The market for API management solutions is necessitated as it provides several benefits that are crucial for businesses in the present digital era. API administration tools assist companies in better managing their APIs, which can enhance their quality and increase their efficiency. By eliminating the need for manual API development, API management solutions can also allow enterprises to save time and money.
The value of the API Management market is projected to grow to USD 13.56 Billion with an estimated CAGR of 28.77% by 2028
COVID-19 Impact and Market Status
The COVID-19 pandemic has had a significant impact on the API management solutions market, with a decrease in demand from key sectors such as government, healthcare, retail, and manufacturing. However, the market is expected to recover in 2021 as businesses adapt to the new normal and continue to invest in digital transformation initiatives as well as API management solutions.
The Cloud-based Type to Emerge as the Most Lucrative Segment
The market is divided into two types based on types: on-premises and cloud. Because of their benefits, such as scalability, flexibility, and cost-effectiveness, as well as the growing trend of cloud computing, cloud-based API management solutions are predicted to develop at the greatest CAGR among these.
The SMEs Segment is the most promising Organization Size
Small and medium-sized businesses (SMEs) and large businesses make up the two segments of the market for API management solutions based on the size of the organization. Small and medium-sized businesses (SMEs) are anticipated to develop faster than large corporations during the projected period. This expansion can be because SMEs are becoming more aware of API management solutions and are realizing how important it is to use them to remain competitive.
The Services to be the most prominent Component
The market for API management solutions is split into solutions and services based on component types. Because they assist businesses in efficiently designing, developing, deploying, and managing APIs as well as providing support and maintenance services, services are predicted to grow at a higher CAGR than the others.
The BSFI Industry Segment is the Most Popular End-User
The API management solutions market is divided into the banking, financial services, and insurance (BSFI), healthcare, retail, manufacturing, government, information technology (IT), and telecommunications sectors, among others, depending on the industry vertical. Due to the rising demand for fraud prevention and detection services in this industry and the increasing usage of mobile banking applications, BSFI is anticipated to expand at the highest CAGR among these throughout the projected timeframe.
Asia Pacific (APAC)region to render Adequate Financing Avenues
The API management solutions market is divided into North America, Europe, Asia Pacific (APAC), South America, and the Middle East and Africa (MEA). Due to the rising recognition of API management solutions in this area and the growing number of government programs to promote digital transformation, APAC is estimated to expand with the fastest CAGR over the projection period.
The demand for improved API security as well as the growing usage of cloud-based API management solutions is driving the growth of the global market for API management solutions. Further, the rising demand for mobile apps is fueling this market's expansion and is anticipated to do so for the duration of the forecast.
API management solutions are used to manage APIs, which are software programs that allow two applications to communicate with each other. An API management solution provides a set of tools that helps a company build, deploy, and manage its APIs. It also allows companies to control access to their APIs, as well as track and analyze the usage of their APIs.
The market for API management solutions aids businesses in the design, deployment, security, and management of APIs. Developers can construct, publish, and administer APIs on a platform provided by an API management service. Along with managing API lifecycles, the system also has features for security, analytics, and monetization. Organizations may improve client engagement, accomplish lesser time, and promptly release new features with the help of API management solutions.
API management solutions provide a wide range of services, including API testing, API documentation, API monitoring, API development, and API analytics. Among all these offerings, API testing is currently gaining in popularity as it assists in finding flaws and mistakes before the API goes live. Additionally, API analytics are utilized to evaluate API effectiveness and comprehend user behaviour.
The market for API management solutions is predicted to increase worth USD 2.3 billion in 2019 approximately USD 40.7 billion in 2029, at a CAGR of 33.8%. The expansion of this market can be attributed to the rising uptake of API management solutions by large and small businesses alike, as well as the rising demand for APIs from a variety of sectors, including government, healthcare, retail, manufacturing, and the banking, financial services, and insurance (BSFI) industries.
The scarcity of standardization concerning integration with current corporate systems is a hurdle for the market for API management solutions. This frequently results in higher expenses and a more intricate overall architecture. Another difficulty facing this market is the requirement for experienced employees for the efficient installation and operation of these solutions. Nevertheless, it is anticipated that some of these issues will be resolved over the forecast period as cloud-based API management services become more widely used.
The top companies offering API management solutions include Amazon Web Services, Inc., Google LLC, Inc., MuleSoft, LLC, Microsoft Corporation, 3scale by Red Hat, Inc., SAP SE (Germany), Akana, Inc., Layer7 Technologies from CA Technologies (Canada), Mashery, Inc. from Tibco Software Inc., IBM Corporation, MuleSoft CA Technologies and others. The study of marketing and development strategies, the product portfolios of top corporations, and an overview are all included in this report. Along with their SWOT analysis and market strategies, the profiles of prominent firms are also included.
Recent Developments in the API Management Solution Market
- There have been several significant breakthroughs in the market for API management solutions in recent years. A few of these include:
- The release of new and enhanced API management solutions by top vendors including IBM, Microsoft, Google, Amazon Web Services (AWS), and CA Technologies
- The flexibility and scalability they provide are the main reasons why cloud-based API management solutions are becoming more and more popular.
- A range of sectors, including the government, healthcare, retail, manufacturing, banking, financial services, and insurance (BSFI) industries, are experiencing an increase in demand for APIs.
- Toto successfully monitors and manages their APIs, organizations are increasingly in need of improved control over them.
- All types of companies are becoming more and more aware of how important APIs are.
API Management Solution Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 40.7 billion|
|Growth Rate||CAGR of 33.8 % during 2022-2030|
|Segment Covered||Type, Organization, Component, End-User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Amazon Web Services, Inc., Google LLC, Inc., MuleSoft, LLC, Microsoft Corporation, 3scale by Red Hat, Inc., SAP SE (Germany), Akana, Inc., Layer7 Technologies from CA Technologies (Canada), Mashery, Inc. from Tibco Software Inc|
Key Segments of the Global API Management Solution Market
Type Overview, 2019-2029 (USD Billion)
Organization Size Overview, 2019-2029 (USD Billion)
- Large Enterprises
Component Overview, 2019-2029 (USD Billion)
End-User Overview, 2019-2029 (USD Billion)
- IT and Telecom
- IT and Telecom Retail
Regional Overview, 2019-2029 (USD Billion)
- The rest of Europe
- Asia-Pacific as a whole
- South America's remaining countries
Middle East and South Africa