Telecom API Market: Development Insight and Manufacturers Challenge Competitors

Published: Thu Oct 18 2018

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.

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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.

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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.
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