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The Worldwide Telecom API Market Has Big Gains in Store

September 01, 2015

The global telecom API market is set to make some pronounced gains. A new report from Transparency Market Research suggests that by 2022, the global API telecom market will reach $323.44 billion, and that's not all the report had to say.

The Transparency report—titled “Telecom API Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2022”—reveals that the market for application programming interfaces (APIs) is expected to gain at a compound annual growth rate (CAGR) of 23.6 percent until 2022, when the forecast period closes.

Driving this push is a rapidly increasing demand for mobile applications, of which APIs are a large part. Increasing demand for mobile devices in general, for 4G LTE and mobile Internet options, are a major force behind an expanded demand for APIs. Plus, with telecom API, a substantial new weapon is provided to telecom carriers and similar service providers to take on the growing threat of over-the-top (OTT) services, many of which have been posing a serious threat to telecom revenues for the last several years.

The study broke down the market as it currently stands as well, with North America proving the largest market for telecom API back in 2014, making up for about 35 percent of the total market share. But North America is considered a mature market as well, meaning that its growth is likely to be slower. As seems to commonly be the case these days, those with telecom APIs need look to the Asia-Pacific market, as the CAGR in that region will actually outpace the total global market's rate at 25.4 percent. This is due to accelerated adoption of all the points noted earlier like mobile device adoption rates.

As for what kinds of API will be big in that time frame, voice API was the largest as of 2014's numbers, at 28 percent, but there will be some major gains seen from other fields soon. WebRTC APIs, for example, are expected to grow at a CAGR of 27.7 percent in the forecast period, thanks to a more cost-effective nature than more standard voice services. Also showing gains in that time frame are short message service (SMS), rich communications suite (RCS), and multimedia messaging service (MMS) APIs.

Image via Shutterstock

What's most clear from the study, however, is that the landscape as we know it today is likely to look a whole lot different in just a few years. With a huge number of developers in the field and a rapidly-expanding market, big changes in a short term are likely to be the order of the day. There are a host of reasons for API developers to put effort and resources into development—reduced costs, the means to address new market opportunities—and there are just as many reasons for potential end users to take advantage of that technology to make gains in the market. After all, there's that issue of the mobile workforce coming into play again, and a field that big is going to need plenty of tools to make sure it's getting the most done.

It's clear that there will be plenty of uses for APIs ahead. And with plenty of uses, come plenty of opportunities for those already in the field. 

Edited by Dominick Sorrentino

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