API Management Market Size, Share, Growth Analysis, By Component, By Deployment Type, By Organization Size, By Vertical, By Region - Industry Forecast 2024-2031

Global 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).

The global market for API management is projected to experience substantial growth during the forecast period. As customers increasingly seek to connect with businesses through various channels and devices-such as web platforms, mobile devices, laptops, tablets, and interconnected devices-companies are compelled to adopt more effective frameworks to enhance end-user experiences. This shift has led to widespread adoption of Application Programming Interfaces (APIs), which facilitate the sharing of information across organizational boundaries. As the use of APIs expands, the demand for API management solutions has risen correspondingly. API management involves a set of practices that provide control and visibility over APIs used to link data and applications across cloud environments and enterprises. It includes features such as an API gateway, developer portal, support for API monetization, and comprehensive API lifecycle management. Organizations leverage API management to maximize the value of their data services by providing APIs to internal and external developers, including partners. This approach supports the development, management, scaling, and analysis of APIs, thereby unlocking their full potential.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global API Management market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global 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.

Drivers of the Global API Management Market

Key drivers of the global API management market include the rise in mobile subscribers, the proliferation of apps, the growth of social media, and the expansion of APIs in both public and private sectors. Additionally, the increasing use of web APIs, coupled with advancements in the Internet of Things (IoT) and big data requirements, is contributing significantly to the market's expansion. The surge in mobile connectivity and the growing demand for integrated applications are fueling the need for effective API management solutions. As organizations seek to leverage web APIs and address the complexities associated with IoT and big data, the API management market is poised for substantial growth, driven by these technological advancements and evolving industry needs.

Restraints in the Global API Management Market

Data security concerns, existing investments in Service-Oriented Architecture (SOA), and the need for expert performance monitoring are emerging as significant challenges affecting market growth. These factors pose obstacles to the development and implementation of effective API management solutions. As organizations continue to invest in legacy systems and address data security issues, they must also contend with the complexities of performance monitoring by skilled professionals. These challenges can impact the overall growth and efficiency of the API management market, requiring targeted strategies to overcome them.

Market Trends of the Global API Management Market

Organizations recognize the importance of software for enhancing growth and agility. Low-code API management platforms are instrumental in the effective implementation and optimization of API management solutions. These platforms enhance security, reducing the risk of cyberattacks, and provide executives with valuable technical insights into API lifecycle management. This improved visibility and control over API development are crucial for ensuring robust management practices. Low-code API management solutions offer significant advantages to organizations of all sizes, from large corporations to small and medium-sized businesses. By simplifying the process of API management and increasing overall platform security, low-code platforms enable organizations to manage their APIs more effectively and securely.