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2019
Cloud Api Market

Cloud API Market by Type (PaaS APIs, SaaS APIs, IaaS APIs, and Cross-platform APIs), Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), and Industry Vertical (BFSI, IT and Telecommunication, Manufacturing, Education, Healthcare, Media & Entertainment, and Others): Global Opportunity Analysis and Industry Forecast, 2019-2026
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A05681
Pages: 284
Sep 2019 | 9743 Views
Author(s) : Makarand Sinnarkar , Supradip Baul
Tables: 127
Charts: 84
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Cloud API Market Outlook-2026

The global cloud API market size was valued at $417.3 million in 2018, and is projected to reach $1,786.1 million by 2026, growing at a CAGR of 20.3% from 2019 to 2026. Cloud APIs are considered as leapfrog of network integration where the applications use APIs to communicate end users with the information flow. These APIs are software applications that enable and act as an interface to develop and execute applications and services irrespective of operating system they are running on. Hence, clouds APIs are highly used by diverse industry verticals as a mandatory part during integration phase.

Cloud APIs also serve as an interface or gateway to provide indirect and direct cloud infrastructure and software services to end users. Whereas, by abolishing the challenge of system integration, platform service providers are expected to aid various industries by developing firm cores and offer APIs for strong connectivity. This is a major factor expected to propel the global cloud API market growth over the forecast period.

Cloud API Market

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APIs are widely being used to bring agility to the cloud, as APIs provide faster communication means and faster software patched distribution with ease to streamline updates. Thus, emerging technologies are widely taking benefit of cloud APIs. For example, in a complex predictive maintenance scenario when a mechanical part fails unexpectedly, the API triggers event with multiple communications to send specific metadata such as part name, item number, as well as can provide expected mean time between the failures. Thus, saving the outburst of the product and reducing the cost by eliminating further damage.

The SaaS APIs segment was the highest contributor to the cloud API market in 2018, and is projected to remain dominant during the forecast period due to rise in software-centric approach for almost all smart devices among various industry verticals. In addition, rise in development of software applications such as mobile apps, which are high in demand among individuals across the globe is also supporting the growth of the SaaS APIs segment in the global cloud API market. However, the IaaS APIs segment is expected to witness highest growth, owing to increase in migration activities among industries especially in the emerging economies. Owing to this, major players are developing distinctive products to the migration process. For instance, the Apache Software Foundation’s open source cloud computing platform named OpenStack exposes infrastructure as a resource pool through public APIs.

Cloud API Market
By Type

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SaaS APIs is projected as one of the most lucrative segments.

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The large enterprises segment dominated the cloud API market in 2018 and is expected to continue this trend during the forecast period. Cloud APIs are key building blocks that support interoperability and design modularity while migrating from legacy systems, which help improve the way solutions and systems exchange information, execute transactions, and invoke business logic. Thus, large enterprises are making a strategic choice to adopt cloud APIs to leverage the full functionality and services of the cloud computing. Furthermore, the small and medium scale enterprises are expected to witness moderate CAGR during the forecast period, owing to rise in adoption of cloud services to remain a step ahead in the global market competition.

Cloud API Market
By Enterprise Size

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Large Enterprises is projected as one of the most significant segments.

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The report focuses on the growth prospects, restraints, and cloud API market analysis. The study provides Porter’s five forces analysis of the cloud API industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the cloud API market trends.

Cloud API Market
By Industry Vertical

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Healthcare is projected as one of the most significant segments.

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Segment Review

The cloud API market is segmented on the basis of type, enterprise size, industry vertical, and region. Based on type, the market is categorized into PaaS APIs, SaaS APIs, IaaS APIs, and cross-platform APIs. Based on enterprise size, it is divided into large enterprises and small & medium enterprises (SMEs). Depending on industry vertical, it is categorized into BFSI, IT and telecommunication, manufacturing, education, healthcare, media & entertainment, and others. Based on region, the global cloud API market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Cloud API Market
By Region

2026
North America 
Europe
Asia-pacific
Lamea

Asia-Pacific would exhibit the highest CAGR of 23.7% during 2019-2026.

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North America dominated the overall cloud API market share in 2018, as several major players are operating from this region, owing to availability of well-developed IT infrastructure. In addition, high IT spending capability of the countries in the North America is also a supporting growth of cloud API in this region at a significant rate during the forecast period.  Moreover, Asia-Pacific is expected to grow at the highest rate in terms of CAGR during the cloud API market forecast period due to factors such as major shift toward open architectures and cloud computing services among developing countries in this region.

The key players operating in the Cloud application programming interface market include Amazon Web Services, Inc., CA, Inc., Dell, Inc., Google Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAP SE, and TIBCO Software Inc.

Top impacting factors

Proliferation of cloud computing services among industries owing to rise in demand for technological advances among migrating industries is a major factor expected to drive the growth of the global cloud API market. In addition, growth in demand for high operational efficiency and DevOps automations among development engineers to reduce the time-to-market of product launch is fueling the growth of the Cloud application programming interface market in the coming years. However, cloud security concern is expected to hamper the market to a certain extent due to growing cyber-threats across the virtual networks. Furthermore, growth in R&D activities to develop cloud native applications is anticipated to provide opportunities for the growth of the global cloud API market.

Impact of COVID-19 on Cloud API Market:

  • The cloud API market is expected to grow during the Covid-19 pandemic outbreak. The cloud API helps to upload the data real time data on cloud and provides to the front line authorities such as researchers, health care professionals and government experts. 
  • Moreover, the global lockdown has not impacted the IT industry which as a result, the maintenance of cloud API can be possible by the service providers such as Amazon Cloud Watch API in the active outbreak across the world.

Key Benefits for Cloud API Market:

  • This study includes the cloud API market analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities of the global market.
  • The cloud API market size is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the global cloud application programming interface market.

Key Market Segments

  • By Type
    • PaaS APIs
    • SaaS APIs
    • IaaS APIs
    • Cross-platform APIs

  • By Enterprise Size
    • Large Enterprises
    • Small & Medium Enterprises (SMEs)

  • By Industry Vertical
    • BFSI
    • IT and Telecommunication
    • Manufacturing
    • Education
    • Healthcare
    • Media & Entertainment
    • Others

  • By Region
    • North America
      • U.S.
      • Canada
    • Europe
      • Germany
      • UK
      • France
      • Rest of Europe
    • Asia-Pacific
      • Japan
      • China
      • India
      • Rest of Asia-Pacific
    • LAMEA
      • Latin America
      • Middle East
      • Africa

Key Market Players

  • Amazon Web Services, Inc.
  • CA, Inc.
  • Dell, Technologies Inc.
  • Google Inc.
  • International Business Machines Corporation (IBM)
  • Microsoft Corporation
  • Oracle Corporation
  • Salesforce.com, Inc.
  • SAP SE
  • TIBCO Software Inc.
 

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In accordance with several R&D and on-going cloud-based activities that are proliferating across various industry level, cloud APIs are gaining high traction. Plethora of cloud computing services and solutions is encouraging system administrators to guise for multiple other ways to integrate existing infrastructure with cloud models. Cloud APIs have emerged with the ability to enhance cloud experience and achieve greater level of compatibility across different clouds. Hence, the global cloud API market is expected to witness significant growth in coming years.

The major challenge for developers and companies is integrating their existing legacy system infrastructure with cloud-based platforms or services increase the demand for cloud API solutions, especially the SaaS APIs. The development teams of organizations follow several paths to extent the functionalities of services or platforms that are in process to be integrated into their own service infrastructure. As APIs play a vital role in making the platform extensible, speeding up the platform access, managing the platform security efficiently, as well as APIs also help to co-opt with other service providers that fulfills consumer needs with greater efficiency.

The global cloud market in North America and Asia-Pacific regions are witnessing rapid growth rate, owing to immense scope for enhancement. In addition, majority of market players are operating in these regions, as North America has well-developed IT infrastructure. Further, favorable government initiatives in Asia-Pacific that support cloud-migration and digitalization fuel the market growth. In the current business scenario, providers of cloud API include both cross-platform cloud and independent cloud providers. IT companies typically procure complete solutions that combine diverse services to help companies ease the cloud migration process and speed up the digital transformation. Major players in the global cloud API market are increasingly developing exquisite cloud API solutions to reduce the dependence of technical expertise.

The key players operating in the global cloud API market include Amazon Web Services, Inc., CA, Inc., Dell, Inc., Google Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAP SE, and TIBCO Software Inc. The key players have adopted various growth strategies to enhance and develop their product portfolio, strengthen their cloud API market share, and to increase their market penetration.

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FREQUENTLY ASKED QUESTIONS?

A. "The Cloud API Market generated revenue worth $417.3 million in 2018 and is projected to reach $1,786.1 million by 2026, to register a CAGR of 20.3% during the forecast period."

A. The forecast period in the Cloud API Market would be 2026.

A. The base year calculated in theCloud API Market report is 2018.

A. "The companies such as Amazon Web Services, Inc., CA, Inc., Dell, Inc., Google Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAP SE, and TIBCO Software Inc., holds the major share in the Cloud API Market."

A. In terms of type, the IaaS APIs segment is estimated to be a matured market growing at a CAGR of 21.6% during the forecast period.

A. "In terms of enterprise size, the Small and Medium Enterprises (SMEs) segment is estimated to be a most influencing segment growing at a CAGR of 23.7% during the forecast period."

A. "North America dominated the overall Cloud API Market share in 2018 and Asia-Pacific is expected to anticipate highest growth rate of 23.2% during the forecast period."

A. Yes, the Cloud API Market report provides value chain analysis.

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