Market Dynamics- Restraints
Over the top service refers to services such as audio, video, and other data through the internet independent of telecom carriers. Telecom carriers incur infrastructure costs and can only charge for the amount of data is used by end users. On the contrary, OTT service providers can generate additional revenues depending upon the service provided. Introduction of VoIP is decreasing the demand for voice-based services provided by telecom carriers. The amount of revenue generated from telecom carrier services such as SMS, MMS, and voice services is declining, owing to the presence of OTT services. According to GSMA Intelligence, the use of traditional SMS in order to communicate between person-to-person (P2P) has dropped by double-digit percentages quarter-over-quarter between 2010 and 2011. Hence, these factors are expected to restrain growth of the market during the forecast period.
A large number of telecom carriers are increasing including telecom API services in their portfolio. However, very few telecom carriers such as AT&T, Inc. and Orange S.A. are opening up their telecom API platform to external developers. Most telecom carriers consider application developers as value-added resellers and provide a business model that exposes less of the API platform to the developer. This restricts the possibilities for innovation in telecom API platforms and developers are not able to create applications using telecom API. Opening the telecom API platform to developers is expected to generate revenue by creating more applications. Hence, these factors are expected to hamper the global telecom API market growth over the forecast period.
Market Opportunities
The connectivity of M2M devices with smartphones is expected to increase in coming years and is expected to further increase the demand for telecom network APIs. According to the Cisco Visual Networking Index 2014 - 2019 report, the number of M2M connections is expected to reach 3.2 billion by 2019 and is expected to rise at a CAGR of 45% from 2014 to 2019. Telecom carrier companies such as Orange S.A. and AT&T, Inc. have started offering M2M platforms to integrate mobile devices with M2M-connected devices. According to the GSMA Mobile Economy Report 2015, the total number of mobile M2M connections are expected to grow at a CAGR of 26% between 2014 and 2020. M2M devices include wearable watches equipped with sensors, smart homes, and home security systems. These devices are able to connect with smartphones and share information. Smartphones utilize this collected data and convert it into meaningful information for the end-user.
Key players operating in the market are focused on research and development activities, in order to enhance the product portfolio. For instance, in September 2013, AT&T Inc. launched an enterprise-focused API program that allows enterprise customers to innovate using AT&T network APIs. Furthermore, in November 2015, Apigee Corp. introduced Apigee Identity APIx, an API-based solution that empowers mobile network operators to deliver and manage security services.
Telecom Api Market Report Snapshots
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