API Management Global Market Report 2024

The global api management market has grown exponentially in recent years. It will grow from $3.25 billion in 2023 to $4.19 billion in 2024 at a compound annual growth rate (CAGR) of 28.7%. The growth observed in the historical period can be attributed to several factors, including the rise of the API economy, the widespread digitalization and adoption of cloud technologies, an increasing embrace of microservices architecture, the growth of mobile and web applications, and a heightened focus on enhancing developer experience.

The global api management market is expected to see exponential growth in the next few years. It will grow to $11.99 billion in 2028 at a compound annual growth rate (CAGR) of 30.1%. The anticipated growth in the forecast period can be attributed to several factors, including the expansion of partner ecosystems, the emergence of edge computing and edge APIs, changes in the regulatory landscape, an increased focus on enhancing developer experience, and the implementation of API monetization strategies. Key trends expected in the forecast period include the acceleration of digital transformation, the proliferation of APIs, the prevalence of hybrid and multi-cloud environments, the advent of open banking and financial services, and the continued expansion of partner ecosystems.

The surge in data-driven decision-making practices is significantly propelling the API management market. This approach involves using data to inform business decisions rather than relying on intuition. API management solutions have become pivotal in facilitating data-driven strategies by evaluating data transfer channels before addressing specific business issues. In a study conducted by Foundry in 2022, a considerable portion of organizations had already implemented data-driven projects, with over one-third reporting deployment, marking an increase from the previous year's statistics. Moreover, there's a notable uptick in the percentage of organizations expecting to enhance their budgets for data initiatives, indicating a growing demand for leveraging data-driven decision-making, which is expected to drive the API management market's growth.

The rapid adoption of mobile devices is forecasted to be a key driver for the expanding API management market. The proliferation of smartphones and tablets has led to a surge in mobile app development. APIs play a critical role in facilitating seamless communication and data exchange between mobile applications and backend systems. For instance, as reported by the Economic Times in October 2021, India witnessed significant mobile device usage, with 1.18 billion mobile connections, 700 million internet users, and 600 million smartphones in operation. This substantial adoption of mobile devices contributes significantly to the growth trajectory of the API management market.

A prominent trend shaping the API management market is technological advancement. Key players in this domain are actively innovating and introducing cutting-edge technologies to maintain a competitive advantage. In February 2021, Google, a leading technology company, launched the 'Apigee X' API management platform. This platform harnesses Google's AI-ML-based technology to detect anomalies and manage operations efficiently. Additionally, the integration of Google's cloud armor firewall and cloud identity access management platform within the Apigee X platform eliminates the need for third-party firewall and identity management tools, marking a significant advancement in API management solutions.

Major companies in the API management sector are intensifying their efforts to develop and launch advanced technologies such as the ChatGPT API, aiming to gain a competitive advantage. The ChatGPT API stands as a robust tool that grants access to GPT-3.5 and GPT-4-based versions of the chat generative pre-trained transformer. For instance, in March 2023, OpenAI, a US-based technology firm, unveiled the ChatGPT API, offering businesses the capability to seamlessly integrate the advanced language model, ChatGPT, into their websites, applications, and email platforms. This API equips developers with cutting-edge language and speech-to-text functionalities, empowering them to design more efficient and interactive applications.

In March 2021, UiPath, a New York-based enterprise automation software company, acquired Cloud Elements for an undisclosed sum. This strategic acquisition reinforces UiPath's leadership in fostering innovation within the industry. Additionally, it extends UiPath's customers the flexibility to automate processes utilizing a well-balanced combination of UI and API-based automation techniques. Cloud Elements, established in 2012, operates as a US-based cloud API integration platform.

Major companies operating in the api management market report are International Business Machines Corporation, Google LLC, Oracle Corporation, Red Hat Inc., Software AG, Axway Software SA, MuleSoft Inc., Microsoft Corporation, SAP SE, Amazon Web Services Inc., TIBCO Software Inc., Kony Inc., Rogue Wave Software Inc., Sensedia S.A, DigitalML Limited, Cloud Elements Inc., Solo.io, Stoplight, Teejlab Inc., Nexright Inc., WSO2 Inc., Mashape Inc., SnapLogic Inc., TYK Technologies Ltd., Broadcom Inc., Fiorano Software Inc., Postman Labs Inc., Workato Inc., MuleSoft LLC, SmartBear Software Inc.

North America was the largest region in the API management market share in 2023. The regions covered in the api management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the api management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components of API management encompass both solutions and services. API management solutions involve activities such as API designing, controlling, analytics, and overall management. These solutions are essentially computer programs designed to execute specific actions with the API. API management can be deployed in various ways, including on-premises and in the cloud, catering to both large enterprises and small to medium-sized enterprises. The industry verticals adopting API management solutions span diverse sectors such as BFSI, IT and telecom, retail and consumer goods, travel and transportation, government, media and entertainment, healthcare and life sciences, manufacturing, and other verticals such as education, energy, and utilities.

This report provides API management market statistics, including API management industry global market size, regional shares, competitors with an API management market share, detailed API management market segments, market trends and opportunities, and any further data you may need to thrive in the API management industry. This API management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The API management market consists of revenues earned by entities by providing tracking services and performance monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The API management market also includes sales of solutions such as internal APIs, open APIs, and composite API solutions. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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