As per MRFR analysis, the Api Security Market Size was estimated at 5.31 (USD Billion) in 2022. The Api Security Market Industry is expected to grow from 6.22 (USD Billion) in 2023 to 25.9 (USD Billion) by 2032. The Api Security Market CAGR (growth rate) is expected to be around 17.17% during the forecast period (2024 - 2032).
Due to the rise in API technology adoption, increase in the number of APIs being used in the economy and worries over risks associated with lost API security, considerable growth is expected in the API security market. Companies’ APIs must be secured against unauthorized access, data breaches, and other security threats to the market. There is also a high demand for API security solutions because of cloud computing, IoT and microservices architecture. Complex API environments, sophisticated attacks through APIs and changing regulatory frameworks are among the drivers for the API markets. More organizations are viewing API security as an integral part of their cybersecurity strategy.
This has led to increased investments in API security solutions like API gateways, API management platforms, and API vulnerability test tools. Some emerging trends include AI-powered threat detection systems with machine learning capabilities integration between different types of security applications together with cloud-based services for securing APIs. Therefore it is predicted that these changes will dominate even more in coming years when companies would like to get better protection for their application program interfaces.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
In recent years, there has been an increase in the number of cyber-attacks and data breaches which have made organizations around the globe worried. Being accessible and capable of showing confidential information makes them a common target. Concurrently, due to various cyber threats that have come up, as well as their increasing sophistication, businesses are forced to deal with API security issues. For this reason, there is growing demand for cybersecurity measures, which are major drivers of the expanded Api Security Market Industry.
The frequency of cyberattacks and data breaches has risen in recent years and raised the concerns of organizations worldwide. Since APIs are both accessible and can expose sensitive information, they are commonly targeted. Simultaneously, as different kinds of cyber threats have emerged and have grown increasingly sophisticated, companies are forced to address the issue of API security. As a result, there is a growing interest in cybersecurity measures, which is a significant driver of the expansion of the Api Security Market Industry.
The surge in demand for API security solutions is attributed to strict government regulations and industry standards on data protection and privacy. Organizations are required by regulatory frameworks like GDPR, CCPA, and HIPAA to have strong security systems to protect sensitive information. Compliance with these laws means firms should utilize leading techniques in API security, such as authentication, authorization, encryption, and monitoring. The Api Security Market Industry will continue experiencing steady growth due to an increasing focus on data privacy and compliance.
The growth can be attributed to the rising adoption of cloud-based services and the growing consciousness about API security concerns. The market is segmented in accordance with the target environment into on-premise and cloud-based. The on-premise segment led the market with the majority of share in 2023, but the cloud-based segment is estimated to grow at the highest rate during the 2023 to 2032 forecast period. The growth is supported by the rising popularity of cloud-based services and their advantages, such as scalability, flexibility, and cost-effectiveness.
The on-premise segment is projected to value USD 2.8 Billion by 2023; however, the cloud-based segment is projected to value USD 3.42 Billion by 2023. Moreover, the cloud-based segment is projected to remain dominant during the forecast period and touch USD 12.6 Billion by 2032. The growth can be attributed to the mounting adoption of cloud-based services across all organization sizes. The trend of increasing cloud-based service adoption is leading to an enhanced demand for API security solutions to protect APIs on the cloud. Cloud-based API security solutions have numerous advantages over on-premise ones, such as centralized management, scalability, and flexibility, thus leading to a high demand for cloud-based API security solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The API type segment is a crucial aspect of the Api Security Market segmentation. It categorizes the market based on the different types of APIs used in various applications. Key API types considered in this segment include SOAP, REST, and GraphQL. SOAP (Simple Object Access Protocol) is a widely adopted API type that follows a structured XML-based messaging format. It provides a standardized way to exchange data between applications and services, making it a popular choice for enterprise-level integrations. REST (Representational State Transfer) is another prominent API type that utilizes a simpler and more flexible approach.
It leverages HTTP methods and resource-oriented architecture to interact with data and services. RESTful APIs are commonly used in modern web and mobile applications due to their ease of use and scalability. GraphQL (Graph Query Language) is an emerging API type that has gained significant traction in recent years. It allows clients to request specific data from a server in a flexible and efficient manner. GraphQL APIs provide a more dynamic and customizable approach compared to traditional API types, making them well-suited for complex data fetching scenarios.
According to market data, the Api Security Market revenue for the SOAP API type is projected to reach approximately USD 1.8 billion by 2024, growing at a steady pace due to its established presence in enterprise environments. The REST API type is expected to hold a significant market share with a valuation of around USD 2.2 billion in 2024, driven by its widespread adoption in modern web and mobile applications. GraphQL, though a relatively newer API type, is anticipated to witness rapid growth in the coming years, with a projected market value of USD 0.5 billion by 2024, attributed to its increasing popularity in data-intensive applications and microservices architectures.
The deployment model segment of the Api Security Market is segmented into Gateway and Out-of-Band. In 2023, the Gateway segment held a larger market share, and it is expected to maintain its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of API gateways as a centralized solution for managing and securing APIs. Out-of-Band deployment is expected to witness significant growth over the forecast period due to its ability to provide additional security measures beyond the capabilities of API gateways. The Api Security Market revenue for the Gateway segment is projected to reach USD 10.2 billion by 2024, growing at a CAGR of 18.5%. The Out-of-Band segment is expected to reach USD 4.3 billion by 2024, growing at a CAGR of 19.2%.
The Api Security Market segmentation by Functionality includes Authentication and Authorization, Traffic Control and Monitoring, and Data Protection and Encryption. The Authentication and Authorization segment is expected to hold the largest share of the market in 2023, owing to the increasing need for protecting APIs from unauthorized access. The Traffic Control and Monitoring segment is expected to grow at the highest CAGR during the forecast period due to the rising demand for solutions that can help enterprises monitor and control API traffic. The Data Protection and Encryption segment is expected to account for a significant share of the market in 2023 as enterprises focus on protecting sensitive data from breaches and cyberattacks.
The Api Security Market revenue was valued at 6.22 USD Billion in 2023. The market is segmented into regions including North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023, with a significant contribution from the United States and Canada. The region's high adoption of cloud computing and the presence of major technology companies drive its dominance. Europe is the second-largest regional market, with key markets in Germany, the United Kingdom, and France. Growing awareness of data security regulations and the increasing adoption of APIs fuel market growth in the region. The APAC region is expected to witness the highest growth rate over the forecast period, driven by the rapid digital transformation and the rising number of internet users in countries like China, India, and Japan. South America and MEA are emerging markets with growing potential, as businesses in these regions increasingly recognize the importance of API security.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Major players in the Api Security Market industry are continuously investing in research and development to enhance their offerings and gain a competitive edge. Leading Api Security Market players are focusing on developing innovative solutions that address the evolving security challenges faced by businesses. The Api Security Market development landscape is characterized by strategic partnerships and acquisitions as companies seek to expand their capabilities and strengthen their market position. The competitive landscape is expected to remain dynamic, with new entrants and disruptive technologies shaping the market dynamics. Several key players are actively involved in mergers and acquisitions to expand their product portfolios and gain market share.
Akamai Technologies, Inc. is a leading provider of cloud-based security and content delivery solutions. The company offers a comprehensive suite of API security solutions designed to protect APIs from a wide range of threats, including DDoS attacks, OWASP Top 10 vulnerabilities, and data breaches. Akamai's API security solutions leverage machine learning and artificial intelligence to detect and mitigate threats in real time. The company has a global customer base and serves a diverse range of industries, including financial services, healthcare, and retail.
One of Akamai Technologies, Inc.'s key competitors in the Api Security Market is Imperva, Inc. Imperva is a leading provider of data security solutions. The company offers a range of API security solutions, including API gateways, API firewalls, and API threat detection and response solutions. Imperva's API security solutions are designed to protect APIs from a variety of threats, including data breaches, DDoS attacks, and OWASP Top 10 vulnerabilities. The company has a strong global presence and serves a diverse range of industries, including financial services, healthcare, and retail.
The API security market is experiencing rapid growth, driven by the increasing adoption of APIs and the growing threat landscape. Several notable developments have shaped the market in recent times:- Increased Cloud Adoption: The shift to cloud-based services has led to a surge in API usage, making API security a critical concern for organizations.- API-First Approach: Developers are adopting API-first approaches, which prioritize API security from the design stage.- Regulatory Compliance: Governments worldwide are implementing regulations that mandate API security measures, such as the European Union's General Data Protection Regulation (GDPR).- Rise of API-based Attacks: Cybercriminals are increasingly targeting APIs, exploiting vulnerabilities to gain access to sensitive data and systems.- Integration of AI and ML: Advanced technologies like artificial intelligence (AI) and machine learning (ML) are being incorporated into API security solutions to enhance detection and response capabilities. These developments highlight the growing importance of API security and the need for organizations to invest in robust solutions to protect their APIs and data.
| Report Attribute/Metric | Details |
| Market Size 2022 | 5.31 (USD Billion) |
| Market Size 2023 | 6.22 (USD Billion) |
| Market Size 2032 | 25.9 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 17.17% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | F5 Networks, Check Point Software Technologies, Auth0, PingID, Okta, Citrix Systems, Imperva, ForgeRock, Microsoft, Ping Identity, IBM, Thales, CA Technologies, Akamai Technologies, Google |
| Segments Covered | Target Environment, API Type, Deployment Model, Functionality, Regional |
| Key Market Opportunities | Rising API-led connectivity Growing cloud and SaaS adoption Increasing security threats Regulatory compliance mandates Need for real-time API protection |
| Key Market Dynamics | Increasing API Adoption Growing Threat Landscape Regulatory Compliance Cloud Migration Need for Proactive Security |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Api Security Market is expected to reach a valuation of USD 6.22 billion in 2023 and is projected to grow at a CAGR of 17.17% to reach a valuation of USD 25.9 billion by 2032.
North America is expected to dominate the API Security Market, followed by Europe and Asia-Pacific. The growth in these regions can be attributed to the increasing adoption of cloud services, the rising number of API-driven applications, and stringent government regulations related to data security.
API Security is used in a wide range of applications, including e-commerce, banking, healthcare, and government. It is used to protect APIs from unauthorized access, data breaches, and other security threats.
Key competitors in the API Security Market include Imperva, Akamai Technologies, F5 Networks, IBM, and Microsoft. These companies offer a range of API security solutions, including API gateways, API security scanners, and API threat intelligence.
Key trends shaping the API Security Market include the increasing adoption of cloud-based API platforms, the growing use of APIs in mobile applications, and the increasing sophistication of API attacks.
Challenges facing the API Security Market include the lack of awareness about API security risks, the shortage of skilled API security professionals, and the increasing complexity of API ecosystems.
Opportunities for growth in the API Security Market include the growing demand for API-driven applications, the increasing adoption of cloud services, and the increasing awareness of API security risks.
The API Security Market is expected to grow at a CAGR of 17.17% from 2023 to 2032, reaching a valuation of USD 25.9 billion by 2032.
The COVID-19 pandemic has accelerated the adoption of digital technologies, leading to an increased reliance on APIs. This has, in turn, led to an increased demand for API security solutions.
Key factors driving the growth of the API Security Market include the increasing adoption of cloud-based API platforms, the growing use of APIs in mobile applications, and the increasing sophistication of API attacks.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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