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The global API management market size was valued at USD 3.40 billion in 2022. The market is projected to grow from USD 4.28 billion in 2023 to USD 23.66 billion by 2030, exhibiting a CAGR of 27.6% during the forecast period.
API Management helps to control and manage multiple interactions between various applications and platforms. In addition, it helps businesses deliver customer data securely across platforms. The growing demand for real-time data is anticipated to drive the adoption of event-driven APIs. Moreover, the increase in digital transformation is expected to fuel the market growth. Furthermore, key market players are keen on offering innovative solutions through market expansion. For instance,
Rise in Adoption of Advanced Digital Solutions Amid Pandemic Fueled the Market Growth
The COVID-19 pandemic significantly impacted the business operations across the globe. The exponential growth in the adoption of advanced digital solutions during the pandemic supported enterprises in sustaining their businesses. In addition, the pandemic pushed enterprises and decision-makers to quickly implement and adapt to new changes. This propelled the demand for application programming interfaces as it helps in constantly changing new services and absorbing more digital data.
Moreover, the increased adoption of automation bolstered the need to simplify the communication. The integration of APIs eliminates the manual processes and lowers the time in point-to-point integration. During the pandemic, APIs supported remote services in the healthcare sector through telemedicine. They provided secure and real-time communication among the healthcare providers and the remotely located patients. For instance,
Thus, the pandemic led to a rise in digital transformation, which had a positive impact on the market share.
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Growing Demand for Application Programming Interface Standardization to Propel the Market Growth
The exponential growth in the adoption of software products and the need for various third-party APIs are connected together. Thus, it has become crucial for enterprises to get the standard structure as per the organization business model. This has fueled the demand for standardization of the API systems. The standardization creates effective designs to connect with the customers through an easy-to-use system.
In addition, it offers assured quality and lowers ambiguity, thus fueling more collaboration among the networks. The set guideline reduces the need of learning curve and overall product development cost. Thus, the rise in standardization and guidelines is expected to boost the market growth in the coming years.
Integration of Artificial Intelligence-Powered Technology With API Management System to Drive Market Growth
Artificial intelligence technology offers various capabilities to businesses across the globe. Its integration with API management solution is expected to offer advanced solutions that can help customers gain more relevant insights. With enhanced security and efficiency, AI has the potential to transform global operations. AI’s wide variety of tools supports the system automation.
Thus, the integration of AI is expected to boost API management market growth.
High Cost of Investment May Hamper the Market Growth
The technology is integrated with various networks to boost efficiency, which adds up to the cost of operations. The more expanded the business is, the more the need for APIs increases, thus adding to the overall cost of infrastructure. Furthermore, the cost of cloud platforms, various licensing, hosting, and other services also need to be included for proper working of the technology. This is expected to hinder the global market growth.
Data Safety Feature of On-Premise Solutions to Escalate the Segment Growth
On the basis of deployment, the market is segmented into cloud and on-premises.
The on-premises segment is expected to dominate the market during the forecast period. Its improved data safety and secured application features are anticipated to propel the segment growth. More availability customized options offering is further poised to boost the segment expansion.
The cloud segment is slated to witness a substantial growth rate during the forecast period. The cloud-based solutions are cost-effective as compared to their on-premise counterparts. Furthermore, their capability to expand and scale in accordance with the business growth is anticipated to fuel their adoption, bolstering the segment growth.
Growing Investments by Businesses in the Technology to Proliferate the Segment Growth for Large Enterprises
Based on enterprise type, the market is segmented into large enterprises and small & medium enterprises.
The large enterprises segment is poised to witness maximum revenue during the forecast period. Businesses with global presence are investing in technology to boost their data sharing and communication networks. As these enterprises have a huge number of customers, the data generated needs to be managed efficiently.
The small & medium enterprises segment is expected to witness significant growth rate during the forecast period. The increasing digitalization of SMEs is anticipated to propel investment in the technology. This factor is driving the segment growth.
Increasing Number of Digital Data Threats to Impel Product Usage in Security Applications
Based on application, the market is segmented into security, performance analytics, governance, gateway, and others.
The security segment is expected to dominate during the forecast period. The number of security threats and attacks on digital data is growing significantly. To provide data risk-free and remove vulnerabilities, the adoption of API security is growing. This factor is boosting the segment growth.
The governance segment is anticipated to witness significant growth rate during the forecast period as the number of application programming interface implementation increases across the business. The product helps decision-makers remove contradictory actions and helps businesses run on regulations and compliances.
The capability of smoothly transitioning between various digital platform and application to boost gateway demand.
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Rapid Digitalization in IT & Telecom Sector to Impel the Segment Expansion
By end-user, the market is categorized into IT & telecom, government, retail, healthcare, BFSI, transport & logistics, and others.
The IT & telecom segment is expected to witness maximum revenue during the forecast period. The rapid digital transformation and early adoption of advanced technology are driving the technology adoption in this sector, driving the segment growth.
The retail segment is poised to grow at the highest CAGR during the forecast period. The growing focus on better customer experience is expected to propel the adoption of the system for data management and analytics in the retail sector. Rise in business competition has fueled the investing in technology to support with faster digital interaction.
The BFSI segment is anticipated to depict a significant growth rate during the forecast period as the industry have crucial and personal data. Similarly, to enhance the communication network, the healthcare industry is investing in secured API technology.
North America API Management Market Size, 2022 (USD Billion)
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The North America market is expected to gain a prominent market share during the forecast period. The dominating presence of key market players is anticipated to boost the revenue of the region. In addition, the rapidly growing industries, such as BFSI, retail, and healthcare, to name a few, are significantly investing in technology to boost secured data transfer. Moreover, the U.S. is poised to gain a dominant share during the forecast period due to the increased demand for real-time interaction in the country.
Europe market is expected to witness a prominent growth rate during the forecast period. The rise of open banking in European countries is anticipated to fuel the demand for system management, proliferating the regional growth. In addition, health and social care networks in the region are implementing the technology to enhance data security.
The Asia Pacific market is slated to gain prominent growth during the forecast period. The growing adoption of 5G technology is anticipated to drive the demand for application programming interfaces for effective communication and data transfer in the region. Moreover, with the increase in market competition across countries such as India, China, Japan, South Korea, and others, the adoption of tailored customer experience is on the rise. This is expected to boost the Asia Pacific API management market growth.
The Middle East & Africa is poised to witness a significant growth rate during the forecast period due to the rise in digitalization and adoption of advanced technology in the region.
The South America market is projected to showcase a steady growth rate during the forecast period due to the increase in demand for enhanced data exchange solutions in the region.
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Key Players Focus on Product Innovations to Gain Competitive Edge
Key players in the market are offering innovative and advanced network solutions. They are also offering easy tools with no technical requirements to support multiple end-users. The industry-specific management tools are helping businesses in providing a better customer experience. Also, the adoption of strategic collaboration, partnership and acquisition strategies is expected to boost the share of key players across the global market.
April 2023: Astera Software introduced a no-code API management platform to support businesses with limited technical expertise. Its tools would help from designing to deployment across cloud and on-premises architecture.
An Infographic Representation of API Management Market
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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.
CAGR of 27.6% from 2023 to 2030
Value (USD Billion)
By Deployment, Enterprise Type, Application, End-user, and Region
By Enterprise Type
Fortune Business Insights says that the market is projected to reach USD 23.66 billion by 2030.
In 2022, the market was valued at USD 3.40 billion.
The market is projected to grow at a CAGR of 27.6% during the forecast period.
Based on end-user, the IT & telecom segment is expected to dominate the market during the forecast period.
The integration of artificial intelligence-powered technology with API management system is expected to drive market growth.
Google LLC (Alphabet Inc.), MuleSoft Inc. (Salesforce Inc.), IBM Corporation, Microsoft Corporation, Software AG, TIBCO Software Inc., and SAP SE are the top players in the market.
North America is expected to hold the largest market share during the forecast period.
By deployment, the on-premises segment is expected to hold the largest share during the forecast period.
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