Global API Management Market Report and Forecast 2024-2032

Global API Management Market Size

The global API management market reached a value of approximately USD 4.51 billion in 2023. The market is further expected to grow at a CAGR of 29.50% between 2024 and 2032, reaching a value of USD by 46.15 billion by 2032.

API Management Market Outlook

• Approximately 70% of all public APIs are REST (Representational State Transfer) APIs as they offer simplicity, scalability, and flexibility.

• 57% of web applications rely on APIs for seamless communication between different software components.

• As per industry reports, the healthcare industry experienced a staggering 400+% increase in API traffic in 2020.

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API Management Market Growth

API management refers to process of publishing, managing, and creating API connections in multi-cloud and enterprise settings. API management offers unified and scalable platforms allowing enterprises to socialise and share their API configurations while having access control. The primary advantage of API management is that it allows deployment and reuse of integration assets efficiently and quickly.

The increasing adoption of APIs across various industries, growing demand for secure and reliable API management solutions, and the emergence of new technologies such as cloud computing and artificial intelligence are key drivers impacting the API management market outlook. APIs are becoming increasingly important for businesses to connect with customers and partners in innovative ways, powering mobile apps, e-commerce websites, and social media platforms. As businesses become more reliant on APIs, the need for secure and reliable API management solutions is rising to help secure APIs, manage access, and monitor performance.

Key Trends and Developments

Increasing adoption of cloud-based API management solutions, focus on API security and governance, and rapid digitalisation across economies have facilitated API management market expansion

May 2024

TPIsoftware's digiRunner, a cloud-native API management platform, is now available on AWS Marketplace to foster digital innovation. The platform enables enterprises to efficiently manage and secure their APIs, accelerating digital transformation initiatives.

May 2024

Cloud-based integration platform Boomi has acquired the federated API management business and API management assets from Cloud Software Group's APIIDA. This strategic move aims to enhance Boomi's API lifecycle management capabilities by unifying the API management process.

May 2024

Market Logic Software has launched DeepSights API, enabling B2C brands to integrate market insights directly into their business systems. This innovation empowers businesses to enhance decision-making processes by leveraging real-time market data.

May 2024

myTU has launched its "Payouts API" to streamline payment processing for businesses, enhancing operational efficiency and profitability. The API offers automated operations, high security, real-time payment processing, loan management, reduced operational costs and manual errors.

Increasing adoption of cloud-based API management solutions

One of the most significant trends in the API management market is the growing adoption of cloud-based solutions. Businesses are increasingly turning to cloud-based API management platforms due to their flexibility, scalability, and cost-effectiveness.

Focus on API security and governance

As the use of APIs continues to expand, the importance of API security and governance has become a critical concern for businesses. Companies are now placing greater emphasis on providing robust security features to protect against cyber threats, data breaches, and unauthorised access. IBM API Connect offers features such as OAuth 2.0 support, API key management, and IP whitelisting to ensure secure access to APIs.

Integration of AI and machine learning

Apigee's API management platform uses AI and ML to automatically detect and respond to anomalies, optimise API performance based on usage patterns, and provide predictive analytics to help organisations make data-driven decisions. The integration of AI and ML is expected to drive API management market development.

Emergence of API marketplaces and ecosystems

API marketplace enables organisations to discover and consume APIs from a variety of providers, including Google, Salesforce, and SAP. These marketplaces enable the creation of API ecosystems, where businesses can collaborate and share data and functionality through APIs.

API Management Market Trends

Rapid urbanisation and digitalisation across the globe are boosting the utilisation of API management systems. Increasing incorporation of APIs in industries such as healthcare and finance are also projected to fuel the growth of the market for API management over the forecast period. Another trend aiding the API management market growth is the requirement of organisations for centralised methods to manage their APIs including access control, performance analysis, and usage monitoring. This aids organisations in streamlining their API development processes and improving the overall performance of their APIs.

Additionally, API governance is becoming a priority and organisations are seeking solutions that can help them manage the entire API lifecycle, from design to deployment and monitoring. Effective API governance ensures that APIs are developed and deployed in a consistent and secure manner, reducing the risk of vulnerabilities and ensuring compliance with industry regulations.

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API Management Industry Segmentation

The EMR’s report titled “API Management Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Solutions
  • API Platform
  • API Analytics
  • API Security
• Services
  • Integration and Implementation
  • Consulting
  • Support and Maintenance
  • Training and Education

Market Breakup by Deployment Type

• On-Premises

• Cloud

Market Breakup by Organisation Size

• Large Enterprises

• Small and Medium Enterprises

Market Breakup by Industry Vertical

• Government

• Healthcare

• Retail

• Manufacturing

• BFSI

• IT and Telecom

• Others

Market Breakup by Region

• North America

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

API Management Market Share

On-premises deployment dominate the market for API management as they help maintain high levels of control in all enterprises

On-premises deployment type is expected to hold a sizable share of the market due to their security and reliability, which allows enterprises to maintain high levels of control. Businesses in highly regulated industries often opt for on-premises API management systems as data security in such industries is paramount. As the complete software resides in the premises of the organisation, generally greater protection is provided.

However, according to API management market analysis, as security capabilities of cloud deployment increase, the coming years may witness growth in cloud deployment of API management. Cloud-based solutions enables companies to leverage applications and services without the need for on-premises installation, enhancing functionality and facilitating remote working operations. They also reduce the burden of maintenance and upgrades, making them an attractive option for organisations of all sizes.

Government and healthcare industries hold significant market shares due to their need for data security

API management solutions are being utilised in the government sector to improve data sharing, enhance transparency, and deliver services effectively to the public. The United States Digital Service (USDS) has implemented API management to streamline access to government services through a unified digital platform, enabling citizens to access information and services more efficiently.

According to API management market report, healthcare organisations are increasingly adopting API management solutions to access patient data securely, improve care coordination, and enhance patient outcomes through data-driven insights. An example is the use of APIs by electronic health record (EHR) providers like Epic Systems and Cerner to enable seamless integration with third-party applications and medical devices.

Moreover, retail giants like Amazon and Walmart are also using APIs to enable third-party sellers to integrate their systems with the marketplace, which facilitates seamless product listings, inventory management, and order processing. Additionally, financial institutions like JPMorgan Chase and Wells Fargo use APIs to enable seamless payment processing, account aggregation, and fraud detection services. As per industry reports, banks plan to triple the number of their “public APIs” by 2025, emphasising the growing importance of APIs in financial services.

Leading Companies in the API Management Market

Market players are focused on providing comprehensive API management solutions with features like API creation, documentation, security, analytics, and usage control

Microsoft Corporation, founded in 1975, is a multinational technology company headquartered in Washington, United States. The company offers software, hardware, and cloud-based solutions, such as Microsoft Windows operating system, Microsoft Office suite of productivity software, and the Microsoft Azure cloud services platform.

IBM Corporation is an IT consulting and services company founded in 1911 and based out of New York in the United States. One of the largest industrial research organisations in the world, their specialities include IT infrastructure, technology support, resiliency services, consulting commerce, Internet of Things, system services, and industry solutions, among others.

Google LLC was founded in 1998 and is headquartered in California, United States. The company specialises in internet related products and services, focusing on search engine technology, quantum computing, online advertising, consumer electronics, and computer software. It also offers services designed for productivity and work, cloud storage, and time management and email scheduling.

Oracle Corporation is a cloud technology company that was founded in 1977 and is based out of Texas, United States. The company provides organisations around the world with software and computing infrastructure to enhance their efficiency and boost their effectiveness. The Oracle Cloud infrastructure offers security, cost savings, and higher performance to their customers.

Other key players in the global API management market include Amazon Web Services, Inc, SAP SE, Red Hat, Inc., Software AG, Axway Software SA, and TIBCO Software, Inc., among others.

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API Management Market Analysis by Region

Asia Pacific leads the market due to the establishment of various small and medium enterprises in the region

The Asia Pacific holds a significant share of the market for API management over the forecast period. This growth can be attributed to the establishment of various small and medium enterprises and growing prevalence of Internet of Things and mobile computing in the Asia Pacific region.

North America is expected to hold a substantial API management market share, primarily driven by the United States' robust technological infrastructure that supports the development and adoption of API management solutions. The region also boasts a high concentration of tech companies, data centers, and cloud service providers, creating an environment conducive to the advancement of API-related technologies.

Key Highlights of the Report

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API Management Market Report Snapshots

API Management Market Size

API Management Market Growth

API Management Market Trends

API Management Market Share

API Management Companies

API Management Market Regional Analysis