Global Telecom API Market: Snapshot
The speedy proliferation of cloud-based technologies and the increasing use of mobile internet are the two key drivers for telecom API providers today. There is a massive demand for mobile applications already, with a further increase in demand over the years to come. The Cisco Visual Networking Index for 2014 to 2019 shows that the amount of mobile data used is expected to cross 24.3 Exabytes by 2019, primarily due to VoIP and mobile video streaming. A significant portion of this data will be driven through cloud-based applications.
Developers that use telecom API can also enjoy several advantages such as a lesser time to market, relative savings in cost, and a much better position to provide optimum quality of service. A few telecom carriers also offer greater bandwidth for streaming mobile data within specific mobile applications, which can be done through the API chosen by the developer of the app. As a result, the application itself can gain user preference and rating while further reducing the cost of marketing.
There is, however, the increasing competition in revenues and margin values that over the top service providers are giving to telecom operators. These OTT services make telecom services incur infrastructure costs while only allowing them to charge users for data usage.
The over result of such positive and negative factors of influence on the global market for telecom API, is a projected CAGR of 23.6% from 2015 to 2022. This highly positive rate of growth is expected to allow the market to generate a revenue of US$97.06 bn by the end of 2016 and US$323.44 bn by 2022.
Telecom API Provision Dominated by North America, Spurred by APAC Demand
The demand for telecom API in North America has consistently been very high owing to the constantly increasing demand for mobile applications and an already large number of mobile data users. Their numbers are expected to increase even further over the coming years. The massive number of unique subscribers in the region is moving towards smartphones at a very fast pace. North America telecom scenario also holds a high penetration of 4G LTE carriers, further improving the scope of demand for telecom API.
The growth of telecom API service providers in Asia Pacific is expected to accelerate at a leading pace till 2022. This factor is applied due to the phenomenal growth in the region’s IT industry. Nations such as India, China, South Korea, and Japan currently hold a higher spending power than before, attracting prominent telecom API providers to this region. Asia Pacific also shows the fastest rate of growth in subscriber numbers and improvements in connectivity by carriers.
Enterprise Developer Continue Leading in API Usage
Enterprise developers have consistently shown the leading demand for telecom API due to their large scale use of it. Enterprise developers use telecom API to market their products at an increasing rate as it allows them to conduct their daily business operations efficiently. This includes marketing, vendor management, and customer relations. Enterprise developers also use telecom API to send procurement orders to vendors and suppliers on a regular basis.
Telecom developers are also beginning to offer open API platforms that are highly appealing to independent app developers, otherwise called long-tail developers. The growing demand for open source API platforms therefore provides a strong position for telecom API developers that provide the same.
The leading providers of telecom API in the world include Apigee Corp., Twilio, Inc., Fortumo OU, LocationSmart, Alcatel Lucent, Nexmo, Inc., Tropo, Inc. (Cisco, Inc.), Aepona Ltd. (An Intel Company), and Comverse, Inc.
Telecom API market represents an overall Application Programming Interface (API) services provided by telecom carriers, service providers and aggregators to application developers in order to create mobile applications. Telecom API helps application developers to integrate various services such as payment, voice, SMS and WebRTC into their mobile application. This helps application developers to enhance their customer experience and market their mobile applications among end-users. Telecom API provides many benefits to telecom carriers in the form of revenue generation and enhancing end-user experience. Telecom API faces competition from Over-The-Top (OTT) service providers and due to growing adoption of open API platform. However, the increasing adoption of M2M devices among end-users is anticipated to boost the market for telecom API in coming years.
This research report provides in-depth analysis of the global telecom API market based on services, user types and geography. In terms of geographical regions, the report categorizes the global telecom API market into North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and Latin America. North America is further segmented into the U.S. and Rest of North America, while Europe is divided into EU7, Commonwealth of Independent States (CIS), and Rest of Europe. Moreover, Asia Pacific is subdivided into Japan, China and Rest of Asia Pacific. Also, MEA is further segmented into Gulf Cooperation Council (GCC) countries, South Africa and Rest of MEA, while Latin America is subdivided into Brazil and Rest of Latin America.
The telecom API market is categorized based on service types into payment, SMS, MMS and RCS, maps and location, voice/speech, identity management, WebRTC and others. Further, the research report provides complete insights into different users of telecom API such as enterprise developers, internal telecom developers, partner developer and long tail developers. The report analyzes each of these segments for various geographies considered under the scope of the study.
Furthermore, the report analyzes factors that drive and restrain the growth of telecom API market. The report also discusses the prevailing market trends, prospective growth opportunities, and major strategies resulting in the popularity of telecom API services. It also provides the market estimates and forecasts for all the segments in terms of revenue. Also provided in the report is the market positioning of key players in the global telecom API market.
Additionally, the report includes competitive profiling of the major players engaged in offering telecom API services. Major business strategies adopted by them, their market positioning, and various recent developments have also been identified in the research report. The key market players profiled in this study include telecom carriers, aggregators and service providers. The major telecom carriers providing telecom APIs profiled in the report include AT&T, Inc. and Orange. The major service providers and aggregators of telecom API profiled in the study are Apigee Corp., LocationSmart, Alcatel-Lucent, Twilio, Inc., Tropo, Inc. (Cisco, Inc.), Aepona Ltd. (An Intel Company), Fortumo OU, Nexmo, Inc. and Comverse, Inc.
The global telecom API market is segmented as below:
Telecom API Market
By Service Type
- SMS, MMS and RCS
- Maps and Location
- Identity Management
- Others (Device Information and Do Not Distrub)
By User Type
- Enterprise Developer
- Internal Telecom Developer
- Partner Developer
- Long Tail Developer
- North America
- Asia Pacific
- Latin America
- Middle East and Africa