PUBLISHER: IMARC | PRODUCT CODE: 1560968
PUBLISHER: IMARC | PRODUCT CODE: 1560968
The global telecom API market size reached US$ 335.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,248.0 Billion by 2032, exhibiting a growth rate (CAGR) of 15.2% during 2024-2032. The rising demand for mobile and internet services, digital transformation, growing IoT industry, and advancements in 5G technology are primarily driving the market growth.
Rising Demand for Mobile Data
The increasing demand for mobile data is significantly driving the growth in the telecom API market. The proliferation of smartphones, tablets, and other connected devices has led to a surge in mobile data consumption. For instance, according to an article published by Forbes, in 2023, the average user consumed 24.1 GB of mobile data per month. This represents a 24% increase in a year-from 19.5 GB per user in 2022. By December 2023, India had around 724 million and 131 4G and 5G data subscribers, respectively. In addition, there were over 796 million 4G-capable active devices in the country, with almost 134 million also supporting 5G. Consumers and businesses alike rely heavily on mobile data for browsing, streaming, communication, and accessing cloud services.
Increasing Penetration of Smartphones
The surging smartphone penetration significantly drives the growth of the telecom API market. For instance, according to Statista, between 2024 and 2029, the global number of smartphone users was expected to increase by 1.5 billion (+30.6%). Moreover, the smartphone user base is expected to reach 6.4 billion, marking a new peak in 2029. Smartphones rely on mobile applications for various functionalities, from communication (voice calls, messaging) to productivity tools, entertainment, and IoT connectivity. Telecom APIs allow app developers to integrate features such as SMS notifications, in-app calling, location-based services, and mobile payment functionalities seamlessly into their applications. These factors are further positively influencing the telecom API industry forecast.
Growing Need for Security
As digital communication becomes more integral to daily life and business operations, the demand for secure APIs that ensure data privacy and protection also increases. Telecom APIs that offer secure authentication, encryption, and compliance with regulations (like GDPR) are particularly valuable. For instance, in February 2024, Telkomsel, Indosat Ooredoo Hutchison, XL Axiata, and Smartfren, telecom operators based in Indonesia, launched three Application Programming Interface (API) services: number verification, SIM swapping, and device location. These API services are aimed at improving security and client experience. These factors are further contributing to the telecom API market share.
IMARC Group provides an analysis of the key trends in each segment of the global telecom API market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type, user type, deployment, and industry vertical.
Messaging accounts for the majority of the global market share
The report has provided a detailed breakup and analysis of the telecom API market based on the type. This includes messaging, webRTC, payment, IVR, location, and others. According to the report, messaging accounts for the majority of the global market share.
As per the telecom API market outlook, enterprise developers utilize Telecom APIs to create customized solutions tailored to specific business needs and industry requirements. APIs provide access to telecom network functionalities, such as voice calling, SMS messaging, location-based services, and real-time data transmission, enabling developers to integrate these capabilities into enterprise applications seamlessly.
Enterprise developers currently exhibit a clear dominance in the market
A detailed breakup and analysis of the telecom API market based on the user type has also been provided in the report. This includes enterprise developers, internal telecom developers, partner developers, and long tail developers. According to the report, enterprise developers currently exhibit a clear dominance in the market.
As per the telecom API market outlook, enterprise developers utilize Telecom APIs to create customized solutions tailored to specific business needs and industry requirements. APIs provide access to telecom network functionalities, such as voice calling, SMS messaging, location-based services, and real-time data transmission, enabling developers to integrate these capabilities into enterprise applications seamlessly.
Hybrid holds the largest market share
The report has provided a detailed breakup and analysis of the telecom API market based on the deployment. This includes on-premises, cloud-based, and hybrid. According to the report, hybrid represented the largest segment.
Telecom operators often have existing on-premises infrastructure and legacy systems that cannot easily transition to fully cloud-based solutions. A hybrid approach allows operators to integrate new cloud-based telecom APIs with their on-premises systems, ensuring compatibility and continuity while leveraging the scalability and flexibility of cloud resources. For instance, in February 2024, NTT DOCOMO INC., Japan's mobile operator with over 89 million subscribers, chose AWS to commercially build its countrywide 5G Open Radio Access Network (RAN) in Japan. AWS assists DOCOMO in creating its 5G Core on AWS, which operates in a hybrid cloud setting.
The report has provided a detailed breakup and analysis of the telecom API market based on the industry vertical. This includes BFSI, healthcare and life sciences, telecommunications and ITES, government and public sector, manufacturing, consumer goods and retail, and others.
BFSI relies heavily on telecom services for secure and efficient communication, data transmission, and financial transactions. Moreover, healthcare sectors require reliable telecom services for telemedicine, remote patient monitoring, digital health records, and medical imaging. Furthermore, telecom companies themselves require advanced infrastructure to support their operations and customer services. Apart from this, governments use telecom services for public safety, emergency services, e-governance, and citizen engagement.
North America was the largest market for telecom API
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America currently dominates the global market.
According to the telecom API market statistics, North America has high mobile and internet penetration rates, with a large population using smartphones and accessing digital services. For instance, according to the International Telecommunication Union, in 2023, the number of mobile subscriptions in the Americas region totaled over 1.14 billion. Telecom APIs enable developers to integrate voice calling, messaging, and data services into applications, catering to the growing demand for mobile connectivity and enhanced user experiences.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)