Global Telecom API Market to Reach $435.6 Billion by 2026

Telecom API (Application Programming Interface) refers to pre-defined software functions, instructions and protocols that can be used by an application to navigate through a web-enabled service. Growth in the market is being driven by multiple factors including the large user base for telecom services, 5G technology, machine-to-machine communication/ Internet of Things, enhanced user experience, and proliferation of cloud technologies among others. To improve their services, and also monetize the vast user base, telecom companies are aggressively investing in APIs, thus leading to significant demand for telecom APIs. 5G technology opens up new avenues for telecom service providers to improve their revenues by being the key integrator for IoT through apps and other services, which requires the development of APIs. The focus on identity management is expected to increase rapidly in future, leading to subsequent demand for telecom APIs. As the coronavirus outbreak made the world enter a phase of uncertainty and brought to standstill industrial production, companies with active telecom API businesses identified lucrative opportunities to develop new API concepts that would enable the delivery of coronavirus tracking technologies. Despite being impacted by an unfavorable business environment, telecom bigwigs are coming up with API solutions aimed to facilitating data transmission to detect and track active COVID-19 cases, including contact tracing.

Amid the COVID-19 crisis, the global market for Telecom API estimated at US$170.3 Billion in the year 2020, is projected to reach a revised size of US$435.6 Billion by 2026, growing at a CAGR of 16% over the analysis period. SMS, MMS & RCS, one of the segments analyzed in the report, is projected to grow at a 17% CAGR to reach US$169.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the IVR/Voice Store & Voice Control segment is readjusted to a revised 15.6% CAGR for the next 7-year period. This segment currently accounts for a 22.9% share of the global Telecom API market. Messaging API represents a key segment, driven by widespread adoption of RCS and SMS services that make use of messaging APIs. The RCS, SMS and MMS API enables contacts management, delivery of bulk SMS, receiving of incoming SMS, and activates transactional OTPs and updates. The Interactive Voice Response (IVR) API is also expected to witness strong growth led by the increasing strength of call centers, particularly in developing countries. The IVR API or smart IVRs allow high-end applications to be developed and integrated with IVR capabilities, enabling organizations to improve their marketing and sales initiatives.

The U.S. Market is Estimated at $64.7 Billion in 2021, While China is Forecast to Reach $58.5 Billion by 2026

The Telecom API market in the U.S. is estimated at US$64.7 Billion in the year 2021. The country currently accounts for a 31.33% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$58.5 Billion in the year 2026 trailing a CAGR of 19.5% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 12.9% and 15% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.9% CAGR while Rest of European market (as defined in the study) will reach US$65.8 Billion by the end of the analysis period. North America is a key market for telecom APIs, owing to the widespread adoption of technology in the region. Moreover, major technological advancements in the telecom and communications sectors arise from the region owing to the presence of technology majors including Google, AT&T, and Broadcom among others. The technology ecosystem is also fairly developed in the region, with huge investments in R&D. The advent of 5G technology, for which the US is among the major adopters, would also aid in the development of the API market in the region. The large user base of mobile subscribers, especially in China and India, as well as the technologically advanced markets of Japan and South Korea, are expected to drive growth in the Asia-Pacific region.

Payment Segment to Reach $61.6 Million by 2026

The payment API is also an emerging API segment that facilitates digital payments across a wide range of verticals such as retail, manufacturing, hospitality, education and BFSI. The payment API is an innovative approach to payment transactions gaining ground worldwide. In the global Payment segment, USA, Canada, Japan, China and Europe will drive the 14.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$20.1 Billion in the year 2020 will reach a projected size of US$51.6 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$6.4 Billion by the year 2026, while Latin America will expand at a 15.8% CAGR through the analysis period.