API Management Market Growth Opportunities and Forecast by 2031

The API management market size is expected to reach US$ 35.40 billion by 2031 from US$ 4.29 billion in 2023. The market is estimated to register a CAGR of 30.2% during 2023–2031. The integration of multi-cloud API management would remain a major trend in the market.

API Management Market Analysis

The global API management market is experiencing significant growth in terms of revenues pertaining to an increasing focus on data-driven decision making. The ongoing digital transformation across industries creates a need for businesses to seamlessly integrate their applications, systems, and services.

API Management Market Overview

Application Programming Interfaces (API) is the set of software and processes that facilitate communication between two programs. APIs establish connections between apps and servers, as well as between servers and users.  APIs transport vital company information and provide supplementary resources to the global community through online and mobile applications. A full-featured API management platform includes developer portals, design and development, testing, API gateways, analytics and monitoring, policy management, and security and governance. API management platform provides users various benefits such as multilayer security and privacy, easy detection of API anomalies, increased performance and reliability, easy connection to legacy technologies, and the creation of new business channels. The designing, development, testing, deployment, governance, security, monitoring, and monetization of APIs have become an important part of the software development lifecycle (SDLC) and of the technology ecosystem.

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API Management Market: Strategic Insights

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API Management Market Drivers and Opportunities

Increasing Adoption of API Management Across Industries to Favor Market

Application programming interfaces (API) management is a crucial component of digital transformation for businesses. It allows enterprises to define security and access regulations, track the viability of delivering new services, and manage the lifecycle of their APIs.   By implementing API management, companies can ensure better communication, as users can interact with each other and provide feedback on services. Owing to this adaptability, APIs are being used by all types of businesses, with traditional sectors such as retail and travel, and technological companies seeing the highest growth in usage. The retail and travel sectors use API management to implement interoperability rules, while financial organizations utilize it to launch open banking programs. As per the Google Cloud’s State of APIs 2020 report, the breakdown of API usage by industry includes retail and travel (34%), technology companies (34%), telecom (10%), media and entertainment (9%), manufacturing (7%), financial (5%), and others (1%).   Thus, such instances show the utmost importance of API management in various sectors.

Integration of API with Artificial Intelligence (AI)

Artificial intelligence (AI) can alter the API industry. API systems can become fluid and intelligent with the integration of AI, providing customers with more specialized and relevant information. AI can reduce the human work required for API administration while giving higher degrees of precision by raising security and efficiency to previously unattainable levels. Similarly, AI security solutions improve API security's ability to detect and mitigate large-scale cyberattacks. With its ability to perform dynamic checks on quickly changing data, AI can detect unlawful access to information and prevent the intruder from accessing a large portion of it. These solutions prevent API calls that compromise information, thereby protecting the system.

API Management Market Report Segmentation Analysis

Key segments that contributed to the derivation of the API management market analysis are component, deployment, organization size, and end user.

• Based on component, the API management market is bifurcated into solutions and services. The solutions segment held a significant market share in 2023.
• Based on deployment, the market is segmented into on-premises and cloud. The cloud segment held a larger market share in 2023.
• Based on organization size, the API management market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger market share in 2023.
• Based on end users, the market is segmented into IT & telecom, BFSI, healthcare, government, manufacturing, and others. The IT & telecom segment held the largest market share in 2023.

API Management Market Share Analysis by Geography

The geographic scope of the API management market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

North America dominated the API management market in 2023. North America is one of the fastest-growing regions in terms of both technological innovations and the adoption of advanced technologies. The region also has a well-established IT & cloud infrastructure. In the past three years, the North American region has witnessed huge adoption of emerging technologies such as artificial intelligence, machine learning, and blockchain across all the major industry verticals. With the increasing penetration of digitization in various industries, API management has become a vital component of business transaction ecosystems, especially in financial institutions and the IT industry. The demand for API management solutions in companies is increasing rapidly. The North American API management market growth is primarily driven by rising demand from industrial sectors such as BFSI, government, and healthcare. API management is a crucial business requirement for successful operations.

API Management Market Regional Insights

The regional trends and factors influencing the API Management Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses API Management Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

API Management Market Report Scope

API Management Market Players Density: Understanding Its Impact on Business Dynamics

The API Management Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

API Management Market News and Recent Developments

The API management market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the API management market are listed below:

• Postman, the world's leading API collaboration company, announced the acquisition of Orbit, the community growth platform for developer companies. Over the past four years, Orbit has helped the leading developer companies grow their communities. It will now integrate its technology and deploy its expertise in support of Postman's vision of empowering 100 million developers through API collaboration. (Source: Postman, Press Release, April 2024)
• WSO2 announced a partnership with TD SYNNEX. The partnership brings WSO2’s industry-leading software for API integration, management, and  customer identity and access management (CIAM) to TD SYNNEX’s expansive IT ecosystem across the world. Through their partnership, WSO2 and TD SYNNEX will help mutual customers significantly lower the barriers to delivering new digital services and software-as-a-service (SaaS) offerings that create seamless experiences. (Source: WSO2, Press Release, April 2023)

API Management Market Report Coverage and Deliverables

The “API Management Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• API management market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• API management market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• API management market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the API management market
• Detailed company profiles