Increasing Demand for Cloud Storage Applications to Boost Adoption of Telecom API Services

  • Posted by Pragati P
  • September 6, 2016 1:22 PM BST
Global telecom API platform market is expected to reach a value of US$5.23 bn by 2022. The market is estimated to expand at a CAGR of 19.1% from 2015 to 2022


With rising demand for advanced telecom features and services, many companies are entering into the global telecom application programming interface platform market to expand their business, reports Transparency Market Research in a new study. The global telecom API market comprises a large number of companies and thus the competition in the market is substantially high. The leading companies in the global telecom API market are Apigee Corp., Twilio, Inc., Fortumo OU, LocationSmart, Alcatel Lucent, Nexamo, Inc., Tropo, Inc., Aepona Ltd., and Comverse, Inc.

To launch their API services in the global market, telecom companies are entering into partnerships with API management service providers such as Apigee Corp. and Alcatel Lucent. Telecom API companies are focusing on strategies such as targeting long-tail developers and enterprises which in turn will help them create a global identity. Many leading telecom API companies are also entering into strategic acquisitions to position themselves uniquely in the market and expand their reach among global API developers.


Proliferation of Cloud Technologies and Mobile Internet to Drive Adoption of Telecom API

According to TMR analysts, “The use of mobile application is anticipated to be augmented by the increasing adoption of cloud computing and mobile internet in the coming years.” A new study has revealed that the number of mobile internet consumers is expected to touch 3.8 bn by the end of 2020. Furthermore, due to the rising use of cloud based applications, cloud traffic is expected to witness fast growth. The rapid development of cloud-based applications is thus likely to increase the adoption telecom API services for video and data storage in telecom-owned cloud systems.

The implementation of cloud technology in mobile applications will also help telecom carriers to provide application developers with WebRTC and voice API services. The growing adoption of telecom API services through increasing use of mobile internet and cloud data is projected to expand the growth of the global telecom API platform market.

Negative Outlook of Telecom Carriers towards External API Developers to Restrict Innovation Possibilities

With increasing demand for better mobile applications, numerous telecom companies are including API services in their portfolio. However, only a limited number of telecom service providers such as Orange S.A. and AT&T are welcoming the involvement of external developers in their API platforms. Considering the fact that external developers are value added resellers, many companies introduce models which expose the developer to less of the API platform. As a result of this, the possibilities of innovation in the telecom API platforms are restricted as developers are barred from creating applications using telecom API. The restriction of opening telecom API platforms to external developers also cuts down the revenue for telecom carriers as they fail in enhancing end-user experience. Thus, such negative outlook of telecom carriers is likely to restrain innovation possibilities leading to a downfall in the revenue of the global telecom API market.

Rising Connectivity of Machine-to-Machine Devices to Provide Lucrative Growth Opportunities to Telecom API Service Providers

According to TMR researchers, “The M2M devices connectivity with smartphones is likely to increase in the coming years leading to a rise in the demand for telecom network APIs.” To capitalize this opportunity, telecom carriers such as AT&T and Orange S.A. are offering M2M platforms with M2M connected devices to integrate mobile devices. This kind of integration enables devices to connect with smartphones and share data. This in turn enables smartphones to convert the data into significant information for the end user. With the increasing number of M2M devices, the demand for M2M based telecom API is projected to rise in the coming years.

The global telecom API market is expected to expand at a CAGR of 23.6% from 2014 to 2022 with a market worth US$73.49 bn in 2015. The global telecom API platform market is projected to touch a valuation of US$323.44 bn by the end of 2022. North America is anticipated to emerge as the largest region in the global telecom API platform market with a revenue of US$113.53 bn by the end of 2022. Enterprise developers are expected to emerge as the largest end users of telecom API services by the end of 2022.

The review is based on the findings of a TMR report titled, “Telecom API Platform Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2022.”

Key Takeaways:

Machine-to-machine connectivity to provide lucrative opportunities to telecom API service providers.

Enterprise developers likely to emerge as the largest end user with market worth US$116.08 bn by the end of 2020.

Global telecom API market to expand at a CAGR of 23.6% between 2014 and 2022.

The global telecom API platform market is segmented as below:

Telecom API Platform Market

By Telecom Operator

T1 Player

T2 Player

T3 Player

By Module


Monetization and Pricing Model

Operator Share

Vendor Share

By Geography

North America

The U.S.

Rest of North America


EU7 Countries

CIS Countries

Rest of Europe

Asia Pacific



South Asia


Rest of APAC

Middle East and Africa (MEA)

GCC Countries

South Africa

Rest of MEA

Latin America


Rest of Latin America