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Global Spending on Telecom and Network APIs Forecast to Reach $6.7 Billion in 2028 as Service Providers Push Customized, Programmable Connectivity, According to IDC

Worldwide revenues for telecom and network APIs will reach $6.7 billion in 2028, according to a new forecast from International Data Corporation (IDC). This represents a compound annual growth rate (CAGR) of 57.1% over the 2023–2028 forecast period. Worldwide market revenue for APIs was just over $700 million in 2023.

Historically, communications service providers (SPs) have led at providing mobile connectivity at scale. In past decades, this proved a profitable strategy, with the value of connectivity garnering consistent year-over-year revenue growth and profits. However, third-party entities, including CPaaS, cloud, and other digital platform players, have moved in to siphon off digital opportunities while curating vast developer ecosystems, relegating many comms SPs to just a connectivity provider role. Said differently, comms SPs have been unable to efficiently monetize both the growth and diversity of devices driving ever more network traffic on their own infrastructure.

As the value of connectivity has slowly commoditized, the value shift toward digital- and platform-based capabilities across all industries has risen. Indeed, platform-based commerce has enabled the rapid growth and expansion of marketplace economics. Comms SPs have been slow to adapt to the new paradigm.

With this backdrop, the meshing of 5G networks and API exposure can empower comms SPs to reinsert themselves as a key connectivity platform within the digital landscape by unlocking the ability to more easily sell and scale customized, programmable connectivity underpinned by app developer platforms grounded in telecom network APIs. Commercial APIs are already available for fraud detection, location, and device information as well as quality on demand. And IDC expects comms SPs to accelerate API volume and developer engagement.

"While the telecom industry has a mixed history of API monetization, its latest focus on novel network APIs is being championed by all leading telecom service providers to include global support from key API aggregators, such as the hyperscale cloud providers and leading CPaaS entities," said Patrick Filkins, research manager, IoT and Telecom Network Infrastructure at IDC. "Even so, the long-term success of these efforts is expected to largely fall to the broader ecosystem consisting of API aggregators and systems integrators that can generate the value propositions required for market education and adoption to take place."

The report, Worldwide Telecom and Network API Forecast, 2024-2028 (IDC #US52187824), represents first forecast of the telecom and network API market. The new forecast captures enterprise developer spending on existing and new telecom network APIs, addressable to comms SPs, API aggregators, and potentially other industry stakeholders. Additionally, the forecast provides key insights related to drivers, inhibitors, and recommendations for market participants as they position themselves in this fast-developing market opportunity.

An IDC Webinar on the transformative power of APIs, AI, and emerging technologies for future telcos will be held on July 10th at 12 noon, U.S. Eastern time. To register for the webinar, featuring IDC's Patrick Filkins and John Byrne, please go to https://bit.ly/4aNuGfd.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

Worldwide revenues for telecom and network APIs will reach $6.7 billion in 2028, a dramatic increase over revenues of $700 million in 2023, according to a new forecast from IDC.

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