TELECOM API MARKET ANALYSIS

Telecom Api MarketSize and Trends

Market Overview

An application programming interface (API) is a computing interface that defines the interaction between numbers of software intermediaries. Telecom API helps developers create compatible applications for multiple devices under a particular network. A telecom carrier typically provides APIs geared toward SMS, MMS, location, voice, and payment, allowing the developer to integrate the required API in its application. The telecom carrier can charge the developer based on the number of APIs used in the application. Telecom API improves the scalability and flexibility of an application by managing the growing number of consumers in a network.

The global Telecom API Market was accounted for US$ 194.2 Bn in terms of value in 2019 and is expected to grow at CAGR of 23.6% for the period 2020-2027.

Figure 2: Global Telecom API Market Value (US$ Bn), 2017 - 2027

The global Telecom API market was valued at US$ 194.2 Bn in 2019 and is forecast to reach a value of US$ 933.0 Bn by 2027 at a CAGR of 23.6% between 2020 and 2027.

Market Trends

1. North America Trends

North America comprises majority of telecom API service providers when compared to the other regions across the world. New enhancements related to telecom API are primarily introduced in the U.S. and then marketed around the world. According to GSMA Intelligence, the 4G LTE coverage reached 97% of the population in North America by 2013. The penetration of 4G connections in North America is expected to reach 80% of the total connections by the end of 2020. 4G LTE enables high-speed Internet bandwidth connectivity to the end user. Moreover, with the introduction of 4G LTE, telecom carriers are also expected to provide VoLTE service to the end-users in the coming years. According to the Cisco Visual Networking Index, the mobile data traffic is expected to reach 3.8 Exabytes/month by 2019 at a CAGR of 47% from 2014 to 2019.

2. Europe Trends

According to the Ericsson Mobility Report Europe 2014, the smartphone subscription is expected to reach 765 Bn by 2019. According to GSMA Intelligence, the unique subscriber penetration in Europe is expected to reach 79%, growing from 403 Bn in 2013 to 417 Bn in 2017. The adoption of the 4G LTE network in Europe has been slow compared to North America. However, the 4G LTE network segment in the region is expected to grow significantly during the next few years. According to GSMA Intelligence, the market for 4G LTE enabled SIM connections in Europe is expected to reach up to 152 Bn by 2017 from 25 Bn in 2014. These factors are expected to lead to a rise in the Internet user base and the adoption of VoLTE among the European population. This, in turn, is expected to drive the market for voice API during the coming years.