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API Management Market Size, Share Global Analysis Report, 2022 – 2030
API Management Market Size, Share, Growth Analysis Report By Deployment (Cloud and On-Premises), By Component (Services and Solutions), By End-User (Retail, Banking & Financial Institutes, Consumer Goods, and Others), By Organization Type (Small & Medium Enterprises and Large Enterprises), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2030
Industry Insights
[223+ Pages Report] According to the report published by Facts and Factors, the global API management market size was worth around USD 5.4 billion in 2021 and is predicted to grow to around USD 47 billion by 2030 with a compound annual growth rate (CAGR) of roughly 31.1% between 2022 and 2030. The report analyzes the global API management market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the API management market.
Market Overview
API refers to the application programming interface and it is a way in which two or more two computer programs like applications or software interact with one another. It can be considered a type of software interface that offers its services to other software. API management enlists the creation and publishing of APIs which also enforces the policies related to its utilization along with other factors like access control, the collection and analysis of usage statistics, and nurturing the community of subscribers.
API management also deals with final reporting on the performance of the API. It provides essential tools for subscriber communities and application developers. A type of API management product is made of components like a gateway, publishing tools, API store or developer portal, reporting and analytics, and monetization. The last component supports functions that assist in charging for accessing commercially available APIs. For every API, there is a management tool and as per reports, currently, there are more than 20,000 APIs published in the live market.
Key Insights
- As per the analysis shared by our research analyst, the global API management market is estimated to grow annually at a CAGR of around 31.1% over the forecast period (2022-2030)
- In terms of revenue, the global API management market size was valued at around USD 5.4 billion in 2021 and is projected to reach USD 47 billion, by 2030.
- The market is projected to grow at a significant rate due to the growing investments by businesses to integrate information technology (IT) setup
- Based on deployment segmentation, on-premises was predicted to show maximum market share in the year 2021
- Based on end-user segmentation, banking & financial institutes were the leading users in 2021
- On the basis of region, North America was the leading revenue generator in 2021
Growth Drivers
- Growing investments by businesses to for IT setup to propel market demand
The global API management market is projected to benefit from the growing investments by small, medium, or large-sized firms toward integrating the company’s information technology systems. APIs are essential tools for all industries and they hold exceptional value in terms of an IT standpoint since it allows computer programs to interact with one another without any hindrance. APIs can assist businesses and corporations to generate high revenue in a shorter period and analysts are calling API the answer to the high expenditure associated with the integration of different and disparate systems. APIs foster innovation which is the key to survival in the current competitive commercial and industrial world. Since the adoption of APIs is increasing rapidly which is more evident in the growth rate observed in the last few years, API management is anticipated to grow simultaneously since it creates a way for API integration and usage. Businesses using API can expect higher flexibility in terms of business operations along with providing enhanced consumer experience thus attracting a larger consumer database.
Restraints
- High initial cost to restrict market expansion
Some of the API management programs are expensive and require high initial investment along with ongoing expenses on the system management and payment to the employees or third-party companies handling the programs. Small or medium-sized firms may not be unable to afford these services. For instance, the developer version of Microsoft Azure API Management software can cost between USD 26 to USD 30 per month. Furthermore, there is a significant gap between the growing demand and availability of the skilled workforce required to meet the competitive demands of the market.
Opportunities
- Research toward the development of accommodative programs to provide growth opportunities
Since the applications and benefits of API management are vast with almost every industry benefitting from its use of it in today’s digital world, various companies are now investing in the development of affordable programs that can be accessed by all at a minimal cost. Additionally, low-code API management programs are expected to create higher growth opportunities since these tools can not only support security issues but also reduce the risk of cyberattacks. Low-code API management programs are meant for companies across sizes.
Challenges
- Navigating through multi-cloud management programs acts as a major challenge
Companies adopting multi-cloud API management tools are expected to face certain challenges during the forecast period owing to the complexities associated with the application of high-tech technology. Various companies lack the necessary infrastructure of human resources to deploy such advanced systems and leverage the benefits offered which reduced the optimization levels. Multi-cloud management is processes or tools that let a business operate across multiple public clouds.
Segmentation Analysis
The global API management market is segmented based on deployment, component, end-user, organization type, and region
Based on deployment, the global market is divided into cloud and on-premises
- The on-premises segment is expected to generate the highest revenue during the forecast period since it is the most preferred way in terms of large-scale deployments
- On-premises systems allow better accessibility to the clients since systems are located at the consumer’s site. They also offer higher control over the programs as compared to cloud-based services
- Companies operating in the banking or financing businesses prefer to use on-premise tools and programs
- In the last decade, Bank of America has consistently spent over USD 3 billion on new technology-oriented initiatives
By organization type, the API management industry is divided into small & medium enterprises and large enterprises
Based on components, the API management industry is segmented into services and solutions
Based on end-user, the global market is divided into retail, banking & financial institutes, consumer goods, and others
- In 2021, the global market registered the highest growth in the banking & financial institutes segment, and the same trend can be expected during the forecast period
- Financial institutes work on multiple systems that are customer oriented but also strengthen the operational viewpoint of the company
- API management tools deployments in such firms require to deliver the highest level of security while also providing a seamless user experience
- The retail segment may also generate higher revenue due to the growing need of integrating various applications and systems
- Amazon, the e-commerce giant, has dedicated almost 12% of its operating cost to IT infrastructure
Recent Developments:
- In September 2022, Postman, an India-based API management platform, reached a new milestone by registering more than 20 million users worldwide. The latest version v10 was launched in April 2022 and is considered the most notable system upgrade within a year. It offers expanded capabilities along with high API security and governance. Some of the features included in the new version are Postman Command Line Interface, Native Git integration, and native support for gRPC
- In February 2022, Kong Inc., a startup working in the cloud connection segment, announced the release of Kong Enterprise 2.7. The newly launched tool is a platform offering connectivity to businesses helping them better manage microservices and APIs with complete scalability across all underlying architecture-type
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 5.4 Billion |
Projected Market Size in 2030 |
USD 47 Billion |
CAGR Growth Rate |
31.1% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2030 |
Key Market Players |
IBM, Google, Microsoft, Software AG, Oracle Corporation, Broadcom Inc., Red Hat, TIBCO software, Kong Inc., Akana Inc., Cloud Elements Inc., CA Technologies Inc., Mashape Inc., Hewlett-Packard Enterprises Co., SAP SE, Mulesoft Inc., WSO2, Akamai Technologies, Kony, Axeway, Broadcom company, Sensedia, Rogue Wave Software, Tyk Technologies, Torry Harris Business Solutions, Dell Boomi, Osaango, Postman, Amazon Web Services., and others. |
Key Segment |
By Deployment, Component, End-User, Organization Type, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Regional Analysis
- North America to lead with the highest growth
The global API management market is projected to witness the highest growth in North America with the US leading the regional growth. The expansion can be attributed to the already existing foothold of API management tools across industries further strengthened by the growing IT-related expenses by businesses ranging from small to large-sized firms. Silicon valley the US is the hubspot for research & innovation with multiple current-day’s most used API and API management tools emerging from the region.
The US is home to some of the biggest names in the global market having a clientele database spread across continents. The constant research allows these companies to keep generating higher revenue. For instance, IBM API Connect is one of the highly sought-after API management tools preferred by many large corporations. It offers the creation, management, socialization, monetization, and security of APIs.
Competitive Analysis
- IBM
- Microsoft
- Software AG
- Oracle Corporation
- Broadcom Inc.
- Red Hat
- TIBCO Software
- Kong Inc.
- Akana Inc.
- Cloud Elements Inc.
- CA Technologies Inc.
- Mashape Inc.
- Hewlett-Packard Enterprises Co.
- SAP SE
- Mulesoft Inc.
- WSO2
- Akamai Technologies
- Kony
- Axeway
- Broadcom company
- Sensedia
- Rogue Wave Software
- Tyk Technologies
- Torry Harris Business Solutions
- Dell Boomi
- Osaango
- Postman
- Amazon Web Services.
The global API management market is segmented as follows:
By Deployment Segment Analysis
- Cloud
- On-Premises
By Component Segment Analysis
- Services
- Solutions
By End-User Segment Analysis
- Retail
- Banking & Financial Institutes
- Consumer Goods
- Others
By Organization Type Segment Analysis
- Small & Medium Enterprises
- Large Enterprises
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Denmark
- Sweden
- Norway
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- IBM
- Microsoft
- Software AG
- Oracle Corporation
- Broadcom Inc.
- Red Hat
- TIBCO Software
- Kong Inc.
- Akana Inc.
- Cloud Elements Inc.
- CA Technologies Inc.
- Mashape Inc.
- Hewlett-Packard Enterprises Co.
- SAP SE
- Mulesoft Inc.
- WSO2
- Akamai Technologies
- Kony
- Axeway
- Broadcom company
- Sensedia
- Rogue Wave Software
- Tyk Technologies
- Torry Harris Business Solutions
- Dell Boomi
- Osaango
- Postman
- Amazon Web Services.
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