API Management Market

The global API Management Market is valued at USD 5234.91 Million in 2022 and is projected to reach a value of USD 30608.41 Million by 2030 at a CAGR of 24.70% over the forecast period.

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API security is a method of securing APIs from external or internal cyberattacks. APIs are regularly used to enable access to software functions and databases. This frequent usage enables cyberattacks and phishing threats for hackers and attackers. The primary driver for the global API Management market to flourish during the forecast period is the rising number of businesses that rely on critical data and the growing utilization of data-driven decision-making solutions.

Additionally, the rising penetration of smartphones and laptops and improving internet access globally will contribute to the global API Management market during the forecast period.

Increasing functionality of APIs, such as publishing, documenting, and managing the application programming interface, is expected to act as a boon for the global API Management market. Globally, firms have begun implementing data-driven strategies for dealing with their application programmer interfaces to respond swiftly to client requirements changes. Additionally, the integration of advanced solutions such as SOAs, and PaaS integrators and the transformation of digital networks will further increase the viability of the market growth.

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Since APIs use a wide range of tools such as subroutines, tools, and different protocols for developing and managing different applications, they are considered a constant mediator between software and hardware. This is an important bridge that is valuable for developers. These factors are expected to contribute to the sustainable growth of the global API Management market during the forecast period. However, issues related to data security, legacy investments in the SOA sector, and a lack of skilled professionals are emerging as major restraints for the global API Management market during the forecast period.

Top Market Trends

1. Wider Utilization: Some major contributors to the API Management market are increasing mobility, rising mobile subscribers, a wider app proliferation, and social media rise, along with the growth in the APIs of private and public servers.

2. Increasing Security Countermeasures: Increasing security among end-use verticals, including BSFI and IT & telecom, will rise due to the exchange of critical data, which will widen the market scope during the forecast period. Vulnerabilities in the network can be detected with the integration of API solutions.

3. Application Proliferation: Mobility & proliferation of mobile applications is expected to contribute to the market sustainably. Rising mobile subscribers, increasing social media usage among the general population, and widening awareness of e-commerce from various end users will contribute to segmental growth.

4. Growing Integration of APIs in SMEs: API Management systems were primarily used in large organizations as they have a higher budget for system controls. However, during the forecast period, it is expected that SMEs will begin incorporating a wider integration as the cost of services will lessen. Cloud deployment will further enable the growth of APIs among SMEs on a larger scale. Additionally, rising global competition and the growing adoption of digital initiatives will bolster market growth.

5. Retail & Manufacturing to See Heavy Usage: APIs play a pivotal aspect of retail manufacturing to change and improve the consumer experience. APIs provide retailers access to their consumers remotely with services including online ordering, pick-ups, and personalized recommendations. These factors will contribute to the global API Management market during the forecast period.

6. Increasing Mobile Applications: Mobile APIs integrate an enterprise's massive data into a usable framework onto a mobile device. The front end of a mobile phone app is the most popular interface for most of the users. As demand from users gets complicated, mobile-based applications are expected to become more reliant on integrated data from many sources.

Market Segmentation

The global API Management market can be categorized on the following: Component, Deployment Type, Organization Size, Vertical, and Regions. Based on the Components, the market can be categorized into Solutions, API Platforms, API Analytics, API Security, Services, Integration & Implementation, Consulting, Support & Maintenance, and Training & Education. Furthermore, based on the Deployment Types, the market can be segmented across On-Premises and Cloud. Moreover, in terms of Organization Sizes, the market can be fragmented across Large Enterprises and Small & Medium-Sized Enterprises. Based on the Verticals, the market can be split between BFSI, IT & Telecom, Retail & Consumer Goods, Travel & Transportation, Government, Media & Entertainment, Healthcare & Life Sciences, Manufacturing, and Other Verticals (Education, Energy & Utilities). Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Components

Solutions to Occupy the Largest Market Share Owing to Large Data Generation Through IoT Devices

The solution segment is expected to occupy the largest market share in revenue and sales during the forecast period. A rising number of external and internal users is expected to push the segmental growth during the forecast period. Rising IoT devices and increasing mobile applications will further sustainably fuel the market's growth. Businesses worldwide require higher manipulation of data through APIs to improve user experiences. Services will grow at the fastest growing CAGR during the forecast period owing to the rising integration of APIs within the training & education sector.

Based on Deployment Types

On-Premises to Account for the Largest Market Size Due to Rising Utilization in BSFI & IT

Rising integration of On-Premise deployment is expected to register the largest market share during the forecast period. The user can easily access API Management solutions deployed on-premises as it is a physical presence within the company's data center. Organizations that deal with critical user data, such as many consumers’ sensitive data, often opt for On-Premise deployment mode as security is of the utmost importance. The cloud deployment type is expected to grow with the fastest growing CAGR during the forecast period owing to growing maintenance costs, hardware and software costs, and other necessary tools.

Based on Enterprise Sizes

Large Organizations Reign Dominance while SMEs Grow with the Fastest CAGR

The sub-segmental growth for large organizations is expected to dominate the market share in the enterprise size segment. Large organizations have a huge budget for deploying countermeasures and setting up on-premise systems within their data centers. This will lead to a higher adoption rate for large organizations during the forecast. Large organizations are also economies of scale and handle a wider array of web applications and mobile devices, contributing to higher growth over its counterpart. SMEs are expected to grow with the fastest CAGR during the forecast period owing to the rising integration of IoT-based devices and increasing awareness.

Based on Verticals

BSFI to Dominate Maximum Revenue Share due to Rising Modes of Banking

The BSFI segment will account for the largest market share in revenue and sales as major industry sections have begun monetizing APIs and standardizing API technology within banking systems. The BSFI industry is expected to move within transforming its business operations and enhancing customers' and bankers' experiences. Continuous adoption of APIs into banking is expected to change how data is often handled, along with a wide range of integration of services. IT & telecom will grow with the fastest growing CAGR during the forecast period owing to increased data handling applications and rising security measures.

Based on Region

Asia Pacific to Register Dominance While North America to Grow with a Rapid Pace

The maximum growth for the global API Management market is expected to be displayed in Asia Pacific. Factors such as the rising integration of cloud technology and widening initiatives undertaken by various government bodies will contribute to market growth. Additionally, the rising utilization of Internet of Things (IoT) based devices in the region will pull a fruitful role in the development of the market. The rising number of SMEs within the region and an increased focus on cloud deployment will increase the market's footprint during the forecast period.

North America is expected to grow with the fastest-growing CAGR during the forecast period. Mobile APIs are particularly utilized in a large number in the region. Increasing mobile phone numbers and rising e-commerce platforms are expected to propel market growth.

Competitive Landscape

The prominent global API Management market players have a huge consumer base and a strong geographic presence. This larger consumer base is attributed to the strong distribution channel these companies focus on, leading to driven business revenue. Leaders in the market are focusing on product development by participating in strategies such as acquisitions, mergers, & accelerated product development.

The key players in the global API Management market are Google (US), IBM (US), Microsoft (US), Axway Software (US), Broadcom Inc. (US), to note a few.

Recent Market Developments

· March 2022: Google announced that they would be launching the Last Mile Fleet Solutions and Cloud Fleet Routing API for marketing their fleet operators. This announcement is expected to improve the delivery process and meet the upcoming challenges caused by the pandemic.

· March 2022: Microsoft announced the Azure Private Link Support for API Management service. With this announcement, consumers can configure a private endpoint for their API Management instances for clients within their private networks over Azure Private Link in a secure manner.

· March 2022: Amazon Web Services announced that the general availability of AWS Cloud Control API would help developers manage their cloud infrastructures. This announcement will allow for greater implementation of the latest AWS capabilities.

· September 2021: Amazon Web Services announced that the general availability of AWS Cloud Control API will help developers manage their cloud infrastructures. This announcement will allow for a greater implementation of the latest AWS capabilities.

· May 2021: MuleSoft announced the launch of their latest product, DataGraph. This addition will be a new tool to the AnyPoint Platform that will allow streaming a wide range of API services.

· March 2021: Automation Anywhere and Google announced they partnered to introduce smart automation capabilities among the most common business processes.

Segmentation of the Global API Management Market