Telecom API: Technology Trends redefine Market Growth
By Akhil Nair
An API is a set of commands, procedures, functions, and protocols for developing software or facilitating interaction between two systems. The continual progress of enterprise communication has resulted in businesses looking for new technologies like cloud-based tools for enhancing operations and gaining a competitive edge over other organizations.
In this regard, a telecom API is used to integrate texting, calling, and other telephone functions directly into software services or applications. The global telecom API market is projected to record a CAGR of 16.22% during the forecast period, 2022-2030. The factors driving the growth are the growing adoption of cloud-based technologies and the increasing shift towards digital technologies. However, the surging OTT internet service providers and stringent government policies are key restraints impacting the market’s performance.
Global Trends 2022
Rise in Digital Technologies
As per the United Nations, digital technologies are advancing rapidly in comparison to other innovations. Such aspects have enabled a business shift, in sectors like telecommunications, to more open ecosystems such as the application programming interface. Moreover, telecom carriers seek cloud-based solutions for delivering their services to meet consumer demands and needs. Furthermore, there is a growing need to connect a rising number of applications and digital experiences. Accordingly, release frequency is increasing, and therefore, digital transformation is increasingly propelled by rapid changes in user expectations. Also, as per the State of API Integration Report, almost 83% of specialists consider API integration critical for their business.
Thriving Asia-Pacific IT Market
The flourishing information technology market is evaluated to raise the adoption and demand for the application programming interface. API facilitates businesses and companies to open up their application data and functionality to business partners, internal departments, and external third-party developers. As per ITU Publications, internet usage rose from 38.6% in 2017 to 44.5% in 2019, while more than 96.1% have access to a 3G signal, and another 94.2% are within reach of LTE (long-term evolution) broadband signal. Additionally, the fast-paced development in the IT industry has surged the demand for telecom API, with the highest growth rate in countries like Australia.
According to Inkwood Research, the global telecom API market scope includes service type, deployment type, and end-user. The market segmentation is characterized by the increasing demand for microservices and the technology trends like the shift toward application programming interfaces and cloud platforms.
Messaging API is the prominent service type with a 16.63% CAGR. The high growth is attributed to the rising demand for RCS and SMS services. Additionally, a growing number of companies utilize SMS services to improve consumer engagement & experience and personalized marketing efforts.
Inkwood Research’s analysis of the global telecom API market growth includes the assessment of Asia-Pacific, Europe, North America, and Rest of World. The regional outlook of the market is characterized by the early adoption of 4G/LTE, a high number of smartphone users, and the increasing number of M2M devices.
Asia-Pacific is the fastest-growing region with a 16.45% CAGR by 2030
Asia-Pacific is one of the lucrative regions, attributed to the rising number of mobile subscribers and the growing adoption of 5G technologies. As per stats, there were over 1.2 billion mobile internet users in the region. In addition, in countries like China, several telecommunications players are applying API to open platforms to supplement businesses in several sectors. Besides, the market collaboration among the prominent players is estimated to boost market demands.
Company Strategic Developments
Some of the eminent companies in the market include Nexmo Inc, Twilio Inc, Apigee Corporation, Verizon Communications Inc, Vodafone Group PLC, etc. The telecom sector witnessed a massive shift from hardware to software majorly driven by API. Also, as per recent trends, the strong demand for mobile top-up API and a range of other telecom APIs are set to propel the telecom API market growth.
Accordingly, several companies are prioritizing API development to enable the integration of their services with the applications and programs of developers. For instance, Twilio offers an API wherein its cloud network can be incorporated into the developer’s applications.
The Progress Hereon
Telecom API technology is constantly upgraded to facilitate telecom automation. In this regard, the developers prioritize the production of vehicle-to-cloud (V2C) connectivity and speech recognition expert groups for developing standardized API sets. Moreover, it plays a vital role in internet connection management by assisting in developing internet-connected devices. As a result, internet-connected devices’ adoption and development are evaluated to offer lucrative opportunities for the global telecom API market.
Which is the lucrative country in the global telecom API market?
Singapore is the lucrative country in the global telecom API market.
Which is the fastest-growing deployment type in the global telecom API market?
Multi-cloud is the fastest-growing deployment type in the global telecom API market.