Telecom API Market Size, Share, and Trends 2024 to 2034

Telecom API Market Size and Companies

The global telecom API market size was estimated at US$ 206.14 billion in 2021 and it is expected to hit US$ 1.2 trillion by 2030 with a registered CAGR of 21.62% from 2022 to 2030.

Growth Factors

One of the factors driving the growth of global telecom API market is growing deployment of 5G technologies and networks. For example, the Small Cell Forum launched a 5G functional application programming interface (API) in April 2020 to allow a 5G small cell vendor ecosystem. The 5G technical application programming interface (API) specifications, which build on the scope of the 5G physical layer application programming interface (API) specification, allow tiny cells to be built piece by piece with components from various suppliers.

Another factor boosting the growth of global telecom application programming interface (API) market is growing number of mobile service subscribers. According to GSMA data, 5.2 billion individuals had enrolled to mobile services by the end of 2021, with that number expected to rise to 5.7 billion by 2025, presenting additional prospects for telecom application programming interface (API) in mobile based applications. The government all around the world is taking constant efforts for the growth and development of global telecom application programming interface (API) market. The government is highly investing in latest technological projects for the development of various types of telecom application programming interface (API) in the global market. Thus, this factor is supporting the telecom application programming interface (API) market growth.

The widespread acceptance of application programming interface (API) related technologies are due to the increased utilization of mobile and smartphones applications. All market participants profit from the growing number of innovative technological breakthroughs. On the other hand, the telecom application programming interface (API) market is restrained by a commercial gap between developer needs and carrier product offerings as well as government regulations and policies governing the telecom sector.

The telecom application programming interface (API) market is highly competitive, and important firms in each region compete fiercely. A few renowned players dominate each region or nation, the most of whom are the region’s vendors. In order to expand their market position, these market players are focused on growth and expansion methods like partnerships, acquisitions, joint ventures, mergers, and collaborations.

Report Scope of the Telecom API Market

API Type Insights

The messaging API segment accounted 34% market share in 2021 and is expected to witness growth at a CAGR of 21.5% from 2022 to 2030. Any service that allows developers to incorporate numerous messaging technologies in an application through a single programmable interface is referred to as a messaging application programming interface (API). The rising demand for SMS services that use messaging application programming interface (APIs) is driving the expansion of messaging application programming interface (APIs).

The interactive voice response application programming interface (API) segment is fastest growing segment over the forecast period. The smart interactive voice response helps businesses improve their sales and marketing efforts. Using an interactive voice response system, call centers can process millions of calls each hour to manage real time data. As a result, interactive voice response application programming interface (API) allows developers to create high quality applications with interactive voice response capabilities and voice calling.

End Use Insights

The enterprise developer segment accounted largest revenue share 36% in 2021. The demand for telecom application programming interface (API) is growing among large scale enterprises, which is driving growth of enterprise developer segment. The growing utilization of application to person messages for promotion of certain products and services is driving the demand for telecom application programming interface (API) in enterprise developer segment.

The partner developer segment is expected to witness growth at a CAGR of 23% over the forecast period. The partner telecom application programming interface (APIs) aid in the development of services such as streaming and payment services by providing a centralized data exchange platform for developers. The developers can create these services with the help of telecom organizations. In addition, compared to corporate developers, the consumer base for partner developers is fast rising, resulting in their increase during the predicted period.

Region Insights

North America dominated the market in 2021 with revenue share of around 30%. This is due to rising usage of numerous cloud-based services by way of manufacturing systems and several sales channels. Furthermore, due to increased funding, the web-based information technology industry in North America is expected to rise rapidly. In addition, major emerging nations have seen an increase in demand for various software-based services. Thus, all of these factors are driving the growth of North America telecom application programming interface (API) market.

Asia-Pacific is expected to develop at the fastest rate 24.5% during the forecast period. China and India dominated the telecom application programming interface (API) market in Asia-Pacific region. The growing deployment of telecom application programming interface (API) by various market players is driving the growth of Asia-Pacific telecom application programming interface (API) market. In addition, technological developments are paving way for the expansion of telecom application programming interface (API) market in Asia-Pacific region. The market demand is projected to be driven by some of the ongoing partnerships among the region’s key players. For example, China Unicom, one of the top mobile network service providers in terms of subscribers, and Alibaba Group Holding are aiming to partner in the sector of networking services, which is likely to boost telecom application programming interface (API) market growth in the region.

Key Developments

• Infobip Ltd. established a cooperation with Span, an information technology company that provides professional services and technical assistance to business customers and organizations around the world as they seek to enhance their information systems, in April 2020. Through Infobip’s full customer interaction and experience portfolio of Conversations, Moments, and Answers, this alliance could allow Span to design integrated customer experiences throughout all phases of the customer journey.
• Reliance Jio, achieved Open application programming interface (API) Platinum conformance certification in 2021, demonstrating the growing trend toward leveraging Open application programming interfaces (APIs) to assist develop open ecosystems for telecom businesses. 
• Twilio Inc. purchased SendGrid Inc., an email application programming interface (API) platform firm, for $2 billion in February 2019 to expand its customer base and product offering. Twilio Inc. can now leverage SendGrid’s communication platform like messaging, audio, email, and video as a result of this transaction.
• Nexmo Inc., a Vonage Holdings Subsidiary, announced a next generation messaging system based on two new application programming interfaces (APIs), the Messages application programming interface (API) and the Dispatch application programming interface (API), in October 2018. 

Some of the prominent players:

• Vodafone Group PLC
• Twilio, Inc.
• Alcatel-Lucent
• AT&T, Inc.
• Telefonica
• Apigee Corporation
• Orange S.A.
• Verizon Communications, Inc.
• Xura, Inc.
• Nexmo, Inc.

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By API Type

• Messaging (API)
• WebRTC
• Payment (API)
• IVR (API)
• Location (API)
• Others

By Type

• Presence Detection Data
• Location Determination Data
• Service Configuration Management (SCM)
• Subscriber Data Management (SDM)

By End User

• Enterprise Developers
• Internal Telecom Developers
• Partner Developers
• Long Tail Developers

By Deployment

• Hybrid
• Multi-cloud
• Other

By Industry Verticals

• BFSI
• Healthcare & Life Sciences
• Telecommunications & ITES
• Government & Public Sector
• Manufacturing
• Consumer Goods & Retail
• Media & Entertainment
• Others

 By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa