Application Programming Interface (API) Security Global Market Report 2024

The application programming interface (API) security market size has grown exponentially in recent years. It will grow from $0.76 billion in 2023 to $1.02 billion in 2024 at a compound annual growth rate (CAGR) of 33.9%. The growth observed during the historical period can be attributed to several factors, including the increasing prevalence of cyber threats, widespread adoption of cloud computing, proliferation of APIs in software development, emergence of mobile applications, and the need for regulatory compliance requirements.

The application programming interface (API) security market size is expected to see exponential growth in the next few years. It will grow to $3.2 billion in 2028 at a compound annual growth rate (CAGR) of 33.1%. The anticipated growth in the forecast period is expected to be driven by several key factors, including the proliferation of Internet of Things (IoT) devices and applications, the expansion of microservices architecture, increased adoption of artificial intelligence (AI) and machine learning in security measures, integration of blockchain technology, and a heightened focus on API security within DevOps practices. Major trends projected for this period include the automation of API security, implementation of enhanced authentication mechanisms, heightened emphasis on encryption and tokenization techniques, robust API security testing and vulnerability management practices, as well as widespread adoption of API security standards and best practices.

The escalating cyber threats are anticipated to drive the application programming interface security market forward. Cyber threats encompass malicious activities and potential dangers that exploit computer systems, networks, and digital infrastructure. This surge in cyber threats is attributed to the growing reliance on technology and interconnected systems in businesses, which creates new opportunities to exploit vulnerabilities. API security plays a critical role in implementing proper authentication and authorization mechanisms, ensuring that only authorized users and applications can access the APIs, thereby preventing unauthorized access and safeguarding sensitive data. For instance, according to the Internet Crime Report (IC3) by the Federal Bureau of Investigation (FBI), in 2023, there were 880,418 cyber complaints registered, resulting in potential losses exceeding $12.5 billion. This marks an almost 10% increase in complaints received and represents a 22% increase in losses suffered compared to 2022. Hence, the escalating complexity of cyber threats is expected to propel the growth of the application programming interface security market.

Key players in the application programming interface (API) security market are concentrating on developing advanced technologies such as machine learning API security systems that dynamically adapt to evolving cyber threat patterns to predict, detect, and proactively respond to potential security breaches in real-time. For example, in August 2023, Traceable AI, a US-based API security company, introduced digital fraud prevention capabilities within its API security platform. This innovation incorporates machine learning-powered threat and fraud prevention, unique user and entity profiling, proactive anomaly detection, and seamless integrations with other security platforms. Traceable AI's digital fraud prevention capabilities provide a comprehensive and flexible strategy for safeguarding enterprises against digital fraud, utilizing modern technologies such as graph machine learning and smart user profiling. These features effectively combat fraudulent activities across APIs and digital interfaces.

In July 2023, Graylog Inc., a management and security analytics software company headquartered in the United States, completed the acquisition of Resurface.io's Application Programming Interface (API) security solution for an undisclosed sum. This strategic move is designed to bolster Graylog Inc.'s security portfolio, providing an advanced API security threat detection and incident response platform. Resurface Labs Inc., a technology company based in the US, specializes in developing API monitoring software for organizations.

Major companies operating in the application programming interface (api) security market are International Business Machines Corporation, Oracle Corporation, Palo Alto Networks Inc., Fortinet Inc., Akamai Technologies Inc., Software AG, Axway Software SA, MuleSoft, Traceable Inc., WS02, Ergon Informatik AG, Sensidia, Salt Security Inc., Avanan Inc., Cequence Security Inc., Data Theorem Inc., 42 Crunch Ltd, Apigee, Noname Security, Imperva Inc., Red Hat Inc., Moesif Inc., Forum Systems, Wallarm Inc., Spherical Defense.

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

API security encompasses the measures and practices put in place to safeguard the integrity of APIs, ensuring the protection of communication and data exchange between software applications, servers, or systems that interact via APIs. This involves real-time monitoring and logging of API activities to detect suspicious behavior, analyze security incidents, and aid in post-incident investigations.

The primary offerings in API security include platforms, solutions, and services. Platforms consist of technologies, tools, or services that form the foundation for developing and running applications, while solutions offer comprehensive approaches to address specific challenges or fulfill particular needs. Deployment models typically involve cloud and on-premise deployment, catering to large enterprises and small and medium enterprises across various sectors such as banking, financial services, and insurance (BFSI), government, IT and telecom, manufacturing, retail and e-commerce, media and entertainment, healthcare, energy, utilities, and others.

The application programming interface (API) security market research report is one of a series of new reports that provides application programming interface (API) security market statistics, including application programming interface (API) security industry global market size, regional shares, competitors with application programming interface (API) security market share, detailed application programming interface (API) security market segments, market trends, and opportunities, and any further data you may need to thrive in the application programming interface (API) security industry. This application programming interface (API) security market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The application programming interface security market consists of revenues earned by entities by providing services such as authentication services, encryption services, threat intelligence services, and security consulting and training that ensure the integrity, confidentiality, and availability of APIs. The market value includes the value of related goods sold by the service provider or included within the service offering. The application programming interface security market also includes sales of encryption tools, API management platforms, and security tokens and authentication devices, which are used in providing enhanced security measures for APIs. 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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