Telecom API Technology is Boosting the Demand to Rollout 5G Networks Widely

Tajammul Pangarkar
Tajammul Pangarkar

Updated · May 15, 2024

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Introduction

According to Telecom API Statistics, Telecom API is a fundamental tool for integrating telecommunications functionalities into software applications, enabling developers to incorporate features like voice calling, messaging, and data services.

These APIs come in various types, including Voice, Messaging, Data, Authentication, Payment, and Location APIs, catering to different communication needs.

Common applications include unified communications, IoT device management, customer engagement, mobile marketing, and AI in telecom service provisioning.

Protocols such as REST, SOAP, and WebRTC are utilized for API implementation, with considerations for security, scalability, regulatory compliance, and quality of service.

Overall, Telecom APIs empower developers to build innovative solutions that leverage the capabilities of telecommunication networks, enhancing communication experiences across diverse industries.

Editor’s Choice

  • The global telecom API market revenue is projected to reach USD 1,459.5 billion by 2033.
  • Google LLC leads with an 18% market share in the global telecom API market.
  • The global telecom API market is distributed across various regions, with North America leading with a 30.0% market share.
  • The number of public telecom APIs in use reached 16,061 in 2016.
  • In 2020, professionals working with application programming interfaces (APIs) identified several technologies as particularly exciting. Microservices topped the list, with 48.70% of respondents showing interest.
  • In 2020, the time allocation for various application programming interface (API) tasks worldwide showed a diverse distribution of focus areas. The largest portion of time, 29.5%, was dedicated to coding and programming APIs, indicating the primary role of development in API-related activities.
  • In telecom IT spending, the operations department received the highest allocation, with 28% of respondents indicating it as a primary focus, reflecting the critical need to maintain and enhance network infrastructure and service delivery.
telecom API market

Global Telecom API Market Overview

Global Telecom API Market Size

  • The global telecom API market has shown significant growth over the past years and is projected to continue upward at a CAGR of 18.1%.
  • In 2023, the market revenue was recorded at USD 276.5 billion.
  • By 2032, the market is forecasted to grow to USD 1,235.8 billion, and by 2033, it is expected to achieve a remarkable USD 1,459.5 billion.

Competitive Landscape of the Global Telecom API Market

  • In the global telecom API market, several key players hold significant market shares.
  • Google LLC leads with an 18% market share, followed closely by AT&T, Inc. with 17%.
  • Verizon Communication, Inc. and Telefonica S.A. each account for 9% and 8% of the market share, respectively.
  • Similarly, Twilio Inc. holds an 8% share, while Apigee Corp. and Alcatel-Lucent each capture 7% and 6% of the market, respectively.
  • Orange also maintains a 6% market share.

Regional Analysis of the Global Telecom API Market

  • The global telecom API market is distributed across various regions, with North America leading with a 30.0% market share.
  • The Asia-Pacific (APAC) region follows closely with a 27.5% share, indicating significant market activity and growth potential.
  • Europe holds a 27.0% share, reflecting its strong position in the market.
  • South America accounts for 11.0% of the market, while the Middle East and Africa (MEA) region holds a 4.5% share.
Telecom API

Types of Telecom APIs

  • Notable types include Messaging APIs, which dominate the market and enable SMS, MMS, and RCS messaging services.
  • WebRTC APIs support real-time communication capabilities, such as video and voice calls, directly within web browsers without the need for additional plugins.
  • Payment APIs facilitate secure online transactions, while IVR/Voice Control APIs are used for interactive voice response systems, automating customer interactions through voice commands.
  • Location and Map APIs provide geolocation services essential for apps requiring real-time location tracking and mapping.
  • Subscriber Identity Management APIs ensure secure API management of user identities and Single Sign-On (SSO) functionalities.  

History of Telecom APIs

  • Initially, in the 1990s, APIs began as a method for applications to exchange data across systems, primarily within organizations.
  • The early 2000s marked a significant shift, with Salesforce launching the first enterprise-class web-based API in 2000, facilitating easier data sharing across applications.
  • This period also saw eBay and Amazon release their APIs, catalyzing the growth of web services and cloud computing.
  • By 2006, the introduction of social media APIs by platforms like Twitter and Facebook revolutionized how APIs were used, leading to the development of numerous third-party applications.
  • The 2010s further advanced API technology with the rise of RESTful APIs, which simplified web interactions and became the backbone of modern web services.

Telecom APIs Used in Production

  • The usage of various telecom APIs has seen notable increases from 2021 to 2022, reflecting their growing adoption in production environments.
  • REST APIs experienced the highest increase, with a 69.3% rise, underscoring their continued dominance in facilitating web interactions.
  • Webhooks followed with a 34.6% increase, driven by their efficiency in enabling real-time notifications and data updates.
  • WebSockets saw a 29.5% rise, enhancing full-duplex communication channels for real-time applications.
  • AsyncAPI usage grew by 26.5%, highlighting its role in supporting asynchronous communication. Serverless and Function-as-a-Service (FaaS) APIs increased by 25.4%, reflecting the shift towards scalable and cost-efficient cloud solutions.
  • SOAP APIs, despite being older, still saw a 23% increase due to their robustness in enterprise environments.
  • GraphQL APIs rose by 18.6%, favored for their flexibility in querying data.

Public Telecom APIs in Use

  • The number of public telecom APIs in use has shown significant growth from 2006 to 2016.
  • In 2006, there were 299 public telecom APIs, which nearly doubled to 593 by 2007.
  • By 2014, the number of public telecom APIs grew to 12,649, increasing further to 14,600 in 2015 and reaching 16,061 in 2016.
Telecom API

Areas where Application Programming Interface (API) Developers Work Worldwide

  • As of 2022, application programming interface (API) developers are engaged in various roles across the tech industry.
  • The largest group, comprising 25% of respondents, works as full-stack developers, handling both front-end and back-end development.
  • Backend developers represent 19%, focusing on server-side applications.
  • Quality engineers make up 9%, ensuring the software meets specified requirements.
  • Front-end developers account for 5%, specializing in user interface design.
  • Technical or solutions architects and directors or managers each constitute 4%, overseeing system designs and project management, respectively.
  • Integration engineers, DevOps engineers, students/professors, data engineers/analysts, and product managers each represent 3%.
Telecom API

Most Exciting Technologies for People Working with Application Programming Interfaces (APIs) Worldwide

  • In 2020, professionals working with application programming interfaces (APIs) identified several technologies as particularly exciting.
  • Microservices topped the list, with 48.70% of respondents showing interest and highlighting their importance in building scalable and modular applications.
  • Kubernetes, with a 43.60% share, was noted for its role in automating the deployment, scaling, and management of containerized applications.
  • Closely following, containers garnered 42.20% interest, reflecting their utility in creating consistent development environments.
  • Serverless architecture was exciting to 39% of respondents, and it was appreciated for its ability to run code without managing servers.
  • GraphQL attracted 33.40% of respondents due to its efficient data querying capabilities.
  • HTTP/2 and event-driven architectures were exciting for 24.70% and 24.10% of respondents, respectively, for their improvements in performance and responsiveness.
  • Pub/sub-systems, known for enabling scalable and decoupled communication, interested 17.40% of respondents.
Telecom API

Time Allocation of Application Programming Interface (API) Tasks Worldwide

  • In 2020, the time allocation for various application programming interface (API) tasks worldwide showed a diverse distribution of focus areas.
  • The largest portion of time, 29.5%, was dedicated to coding and programming APIs, indicating the primary role of development in API-related activities.
  • Debugging and manual testing accounted for 17%, reflecting the importance of ensuring API functionality and reliability.
  • Automated testing was allocated 10.8%, highlighting efforts to streamline the testing process.
  • Designing and mocking APIs received 8.7%, focusing on the initial planning and simulation of API functionality.
  • API documentation accounted for 6.1%, which is essential for guiding developers and users. Managing others who use APIs was 5.8%, and meetings about APIs took up 5.7%, indicating significant collaboration and oversight efforts.
  • Collaborating on APIs was allocated 4.9%, showing the emphasis on teamwork. API monitoring accounted for 4.3%, ensuring ongoing performance and reliability.
Telecom API

Top IT Priorities for Telecom Providers

  • In 2020, telecom providers identified several key IT priorities.
  • Leading the list was managing security, identity, and privacy, with 23% of respondents emphasizing its importance in safeguarding data and maintaining user trust.
  • Creating digital capability was the second-highest priority at 18%, reflecting the need to enhance digital services and infrastructure.
  • Building the modern workplace was prioritized by 16%, focusing on enabling flexible and efficient working environments.
  • Modernizing legacy systems was a priority for 14% of respondents, highlighting the need to upgrade outdated technology.
  • Adopting cloud services was important for 11%, facilitating scalability and efficiency.
  • Intelligent automation and artificial intelligence were a focus for 8%, aiming to enhance operational efficiency and service delivery.
  • Exploiting business information for insights was a priority for 3% of respondents, alongside connecting the physical world through the Internet of Things (IoT).

Telecom IT Spending Across Various Departments

  • In telecom IT spending, the operations department received the highest allocation, with 28% of respondents indicating it as a primary focus, reflecting the critical need to maintain and enhance network infrastructure and service delivery.
  • Sales and distribution closely followed, accounting for 27% of the spending, emphasizing the importance of supporting sales channels and customer acquisition strategies.
  • The marketing – CMO office was allocated 25%, highlighting efforts to drive market growth and brand positioning.
  • Research and development (R&D) garnered 11% of the spending, underscoring the commitment to innovation and technological advancement.
  • The finance and accounting – CFO office received 7%, focusing on financial management and planning.
  • Lastly, the human resources department was allocated 2%, indicating a smaller, yet vital, investment in managing workforce capabilities and development.
Telecom API

Overall API Breakages and Changes Worldwide

  • In 2020, the frequency of application programming interface (API) breakages and changes varied by API category.
  • For internal APIs, 55.8% of respondents reported that breakages occurred “not enough to matter,” while 22.9% experienced monthly disruptions.
  • Weekly breakages were noted by 9.1%, with 9.9% indicating that changes happened too frequently and 2.2% reporting daily issues.
  • External APIs showed a slightly higher stability, with 60.4% of respondents indicating negligible breakages.
  • Monthly changes were experienced by 20.9%, weekly by 6%, too frequent changes by 11%, and daily disruptions by 1.7%.
  • For partner APIs, 61.2% of respondents reported infrequent breakages, 19.8% saw monthly changes, 5.8% experienced weekly issues, 11.6% reported too frequent changes, and 1.6% encountered daily disruptions.
Telecom API

New Developments in Telecom APIs

  • In 2024, several significant developments have emerged in the telecom API sector.
  • A notable advancement is the increased adoption of network APIs, driven by initiatives like GSMA’s Open Gateway, which aims to standardize APIs across the industry. This effort is crucial for enhancing interoperability and enabling seamless integration of services across different networks​​​​.
  • Additionally, the collaboration between major telecom companies and tech giants such as AWS, Verizon, and AT&T to develop and deploy network APIs is fostering innovative applications in areas like live media production and 5G-enabled vehicles​​.  
  • These APIs are set to unlock significant revenue opportunities, estimated to range between $100 billion to $300 billion in connectivity and edge-computing-related services over the next few years​​.
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Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.