Telecom API Market Size, Share & Trends Report

Telecom API Market Size, Share & Trends Analysis Report By Type (Messaging API, IVR API), By End User (Enterprise Developer, Partner Developer), By Region (North America, APAC), And Segment Forecasts, 2020 - 2027

  • Published Date: May, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-230-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The global telecom API market size was valued at USD 126.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 21.9% from 2020 to 2027. An Application Programming Interface (API) is a set of communication protocols and tools that aid in the development of mobile applications. Such interfaces provide readily available features and services that allow developers to only focus on application development. It simplifies the application development process by eliminating the need to develop every feature from scratch.

Asia Pacific telecom API market size

APIs are imperative across all the mobile applications and services that include messaging, voice and video calling, mobile payments, and location tracking. Increasing number of mobile service subscribers is a major factor contributing to the market growth. As per statistics published by GSMA, the total number of mobile service subscriptions was around 5.1 billion in 2018 and is expected to reach 5.8 billion by 2025, thus, propelling the demand for APIs.

Growing adoption of Internet of Things (IoT) is also expected to positively influence the market growth. APIs play an essential role in monetizing the IoT network as they act as a point of interaction between several elements within the network. Mobile operators are focusing on expanding their role in the value chain to provide end-to-end IoT solutions reducing their dependency on other third-party solution providers.

The market has high growth potential in emerging regions, such as Africa and Asia Pacific, due to increasing number of start-ups. Telecom operators, such as Orange and Vodafone Group, have developed partnerships with start-ups in these markets. Such partnerships have enabled mobile operators to tap new revenue streams by allowing start-ups and developers to access their APIs, thus, propelling market growth.

However, concerns regarding data security may have a negative impact on the market growth. For instance, in December 2019, Airtel agreed that its application’s APIs could have been exploited by malicious parties to gain access to the user data, such as name, email id, residential address, and IMEI number of the device on which the application is installed.

The telecom API market is gaining momentum due to increasing number of mobile internet users. According to GSMA, the total number of mobile internet users at the end of 2017 was 3.3 billion. With the increasing number of mobile internet users, telecom operators are focusing on enhancing their solution offerings to provide faster and more secure service to customers. APIs allow organizations to operate at different internet speed and create innovative solutions for engagement.

Increasing adoption of Machine to Machine (M2M) devices is anticipated to drive the market. APIs are crucial for M2M communication as they specify the message format that can be used to control the device. As per industry experts, the number of mobile connected devices is expected to be around 10.5 billion by 2020, creating market opportunity specifically in consumer electronics and M2M sectors. Furthermore, rapidly expanding e-commerce sector is expected to augment the product demand, such as payment and location APIs.

Type Insights

The type segment is divided into messaging, webRTC, payment, Interactive Voice Response (IVR) and location APIs. In 2019, the messaging API segment held the largest market share in 2019 and is expected to register the fastest CAGR of over 24% from 2020 to 2027. This growth is attributed to the increasing adoption of SMS and RCS services that use messaging APIs.

The Interactive Voice Response (IVR) API segment is anticipated to record substantial growth over the forecast period due to increasing number of call centers, especially in developing economies. The location API segment is estimated to witness significant growth on account of increasing demand for smartphone applications that require location tracking services.

End-user Insights

The end users of telecom API include enterprise developers, internal telecom developers, partner developers, and long tail developers. The enterprise developers segment accounted for the largest revenue share in 2019 due to extensive usage of A2P messaging tools in large-scale firms to announce offers, sales, change in policies, and other promotional activities.

Global telecom API market share

The partner developer segment is estimated to register the maximum growth rate of over 25% in the next seven years. Partner APIs aid in creating a data sharing platforms between telecommunication service providers and other developers to develop services, such as streaming and payment services. Developers can build on these services and rely on telecom organizations to manage certain business services and infrastructure.

Regional Insights

North America held the largest market share in the global market in 2019 due to the presence of major companies, such as AT&T, Inc., Broadcom, Inc., Google LLC, and Oracle Corporation. Furthermore, early adoption of technologies, such as 4G, is a major factor contributing to the high revenue share in this region. With the integration of 4G technology and APIs, communication services like video & voice calls, speech and video integration services are delivered efficiently, and the productivity of business organizations is enhanced.

Asia Pacific is estimated to be the fastest-growing region from 2020 to 2027. This growth is attributed to the increasing number of mobile internet users in the region. According to the GSMA, in 2018, there were 1.9 billion mobile internet users in Asia Pacific. This number is projected to reach 2.7 billion by 2025. Furthermore, the overall revenue from mobile operators in this region is projected to reach USD 433 billion by 2025 from USD 400 billion in 2018.

Key Companies & Market Share Insights

The key participating in the market include telecommunication service providers, third-party developers, and others. These market participants are focusing on mergers and acquisitions, partnerships, and joint ventures or collaborations to enhance their market presence. For instance, in March 2019, AT&T, Inc. announced its new AT&T API Marketplace to help connect developers and businesses with communication applications. Some of the prominent players in the telecom API market include:

  • AT&T, Inc.

  • Telefonica S.A.

  • Google LLC

  • Verizon Communication, Inc.

  • Twilio Inc.

Telecom API Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 147.70 billion

Revenue forecast in 2027

USD 590 billion

Growth Rate

CAGR of 21.9% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, end user, and region

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

AT&T, Inc.; Telefonica S.A.; Google LLC; Verizon Communication, Inc.; and Twilio Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global telecom API market report based on type, end user, and region:

  • Type Outlook (Revenue, USD Billion, 2016 - 2027)

    • Messaging

    • WebRTC

    • Payment

    • IVR

    • Location

    • Others

  • End-user Outlook (Revenue, USD Billion, 2016 - 2027)

    • Enterprise Developers

    • Internal Telecom Developers

    • Partner Developers

    • Long Tail Developers

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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