Api Testing Market Overview
As per MRFR analysis, the Api Testing Market Size was estimated at 2.3 (USD Billion) in 2022. The Api Testing Market Industry is expected to grow from 2.79 (USD Billion) in 2023 to 15.48 (USD Billion) by 2032. The Api Testing Market CAGR (growth rate) is expected to be around 20.99% during the forecast period (2024 - 2032).
Key Api Testing Market Trends Highlighted
The significance of the API testing market has been underscored by an increasing number of software applications that require software to be reliable and at a certain level of quality. The rise in the number of mobile apps and cloud-based software development activities has led to increased demand for strong API testing solutions. Moreover, there is a growing emphasis on digital transformation and improving customer experience, which are some of the other factors contributing to expansion.
Opportunities for growth lay in using AI-powered API testing tools that automate everything, making it more efficient. Also, many organizations are integrating their DevOps pipelines with API testing, as this helps streamline an organization’s SDLC.
Lastly, another key driver of application programming interface (API) testing is open banking and the Internet of Things (IoT). There is also growing popularity in adopting service-oriented approaches such as API TaaS, where vendors offer cloud-based platforms for firms’ API testing requirements. This approach offers adaptability to changing circumstances faced by organizations today. Besides, low-code/no-code tools for performing API tests have gained more prominence in recent times, thus enabling even non-technical users can perform tests on APIs. Additionally, the adoption rate for API security testing is becoming higher since companies are focusing on safeguarding personal data transmitted through APIs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Api Testing Market Drivers
Rising Demand for API-Driven Applications
One of the API Testing Market Industry’s main drivers is the increasing adoption of API driven applications across a range of industries. An API is a set of tools that define how different software systems can interact and is routinely used to make two different software systems interact with each other. APIs have had a significant impact on the business world by allowing organizations to integrate their systems and services to simplify operations, improve customer experiences, and acquire a competitive edge on the market.
API testing is necessary to ensure the safety, reliability, and speed of these APIs in the face of growing application sophistication and the development of a multitude of them. Established on that fact, as API driven applications become more frequent, the demand for API testing services will continue to grow, thereby increasing market growth.
Need for Enhanced Security and Compliance
Due to increasing concerns regarding data breaches and cyberattacks, as well as regulatory compliance, there is a rising demand for API testing. APIs act as gateways to sensitive data and systems, making them targets for malevolent agents. Security and validation are oriented first towards protecting the endpoints and ensuring ongoing agreements reflect industry standards and regulations. API testing allows the detection of vulnerabilities, prevents unauthorized access, and maintains data integrity.
Because the regulatory environment is expected to change, and threats are expected to increase, ensuring comprehensive API testing is a key growth factor for demand in the market.
Shift towards Agile and DevOps Methodologies
The adoption of agile and DevOps methodologies in software development is impacting the API Testing Market Industry. These methodologies focus on continuous integration, delivery, and testing, implying quicker and better testing techniques. All these can be accomplished when API testing tools are used that can be easily integrated into the DevOps pipeline and can also be used for automated testing for the developers. The ultimate result is that testing time is reduced in addition to the software development lifecycle being more efficient.
As more organizations adopt agile and DevOps practices, the demand for API testing solutions will concomitantly increase, leading to marked industry growth.
Api Testing Market Segment Insights
Api Testing Market Application Type Insights
The Api Testing Market is segmented by Application Type into Web API Testing, Mobile API Testing, Database API Testing, SOA API Testing, and Cloud API Testing. Among these segments, Web API Testing held the largest market share in 2023 and is expected to continue its dominance during the forecast period. The growth of this segment can be attributed to the increasing adoption of web-based applications and services. Mobile API Testing is another significant segment, owing to the rising popularity of smartphones and mobile applications. Database API Testing is also expected to witness a high growth rate during the forecast period due to the increasing need for data security and integrity.
SOA API Testing and Cloud API Testing are other emerging segments that are expected to contribute to the growth of the API Testing Market in the coming years. In 2023, the API Testing Market for Web API Testing was valued at USD 1.2 billion and is projected to reach USD 2.9 billion by 2032, growing at a CAGR of 10.2%. The Mobile API Testing segment is expected to grow from USD 0.8 billion in 2023 to USD 2.1 billion by 2032, at a CAGR of 11.5%. Database API Testing is projected to reach USD 1.7 billion by 2032, growing at a CAGR of 12.8%.
SOA API Testing and Cloud API Testing are expected to witness a significant growth rate during the forecast period, owing to the increasing adoption of cloud-based services and SOA architectures. The growth of the API Testing Market is driven by several factors, including the rising demand for software testing services, the increasing adoption of cloud-based applications, and the growing need for data security. The market is also expected to benefit from the increasing adoption of agile and DevOps methodologies, which emphasize the importance of testing throughout the software development lifecycle.
Overall, the API Testing Market is expected to witness significant growth in the coming years, driven by the increasing demand for software testing services, the rising adoption of cloud-based applications, and the growing need for data security.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Api Testing Market Deployment Type Insights
The API Testing Market is segmented by Deployment Type into On-premises and Cloud-based. The Cloud-based segment is expected to hold a significant share of the market in 2023, owing to its scalability, flexibility, and cost-effectiveness. Cloud-based API testing solutions offer several advantages over on-premises solutions, such as ease of deployment, reduced maintenance costs, and access to the latest features and updates. The On-premises segment, on the other hand, is expected to witness steady growth during the forecast period, primarily driven by the need for data security and control among enterprises.
Api Testing Market Industry Vertical Insights
The Api Testing Market is segmented into various industry verticals, including IT and Telecom, Healthcare, BFSI, Retail, and Manufacturing. Among these segments, IT and Telecom are anticipated to hold the largest market share in 2023, owing to the increasing adoption of cloud-based services, mobile applications, and the Internet of Things (IoT). The Healthcare industry is also expected to witness significant growth due to the rising demand for digital health solutions, electronic health records (EHRs), and telemedicine services. BFSI, Retail, and Manufacturing are other key industry verticals that are expected to contribute to the overall Api Testing Market revenue growth in the coming years.
The Api Testing Market data indicates that the IT and Telecom segment alone is projected to reach a valuation of USD 3.58 Billion by 2024, while the Healthcare segment is estimated to grow at a CAGR of 18.5% during the forecast period from 2023 to 2032. These insights highlight the growing importance of the Api Testing Market across various industry verticals, driven by factors such as digital transformation, technological advancements, and increasing regulatory compliance requirements.
Api Testing Market Test Category Insights
Test Category The API Testing Market is segmented by test category into functional testing, performance testing, security testing, and compliance testing. Functional testing holds the largest market share due to the increasing adoption of agile and DevOps methodologies, which require frequent testing of APIs to ensure functionality. Performance testing is expected to witness significant growth over the forecast period owing to the growing need to optimize API performance and deliver seamless user experiences. Security testing is crucial for identifying and mitigating vulnerabilities in APIs, which has gained prominence due to rising concerns over cyberattacks.
Compliance testing ensures that APIs adhere to industry standards and regulations, driving its demand in sectors such as healthcare and finance.
Api Testing Market Tool Type Insights
The API Testing Market is segmented by Tool Type into Open-source, Commercial, and SaaS. The Commercial segment held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of commercial API testing tools by large enterprises. Commercial tools offer a wide range of features and functionalities, such as automated testing, performance testing, and security testing, which are essential for ensuring the quality and reliability of APIs.
The Open-source segment is expected to witness significant growth over the forecast period due to the rising popularity of open-source software and the increasing number of developers using open-source tools for API testing. SaaS-based API testing tools are gaining traction as they offer flexibility, scalability, and cost-effectiveness. The SaaS segment is expected to grow at a rapid pace over the forecast period as more and more organizations adopt cloud-based solutions for API testing.
Api Testing Market Regional Insights
The Api Testing Market is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the Middle East and Africa (MEA). North America held the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth in this region can be attributed to the presence of numerous technology companies and the increasing adoption of digital transformation initiatives. Europe is the second largest market for API testing, followed by APAC. The APAC region is expected to witness significant growth in the coming years due to the rising number of startups and the growing adoption of cloud-based solutions.
South America and MEA are relatively smaller markets for API testing, but they are expected to grow at a steady pace in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Api Testing Market Key Players And Competitive Insights
The Api Testing Market is characterized by a highly competitive landscape with numerous players vying for market share. Major players in the industry include SoapUI, Postman, SmartBear, Parasoft, and RapidAPI. These leading Api Testing Market players invest heavily in research and development to offer innovative solutions that cater to the evolving needs of the market. The competitive landscape is expected to intensify further, driven by the rising adoption of agile development methodologies and the need for robust and efficient API testing solutions.
Postman is a leading player in the Api Testing Market, recognized for its user-friendly interface and comprehensive suite of testing tools. The company's cloud-based platform enables users to collaborate seamlessly, automate tests, and monitor API performance. Postman has established a strong customer base across various industries, including technology, healthcare, and finance. The company's commitment to continuous innovation and strategic partnerships has contributed to its sustained growth and leadership position in the market.
SoapUI is another prominent player in the Api Testing Market, known for its open-source and commercial testing solutions. The company offers a feature-rich platform that supports both functional and security testing. SoapUI has gained traction among developers and testers due to its flexibility, scalability, and ability to integrate with popular development tools. The company's strong community support and focus on open-source development have contributed to its wide adoption and popularity in the Api Testing Market.
Key Companies in the Api Testing Market Include:
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Micro Focus Silk Test
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Celigo
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RapidAPI
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Tricentis qTest
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Postman
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API Fortress
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Assertible
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BlazeMeter
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Parasoft SOAtest
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Xceptance
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SmartBear ReadyAPI
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Applitools
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Sauce Labs
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APImetrics
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SoapUI
Api Testing Market Industry Developments
The API testing market size is expected to grow from USD 2.79 billion in 2023 to USD 15.48 billion by 2032, exhibiting a CAGR of 20.99% during the forecast period. The market growth is attributed to the rising adoption of APIs, increasing demand for API security, and growing awareness of the benefits of API testing.
Recent news developments in the API testing market include:
- In February 2023, Google Cloud announced the launch of API Gateway, a fully managed service that helps developers secure, monitor, and manage APIs.
- In March 2023, Postman acquired the API testing platform Insomnia to enhance its API testing capabilities.
These developments indicate the growing importance of API testing in the software development lifecycle and the increasing adoption of cloud-based API testing solutions.
Api Testing Market Segmentation Insights
Api Testing Market Application Type Outlook
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Web API Testing
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Mobile API Testing
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Database API Testing
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SOA API Testing
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Cloud API Testing
Api Testing Market Deployment Type Outlook
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On-premises
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Cloud-based
Api Testing Market Industry Vertical Outlook
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IT and Telecom
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Healthcare
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BFSI
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Retail
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Manufacturing
Api Testing Market Test Category Outlook
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Functional Testing
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Performance Testing
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Security Testing
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Compliance Testing
Api Testing Market Tool Type Outlook
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Open-source
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Commercial
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SaaS
Api Testing Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
Report Attribute/Metric
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Details
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Market Size 2022
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2.3 (USD Billion)
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Market Size 2023
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2.79 (USD Billion)
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Market Size 2032
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15.48 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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20.99% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Micro Focus Silk Test, Celigo, RapidAPI, Tricentis qTest, Postman, API Fortress, Assertible, BlazeMeter, Parasoft SOAtest, Xceptance, SmartBear ReadyAPI, Applitools, Sauce Labs, APImetrics, SoapUI
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Segments Covered
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Application Type, Deployment Type, Industry Vertical, Test Category, Tool Type, Regional
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Key Market Opportunities
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Expansion into emerging markets API testing services are expected to see increased demand in rapidly developing economiesRising adoption of cloudbased API testing tools The growing popularity of cloud computing is driving the adoption of cloud-based API testing solutions.Growing demand for automated API testing Businesses are increasingly recognizing the benefits of automated API testing to improve efficiency and reduce testing time.Integration with DevOps practices API testing is becoming increasingly integrated into DevOps processes to enhance collaboration and accelerate software delivery.Increased focus on API security Growing concerns over API security are creating demand for specialized API testing solutions to protect against vulnerabilities.
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Key Market Dynamics
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Growing adoption of microservices architecturesIncreasing demand for continuous testingRising awareness of API securityEmergence of AIpowered API testing toolsShift towards cloud-based testing platforms.
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The API Testing Market is expected to reach a valuation of 2.79 billion USD in 2023 and is projected to grow at a CAGR of 20.99% to reach 15.48 billion USD by 2032.
North America is expected to dominate the API Testing Market, accounting for a significant share of the market in 2023. The region's dominance is attributed to the presence of major technology companies and the early adoption of API testing solutions.
API Testing finds applications in various industries, including e-commerce, healthcare, finance, and manufacturing. It is used to ensure the reliability, performance, and security of APIs, which are essential for seamless communication between different software applications.
Key players in the API Testing Market include SoapUI (SmartBear), Postman, Tricentis, Micro Focus, and IBM. These companies offer a range of API testing tools and services to cater to the diverse needs of businesses.
The API Testing Market is influenced by several trends, including the increasing adoption of cloud-based API testing solutions, the growing emphasis on API security, and the need for continuous testing to ensure API reliability.
The API Testing Market faces challenges such as the lack of skilled professionals, the complexity of modern APIs, and the need for specialized testing tools to address the unique requirements of different industries.
The API Testing Market presents growth opportunities in areas such as the adoption of AI and ML for automated testing, the increasing demand for API testing in emerging markets, and the growing awareness of the importance of API security.
The COVID-19 pandemic has accelerated the adoption of API testing solutions as businesses shifted towards digital channels and remote work. The increased reliance on APIs for seamless communication and data exchange drove the demand for API testing to ensure reliability and security.
Regulatory factors such as GDPR, HIPAA, and PCI DSS impact the API Testing Market. These regulations impose strict data protection and security requirements, which necessitate robust API testing to ensure compliance and protect sensitive data.
The API Testing Market is expected to witness continued growth in the coming years, driven by the increasing adoption of APIs, the growing demand for API security, and the need for continuous testing to ensure API reliability. Technological advancements such as AI and ML are further expected to shape the market's future.