USD 2.8 billion
API Management Market Size, Share, Growth Analysis, By Component(Solutions [API Platform (API Portal, API Gateway, API Administration, API Monetization)), By Deployment Type(On-premises, Cloud), By Organization Size(Large Enterprises, Small and Medium-Sized Enterprises), By Vertical(BFSI, IT & Telecom, Government, Healthcare & Life Sciences), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2121 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
115
|Figures:
77
API Management Market Insights
API Management Market size was valued at USD 4.4 billion in 2022 and is poised to grow from USD 5.49 billion in 2023 to USD 32.31 billion by 2031, growing at a CAGR of 24.80% during the forecast period (2024-2031).
A significant set of factors comprises growth in internet access and smartphone usage, which affects the API management market. Companies begin to look for API administration as critical to effective management to expand customer happiness and customer experiences. API management is a global industry that includes important tasks in publishing, documenting, and managing application programming interfaces, which provide safe and necessary access to other services. The primary purpose of API management is to allow organizations to track the life cycle of their APIs and ensure silky smooth integration and interaction within their ecosystems. The other aspect that makes up a greater portion of this business is meeting the special needs of developers because such a collaboration will encourage innovation in the environment. Companies around the globe are taking strides to improve their API services due to the changing demands coming from the customers. Such flexibility will therefore lead to a significant increase in the API management market. Many organizations operating within other business sectors also uses API management solutions for better delivery of individualized insights, customized recommendations, and focused marketing based on consumer demographics, geography, and behavior. With all these factors, the market for API management will go on to witness robust growth through upcoming years.
US API Management Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Solutions
Fastest Growth
Solutions
Growth Rate
34.5% CAGR
Global API Management (BPM) Market ($ Bn)
Country Share for North America Region (%)
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API Management Market Segmental Analysis
Global API Management Market is segmented by Component, Deployment Type, Organization Size, Vertical, and region. Based on component, the market is segmented into Solutions, and Services. Based on Deployment Type, the market is segmented into On-Premises, Cloud. Based on Organization Size, the market is segmented into Large Enterprises, and Small and Medium-Sized Enterprises. Based on Vertical, the market is segmented into BFSI, IT & Telecom, Government, Healthcare & Life Sciences, Retail & Consumer Goods, Media & Entertainment, Travel & Transportation, Manufacturing, and Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Deployment Type
The on-premises segment led the API management market due to its robust data safety and secure application features. Organizations are now preferring on-premises solutions to have better control over their sensitive data and regulatory compliance. Customization options available make API management solutions more appealing to businesses to drive further expansion in this category. Moreover, potential better performance and reliability associated with on-premises deployment attract organizations, especially for mission-critical applications. The on-premises segment is expected to gain momentum in the near future as organizations place greater emphasis on security and personalization.
Conversely, during the forecast period, the API management market's cloud-based segment is anticipated to grow exponentially. This growth may be attributed to companies taking up flexibility and scalability embracing the cloud at a more robust rate. To small and medium-sized business concerns and startups, cloud-based solutions are extremely appealing since it lets them deploy API management systems with minimal capital expenses on hardware. On top of that, cloud-based solutions promote remote work and global teams with improved accessibility and communication. Large-scale demand for cloud-based API management solutions is expected to arise as more firms realize the merits of working with the cloud.
Analysis by Organization Size
Over the projection period, the large enterprises segment accrued the maximum revenue, mainly through corporations globally. Companies are heavily investing in the latest technological advancement to strengthen data interchange through communication networks across different geographic locations. Large enterprises need robust management solutions to ensure the integrity of data and enable optimized operations, especially considering their widespread customer base and the humongous volume of data created. In addition, many organizations are forced to adopt advanced API management solutions because they require high-security guarantees as well as compliance with international standards. Hence, it is expected that the largest enterprises segment will contribute a significant share of revenues over the next years.
On the contrary, the growth rate for the SMEs segment is predicted to be at an impressive growth rate during the forecast period. For one, this is strongly driven by the continued digitization of SMEs; as more of these companies are beginning to realize the full potential of technology in efficiently facilitating both customers' interactions and business processes. SMEs can improve data integration, streamline operations, and deliver more personalized experiences to clients through the strategic investment of API management solutions. It is also becoming increasingly accessible to SMEs to embrace these technologies without a hefty capital investment because of the rise of moderately priced cloud-based API administration choices. Therefore, strong growth in this market is expected provided attempts at digital transformation continue.
Global API Management Market By Deployment Type
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API Management Market Regional Insights
In 2023, North America accounted for the most in the market for API management on basis of several critical factors. There are several companies manufacturing API management solutions in this region; a competitive environment encourages innovation and advancements in technology. Progress in technology, for instance, better integration capabilities and security features, are a few factors that more and more companies are drawn towards selecting an API management solution. Availability of highly skilled technical personnel in North America favors the efficient implementation and use of these systems by organizations. Going forward to the next years, API management solution demand in North America is expected to be high since the focus of business on digital transformation persists and the application of business process improvements.
During the next years, the API management market is predicted to witness the fastest growth rates in Asia-Pacific. Such growth is attributed to the number of mobile users as well as the rapid uptake of e-commerce by developing nations. Businesses realize the need to implement proper API management since more customers interact with digital platforms for the easing of transactions and experiences. However, with the emergence of creative startups and well-established businesses in the region, demand for easier API solutions to make data integration and sharing is driving the growth of the Asia-Pacific API management market.
Global API Management Market By Geography
- Largest
- Fastest
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API Management Market Dynamics
Driver
Rapidly Increasing Demand for Digital Transformation
- The rapidly rising demand for digital transformation in many industries is one of the critical factors driving the API management market. Companies are using APIs to better collaborate, streamline transactions, and connect varied systems. This revolution is allowing organizations to offer customized experiences to their customers, extend operational flexibility, and respond promptly to dynamic changes within an ever-changing market environment. In this scenario, with the increasing focus of more and more businesses on digital activities, there is a growing need for effective API administration solutions.
Rapid Surge in Cloud-Based Technologies
- Growing adoption of cloud is driving the expansion of the API management market. Compared to traditional on-premises systems, cloud-based API management solutions offer enterprises cost-effectiveness, scalability, and flexibility. These technologies make it easier for organizations to deploy and manage APIs across several settings with minimal investment in infrastructure. As more and more businesses adopt the cloud, the demand for cloud-centric API management offerings is predicted to rise sharply.
Restraints
Integration Complexity
- Integration of APIs with older systems has often been the biggest challenge in terms of API management market. Most of the companies possess more aged systems that can negatively affect integration or make it complicated, thus creating functionality and deployment problems. As this complexity may result in considerable time and resource constraints during integration, it is anticipated to deter businesses from adopting a completely new API management solution which will again hinder market growth.
Security Issues
- For firms that are utilizing API management solutions, security is still one of their major concerns. The reason APIs are growing easier for different systems to converse data is that they can also be utilized as entry points for hackers if they are not secured properly. Thus, businesses have to spend much more in vigorous measures to ensure security over sensitive data, which would further make API administration and deployment a bit complicated. This security anxiety is expected to limit general expansion in the API management market as businesses weigh the benefits against losses.
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API Management Market Competitive Landscape
Leading companies in the industry offer advanced network solutions. They are also offering straightforward tools that support hundreds of thousands of end users and no technical expertise is required. Firms are improving the customer experience through the usage of industry-specific management technologies. It is expected that the strategic partnerships, acquisition, and collaboration plans would boost the market share of key companies across the globe.
Top Players Company Profiles
- Google Inc. (US)
- IBM (US)
- Amazon Web Services (US)
- Microsoft (US)
- Akamai Technologies (US)
- WSO2 (Sri Lanka)
- Broadcom (US)
- Axway (France)
- Tibco Software (US)
- Oracle (US)
- Software AG (Germany)
- Red Hat (US)
- SAP (Germany)
- Torry Harris Business Solutions (India)
- Sensedia (Brazil)
- Postman (India)
- Workato (US)
- Kong Inc. (US)
- Tray.io (UK)
- Tyk Technologies (UK)
- OpenLegacy Technologies (US)
- DreamFactory Software (US)
- Teejlab, Inc. (US)
- Nevatech, Inc. (Canada)
- PrestoAPI (US)
- Stoplight (US)
- Gravitee Topco Limited (France)
- Solo (US)
- Krakend (Italy)
Recent Developments
- February 2024: Microsoft Azure API Management announced that the V1 and V2 tiers will include TLS 1.3 compatibility. TLS 1.3 is the latest version of the internet's security protocol.
- November 2023: To achieve greater visibility through the entire lifecycle of software development, US-based IT firm SmartBear Software announced three products, including OpenTelemetry, Test Management and API Management. API data can now be viewed in one place and functionality easily evaluated prior to investing precious time and devoting efforts to API integration through the latest version in API Management.
- August 2023: SmartBear, based in Texas, acquires the API design-first startup Stoplight to expand its product line. The firm is looking to offer a user experience without friction and a no-code API experience.
API Management Key Market Trends
- More Attention to API Security: API management companies are increasingly integrating advanced security features into management systems as more businesses grow concerned with security threats associated with APIs. Some of the functions include authorization, encryption, authentication, and monitoring over information to ensure legal compliance in protecting information. As such, to meet these market needs and gain the confidence of their clients, API management companies are focusing first on security enhancements.
- API-First Development Approach: Ever more popular is the API-first development approach, underlining the power of APIs in modern enterprise software design. Organizations can create more agile, scalable, and interoperable applications by prioritizing API design and development upfront. This trend allows for greater reuse of APIs, richer communication amongst development teams, and faster integration processes-all contributing to a faster time to market and better experiences for clients. Supporting this shift in approaches to development, the API management market is changing.
API Management Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, there are several advantages of API management, including an increase in the market environment, despite obstacles such as security concerns and integration complexity that may prevent its adoption. Due to growing concerns over security, the emergence of new options offered by cloud-based solutions, and growth in demands for digital transformation, the market for API management is expected to grow considerably. Trends are characterized by API-first development and improved security procedures. Though North America is in the lead, the Asia-Pacific region is gaining momentum as a development region at the fastest pace because of a high growth in mobile users and the penetration of e-commerce. In the coming few years, the market is expected to grow exponentially since more businesses now realize the growing importance of effective API management as a means towards improving client experience and operational efficiency.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 4.4 billion |
| Market size value in 2031 | USD 32.31 billion |
| Growth Rate | 24.80% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on API Management Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on API Management Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the API Management Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the API Management Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the API Management Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the API Management Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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