identity management.


Voice API Services Dominate Global Telecom API Market

Amongst the many services available in the telecom API market, voice API registered the highest share – almost 28% – in 2014. Voice API is used by a majority of application developers for customers to have a superior experience while using mobile applications.

However, due to its cost-effectiveness over traditional voice services, WebRTC API services will exhibit significant demand among application developers in the coming years. As such, WebRTC API is expected to exhibit a CAGR of 27.7% between 2015 and 2022. Other service types such as SMS, RCS, MMS, and payment API will also display significant growth rates due to elevated adoption in developing countries. MEA (the Middle East and Africa) and Asia Pacific are anticipated to have increasing demand for payment API and WebRTC in the next few years. Increasing integration of M2M devices and mobile applications is expected to augment demand for maps and location API in North America and Europe.


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Enterprise Developers Leading End User, Long Tail Developers to Grow Fastest

By end user, enterprise developers were the largest segment of the market, accounting for almost 34% of the global market in 2014. Such services help enterprises minimize marketing costs significantly and connect with customers directly. Telecom carriers are increasingly partnering with startups to increase their share in the telecom sector.

In the coming years, however, long tail developers are expected to exhibit the fastest growth, at a CAGR of 25.9% from 2015 to 2022. Telecom carriers, service providers, and aggregators are starting to realize the benefits associated with a long tail developer base and are thus focusing on expanding this developer base.


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