API Management Market Trends

API Management Market Overview

The API Management market industry is projected to grow from USD 4.22 billion in 2023 to USD 24.17 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.40% during the forecast period (2024-2032).

The growing utilization of data-driven decision-making, automation and customization to streamline workflow, and growing need for APIs to increase digital transformation are driving the growth of the market.

Figure 1: API Management Market Size, 2024-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Covid-19 Analysis

Post-COVID-19, the API Management market size was valued at USD 3.28 billion in 2021 and is projected to reach USD 27.32 billion by 2030, growing at a CAGR of 25.2% from 2022 to 2030. API management has been positively impacted by the pandemic. As a result of COVID-19 outbreak, organizations are quickly reorganizing their business processes and adapting to digital transformation. With the digital-first strategy, APIs have become a top priority for adapting to new business models such as remotely sharing content and communication. Businesses have been forced to reevaluate the economy and supply chains since COVID-19 emerged. APIs provide manufacturers with information on units produced, defects, and other pertinent elements of supply chains to aid in overcoming disruptions during the supply chain. As a result, API strategies can be customized to address real-time situations while also serving future demands.

API Management Market Trends

Growing need for APIs to increase digital transformation

The growing need for APIs to integrate and manage different systems and applications is driving the growth of the API Management Market. With digital transformation and the increasing use of cloud-based services, APIs play a crucial role in connecting different systems, data sources and applications, thereby facilitating the exchange of information and enabling businesses to develop new digital services. API Management platforms provide tools to design, build, document, secure, publish and manage APIs, which helps organizations to stay ahead in the competition.

Today's market trends are influencing API development approaches. As organizations grow and become more agile, software plays an increasingly important role. Low-code API management platforms can support proper implementation and optimization of API management solutions. By using low-code API management platforms, you can increase the security of the platforms and reduce the chances of cyberattacks. Additionally, the API lifecycle management tool enables executives to gain greater control over API development by providing more visibility and control. The use of low-code platforms can be beneficial for organizations of all sizes, from large corporations to small businesses.

API Management Market Segment Insights

API Management Market Component Insights

The API Management market segmentation, based on Component, includes Solutions, and Services. In 2021, the solutions segment dominated the API management market share based on component, and is expected to continue dominance in coming years. A growing number of apps and smart devices needs to be made available through APIs for businesses to create rich, customized app experiences for internal users, customers, and partners. A strong API Management Software solution is required by organizations across all industries in order to measure the success of API-driven enterprises. Three segments are present in the API management market: API platforms, API analytics, and API security. Due to the seamless integration of systems and components with apps and devices, API Management Software solutions are in high demand.

January 2023: California Regional Multiple Listing Service (CRMLS) has expanded their partnership with Styldod, the AI-enhanced virtual staging and image editing product solution, to integrate an identification and analysis process for listing photos. Through CRMLS' photo analysis software, an API is integrated into CRMLS' ecosystem REcenterhub, which will detect logos, watermarks, branding, contact information, QR codes, NSFW content, human faces, and more. It will alert agents and brokers to potential compliance issues and provide them with the opportunity to correct them.

May 2022: IBM made a Strategic Collaboration Agreement (SCA) with Amazon Web Services, Inc., with plans to offer a broad array of its software catalog as Software-as-a-Service (SaaS) on AWS. As a result of the agreement between IBM and AWS, Cloud customers will have quick and easy access to IBM Software across automation, big data and artificial intelligence, security, and sustainability, built on Red Hat OpenShift Service on AWS (ROSA), and running in the cloud natively on AWS.

API Management Deployment Type Insights

According to Deployment Type, the market is segmented into On-premises and Cloud. The Cloud segment led the overall market in the API Management industry in 2021, and it is expected to continue to lead during the forecast period. Since API management solutions are deployed on-premises, they are easily accessible by clients due to their physical presence in data centers. A new generation of cloud solution providers is developing applications and solutions that are impacting the market for on-premises software and solutions.

As a result of the growing cost of maintaining on-premises solutions, such as hardware and computing devices, the demand for the on-premises deployment type is also likely to decline. Users' critical data is stored in this mode of deployment in organizations that deal with business functions that require critical access to the data. Financial services and banking industries handle the financial information of their customers. Hence, these industries are likely to opt for on-premises API management solutions.

API Management Organization Size Insights

The API Management market research segmentation, by Organization Size, the market is segmented into SMEs and Large Enterprises. To remain competitive, large enterprises implement the latest technology to gain market presence. Because large enterprises have a large budget for latest technologies and economies of scale, API management solutions are expected to be adopted more rapidly than SMEs. Organizations will likely have an increased demand for web applications, mobile devices, and IoT due to the growth of web applications, mobile devices, and IoT. According to the MRFR, the reasons above will continue to fuel the segment's growth throughout the forecast period.

API Management Industry Vertical Insights

Based on Industry Vertical, the API Management market has been segmented into BSFI, IT & Communication, Retail, Manufacturing, Government, Healthcare, and Others. Banking and financial services have begun monetizing APIs and standardizing open banking capabilities. This move will enhance customer and banking experiences and transform business operations. Financial data and the integration of other services will change as API technology continues to be adopted by banking. This will support a cost-effective way of banking. APIs enhance both the capabilities and offerings of third-party companies for their customers. APls have extensive implications for the future of the banking and financial services industry, according to the European Banking Association. Therefore, accepting and implementing APls may extend and improve services and product offerings.

API Management Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. API Management was dominated by the North American region in 2021. API management solution manufacturers dominate the North American market, and technological improvements and skilled technical experience are all contributing to its growth. Due to the growing number of mobile users and the penetration of e-commerce in emerging nations, the Asia-Pacific region is likely to see the fastest growth in the upcoming years. API management will probably see an increase in demand in the Asia Pacific region.

API management platform adoption is expected to increase over the forecast period due to digital initiatives such as cloud, IoT, and analytics. With more organizations adopting Cloud API technology, organizations in the region are turning to iPaaS solutions for innovation and business continuity. Moreover, with the growth of digital economies in the Asia Pacific, open banking operations will be the next biggest disruption. API technology is being actively adopted by countries like Singapore to develop partnerships and create an ecosystem. The Asia Pacific economy is largely driven by small and medium sized enterprises, which account for 96% of businesses. Through API integration, digital platforms are enabling SMEs in the region to access financial services.

Further, the countries considered in the scope of the API Managements market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.

API Management Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the API Management market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the API Management industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Amazon Web Services (AWS) has a multi-pronged strategy for the API Management market such as AWS API Gateway which is a fully managed service that makes it easy to create, publish, and manage APIs at scale. AWS provides a variety of services for data management, security, and management that can be integrated with AWS API Gateway to provide a complete solution for API management. Overall, AWS's strategy focuses on offering a comprehensive, integrated, and easy-to-use platform for API management that can be tailored to meet the specific needs of its customers. Strong R&D capabilities allow Amazon Web Services (AWS) to attain a competitive advantage over its peers, maintain a technological edge over its competitors, and stay ahead of industry trends.

Key Companies in the API Management market include

• 
  

  IBM CORPORATION (U.S.),

  
  


• 
  

  MICROSOFT CORPORATION (U.S.),

  
  


• 
  

  AKANA, INC. (U.S.),

  
  


• 
  

  CA TECHNOLOGIES, INC. (U.S.),

  
  


• 
  

  CLOUD ELEMENTS, INC. (U.S.)

  
  


• 
  

  HEWLETT-PACKARD ENTERPRISES CO. (U.S.),

  
  


• 
  

  MASHAPE INC. (U.S.)

  
  


• 
  

  MULESOFT, INC. (U.S.)

  
  


• 
  

  ORACLE CORPORATION (U.S.),

  
  


• 
  

  REDHAT, INC. (U.S.)

  
  


• 
  

  SAP SE

  
  


• 
  

  Amazon Web Services

  
  


• 
  

  Akamai Technologies

  
  


• 
  

  WSO2

  
  


• 
  

  Axeway

  
  


• 
  

  Tibco software, among others

  
  

API Management Industry Developments

In March 2024, Akamai Technologies revealed the purchase of Noname Security, the leading API security vendor, for $450 million. This makes Akamai’s API security expansion even further and continues the company's mission in protecting numerous API-driven environments. The acquisition will help address Akamai's issues regarding API protection in light of the staggering increase of API usage in cloud applications and the security threats that have arisen due to it.

In the February of the year 2024, Google Cloud showcased their latest API management features aimed at enhancing API utilization in companies. The new updates seek to simplify or automate processes, increase the security and improve the integration features.

In January 2024, Microsoft Azure broadened its reach for its target audience by enhancing the underlying structures of its API management tools with machine learning and artificial intelligence strategies. This upgrade is aimed at enabling businesses to use AI insights when considering API performance optimizations, anticipating glitches, or working on management. This goes well with Microsoft’s focus on embedding more technologies with API management tools to be in line with the growth and trends of businesses today.

In December 2023, IBM added new features in API management that would help in managing and coordinating multi-API architecture into a system. Further, there are additional features of API protocols and policy control in the launch this time. IBM partners with various organizations to cover more industry which helps them grow the business via APIs. The newly launched resource suite by the IBM will cater to the booming demand for secure, elastic, and efficient APIs.

In November.23, the popular integration tool and API platform management solution provider i.e., Mulsoft, has launched an API management tool. Mulsoft accounted its API integration management tool as Composer. The tool allows users to engage other services and access data stores through the API.

API Management Market Segmentation

API Management Component Outlook