Transparency Market Research

Telecom API Market - OTT Service Providers Continue Cutting Into Telecom API Profits

Telecom API Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2022


Albany, NY -- (SBWIRE) -- 08/14/2017 -- The highly fragmented market of telecom API holds a staggering number of service providers and aggregators that are already offering their APIs to various telecom carriers. Alcatel Lucent, Apigee Corp., and Fortumo OU were the leading providers of telecom API from a global perspective in 2014. Telecom carriers have partnered with them and other prominent players in the past to launch APIs in the market.

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According to Transparency Market Research's latest publication, few players are currently dominating the scene in payment and location APIs owing to the high amount of credibility required for them to succeed here. On the other hand, a large number of players exist in voice, MMS, SMS, and WebRTC APIs.

The global market for telecom API is expected to progress at an extremely positive CAGR of 23.6% within a forecast period from 2015 to 2022. By the end of 2016, its revenue is expected to reach US$97.06 bn and US$323.44 bn by the end of 2022.

North America to Dominate Telecom API Demand

North America, with its large number of both enterprise developers and long-tail developers, is expected to retain its leadership in the demand for telecom API services. By the end of 2022, North America is expected to generate US$113.53 bn in telecom API. North America also houses a very large base of unique subscribers of mobile internet along with a high penetration of 4G LTE networks, thus promoting a greater degree of utility for telecom API services.

On the other hand, Asia Pacific is showing a massive growth rate in the demand for telecom API, owing to a booming IT industry and its demand for applications development and management. This region is also showing a strong growth in the number of unique subscribers over the coming years, coupled with the promising development and improvement of mobile connectivity.

In terms of users, enterprise developers are expected to be the leading segment till 2022, reaching a projected value of US$116.08 bn by then. Meanwhile, long-tail developers, thanks to the extremely high demand for open source API platforms, are leading in terms of growth rate at a CAGR of 25.9% from 2015 to 2022.

Cloud Technologies and Mobile Internet Service Improve, Increase Scope of Telecom API Usage

"Cloud computing technologies have been improving at an astronomical rate over the past few years and are not showing any signs of slowing down any time soon. Combining the vast array of cloud platforms with the growing use of mobile internet can therefore create the perfect reason for telecom API services to prosper in the coming years," states a TMR analyst.

A massive number of new and upcoming apps are going to be cloud-based and the use of telecom API can provide a more efficient method of managing all the data transfer.

Additionally, telecom API can allow developers to significantly improve their services for their customers. Depending on what API has been chosen, telecom carriers are able to offer better bandwidth for internet data for specific applications. Similarly, a developer that uses telecom API for creating a video streaming application can enter an agreement for storing videos on telecom-owned clouds. Such practices drastically improve time to market and quality of service.

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OTT Service Providers Continue Cutting into Telecom API Profits

The leading cause of loss of profits for most telecom API providers is the growing number of over the top internet service providers. OTT service providers can provide audio, video, radio, and similar data streaming services over mobile internet networks while remaining independent of telecom carriers. This locks telecom infrastructure costs into these services while only allowing telecoms to charge a user for the amount of data used.

OTT services in VoIP and messaging is severely cutting the profits that telecom API developers can earn in voice, MMS, and SMS.