Telecom API Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Telecom API Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The telecom API market is expected to register a CAGR of 17.33% during the forecast period. North America dominated the Telecom API market in the last year with a market share of more than 30% which can be attributed mainly to its early and widespread adoption of API technologies. Rapid technological innovations, along with the increasing penetration of cloud-based services across the telecom sector, are expected to drive the growth of the telecom API market. Key HighlightsOver the past couple of decades, with the ongoing technological advancements and implementation of new software infrastructure, there has been a climacteric rise in the development of the telecommunication sector worldwide. The tectonic shift toward digital technologies will likely substantially impact the telecom sector's future.With the increasing number of mobile service subscribers, the demand for mobile-based technologies has grown significantly in past years, increasing the demand for telecom APIs due to their scalability. The integration of streamlined messaging and voice is the primary factor that is likely to reshape the telecom industry during the forecast period.Despite all the benefits offered by the telecom API, data security remains a concern where-in attacks by malicious parties can lead to them accessing the sensitive information of the users and the devices on which the application is being operated.At the time of the COVID-19 pandemic worldwide, telecom API vendors have been developing solutions that can cope with the situation for better accessibility by implementing strategies such as new product developments, mergers & acquisitions, and geographical expansion. For instance, in March last year, U.S.-based T-Mobile Venture invested in telecom API development startup SignalWire, which develops voice, video, and messaging APIs to advance API and 5G technology, among others.Telecom API Market TrendsRapid Growth in Digitalization is Bolstering the Market's Growth The cloud API and middleware market is quickly picking up due to the wide adoption of mobile and cloud applications for back-end services and enterprises' wide adoption of microservices-based architectures. The telecommunications sector is significantly transitioning from physical to digital networks. The telecom industry constitutes a wide range of consumers that need to be offered a broad spectrum of services irrespective of their devices and locations. Also, to cater to the same, telecom carriers seek cloud solutions for delivering their services in response to consumer demands. The technology trends, such as migration to cloud platforms and a shift toward an API economy, are being witnessed in the current market scenario. Middleware can unlock modern application patterns, optimize how your data is stored, retrieved, and shared, and improve applications' development. The increasing Internet of Things (IoT) adoption in the telecommunication sector is also expected to sustain market growth in the forecast period. Asia Pacific to Register the Fastest Growth During the Forecast Period Asia Pacific is projected to witness a healthy CAGR over the forecast period. The growth can be attributed to the increasing number of smartphone users in countries such as India and China. India is one of the fastest digitizing nations in the world, and is driven by an explosion in mobile connectivity, the permeation of internet infrastructure nationwide under the iconic BharatNetprogram, the exponential growth of data consumption, and the emergence of start-ups in the digital transformation space that are creating new livelihoods, services and wealth for millions of Indians. Furthermore, many telecommunication players in China are applying API to open platforms to support business in various sectors and add a new source of revenue. For instance, the China Mobile open platform leverages online and offline sales channels to sell products and services to mobile subscribers. With 5G and competition from digital natives emerging, China Mobile is scaling-up with an API-based ecosystem to create new revenue streams. Japan’s telecom has opened its API and is evolving the Japanese application developers. For instance, Twilio, an American cloud communications platform as a service-based company, partnered with Japan’s second-largest telecommunications group, KDDI Web Communications. Through collaboration, application developers in the country can now quickly build services and games using Twilio’s capabilities. The rapid development of information technology has dramatically expanded the demand for the telecom application programming interface (API), with the highest growth rate in Australia. Recent innovations and improvements in the IT industry have complemented the technical expansion of telecommunications networks. Also, governments are consistently trying to promote interoperability between IT systems. Some of the ongoing collaborations among the prominent players of the region are expected to drive the market demand. For instance, China Unicom, one of the largest mobile network service providers by the number of subscribers, and Alibaba Group Holding plan to collaborate in networking services, which is further expected to drive market growth across the region.Telecom API Industry Overview The telecom API market is moderately competitive and has a few major players. However, with the advancements in telecom software services, new players are increasing their market presence, expanding their business footprints across emerging economies. Some of the essential recent news in the industry are: July 2022 - Verizon has started deploying 100 MHz of C-band spectrum in many markets across the US – a significant increase from the 60 MHz it has deployed in 5G markets to date. June 2022 - Twilio, the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, announced its official entrance into the Canadian market. 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