The Global Telecom API Market was valued at USD 204.7 Bn in 2020 and is expected to reach USD 674.0 Bn by 2027, with a growing CAGR of 18.6% during the forecast period (2021-2027).
The Global Telecom API Market Definition
API formerly known as Application Programming Interface is a term used to describe technical interfaces for software programs where one software program calls another through its API. Utilizing API can benefit the telecom sector by maximizing technology innovation internally, optimizing the efficiency of new service development, leveraging the rise of HTML 5 and the open web among others which are driving the global telecom API demand.
The Global Telecom API Market Dynamics
The increasing demand for advanced telecom services over the internet is estimated to drive the global telecom API market. In March 2021, India's Department of Telecommunications (DoT) has started the process to replace the Indian Telegraph Act 1885 and the Indian Wireless Telegraphy Act 1933 as a part of India’s preparation for 5G technology. According to the local reports in India, the National Law University in Delhi has been enlisted for the up-gradation of a machine to machine (M2M) learning and IoT regulations. With the preparations of the 5G technology, the telecom carriers are investing significantly not only in procuring a new spectrum and radio but also in the network itself. For instance, in April 2021, Small Cell Forum (SCF) launched a 5G functional API to facilitate a 5G RAN/small cell vendor ecosystem. The 5G technical API specifications allow small cells to be constructed, to take advantage of the scope of 5G physical layer API specification, utilizing components from different companies.
The Global Telecom API Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the telecom API market are:
Based on service type, the messaging API segment is expanding at a highest growth rate of approximately 34% for global telecom API market during the forecast period owing to increasing demand from the telecom API vendors
The messaging API segment is estimated to witness a dynamic growth rate for the global telecom API market throughout the forecast period. The growth is majorly attributed to increasing investments by the companies in the messaging API and the benefits provided by the enhanced messaging API to the customers. For instance, in September 2021, the cloud communications platform (CPaaS), ThinQ involved in powering the programmable voice and text messaging in applications, has announced its acquisition of Teli, the US-based text messaging APIs provider. The combined entities product is estimated to provide companies with exciting opportunities to strengthen their customer communications stack and offer enhanced text messaging features, from short and long code to toll-free SMS/MMS.
Based on the deployment mode, the hybrid deployment type accounted to hold a dominating segment with 51% market shares owing to numerous advantages provide by the hybrid deployment type, while the multi-cloud segment is estimated to grow with a significant rate in the overall telecom API market
The hybrid deployment type is estimated to witness a dominant market share in the year 2020 owing to the various advantages and benefits offered by the hybrid deployment model. For instance, in November 2019, Google LLC launched an Apigee hybrid, a platform for developing and managing API proxies that features a hybrid deployment model. Apigee hybrid offers various advantages such as managing all APIs in one place, addressing security and compliance, and supporting multi-cloud strategy among others.
Based on regions, the telecom API market in North America accounted for the largest market share in 2020 owing to well-established technological advancements and presence of key players in the region, followed by Asia Pacific and Europe
Geographically, the North American region held the largest market share in 2020. The rapid adoption of 5G, and presence of prominent key players such as Google LLC, AT&T, Inc., Oracle Corporation, and Broadcom, Inc. among other enterprises in region are collectively anticipated to propel the telecom API market in the North American region during the forecast period. Companies existing in the region are observed to implement varied technological advancements such as 5G network, virtual realities, higher resolution video, fully autonomous vehicles, and massive connected IoT networks, and also provide innovative solutions to the telecom API market. For instance, in June 2019, AT&T, an American multinational conglomerate holding telecommunication company and one of the largest mobile telephone service providers in the U.S. along with Colt Technology Services, a UK-based multinational telecommunications company completed successful application of MEF’s LSO (Lifecycle Service Orchestration) Sonata APIs, which allows customers to seamlessly order services across multiple carriers virtually.
The report also provides an in-depth analysis of telecom API market dynamics such as drivers, restraints opportunities and challenges
Drivers
Restraints
Opportunities
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report. Get report Sample Copy
COVID-19 Impact on the Telecom API Market Analysis
The outbreak of the novel coronavirus has impacted and restructured the operation and functioning of various industries such as the telecommunication sector. The immediate need for customer-friendly connection along with the contactless business opportunity propelled the transactional SMSs solutions during the first quarter of 2020, as the companies connected with customers over the telecom facilities and did not need to meet in person. At the time of the outbreak, the telecom API vendors were significantly investing in research and development activity to develop accessible solutions to cope up with the covid situation. For instance, in April 2020, the leading business cloud communications provider, launched Vonage Video Conferencing (VVC), a free desktop and mobile video collaboration product.
The report also provides an in-depth analysis of key trends in the telecom API market
| Sr. No. | Trends | Impact |
| 1 | The trend of monetizing 5G network as a business service platform, telecom API vendors are observed to invest extensively on the telecom API solutions | Positive |
| 2 | The increasing advantages such as the option to run at a different speed, to reach new markets and target new customers, innovative IoT solutions, and sharing of data in controlled, secured manner is increasing the telecom API use cases | Positive |
| 3 | The rising trend of co-working spaces is an excellent opportunity of the telecom API Market vendors | Positive |
The report also provides an in-depth analysis of recent news developments and investments
The unique insight provided by this report also includes the following:
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