Communications APIs to generate USD $35 billion by 2027

A new study from Juniper Research forecasts that communications services, including rich media messaging and conversational AI, will account for 32% of operator revenue from network application programming interfaces (APIs) by 2027. This translates to a projected global revenue of USD $35 billion for operators.

The study points out that the growing demand for management tools to handle rich media technologies, like RCS (Rich Communication Services) business messaging, will significantly contribute to this anticipated revenue growth. Such APIs enable connections between operator networks and external applications, allowing third-party developers to incorporate operator communication services into their applications.

Juniper Research highlights the importance of addressing the decline in SMS revenue by encouraging operators to embrace communications APIs and provide more advanced messaging campaign management tools suitable for RCS business messaging. These tools are expected to feature capabilities such as number verification for user identification and the application of large language models (LLMs) for enhancing conversational AI functionalities.

Molly Gatford, a research author at Juniper Research, commented, "With the rise of Over the Top (OTT) messaging and undetected flash calling, operators' positions in the mobile messaging space, and revenue, is under threat despite owning the networks this traffic is sent over. Communications APIs represent a perfect opportunity for operators to maintain traffic termination revenue as demand for SMS declines."

The study suggests that API frameworks like Open Gateway and CAMARA provide an ideal platform for operators to expose these communications APIs to enterprises, enhancing the value of RCS for mobile messaging. To maximise the reach and utility of these APIs, operators are encouraged to develop their own platforms that facilitate easy integration into third-party enterprise systems.

The new research suite from Juniper Research claims to offer the most comprehensive assessment of the telecommunications API market available, covering market analysis and providing detailed forecasts across 60 countries. The dataset comprises over 17,500 market statistics over a five-year period, including two 'Competitor Leaderboards' and an examination of current and forthcoming market opportunities.

As the telecommunications landscape evolves, the need for robust management tools for rich media messaging underscores the potential revenue and strategic importance of communications APIs. The projected growth highlights the critical need for operators to adapt and innovate in response to changing market dynamics and technological advancements.