API Management Market by Platform (API Gateways, API Lifecycle Management, API Security, API Analytics & Monitoring, API Developer Portal), Service (Integration & Implementation, Support & Maintenance, Training & Education) - Global Forecast to 2029
[298 Pages Report] The global API management market will grow from USD from USD 7.6 billion in 2024 to USD 16.9 billion by 2029 at a compounded annual growth rate (CAGR) of 17.1% during the forecast period. The rise of the API management market is being driven by technical improvements and the increased demand for effective data interchange across applications. Key demand drivers for the API management market include digital transformation, microservices, and the requirement for seamless connectivity across several applications and systems. Increased adoption of cloud services is a major driver, allowing businesses to scale operations and improve customer experience through improved application interconnectivity.
Another important factor is the growing need for security and governance in managing APIs, particularly with the increasing complexity of multi-cloud and hybrid environments. Since API serves as an entry point to access critical business data, enterprises are in search of efficient and effective API security solution to protect against data leaks and cyber threats. Furthermore, API analytics and monitoring features are becoming increasingly important as businesses attempt to improve performance and assure compliance.
Automation in API lifecycle management is also gaining popularity, allowing businesses to speed API development, deployment, and maintenance. This enables firms to be more flexible and evolve faster. Companies that lack in-house knowledge are increasingly turning to third-party API management systems, which offer customizable, adaptable options for API administration, safety and performance optimization.
To know about the assumptions considered for the study, Request for Free Sample Report
To know about the assumptions considered for the study, download the pdf brochure
Impact of AI-Gen in API Management Market
API Management Market Dynamics
Driver: Demand for web and mobile applications across diverse platforms
The rise in mobile and web applications is driving the demand for reliable API management platforms. Since applications are used in a broad range of devices such as mobile applications and web applications, it is critical to ensure that these applications interact with backend service through APIs. APIs serve as connectors that facilitate easy integration of mobile as well as web applications with different back end applications. The increasing popularity of complex connected and engaging experiences require proper API management to achieve efficient transfer, protection, and optimization of data at these interfaces. Some of the features that help maintain the conservative application utilization include, rate limiting, security, and analysis provided by API management software. In addition, with large numbers of APIs and the complexity of interactions, these tools help the administrator to manage and control APIs and ensure that they are effective and secure. This is especially important due to the large amount of API calls that are created by mobile and web applications, which causes bottlenecks or performance problems. Through implementation of robust and efficient API management, corporations promote value addition of their digital services, improved customer satisfaction, and increased resilience and flexibility of their applications.
Restraint: Complexity in implementation
Implementation complexity is typically a major drawback to effective API management. Implementing a complete API management platform entails overcoming an array of technical obstacles, such as integrating several APIs, guaranteeing uniform data formats, and managing connections across different systems. This complexity is compounded by the fact that organizations would have to support existing systems, development platforms and emerging technology frameworks. Setting up and managing API gateways as well as security, monitoring and other mechanisms involves financial investment and considerable skills. Organizations face difficulties establishing standardized protocols, ensuring compatibility across different platforms, and managing the sheer volume of API interactions. This could end in a longer implementation time, increased costs, and disruption to current systems.
Furthermore, inadequate implementation would result in performance bottlenecks, security vulnerabilities, and difficulty scaling solutions to meet growing demands. To address these obstacles, firms must invest in trained individuals, implement flexible and scalable solutions, and conduct extensive planning and testing. Simplifying the deployment process and utilizing user-friendly management solutions assist to alleviate these challenges, making API administration more accessible and effective for enterprises.
Opportunity: Rise in third-party and partner-facing APIs, facilitating greater digital integration and innovation
The increasing usage of third-party and partner APIs is another significant area where API management contributes to enhanced integration and efficiency. As organizations increasingly interact with external services and partners, managing APIs effectively becomes crucial. Rapid’s 2022 survey revealed that 54% of developers used third-party APIs, while 49% used partner-facing APIs. This trend underscores the need to incorporate external APIs into organizational ecosystems. API management platforms can address and support these integration challenges through improved security, performance, and data management. Proper management of third-party and partner-facing APIs would enhance an organization’s operations, productivity, and interactions with external parties. These management tools facilitate favorable interactions between APIs from different sources and support various business objectives, including faster and more efficient digital transformation.
Challenge: Security issues and lack of awareness
Lack of awareness and security are the major concerns that organizations face while implementing APIs. At the 2023 RSA Conference, Traceable revealed that 40% of respondents were operating without any API security solution, while 29% were unaware of whether their organization had measures in place to secure APIs, according to its survey. This lack of awareness and preparedness is worrisome, especially considering the important part that APIs are currently playing in the digital world. Additionally, a report from Salt highlighted that 95% of respondents had faced security issues with production APIs, and 23% had experienced breaches. Although the volume of API traffic is increasing , yet only 7.5% of firms have implemented specialized API testing and threat modeling programs. This lack of security and practice requires API management platforms that tackle these issues. Effective API administration must incorporate comprehensive safety precautions, especially threat identification and mitigation, to protect against possible breaches and preserve the integrity of API transactions. As the API environment changes, raising knowledge and implementing proactive security techniques will be critical for controlling vulnerabilities and protecting sensitive data.
The API Management Market Ecosystem
The API management ecosystem is a complex, it supports and connects various elements used in the process of developing, deploying and maintaining APIs. At the core of this system, there are API gateways tools that regulate access to APIs and protect from malicious attacks, enforce organizational policies, and perform such processes as rate limiting or authentication. API analytics platforms, however, provide valuable data for measuring the efficacy of APIs, their utilization, and interaction with users to increase API effectiveness. The API management platform contains security features that defend against potential attacks and ensure the confidentiality of data and transactions.
Moreover, service providers within ecosystem provides cloud-based API administration platforms, support services, and integration solutions, making sure APIs are resilient, scalable, and well-managed. Connectivity providers improve interoperability by allowing for easy data transmission across several systems and networks. This ecosystem supports a variety of industries, including banking, retail, and telecoms, each with unique requirements for API integration, security, and performance.
Based on the platform, the API gateway segment will dominate the market during the forecast period.
It acts as a point of entry for all the API calls and distributes them to the necessary backend systems and gets back to the clients with the results. It acts as a point of entry for all the API calls and distributes them to the necessary backend systems and gets back to the clients with the results. A major role of any API gateway is to provide load balancing, which serves to reproduce the API request, and spread it over the servers, in order to maintain high availability and to avoid overloading a particular server. This has the effect of enhancing the performance and reliability of the API ecosystem at large.
The API gateway also provides protocol transformation functionality by which different services can interact with one another despite employing diverse protocols. Especially when there are a lot of services and an organization is working in a multifaceted environment with different old systems, this flexibility is essential. In addition, API gateways offer caching capacity, that helps minimize latency by storing duplicate information closer to the user. Thus, integrating these diverse jobs in an API gateway layer leads to optimization, scalability, and modularity of APIs making the API gateway an indispensable feature in today’s API architectures.
Based on the organization’s size, the medium-sized enterprises segment is expected to have the highest CAGR growth rate during the forecast period.
Medium-sized businesses frequently confront a unique combination of API management difficulties, balancing expansion and operational efficiency against financial limits. As these companies grow, their IT infrastructures get more complicated, demanding API management platform that combine capability and cost.
These enterprises generally uphold moderate number of internal APIs; these necessitate tools that facilitate interconnection in several systems and application while maintaining operational standard. API management platforms for medium-sized enterprises require key features such as traffic management, load balancing, and automatic scaling in order to meet API requests without exhausting their resources.
Cost-effectiveness is essential since medium-sized businesses have to maximize their investments while reducing unnecessary complexity. Platform should be easy to implement and scalable, enabling these companies to respond to changing demands without incurring major additional expenses. API monitoring and analysis are also important for tracking performance, ensuring dependability, and making informed decisions.
As per region, Europe will witness the second largest market share during the forecast period.
Europe API management market driven by the surge in digital transformation and regulatory environment in the region. As organisations of the UK, Germany, France, Italy and other European countries embark on the adoptation of digital solutions for their organisations, most of them focus on effective API management to increase the efficiency of connectivity, operations and also meet high standards of compliance of regulations. The growing number of cloud solutions and microservices apps is driving the demand for comprehensive API management that includes high availability, security, and compliance with a variety of IT architectures.
The increasing awareness around data protection and privacy in the European Union especially through legislation like the General Data Protection Regulation (GDPR), one of the major factor driving the API management market in the region. Such a regulatory environment requires strong API management platform that protect data transmitted and are in compliance with governing rules. In addition, the increase in the adoption of digital services and IoT in Europe also indicates the need for comprehensive and flexible APIs that can accommodate for diverse touchpoints and services.
API management providers, such as MuleSoft, Apigee (Google Cloud), and IBM, are extending their capabilities to satisfy the different demands of European organizations. These systems allow enterprises to efficiently manage, monitor, and optimize their APIs, resulting in greater integration, increased security, and improved operational efficiency in a continuously changing digital context.
The US market contributes the largest share of North America’s API management market.
North America will lead the API management market in 2024. The US is estimated to account for the largest market share in North America in 2024, the API management market, and the trend will continue until 2029. API management in US market is rapidly growing owing to great emphasis placed on digital network and accelerated acceptance of cloud solutions and artificial intelligence. The US government's approach to cloud computing, the Federal Cloud Computing Strategy, is crucial in modernizing and securing IT infrastructure, increasing need for more complex API management platforms. Also, according to World Economic Forum, private sector innovation is thriving, with venture capital investments in AI totaling USD 290 billion over the last five years.
The growth in AI-driven innovation, especially in businesses such as autonomous cars, healthcare, and IT infrastructure, is driving the demand for scalable and secure API management solutions. Google, IBM, and Microsoft are among the leading companies in the API management industry, offering an integrated system for API development, deployment, and monitoring while maintaining high security and compliance standards. The increased reliance on APIs to promote seamless integration and enhance operational efficiency across sectors is moving the market forward, with the US emerging as the market leader in API management and digital transformation.
Key Market Players
The API management market is dominated by a few globally established players such as Google (US), IBM (US), AWS (US), Microsoft (US), MuleSoft (US), Axway (France), Software AG (Germany), WSO2 (US), Broadcom (US), and TIBCO Software (US) among others, are the key vendors that secured API management contracts in last few years. Customers in the API management market are exploring new platforms because of their higher budgets, greater access to innovative platforms, and the accelerating shift towards digital ecosystems. This shift is driven by the need for efficient data integration, stronger governance, and the ability to handle complex application environments with ease.
Want to explore hidden markets that can drive new revenue in API Management Market?
Scope of the Report
Want to explore hidden markets that can drive new revenue in API Management Market?
|
Report Metrics |
Details |
|
Market size available for years |
2019–2029 |
|
Base year considered |
2023 |
|
Forecast period |
2024–2029 |
|
Forecast units |
Value (USD Million/Billion) |
|
Segments Covered |
Offering, Platform, Deployment Type,Organization Size, Verticals |
|
Geographies Covered |
North America, Europe, Asia Pacific, Middle East Africa, and Latin America |
|
Companies Covered |
Some of the significant API management market vendors are Google (US), IBM (US), AWS (US), Microsoft (US), MuleSoft (US), Axway (France), Software AG (Germany), WSO2 (US), Broadcom (US), and TIBCO Software (US) |
This research report categorizes the API management market based on offering, platform, deployment type, organization size, verticals and region.
Based on the Offering:
- Platform
- Services
Based on the Platform:
-
API Gateway
- Traffic Management
- Load Balancing
- Request & Response Transformation
- Rate Limiting & Quotas
-
API Lifecycle Management
- API Design & Development Tools
- API Testing & Mocking
- Version Control & Governance
- API Retirement & Deprecation
-
API Analytics and Monitoring
- Real-Time API Monitoring
- API Usage Analytics
- Performance Metrics
- Alerts & Notifications
-
API Security
- Authentication & Authorization
- Threat Detection
- Data Encryption & Compliance
-
API Developer Portal
- API Documentation
- Interactive API Explorers
- API Testing Sandbox
- Other Platforms
Based on the Deployment Type:
- Cloud
- On-premises
Based on the Organization Size:
- Large Enterprises
- Medium-Sized Enterprises
- Startups & Small Businesses
Based on the Verticals:
- Financial Services
- IT & ITeS
- Telecommunications
- Retail & ECommerce
- Travel & Transportation
- Government
- Media & Entertainment
- Healthcare & Life Sciences
- Manufacturing
- Other Verticals
Based on the Region:
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
-
Asia Pacific
- China
- Japan
- Australia & New Zealand
- Rest of Asia Pacific
-
Middle East & Africa
-
Gulf Cooperation Councils (GCC)
- Kingdom of Saudi Arabia
- United Arab Emirates
- Rest of the GCC Countries
- South Africa
- Rest of the Middle East Africa
-
Gulf Cooperation Councils (GCC)
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In August 2024, the Apigee API hub Preview release was updated to allow metadata edits for uploaded API specifications via the Cloud console. t prevents users from uploading API specifications with mistakes and identifies auto-registered API proxies as Apigee X or Apigee hybrid.
- In August 2024, EQT acquired WSO2, which was first announced on May 3, 2024. EQT will provide WSO2 with the strategic direction needed to advance rapidly and create new solutions, leveraging WSO2's decade-long experience in the software industry, its international network of specialists, and a Digital Value Creation team.
- In October 2022, At Microsoft Ignite, the Azure API Management team announced a partnership with Postman, a leading API testing and development platform used by over 20 million developers worldwide. This partnership sought to ease API testing and monitoring for Azure API developers using the Postman platform, while additionally making simpler for Postman developers to set up APIs on the Azure platform.
- In April 2021, Broadcom and Google collaborated to accelerate digital transformation across enterprises and innovate and strengthen cloud services with the core software of Broadcom.
Frequently Asked Questions (FAQ):
What is a API management?
API management is the process of monitoring and regulating the creation, deployment, and lifespan of application programming interfaces (APIs). It comprises protecting, monitoring, and optimizing APIs to make sure they run smoothly, meet performance requirements, and allow for seamless communication across various software systems.
Which country was the early adopter of API management?
The US was at the initial stage of adopting a API management.
Which are the key vendors exploring the API management?
Some of the significant vendors offering API management worldwide include Google (US), IBM (US), AWS (US), Microsoft (US), MuleSoft (US), Axway (France), Software AG (Germany), WSO2 (US), Broadcom (US), and TIBCO Software (US).
What is the total CAGR recorded for the API management market from 2024 to 2029?
The API management market will record a CAGR of 17.1% from 2024 to 2029.
Who are vital clients adopting the API management market?
Key clients adopting the API management market include: -
- API Management Vendors
- Cloud Solution Providers
- Service Providers
- System Integrators (SIs)
- Resellers and Distributors
- Research Organizations
- Government Agencies
- Enterprise Users
- Technology Providers
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study comprised four main activities to estimate the API management market size. We conducted significant secondary research to gather data on the market, the competing market, and the parent market. The following stage involved conducting primary research to confirm these conclusions and hypotheses and sizing with industry experts throughout the value chain. The overall market size was evaluated using a blend of top-down and bottom-up approach methodologies. After that, we estimated the market sizes of the various API management market segments using the market breakup and data triangulation techniques.
Secondary Research
We determined the size of companies offering API management platform and services based on secondary data from paid and unpaid sources. We also analyzed the product portfolios of major companies and rating the companies based on their performance and quality.
In the secondary research process, various sources were referred to identify and collect information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors' websites. Additionally, the spending of various countries on the API management market was extracted from the respective sources. We used secondary research to obtain the critical information related to the industry's value chain and supply chain to identify the key players based on platform, services, market classification, and segmentation according to components of the major players, industry trends related to components, users, and regions, and the key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, we interviewed various primary sources from the supply and demand sides of the API management market to obtain qualitative and quantitative information. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from vendors providing offerings, associated service providers; and is operating in the targeted countries. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to arrive at the final quantitative and qualitative data.
After the complete market engineering process (including calculations for market statistics, market breakup, market size estimations, market forecasting, and data triangulation), we conducted extensive primary research to gather information and verify and validate the critical numbers arrived at. The primary research also helped identify and validate the segmentation, industry trends, key players, competitive landscape, and market dynamics, such as drivers, restraints, opportunities, challenges, and key strategies. In the complete market engineering process, the bottom-up approach and several data triangulation methods were extensively used to perform market estimation and market forecasting for the overall market segments and subsegments listed in this report. We conducted an extensive qualitative and quantitative analysis of the complete market engineering process to list the key information/insights throughout the report.
Market Size Estimation
The API management market and related submarkets were estimated and forecasted using top-down and bottom-up methodologies. We used the bottom-up method to determine the market's overall size, using the revenues and product offerings of the major market players. This research ascertained and validated the precise value of the total parent market size through data triangulation techniques and primary interview validation. Next, using percentage splits of the market segments, we utilized the overall market size in the top-down approach to estimate the size of other individual markets.
The research methodology used to estimate the market size included the following:
- We used primary and secondary research to determine the revenue contributions of the major market participants in each country after secondary research helped identify them.
- Throughout the process, we obtained critical insights by conducting in-depth interviews with industry professionals, including directors, CEOs, VPs, and marketing executives, and by reading the annual and financial reports of the top firms in the market.
- We used primary sources to verify all percentage splits and breakups, which we calculated using secondary sources.
Data Triangulation
Once the overall market size was determined, we divided the market into segments and subsegments using the previously described market size estimation procedures. When required, market breakdown and data triangulation procedures were employed to complete the market engineering process and specify the exact figures for every market segment and subsegment. The data was triangulated by examining several variables and patterns from government entities' supply and demand sides.
Market Definition
Considering the views of various sources and associations, the API management market refers to the sector focused on solutions, tools, and platforms that enable organizations to create, publish, secure, monitor, and manage application programming interfaces (APIs) in a scalable and controlled manner. These solutions are designed to help businesses expose their services and data to internal and external developers, partners, and other stakeholders, while ensuring security, performance, and compliance.
According to Google, the design, development, testing, deployment, governance, security, monitoring, and monetization of APIs have become an important part of the software development lifecycle (SDLC), and a large and growing sector of the technology ecosystem. API management is the set of software and processes that support all stages of an API’s - and an API consumer’s - life cycle.
Key Stakeholders
- API Management Vendors
- Cloud Solution Providers
- Service Providers
- System Integrators (SIs)
- Resellers and Distributors
- Research Organizations
- Government Agencies
- Enterprise Users
- Technology Providers
Report Objectives
- To define, describe, and forecast the API management market by offering (platform and services), deployment type, organization size, vertical, and region
- To provide detailed information about the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
- To forecast the market size with respect to five main regions—North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To analyze the subsegments of the market with respect to individual growth trends, prospects, and contributions to the overall market
- To profile the key players of the market and comprehensively analyze their market size and core competencies
- To track and analyze the competitive developments, such as product enhancements, product launches, acquisitions, partnerships, and collaborations, in the API management market globally
Available Customizations
MarketsandMarkets provides customizations based on the company's unique requirements using market data. The following customization options are available for the report:
Product analysis
- The product matrix provides a detailed comparison of each company's portfolio.
Geographic analysis
- Further breakup of the API management market
Company information
- Detailed analysis and profiling of five additional market players
Generating Response ...
Growth opportunities and latent adjacency in API Management Market