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The API management market size is forecast to increase by USD 3.17 billion at a CAGR of 11.6% between 2023 and 2028. The API management market is experiencing significant growth due to several key trends. The increasing use of digital payment solutions and the growing number of digital wallets are major drivers for market expansion. These trends are particularly prominent in developing countries where poor internet connectivity is being addressed through the adoption of big data analytics systems and offline payment methods and API-enabled microservices. Additionally, the need for secure and scalable API infrastructure to support the growing number of applications and services is fueling market demand. Organizations are recognizing the importance of API management in enabling digital transformation and improving customer experience, leading to increased investments in this area. Overall, the API management market is poised for growth in the coming years.
The API management market is experiencing significant growth due to the increasing adoption of digital transformation in various industries such as IT and telecom, media and entertainment, travel and transportation, and others. With the rise of microservices and cloud services, application interconnectivity has become essential, leading to an increased demand for API management solutions in smartphones and tablets. Data interchange through APIs is critical in today's multi-cloud and hybrid environments, requiring security solutions to protect against threats. API security solutions servers offer advanced features such as authentication, authorization, and encryption to ensure data privacy and compliance. API analytics and monitoring features enable real-time data processing and event-driven APIs, providing valuable insights for businesses. Automation of API lifecycle management streamlines development, testing, deployment, and maintenance processes. API management offers advanced digital solutions for communication, telemedicine, and artificial intelligence applications. Developer portals facilitate easy discovery and integration of APIs to mobile applications, while API monetization models enable revenue generation for businesses. Both on-premises and cloud-based API management solutions cater to diverse industry needs.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The cloud segment is estimated to witness significant growth during the forecast period. API Management Market is experiencing significant growth due to the increasing adoption of Data Interchange in Digital Transformation initiatives. Microservices and Cloud Services are driving the demand for Application Interconnectivity, necessitating solutions for Security in Multi-cloud and Hybrid Environments.
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The cloud segment was the largest segment and was valued at USD 1.85 billion in 2018. API Security Solutions, Automation, and API Lifecycle Management are becoming essential for Third-party API Management and Partner-facing APIs. Digital Integration is a key trend, with API Gateways, Load Balancing, Protocol Transformation, and Caching Capacity playing crucial roles. Cloud Computing and Digital Services are expanding the API Management landscape, with Monitoring Performance and Mobility becoming essential. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. API Management is a critical component of Digital Transformation, enabling seamless Data Interchange between various applications and systems. With the rise of Microservices, Cloud Services, and Multi-cloud environments, Application Interconnectivity has become essential. Security is a top priority in Api Management, with solutions addressing API Security concerns in Hybrid Environments. Hence, such factors are driving the market in North America during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing use of digital payment solutions is notably driving market growth. The proliferation of digital solutions in various industries is driving the demand for advanced digital communications and real-time data exchange. In the banking sector, customer data security and event-driven APIs are crucial for providing seamless digital payment experiences.
API design, discovery, documentation, and integration are essential components of digital payment solutions, enabling smooth communication between applications and cloud platforms. Telemedicine, transport and logistics, and communication networks are also benefiting from API-driven digital transformation. Thus, such factors are driving the growth of the market during the forecast period.
Growing number of digital wallets is the key trend in the market. The proliferation of digital wallet apps in various industries, particularly in banking, has led to an increased need for effective API management solutions. Real-time data access and event-driven APIs are essential for advanced digital solutions, such as telemedicine and communication networks, to ensure seamless communication and data exchange.
Customer data security is paramount, and API design, discovery, documentation, and integration play a crucial role in maintaining data privacy and security. With the rise of artificial intelligence and cloud platforms, enterprises must address digital data threats through API security measures. In transport and logistics, API integration enables efficient data sharing and streamlined operations. Hence, such factors are driving the market during the forecast period.
Poor Internet connectivity in developing countries is the major challenge that affects the growth of the market. In today's world of App Proliferation, real-time data exchange is essential for businesses to deliver Advanced Digital Solutions that cater to their customers' needs. Event-driven APIs play a pivotal role in facilitating seamless communication between applications, enabling the integration of services such as telemedicine, transportation and logistics, and digital payments.
API Design, Discovery, and Documentation are crucial aspects of API Management, ensuring secure and efficient data transfer. Real-time data processing is imperative in sectors like investment banking, where every transaction requires immediate confirmation. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc: The company offers API management such as pay as you go prices for twitter and other apps by Google cloud and Cloud DNS.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing adoption of digital transformation, microservices, and cloud services in various industries. Data interchange through APIs is crucial for application interconnectivity in digital services, IT and telecom, media and entertainment, travel and transportation, and IoT. API security solutions are essential to ensure secure data exchange in multi-cloud and hybrid environments. API management offers features like API gateways, load balancing, protocol transformation, caching capacity, traffic management, and API monitoring. Cloud technology plays a key role in API management, enabling on-premises and cloud deployment options. Third-party API management and partner-facing APIs are becoming increasingly important for digital integration. Automation, API lifecycle management, and intelligent automation through robotic process automation are also key trends in the market. Open banking and API monetization are also driving growth in the market. API security is a major concern, and API management solutions provide advanced security features. Cloud computing, digital services, and mobility are also key drivers for the API management market. The market is expected to grow significantly in the coming years due to these trends and the increasing importance of APIs in digital business.
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Market Scope |
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Report Coverage |
Details |
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Page number |
140 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.6% |
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Market growth 2024-2028 |
USD 3.17 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
10.1 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 29% |
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Key countries |
US, China, Germany, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akamai Technologies Inc., Alphabet Inc., Amazon.com Inc., Axway Software SA, Boomi LP, Broadcom Inc., International Business Machines Corp., Kong Inc, Microsoft Corp., Oracle Corp., Postman Inc., Salesforce Inc., SAP SE, Sensedia SA, Software AG, TIBCO Software Inc., Torry Harris Business Solutions, Workato Inc., and WSO2 Inc. |
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Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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