Telecom API Market is expected to register a CAGR of over 23% during the forecast period (2020 - 2025). Rapid innovation in technology along with increasing penetration of cloud-based services across the Telecom domain is expected to drive the growth of the telecom API market.
- Telecom APIs allow the carriers to capitalize on existing network infrastructure and capabilities to develop a wide range of business opportunities for carriers worldwide. Carriers have an enormous range of under-utilized assets they can leverage to drive incremental revenues.
- A significant number of mobile network operators are already leveraging Telecom APIs to support Robocall Detection and Unwanted Call Management. Some of these same processes and procedures will become a bridge towards mediation of loT network authentication and authorization.
- loT represents a vast and mostly untapped market for CSPs to leverage 5G for loT apps and services entirely. More specifically, it allows carriers to act as an orchestrator/mediator within the loT ecosystem.
- Furthermore, to fulfill 5G technology’s true potential, telecom carriers will be required to involve in significant investments, not only in procuring a new spectrum and radio but also in the network itself.
- For instance, in April 2020, Small Cell Forum (SCF) releases 5G functional API to enable a 5G RAN/small cell vendor ecosystem. Capitalizing upon the scope of 5G physical layer API specification, the 5G technical API specifications allow small cells to be constructed piece-by-piece using components from different vendors.
- At the time of COVID-19 pandemic across the world, the telecom API vendors are developing solutions that can cope up with the situation for better accessibility. For instance, in April 2020, Vonage, which is a global business cloud communications provider, has announced the launch of its free desktop and mobile video collaboration product, Vonage Video Conferencing (VVC). This video API solution experiences high demand as a requirement for telehealth, remote work, and online education grows at the time of the public health crisis.
Key Market Trends
Professional Services is Expected to Have Significant Growth
- The growing competition amongst the telecom service providers to provide better and improved professional services available for consumers helps to gain a competitive edge across their serving region.
- Also, the mounting demand for online amusement and better mobile application, increased penetration of IoT devices, switching of the consumers to 4G networks, efforts towards making improved APIs for better user experience and the growing need by the telecom operators to monetize their advanced services are some of the professional services that are supposed to drive towards the market growth.
- The growing adoption of advanced technologies along with the increasing applications of mobile internet in day to day operations has fueled the cutting edge competition from various technological advancements across the professional services in the booming era of LTE and IoT is further going to propel the demand for the market.
Asia-Pacific to Register the Fastest Growth During the Forecast Period
- The region is expected to occupy a significant market share, as it is experiencing a significant shift in the telecom front, where a majority of the organization has migrated their business-critical infrastructure to the cloud, owing to the penetration of hybrid IT API architecture.
- The advancement in the digital economy strategy among the developing economies continues to take shape has clearly fueled the cloud-first approach across the region. The initiative's aim to move legacy from on-premise systems to the cloud-based model to integrate with the middleware application across the communication sector.
- Further, some of the ongoing collaboration among the prominent players of the region is expected to drive the market demand. For instance, China Unicom, one of the largest mobile network service provider by the number of subscribers and Alibaba Group Holding are planning to collaborate across the networking services, which is further expected to drive the market growth across the region.
The Telecom API market is moderately competitive and consists of a few major players. However, with the advancement in the telecom software services, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- April 2020 - Vonage launched a new add-on to its portfolio of Vonage APIs via the Verify API. The Verify API solution allows application developers to protect against fraudulent sign-ups by deploying two-factor authentication (2FA) over messaging and voice channels.
- April 2020 - Small Cell Forum (SCF) released 5G functional API to enable a 5G RAN/small cell vendor ecosystem. Capitalizing upon the scope of 5G physical layer API specification, the 5G technical API specifications allow small cells to be constructed piece-by-piece using components from different vendors.
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