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    API Management Software Market

    ID: MRFR/ICT/25821-HCR
    100 Pages
    Aarti Dhapte
    October 2025

    API management software Market Research Report: By Deployment Model (On-Premises, Cloud, Hybrid), By Organization Size (Small and Medium-Sized Enterprises (SMEs), Large Enterprises), By Industry Vertical (Financial Services, Healthcare, Retail, Manufacturing, Technology), By Type (Full Lifecycle API Management, API Gateway, API Analytics), By API Protocol (HTTP, HTTPS, SOAP, REST) and By Region (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035.

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    API Management Software Market Infographic
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    API Management Software Market Summary

    The Global API Management Software Market is projected to grow from 15.65 USD Billion in 2024 to 82.74 USD Billion by 2035, reflecting a robust growth trajectory.

    Key Market Trends & Highlights

    API Management Software Key Trends and Highlights

    • The market is expected to expand significantly, with a projected value of 82.7 USD Billion by 2035.
    • A compound annual growth rate (CAGR) of 16.38 percent is anticipated from 2025 to 2035.
    • Starting at 15.6 USD Billion in 2024, the market demonstrates a strong upward trend in demand for API management solutions.
    • Growing adoption of cloud computing due to the need for enhanced scalability is a major market driver.

    Market Size & Forecast

    2024 Market Size 15.65 (USD Billion)
    2035 Market Size 82.74 (USD Billion)
    CAGR (2025-2035) 16.34%

    Major Players

    Google Cloud, Microsoft, Oracle, Mulesoft, IBM, WSO2, Tyk, Nginx, Apigee, Axway, Kong, RedHat, SAP

    API Management Software Market Drivers

    Rising Demand for Digital Transformation

    The Global API Management Software Market Industry experiences a surge in demand driven by the ongoing digital transformation across various sectors. Organizations are increasingly adopting API management solutions to streamline operations, enhance customer experiences, and foster innovation. As businesses transition to digital platforms, the need for seamless integration of applications and services becomes paramount. This trend is reflected in the projected market growth, with the industry expected to reach 15.6 USD Billion in 2024. Companies that leverage API management effectively can improve their agility and responsiveness, positioning themselves competitively in a rapidly evolving digital landscape.

    Market Segment Insights

    API management software Market Deployment Model Insights  

    The Deployment Model segment significantly impacts the API management software Market as it offers three primary models to the businesses such as on-premises, cloud, and hybrid. Every deployment model is equipped with a specific advantage and disadvantage that tailor to the unique needs and preferences of the enterprises. The on-premises deployment model involves the installation and managing of the API management software on the business’s own infrastructure. This model ensures user control, enabling the operations to secure enterprise data and ensure adherence to internal policies.However, on-premises deployment requires large capital investments to purchase, maintain, and update servers and install software.

    The cloud deployment model is typically subscription-based and utilizes the cloud service provider to enable the enterprise to access the API management services. This award-winning deployment model is lauded for its minimal total cost of ownership, scalability, and flexibility of services. However, enterprises must consider the downstream implications of the security and operational risks of cloud computing and vendor lock-in of this model.The hybrid IDM deployment effectively combines both on-premises installation of the software along with subscribing to the cloud services. This deployment model ensures a cost-effective solution that delivers minimal risk and optimal user control.

    Figure 2 API Management Software Market  By Deployment Model (2023-2032)

    The cloud deployment model will increase its already high market share as the most substantial growth is expected to occur because of the rapid adoption of cloud computing services. More specifically, organizations are recognizing the cost-effectiveness and scaling viability of utilizing the available cloud services rather than employing on-premises options.Furthermore, organizations’ increasing embracement of the different aspects of microservices and containers will further the adoption of cloud-deployed API management services. The deployment model segmentation of the API management software Market can provide significant insights and information for enterprises to effectively maximize the adequacy of their decisions and actions.

    Figure 2 API Management Software Market  By Deployment Model (2023-2032)

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    API management software Market Organization Size Insights  

    The Organization Size segment of the API management software Market includes Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment had a larger share in the API management software Market revenue of 65% in 2023. The growth is due to the increasing adoption of API management software by large enterprises to enhance the efficiency and security of their API operations. However, the CAGR of the SMEs segment is expected to be faster during the forecast period, with a 17.5% rate.

    By 2032, the segment is expected to contribute 40% of the API management software Market revenue, representing an equivalent market size of USD 18.04 billion.

    API management software Market Vertical Insights  

    The API management software Market is segmented by Industry Vertical into Financial Services, Healthcare, Retail, Manufacturing, and Technology. The Financial Services segment is expected to account for the largest share of the market in 2023, with a market value of USD 2.56 billion. The Healthcare segment is expected to grow at the highest CAGR of 17.34% during the forecast period. The Retail segment is expected to account for a market value of USD 1.83 billion in 2023.

    The Manufacturing segment is expected to account for a market value of USD 1.67 billion in 2023.The Technology segment is expected to account for a market value of USD 1.54 billion in 2023. The growth of the API management software Market is attributed to the increasing adoption of cloud-based services, the need for improved API security, and the growing popularity of microservices architecture.

    API management software Market Type Insights  

    The API management software Market is segmented by Type into Full Lifecycle API Management, API Gateway, and API Analytics. Among these, the Full Lifecycle API Management segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. This is primarily due to the increasing adoption of cloud-based API management solutions, which offer a comprehensive suite of features for managing the entire API lifecycle, from design and development to deployment and monitoring.

    The API Gateway segment is also expected to witness significant growth in the coming years, driven by the rising demand for secure and scalable solutions for managing API traffic. The increasing adoption of microservices-based architectures is also fueling the growth of the API Analytics segment, as organizations seek to gain insights into the performance and usage of their APIs.

    API management software Market API Protocol Insights  

    The API protocol segment plays a crucial role in the API management software Market. Among the commonly used protocols, HTTP dominates the market, accounting for over 50% of the revenue in 2023. Its widespread adoption stems from its simplicity, versatility, and ability to handle various request methods. HTTPS, an encrypted version of HTTP, is gaining traction due to its enhanced security measures, especially for sensitive data transmission.

    SOAP, while still prevalent in certain industries, is gradually losing its market share due to its complexity and performance limitations.REST (Representational State Transfer) is emerging as a popular choice for modern APIs, offering flexibility, scalability, and ease of use. The market share of REST is projected to grow significantly in the coming years, driven by the increasing adoption of microservices architectures and cloud-native applications.

    Get more detailed insights about API Management Software Market Research Report - Global Forecast till 2034

    Regional Insights

    The API management software Market is segmented by region into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, while APAC is projected to grow at the highest CAGR during the forecast period. The growth in North America is attributed to the increasing adoption of cloud-based API management solutions by enterprises. The presence of key players such as Google, Microsoft, and Amazon Web Services (AWS) in the region is also driving the growth of the market.

    APAC is expected to witness significant growth due to the increasing adoption of mobile applications and the growth of the e-commerce industry in the region.The rising demand for API security and governance solutions is also contributing to the growth of the market in this region. Europe is expected to hold a significant market share, owing to the presence of a large number of enterprises and the increasing adoption of API management solutions by governments and public sector organizations.

    The growth in South America and MEA is expected to be driven by the increasing adoption of cloud computing and the growth of the digital economy in these regions.

    Figure 3 API Management Software Market  By Regional (2023-2032)

    Api Management Software Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in API management software Market are constantly innovating to stay ahead of the competition. They are investing heavily in research and development, making acquisitions, and expanding their partner ecosystem. For instance, in 2022, Google Cloud launched Apigee Registry, a new API registry service that provides a centralized, scalable, and secure way to manage and discover APIs. This launch strengthens Google Cloud's position as a leading player in the API management software Market.Leading API management software Market players are also focusing on expanding their global reach.

    For example, in 2022, Apigee announced a partnership with Salesforce to offer its API management solutions to Salesforce customers worldwide. This partnership is expected to help Apigee expand its reach into new markets and increase its market share. Other leading players are also pursuing similar strategies to expand their global presence. The API management software Market is expected to witness a number of significant developments in the coming years. One of the key trends is the increasing adoption of cloud-based API management solutions. Cloud-based solutions offer a number of advantages over on-premises solutions, such as scalability, flexibility, and cost-effectiveness.

    As more organizations move to the cloud, the demand for cloud-based API management solutions is expected to grow significantly. Another key trend is the growing adoption of AI and ML technologies in API management. AI and ML can be used to automate a number of tasks, such as API discovery, documentation, and testing. This can help organizations to improve the efficiency of their API management processes and reduce the cost of owning and operating APIs.Another key trend in the API management software Market is the growing adoption of low-code/no-code API management platforms.

    These platforms make it easy for developers to create and manage APIs, even if they don't have extensive coding experience. This is expected to make API management more accessible to a wider range of organizations and individuals, which is likely to drive the growth of the market in the coming years.One of the leading companies in the API management software Market is Google Cloud. Google Cloud offers a comprehensive suite of API management solutions, including Apigee Registry, Apigee Edge, and Apigee Insights. Apigee Registry is a cloud-based API registry that helps organizations to discover, manage, and version their APIs.

    Apigee Edge is a cloud-based API gateway that helps organizations to secure, monitor, and analyze their APIs. Apigee Insights is a cloud-based API analytics platform that helps organizations to understand how their APIs are being used and identify opportunities for improvement.Another key player in the API management software Market is Microsoft. Microsoft offers a comprehensive suite of API management solutions, including Azure API Management, Azure Application Gateway, and Azure Monitor. Azure API Management is a cloud-based API management platform that helps organizations to design, build, and publish APIs.

    Azure Application Gateway is a cloud-based API gateway that helps organizations to secure, monitor, and analyze their APIs. Azure Monitor is a cloud-based monitoring platform that helps organizations to monitor the performance and health of their APIs.

    Key Companies in the API Management Software Market market include

    Industry Developments

    • Q2 2024: Gravitee.io raises $30M Series B to expand API management platform Gravitee.io, a provider of open-source API management solutions, secured $30 million in Series B funding to accelerate product development and expand its global presence.
    • Q2 2024: Axway Launches Amplify Enterprise Marketplace to Accelerate API Adoption Axway announced the launch of Amplify Enterprise Marketplace, a new product designed to help organizations manage and monetize APIs more efficiently.
    • Q2 2024: Kong Inc. Announces General Availability of Kong Gateway 4.0 Kong Inc. released Kong Gateway 4.0, the latest version of its flagship API gateway, featuring enhanced security, performance, and developer experience capabilities.
    • Q1 2024: Google Cloud Announces New API Management Capabilities for Apigee Google Cloud introduced new features for its Apigee API management platform, including advanced analytics and AI-powered security enhancements.
    • Q1 2024: WSO2 Appoints New CEO to Drive Next Phase of API Management Growth WSO2 announced the appointment of a new Chief Executive Officer to lead the company’s expansion in the API management software market.
    • Q2 2024: MuleSoft Unveils Universal API Management Platform MuleSoft launched its Universal API Management platform, aiming to provide unified governance and security for APIs across any environment.
    • Q2 2024: IBM Expands API Connect Capabilities with AI-Powered Automation IBM announced new AI-powered automation features for its API Connect platform, designed to streamline API lifecycle management and improve security.
    • Q1 2024: Tyk Technologies Secures $35M Growth Investment Tyk Technologies, an API management platform provider, raised $35 million in growth funding to accelerate product innovation and global expansion.
    • Q2 2024: Microsoft Azure API Management Adds Native Support for GraphQL APIs Microsoft announced that Azure API Management now offers native support for GraphQL APIs, enabling developers to manage and secure GraphQL endpoints alongside REST APIs.
    • Q1 2024: Red Hat Launches API Management Service on OpenShift Red Hat introduced a new API management service integrated with its OpenShift platform, targeting enterprise customers seeking hybrid cloud API solutions.
    • Q2 2024: Postman Acquires APIsec to Enhance API Security Offerings Postman, a leading API platform, acquired APIsec to strengthen its API security capabilities and offer integrated security testing for APIs.
    • Q1 2024: RapidAPI Raises $60 Million in Series D Funding RapidAPI, a marketplace for APIs and API management solutions, closed a $60 million Series D funding round to expand its platform and developer ecosystem.

    Future Outlook

    API Management Software Market Future Outlook

    The Global API Management Software Market is projected to grow at a 16.34% CAGR from 2025 to 2035, driven by increased digital transformation and demand for seamless integration.

    New opportunities lie in:

    • Develop AI-driven analytics tools for enhanced API performance monitoring.
    • Create industry-specific API solutions to cater to niche markets.
    • Expand partnerships with cloud service providers to enhance API accessibility.

    By 2035, the market is expected to reach unprecedented levels, reflecting robust growth and innovation.

    Market Segmentation

    API management software Market Type Outlook

    • Full Lifecycle API Management
    • API Gateway
    • API Analytics
    • API management software Market API Protocol Outlook

    API management software Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    API management software Market Vertical Outlook

    • Financial Services
    • Healthcare
    • Retail
    • Manufacturing
    • Technology
    • API management software Market Type Outlook

    API management software Market API Protocol Outlook

    • HTTP
    • HTTPS
    • SOAP
    • REST
    • API management software Market Regional Outlook

    API management software Market Deployment Model Outlook

    • On-Premises
    • Cloud
    • Hybrid
    • API management software Market Organization Size Outlook

    API management software Market Organization Size Outlook

    • Small and Medium-Sized Enterprises (SMEs)
    • Large Enterprises
    • API management software Market Vertical Outlook

    Report Scope

    API management software Market Report Scope

    Report Attribute/Metric Details
    Market Size 2024 15.65 (USD Billion)
    Market Size 2025 18.21 (USD Billion)
    Market Size 2035 82.74 (USD Billion)
    Compound Annual Growth Rate (CAGR) 16.34% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Layer7, Oracle, WSO2, Tyk, Nginx, Mulesoft, Stoplight, Apigee, Axway, Kong, Microsoft, RedHat, SAP, Google, IBM
    Segments Covered Deployment Model, Organization Size, Industry Vertical, Type, API Protocol, Regional
    Key Market Opportunities Cloud API management microservices adoption data security developer selfservice and API economy expansion
    Key Market Dynamics Increased API adoption growing need for data security cloudbased deployment microservices architecture and AI integration
    Countries Covered North America, Europe, APAC, South America, MEA

     

    FAQs

    What is the expected market size of the API management software Market in 2024?

    The API management software Market is anticipated to reach USD 15.65 billion in 2024.

    What is the projected CAGR of the API management software Market from 2025 to 2034?

    The API management software Market is projected to grow at a CAGR of 16.34% from 2025 to 2034.

    Which region is expected to hold the largest market share in the API management software Market in 2024?

    North America is expected to hold the largest market share in the API management software Market in 2024.

    What are the key applications of API management software?

    Key applications of API management software include API security, API analytics, and API monetization.

    Who are some of the key competitors in the API management software Market?

    Key competitors in the API management software Market include Google, Microsoft, IBM, and Axway.

    What are the major factors driving the growth of the API management software Market?

    Major factors driving the growth of the API management software Market include the increasing adoption of cloud-based services and the growing need for API security.

    What are the challenges faced by the API management software Market?

    Challenges faced by the API management software Market include the lack of standardization and the need for skilled professionals.

    What are the opportunities for growth in the API management software Market?

    Opportunities for growth in the API management software Market include the increasing adoption of microservices and the growing demand for API-led connectivity.

    What are the key trends in the API management software Market?

    Key trends in the API management software Market include the convergence of API management and cloud computing and the increasing use of artificial intelligence.

    What is the expected market size of the API management software Market in 2034?

    The API management software Market is projected to reach USD 71.11 billion by 2034.

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