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

Jan 2024: The latest release of IBM API Connect 10.0.5.5 LTS brings notable enhancements Kubernetes deployments now mandate an upgrade to cert-manager 1.11.5 for compatibility. Enhancements to LDAP configuration, notably for Microsoft Active Directory integration, provide improved accuracy. Furthermore, API consumers gain the ability to download APIs in JSON format directly from the Developer Portal UI, enhancing accessibility to API documentation.

October  2023: Axway, a leader in API Management, has been recognized by Gartner as a Leader in the 2023 Magic Quadrant™ for API Management. Their offering, Amplify API Management, is praised for its completeness of vision and ability to execute. Axway's platform, Amplify, is the only open, independent platform for managing and governing APIs across teams, the hybrid cloud, and third-party solutions. With a focus on reducing complexity and growing API adoption, Axway enables enterprises to securely open everything by integrating and moving data across various technologies.

September 2023: Kong Inc. introduces Kong Konnect Dedicated Cloud Gateways, providing fully managed API gateway services on dedicated cloud infrastructure, catering to the needs of larger enterprises for heightened connectivity, performance, security, and control. The offering, announced at the 2023 API Summit, simplifies adoption with managed services, supports secure private networking, and offers multi-cloud and multi-region coverage. Additionally, Kong Insomnia 8.0 brings AI-powered testing, real-time collaboration features, and support for Server-Sent Events, enhancing developer productivity and API creation capabilities.

March 2022: Microsoft launched the Azure Private Link support for Azure API Management service, a fully-managed service that enables customers to publish, secure, transform, maintain, and monitor APIs. API Management now supports Azure Private Link, which allows customers to configure a private endpoint for API Management to allow clients in their private network to securely access the instance. Additionally, the Azure API Management gateway communicates with the customer's virtual network privately and securely over the Microsoft backbone network, so there is no need to expose the service to the public.

API Management Market Segmentation

API Management Component Outlook