API Management Market Research, 2031
The global api management market was valued at $2.2 billion in 2021, and is projected to reach $41.5 billion by 2031, growing at a CAGR of 34.5% from 2022 to 2031.
Major API Management Market Growth factors include demand for public and private APIs to accelerate digital transformation, increased mobile applications and users, and social media penetration.
The API management market is influenced by factors such as rise in penetration of smartphones and internet access across the globe, need for customer satisfaction and to enhance customer experience. In addition, the functions of the API market that are connected to publishing, documenting, and managing the application programming interfaces are covered in the global API management market research. These are used to get access to a secure environment. All of these things work together to form API management. The API management market's major goal is to enable and help a company that publishes an API to track the lifecycle of that interface. The approaches to cater to the needs of developers are also an important aspect of how the market works.
Furthermore, firms all around the world are implementing strategies to deal with their application programmer interface in order to respond swiftly to changes in client requirements. This is the primary factor that is projected to drive the growth of the global API management market. Through API Management, organizations across several business verticals are focusing on providing improved available or out-of-store insight, as well as altered suggestions, item backing, and offers based on gender, location, and behavior of the client.
Segment Review
The api management market is segmented into Deployment Types, Organization Size, Component and Industries.Based on component, it is segmented into solutions and services. By deployment type, it is divided into on-premises and cloud. Based on organizational size, the market is segmented into SMEs and large enterprises. Based on industry vertical, the market is categorized into BFSI, IT and telecom, government, healthcare, retail, manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
In 2021, on the basis of component, the solutions segment dominated the API management market share, and is expected to maintain its dominance in the upcoming years. Moreover, businesses must disclose more data through APIs to create rich, personalized app experiences for internal users, customers, and partners, as the number of apps and smart devices required in the digital world grows exponentially. Organizations across all industries require a strong life cycle API Management Software solution that allows them to track the success of their API-driven enterprises. The API management market is divided into three segments: API platform, API analytics, and API security. API Management Software solutions are in high demand because enterprises need to seamlessly link their systems and components with apps and devices.
On the basis of industry vertical, the IT and telecom segment dominated the API Management market in 2021, and is expected to maintain its dominance in the upcoming years. The market is likely to benefit from increased adoption of the Internet of Things (IoT), device integration, and wearable devices in the telecom industry. However, the healthcare segment is expected to witness the highest growth rate during the API Management Market Forecast period, as API is built within healthcare organizations to increase interoperability, efficiency, or analytics visibility of applications, services, or digital tools.
On the basis of region, the North America dominated the API Management industry in 2021. The presence of a significant number of API management solution manufacturers, ongoing technological improvements, and the availability of skilled technical experience are all contributing to the market's growth in North America. However, the Asia-Pacific region is expected to witness highest growth in the upcoming years, due to increasing numbers of mobile users paired with penetration of e-commerce in up-and-coming nations are probably going to spice up the API management industry in the Asia Pacific extremely.
Top Impacting Factors
Demand for Public and Private APIs to Accelerate Digital Transformation
A public API is probably what first comes to mind when thinking about APIs: the Twitter API, Facebook API, Google Maps API, and more. But these are only a small portion of the APIs that exist around the web. While not much is heard about them, private APIs are far more common (and possibly even more beneficial, from a business standpoint). The private APIs are revolutionizing how things get done within companies. By providing an open architecture, private APIs give developers an easy way to plug right into back-end systems, data, and software, letting engineering teams do their jobs in less time, with fewer resources. It’s like a self-service user experience for internal developers.
In addition, public and private APIs are both working in their respective field to accelerate the digitalization across the globe. Moreover, organizations across the world are implementing strategies to manage their application program interface to quickly respond to changing demands from the customers.
Increased mobile applications and users
An application program interface is used in mobile apps just like it is in web apps. It allows developers to access another application or platform. Using mobile APIs is necessary to truly get an enterprise’s massive amounts of data into a usable framework on a mobile device. Majorly the front-end of a mobile app is reputed among most people. API management has become more of a core operation of IT departments who want to provide their data to more people and encourage more interaction. As user demand and capabilities become more sophisticated, mobile apps often rely on integrated data from multiple sources. Mobile APIs provide the tool that enables user interaction with data from multiple applications. For example, Uber makes use of a sophisticated database of drivers, GPS data, messaging, and a host of other capabilities. All of these come from different sources.
COVID-19 Impact Analysis
Post COVID-19, the API management market size is estimated to grow from $2,215.1 million in 2021 to reach $41,460.6 million by 2031, at a CAGR of 34.5%. The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. Moreover, the ongoing pandemic has caused social stress and economic devastation throughout the world. Countries' unemployment rates have risen because of the closure of production facilities and manufacturing units around the world.
In addition, outburst effects of COVID-19 are leading countries as well as the global economy toward recession. However, the world markets, on the other hand, are gradually opening up to their full potential, and demand for solutions and services is witnessing growth. The adoption of API management is increasing significantly after COVID, due to surge in digitalization, increase in sales of smartphones and WFH policies. Post COVID-19 impact, the penetration of API managements has increased significantly as they offers several advantages such as public and private APIs that is accelerating digital transformation. The COVID-19 pandemic has had no negative influence on the market growth, it is expected to give several chances for market expansion during the forecast period. Significant investments for strong customer connectivity and API technologies in both developing and developed economies is anticipated to drive the demand for the API management market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the api management market analysis from 2021 to 2031 to identify the prevailing api management market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the api management market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global api management market trends, key players, market segments, application areas, and market growth strategies.
API Management Market Report Highlights
| Aspects | Details |
 By Deployment Types |
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 By Organization Size |
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 By Component |
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 By Industries |
|
 By Region |
|
 Key Market Players | Google, Axway, Oracle, TIBCO, Red Hat, Software AG, SAP SE, Amazon Web Services, Microsoft Corporation, IBM |
Analyst Review
The global API management market is projected to witness prominent growth, especially in Asia-Pacific and Europe region. This growth is attributed to the growing number of mobile phone users and the rise of social media and penetration of electronic commerce, suppliers across various industries are now able to interactively provide information to their customers, hence increase their sales. There are two important factors driving the API market are the advancement of Internet of things (IoT) and Big Data.
In the digital era where computers and smartphones are monopolizing a person’s communication and life, there seems to be a comparatively less growth rate of traditional marketing than digital marketing. Our studies have observed that more number of SMEs as well as large enterprises are focusing more on application program interfaces in past few years. Also, the software used for the API management can either be in-house built or purchased from any third party. The programming interfaces assist in functions like connections, as well as, automate, in between in the API along with its applications. Furthermore, firms all around the world are implementing strategies to deal with their application programmer interface in order to respond swiftly to changes in client requirements. This is the primary factor that is projected to drive the growth of the global API management market. Through API Management, organizations across several business verticals are focusing on providing improved available or out-of-store insight, as well as altered suggestions, item backing, and offers based on the gender, location, and behavior of the client.
On the other hand, during the COVID-19 pandemic, people have stayed home to be safe. In 2020, API management market has seen the massive changes due to the COVID-19 pandemic, which completely altered the way users works. Many governments imposed COVID-containment restrictions, which halted production and disrupted the industry's supply chain, as well as the API market. The world markets, on the other hand, are gradually opening up to their full potential, and demand for solutions and services is growing.
Moreover, the scarcity of expertise required to design and implement API executive arrangements is a stumbling block to the global API Management Market's growth. In reality, a low-code platform for API development is expected to open up a lot of doors for this market.
The API management market size is estimated to grow from $2,215.1 million in 2021
On the basis of region, the North America dominated the API Management industry in 2021.
On the basis of industry vertical, the IT and telecom segment dominated the API Management market in 2021
Rising demand for public and private APIs to accelerate digital transformation
Key players operating in the market include Amazon Web Services (AWS), Axway, Google, IBM, Microsoft Corporation, Oracle Corporation, Red Hat, SAP SE, Software AG, and TIBCO.
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