The API management market size has grown exponentially in recent years. It will grow from $4.11 billion in 2024 to $5.24 billion in 2025 at a compound annual growth rate (CAGR) of 27.5%. The growth in the historic period can be attributed to rise of API economy, digitalization and cloud adoption, increasing adoption of microservices architecture, growth of mobile and web applications, focus on developer experience.
The API management market size is expected to see exponential growth in the next few years. It will grow to $16.01 billion in 2029 at a compound annual growth rate (CAGR) of 32.2%. The growth in the forecast period can be attributed to expansion of partner ecosystems, edge computing and edge APIs, regulatory landscape changes, enhanced developer experience, API monetization strategies. Major trends in the forecast period include digital transformation acceleration, proliferation of APIs, hybrid and multi-cloud environments, open banking and financial services, partner ecosystem expansion.
The rising adoption of data-driven decision-making is propelling the growth of the API management market. Data-driven decision-making refers to the practice of making business choices based on data rather than intuition or instinct. As the demand for this approach increases, API management facilitates organizations in implementing data-driven strategies by evaluating channels for data transfer before addressing specific issues. For example, a 2022 study by Foundry, a media, events, and research company, revealed that most organizations had already initiated data-driven projects, with over one-third (33%) having deployed such initiatives, an increase from 28% in 2021. Furthermore, 55% of organizations anticipate an increase in their data initiative budgets, rising from 44% in the previous year. Thus, the growing emphasis on data-driven decision-making is expected to drive the expansion of the API management market.
The swift adoption of mobile devices is anticipated to drive the growth of the API management market in the coming years. A mobile device is defined as a compact, hand-held gadget equipped with a display screen and touch input, offering telephony capabilities to users. The increasing prevalence of smartphones and tablets has led to a significant rise in mobile app development. APIs are essential for facilitating communication and data exchange between mobile applications and backend systems. For example, the Pew Research Center, a U.S.-based think tank, reported that as of 2023, 97% of adults in the U.S. own a cellphone, with 90% owning a smartphone. This marks a considerable increase from prior years, highlighting the deep integration of smartphones into daily life across the nation. Consequently, the rapid adoption of mobile devices is propelling the growth of the API management market throughout the forecast period.
Technological advancements are emerging as a significant trend in the API management market. Leading companies in this space are innovating and introducing cutting-edge technologies to secure a competitive advantage. For instance, in November 2022, Advent International, a U.S.-based private equity firm with extensive sector expertise, launched Cohance Lifesciences, a new brand identity for its API and CDMO platform. This platform consolidates Advent's API-focused assets under a single brand and is forward-integrated into areas such as pellets, formulations, and clinical research, offering comprehensive end-to-end solutions for its clients. The introduction of Cohance Lifesciences exemplifies the company's vision and operational philosophy within the pharmaceutical industry.
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 June 2024, Akamai, a U.S.-based cloud service and content delivery network provider, finalized the acquisition of Noname Security for an undisclosed sum. This acquisition bolsters Akamai's standing in the API security market and enhances its capacity to deliver comprehensive protection for APIs. Founded in 2020, Noname Security is a prominent API security company, and its integration will provide Akamai's customers with advanced solutions to protect their digital environments.
Major companies operating in the API management market 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 2024. 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.
API management is the process of overseeing the design, distribution, publication, and control of APIs. This involves creating APIs or utilizing others' APIs to monitor activity and ensure that the needs of developers and applications using the API are effectively met.
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.
The API management market research report is one of a series of new reports that 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.
This product will be delivered within 3-5 business days.
The API management market size is expected to see exponential growth in the next few years. It will grow to $16.01 billion in 2029 at a compound annual growth rate (CAGR) of 32.2%. The growth in the forecast period can be attributed to expansion of partner ecosystems, edge computing and edge APIs, regulatory landscape changes, enhanced developer experience, API monetization strategies. Major trends in the forecast period include digital transformation acceleration, proliferation of APIs, hybrid and multi-cloud environments, open banking and financial services, partner ecosystem expansion.
The rising adoption of data-driven decision-making is propelling the growth of the API management market. Data-driven decision-making refers to the practice of making business choices based on data rather than intuition or instinct. As the demand for this approach increases, API management facilitates organizations in implementing data-driven strategies by evaluating channels for data transfer before addressing specific issues. For example, a 2022 study by Foundry, a media, events, and research company, revealed that most organizations had already initiated data-driven projects, with over one-third (33%) having deployed such initiatives, an increase from 28% in 2021. Furthermore, 55% of organizations anticipate an increase in their data initiative budgets, rising from 44% in the previous year. Thus, the growing emphasis on data-driven decision-making is expected to drive the expansion of the API management market.
The swift adoption of mobile devices is anticipated to drive the growth of the API management market in the coming years. A mobile device is defined as a compact, hand-held gadget equipped with a display screen and touch input, offering telephony capabilities to users. The increasing prevalence of smartphones and tablets has led to a significant rise in mobile app development. APIs are essential for facilitating communication and data exchange between mobile applications and backend systems. For example, the Pew Research Center, a U.S.-based think tank, reported that as of 2023, 97% of adults in the U.S. own a cellphone, with 90% owning a smartphone. This marks a considerable increase from prior years, highlighting the deep integration of smartphones into daily life across the nation. Consequently, the rapid adoption of mobile devices is propelling the growth of the API management market throughout the forecast period.
Technological advancements are emerging as a significant trend in the API management market. Leading companies in this space are innovating and introducing cutting-edge technologies to secure a competitive advantage. For instance, in November 2022, Advent International, a U.S.-based private equity firm with extensive sector expertise, launched Cohance Lifesciences, a new brand identity for its API and CDMO platform. This platform consolidates Advent's API-focused assets under a single brand and is forward-integrated into areas such as pellets, formulations, and clinical research, offering comprehensive end-to-end solutions for its clients. The introduction of Cohance Lifesciences exemplifies the company's vision and operational philosophy within the pharmaceutical industry.
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 June 2024, Akamai, a U.S.-based cloud service and content delivery network provider, finalized the acquisition of Noname Security for an undisclosed sum. This acquisition bolsters Akamai's standing in the API security market and enhances its capacity to deliver comprehensive protection for APIs. Founded in 2020, Noname Security is a prominent API security company, and its integration will provide Akamai's customers with advanced solutions to protect their digital environments.
Major companies operating in the API management market 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 2024. 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.
API management is the process of overseeing the design, distribution, publication, and control of APIs. This involves creating APIs or utilizing others' APIs to monitor activity and ensure that the needs of developers and applications using the API are effectively met.
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.
The API management market research report is one of a series of new reports that 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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. API Management Market Characteristics3. API Management Market Trends and Strategies4. API Management Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global API Management Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the API Management Market34. Recent Developments in the API Management Market
5. Global API Management Growth Analysis and Strategic Analysis Framework
6. API Management Market Segmentation
7. API Management Market Regional and Country Analysis
8. Asia-Pacific API Management Market
9. China API Management Market
10. India API Management Market
11. Japan API Management Market
12. Australia API Management Market
13. Indonesia API Management Market
14. South Korea API Management Market
15. Western Europe API Management Market
16. UK API Management Market
17. Germany API Management Market
18. France API Management Market
19. Italy API Management Market
20. Spain API Management Market
21. Eastern Europe API Management Market
22. Russia API Management Market
23. North America API Management Market
24. USA API Management Market
25. Canada API Management Market
26. South America API Management Market
27. Brazil API Management Market
28. Middle East API Management Market
29. Africa API Management Market
30. API Management Market Competitive Landscape and Company Profiles
31. API Management Market Other Major and Innovative Companies
35. API Management Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
API Management Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on api management market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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- Benchmark performance against key competitors.
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- Report will be updated with the latest data and delivered to you along with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for api management? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The api management market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Component: Solutions, Services2) by Deployment: on-premises, Cloud
3) by Organization Size: Large Enterprises, Small and Medium Size Enterprises
4) by Vertical: BFSI, IT and Telecom, Retail and Consumer Goods, Travel and Transportation, Government, Media and Entertainment, Healthcare and Life Sciences, Manufacturing, Other Verticals (Education and Energy and Utilities)
Subsegments:
1) by Solutions: API Gateway; API Analytics; API Security; API Design and Development; API Testing Tools; API Documentation2) by Services: Consulting Services; Implementation Services; Support and Maintenance Services; Training and Education Services
Key Companies Mentioned: International Business Machines Corporation; Google LLC; Oracle Corporation; Red Hat Inc.; Software AG
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this API Management market report include:- 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.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 5.24 Billion |
| Forecasted Market Value ( USD | $ 16.01 Billion |
| Compound Annual Growth Rate | 32.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 31 |
