The business opportunities for Communication Service Providers (CSPs) are growing at double digit rates. According to Transparency Market Research (TMR), the global telecom API market is expected to generate $323.44 billion by 2022, which is a 23.6 percent compound annual growth rate from 2015 to 2022. That is almost a six fold increase from the $54.80 billion revenue of 2014.
Telecom Application Programming Interface (API) is becoming one of the most targeted segments by the application development community. As users continue to make mobile their primary computing solution, the potential for developers is huge.
The market is being driven by several different technologies maturing at the same time. This includes access to wireless broadband as 4G networks become more available, affordable smart phones and global adoption of the technology across all economic segments.
With more smartphones in the marketplace, developers will be able to create applications that can be integrated into different services. This includes mobile payment, MMS and RCS, voice/speech, WebRTC, SMS, maps and location, and identity management into the mobile ecosystem. By introducing more services and solutions, the adoption rates will continue to increase.
The market is still young and voice APIs still dominate the field, with the segment registering around 28 percent in 2014. But WebRTC is expected to grow at an impressive 27.7 percent during the forecast period. Unlike voice APIs, WebRTC is able to provide voice, video and data communications. And as more people purchase devices with these capabilities, organizations will be able to communicate with their customers with more options.
The report revealed enterprise developers are the largest end users, capturing a little more than a third at 34 percent. Internal telecom developers, partner developers and long tail developers make up the rest of the end-users. However, during the forecast period, long tail developers are expected to exhibit the fastest growth, at a CAGR of 25.9% from 2015 to 2022.
“Telecom API faces competition from Over-The-Top (OTT) service providers and due to growing adoption of open API platform. However, the increasing adoption of M2M devices among end-users is anticipated to boost the market for telecom API in coming years,” reported Transparency Market Research.