The telecom network API revenue is projected to reach $8.7 billion by 2029 from $161 million in 2023, Omdia said. The rapid growth will be largely driven by subscriber identity APIs, as telecom operators seek to differentiate their connectivity services.
Contributors to the growth in the telecom network API market include Number Verification and SIM Swap APIs, which are set to play a main role in reducing fraud and securing digital transactions, new research from Omdia predicts.
Number Verification APIs provide a more secure and faster alternative to traditional SMS verification methods, while SIM Swap APIs, already utilized in the banking sector, are forecasted to experience a substantial increase in revenue from $33 million in 2023 to $700 million by 2029.
Adam Mackenzie, Senior Analyst for Service Provider Strategies at Omdia, emphasized the potential of network APIs to generate both direct and indirect revenue. “Network APIs not only provide new revenue streams directly but also help drive additional revenue through connectivity and newly enabled services.”
Adam Mackenzie noted that telecom operators are adopting an inclusive approach, collaborating with hyperscale operators, aggregators, and equipment vendors to improve security and enhance customer experience.
Omdia’s report highlights subscriber identity APIs as the major driver of revenue growth, with SIM swap and Number Verification APIs already being implemented by major banks, offering clear value to businesses. The report forecasts that by 2029, telecom network APIs will become a $9 billion market.
Communications APIs will generate $35 billion revenue for mobile operators by 2027, Juniper Research predicts. Communications services, such as rich media messaging and conversational AI, will represent 32 percent of operator revenue from network APIs by 2027.
