Telecom API

Telecom API

The telecom API market refers to the industry of providing application programming interfaces (APIs) for telecommunications services. These APIs enable developers to integrate telecom functionality into their own applications, such as messaging, voice calls, and phone verification.

The Telecom API Market was valued at 209 billion in 2022 and is expected to grow at a steady rate of around 18.8% in the forecasted period (2023-2030) owing to the increasing demand for mobile data and the rise of digital communication. Also, increased investment in digital transformation is further driving the market as many businesses are investing in digital transformation initiatives, which require the use of telecom APIs to support the infrastructure and communication needs. For instance, the Indian government has set aside INR 10,000 crore (USD 1.4 billion) for its Digital India initiative, which aims to promote digital literacy, increase internet penetration, and enhance digital infrastructure in the country.

• Based on type, the market is segmented into presence detection, location determination data, and others. Among these, the presence detection segment is experiencing a surge in demand due to the increasing adoption of cloud-based services and the growth of e-commerce. As more businesses move their operations to the cloud, they require APIs that can provide information about the availability or presence of their customers. This is driving the demand for presence detection APIs, which enable businesses to know whether their customers are online or offline.
• Based on services, the market is segmented into SMS, payment API, location API, and others. Among these, the SMS segment is generating high revenue for the telecom API market due to its widespread use in various industries such as banking, finance, and e-commerce. Also, the increasing adoption of digital payments and online transactions has driven the demand for SMS APIs. For instance, according to the Reserve Bank of India, the value of digital payment transactions in India increased by 43% in 2020 compared to the previous year, reaching a total of 1.4 billion transactions worth INR 2.2 lakh crore (USD 32 billion). Additionally, the growth of e-commerce and m-commerce has further fueled the demand for SMS APIs, as businesses look to communicate with their customers and provide them with updates on their orders and deliveries.
• Based on end-users, the market is categorized into enterprise, internal telecom developer, and others. Among these, the enterprise segment is dominating the telecom API market due to the increasing adoption of digital communication and collaboration tools in large organizations. Enterprises are looking for ways to streamline their operations and improve productivity, and telecom APIs provide a range of features such as messaging, voice calls, and phone verification that can help them achieve these goals. Additionally, the growth of e-commerce and m-commerce has created a need for more advanced features such as real-time communication and personalized customer experience, which telecom APIs can provide.
• For a better understanding of the market adoption of Telecom API, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The North America region is expected to experience significant growth in the telecom API market due to the increasing adoption of digital communication and collaboration tools in various industries such as e-commerce, finance, and healthcare. The United States and Canada are driving the growth of the market, with a focus on advanced features such as real-time communication, personalized customer experience, and automation. Furthermore, the increasing adoption of digital communication and collaboration tools in various industries such as e-commerce, finance, and healthcare are driving the demand for telecom APIs in the North America region. For instance, according to a report by the Canadian Internet Registration Authority (CIRA), 83% of Canadians use the internet for online shopping, with 54% making purchases online at least once a week.
• Some of the major players operating in the market include Verizon Communications Inc.; Google; Telefónica S.A.; TWILIO INC.; AT&T Intellectual Property, Infobip Ltd; Sinch (CLX Communication); Cisco Systems, Inc; Huawei Technologies Co., Ltd; LocationSmart.