API MANAGEMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

API Management Market Size and Trends

Global API management market is estimated to be valued at USD 5.48 Bn in 2024 and is expected to reach USD 25.67 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 24.7% from 2024 to 2031.

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Organizations are increasingly adopting API technologies to integrate disparate applications and share data and services with partners and customers. This has improved collaboration between internal departments and with external developers. Furthermore, growing usage of mobile applications and demand for digital transformation prompt numerous organizations to embrace the API-led approach. API management platforms allow companies to securely publish APIs and simplify access for app developers. It also helps companies to monetize their APIs and gain better visibility into API performance and usage. Increasing API provisions by enterprises across industries for improved customer engagement and experience can drive the market growth.

Digital Transformation and Cloud Adoption

Global API management market growth is driven by accelerated digital transformation in organizations. With increasing usage of cloud, mobile and IoT technologies, businesses have realized the importance of adopting newer technical approaches to engage with their customers seamlessly and provide improved customer experiences. Transitioning business applications and processes to the cloud has delivered significant agility and cost benefits to companies. It has allowed them to scale their operations on demand, reduce upfront infrastructure investments and focus more on innovation. However, this digital shift has also introduced several integration challenges for companies since their newer cloud systems and legacy on-premise platforms needed to interact with each other as well as with partner and vendor systems securely.

APIs have emerged as an ideal integration strategy to address this requirement of businesses. APIs help establish inter- and intra-organizational connectivity across different systems, applications, internal teams and third parties in a simple and standardized way. These essentially act as an interface that allows disparate platforms to communicate and exchange data with each other. While APIs themselves are not new, but their strategic usage has grown significantly in the recent times as part of companies’ digital innovation journeys. Organizations want to leverage APIs to break the IT silos, connect customers, partners and employees on any device and provide seamless digital experiences across touchpoints. API management tools have gained prominence as these help publishers develop, secure, publish and monitor APIs throughout their lifecycles for complex integration needs. These ensure proper governance, security controls and performance monitoring of APIs as businesses increasingly expose them externally through public channels.

As businesses continue to embrace modern technical architectures and make ongoing transitions to cloud-native infrastructure, API management will remain a vital component of their digital ecosystems. Its ability to enable integration across hybrid estate setups, support microservices development and provide real-time access to resources on cloud platforms positions it strongly as a key enabler of digital transformation journeys.

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Increasing Demand for Real-time Data Access

The growing demand for real-time data access is a key driver of the global API management market. As digitization accelerates across industries, the need to integrate services, apps, and databases has increased API usage. Consumers now expect a seamless experience across touchpoints and instant access to any service or information. This has compelled organizations to develop user-friendly APIs that can fetch and share data with each other and third-party services instantly. The ability of APIs to enable real-time data exchange has become crucial for businesses to meet evolving customer expectations in the digital age.

For instance, In November 2020, the IT team at the Chicago Department of Public Health (CDPH) partnered with MuleSoft Inc., a prominent provider of integration software, to accelerate the deployment of the COVID-19 vaccine. By leveraging MuleSoft's Anypoint Platform, this collaboration facilitated real-time data collection, contact tracing, and support for vaccine call centers, among other critical services.