Telco API revenues set to reach $207b by 2022

1 min readUpdated May 26, 2025May 8, 20172:34 AM

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Global revenues from telecommunications application programming interfaces (APIs) is on track to reach $207 billion worldwide by 2022, Research and Markets has predicted.

A new report from the research firm finds that the telco API market has significantly matured in recent years. But much of the market activity has so far been limited to larger operators in developed countries, leaving significant room for growth in emerging markets.

During the past five years, operators have leveraged APIs to derive wholesale transaction revenues from third-parties such as OTT providers and enterprises, as well as communication-enabled application revenue, the report states.

Operators have the potential to achieve incremental growth by providing a variety of services and application support, such as robo and unwanted call blocking services to support do not call registries and compliance with consumer protection regulation.

But in the long term, revenue from traditional consumer centric services supported from telecom APIs is expected to level off, with revenue associated with IoT services becoming the new markte driver.

The report predicts that communication-enabled network revenue will plateau as IoT network support revenue becomes a more substantial revenue component for Telecom APIs by 2025.

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What this means

This forecast shows a critical shift for telecommunication operators; while some have used APIs for wholesale transaction revenues from third-parties, the real prize lies in scaling these offerings beyond developed markets. Unlike the retail sector's physical store expansions, such as Tiffany & Co.'s Blue Box Cafe in Singapore or Chagee Holdings' Southeast Asia push, telcos must now focus on digital reach. The challenge is expanding API service adoption in emerging markets and innovating for IoT, which promises more substantial revenue by 2025. Operators failing to adapt risk stagnating as consumer-centric services level off, especially against rivals already deep into API monetisation. Watch for new partnerships and IoT product launches from major Asian telcos.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

Which types of operators have seen the most activity in the telco API market recently?

Much of the market activity has been limited to larger operators in developed countries. This leaves significant room for growth in emerging markets, where smaller operators could expand their API use.

What methods have operators used to generate revenue from APIs over the past five years?

Operators have used APIs to derive wholesale transaction revenues from third-parties like OTT providers and enterprises. They have also generated revenue from communication-enabled applications and various supporting services.

What is expected to become the primary driver of revenue for telecom APIs in the long term?

Revenue from IoT services is expected to become the new market driver for telecom APIs. This will eventually replace the plateauing revenue from traditional consumer-centric services and communication-enabled network support.

Reader pulse

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