API Management Market Size, Share & Industry Analysis, By Deployment (Cloud and On-premises), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By Application (Security, Performance Analytics, Governance, Gateway, and Others), By End-user (IT & Telecom, Government, Retail, Healthcare, BFSI, Transport & Logistics, and Others), and Regional Forecast, 2024 – 2032

The global API management market size was valued at USD 4.28 billion in 2023 and is projected to grow from USD 5.42 billion in 2024 to USD 34.17 billion by 2032, exhibiting a CAGR of 25.9% during the forecast (2024-2032). North America accounted for a market value of USD 1.56 billion in 2023. Application Programming Interface (API) management is known as the process of developing, scaling, publishing, and analyzing APIs for organizations. It can be delivered using several approaches including on-premises, cloud, or hybrid models.

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,

• In February 2023, IBM Corporation announced the acquisition of StepZen Inc., a GraphQL server developer, to enhance API management design using less code. GraphQL API is helping businesses in digital transformation.

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,

• In November 2020, the IT team of the Chicago Department of Public Health (CDPH) collaborated with MuleSoft Inc. to roll out the COVID-19 vaccine faster. The company’s API, Mulesoft Anypoint Platform, supported real-time data collection, contact tracing, vaccine call center support, and others.

Thus, the pandemic led to a rise in digital transformation, which had a positive impact on the market share.

API Management Market Trends

Growing Demand for Application Programming Interface Standardization to Propel the Market Growth

With rapid globalization and technological progress, the IT sector has experienced exceptional growth. Unfortunately, this rapid growth creates a range of problems related to standardization. Standardization of APIs is pivotal as it enables the development and adoption of the global style of governance and elements for all APIs in an organization. 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.

Request a Free sample to learn more about this report.

API Management Market Growth Factors

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. APIs often rely on tedious manual work. Various tasks, including API design, discovery, documentation, contract, and integration, are mostly manual. AI can be majorly used to generate API calls or server code on behalf of a programmer. AI’s 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.

• In March 2023, OpenAI introduced an application programming interface for businesses to implement ChatGTP into their website, apps, and emails. The ChatGTP API powers enterprises to meet the demand and scale, and as per the company, it is an efficient text-generating technology using a system.

Thus, the integration of AI is expected to boost API management market growth.

RESTRAINING FACTORS

High Cost of Investment May Hamper 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.

API Management Market Segmentation Analysis

By Deployment Analysis

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.

By Enterprise Type Analysis

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.

By Application Analysis

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.

By End-user Analysis

To know how our report can help streamline your business, Speak to Analyst

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.

REGIONAL INSIGHTS

To get more information on the regional analysis of this market, Request a Free sample

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.

To know how our report can help streamline your business, Speak to Analyst

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.

List of Key Companies in API Management Market

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. 

LIST OF KEY COMPANIES PROFILED:

• Google LLC (Alphabet Inc.) (U.S.)


• MuleSoft Inc. (Salesforce Inc.) (U.S.)


• IBM Corporation (U.S.)


• Microsoft Corporation (U.S.)


• Software AG (Germany)


• TIBCO Software Inc. (U.S.)


• SAP SE (Germany)


• Amazon Web Services, Inc. (U.S.)


• Kong Inc. (U.S.)


• Axway Inc. (France)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Microsoft Azure API Management announced the introduction of TLS 1.3 support in the V1 & V2 tiers. TLS 1.3 is the latest iteration of the security protocol in the internet.


• November 2023: SmartBear Software, an American IT firm, announced three product enhancements - OpenTelemetry, Test Management, and API Management - to increase visibility during the software development lifecycle. The new update in API Management helps developers effortlessly visualize API data in a single place and assess function before investing valuable time in API integration.


• August 2023: Texas-based-SmartBear acquired API design-first company Stoplight to enhance its product offerings. Through this acquisition, the company aims to offer no-code API and frictionless experience to the user.


• June 2023: Axway Inc. announced a partnership with Boston-based Akoya LLC to standardize the APIs for offering secured access to customer data. The partnership would help businesses manage financial operations such as tax-paying, budgeting, payments, investment management, and others.


• May 2023: Oman Telecommunications Company announced a collaboration with Google LLC to enhance its API solution and services to provide a seamless digital experience to clients. Using the Apigee platform, the company would offer APIs to control, secure, and analyze its infrastructure. 

REPORT COVERAGE

An Infographic Representation of API Management Market

View Full Infographic

To get information on various segments, share your queries with us

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.

Report Scope & Segmentation