Cloud API Market, By Type (SaaS APIs, PaaS APIs, IaaS APIs, and Cross-platform APIs), By Enterprise Size (Small and Medium Enterprises (SMEs), and Large Enterprises), By End-use Industry (Healthcare, BFSI, IT and Telecommunication, Manufacturing, Education, Media and Entertainment, and Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Jul 2024

Code : CMI1184

Pages :141

Formats :

Excel and PDF

Industry : Information and Communication Technology

Market Challenges: Security and privacy concerns

Security and privacy concerns pose significant challenges for the growth of the global cloud API market. Many organizations, especially those in sensitive industries like healthcare, finance and government, are wary of moving their critical data and applications to public cloud platforms due to the risks of potential vulnerabilities or data breaches. While cloud providers invest heavily in security and compliance controls, the perception of losing control over sensitive data is a major deterrent for many customers. This is validated by surveys from non-profits - a 2021 report from the Center for International Governance Innovation found that 70% of enterprises cited security and privacy as key barriers to greater cloud adoption.

Furthermore, different countries have their own data sovereignty laws requiring certain types of sensitive data to remain within geographical boundaries for oversight and compliance reasons. Complex international data transfer regulations like the GDPR and CCPA have increased compliance requirements for cloud providers operating in those jurisdictions. Meeting all such legal standards cost considerable time and resources. This then gets passed on as overheads to customers ultimately increasing the cost of public cloud usage.

Market Opportunities: Growth of IoT and connected devices

The increasing adoption of Internet of Things (IoT) devices and connected technologies is poised to drive significant opportunities for growth in the global cloud API market. As more household and industrial appliances, vehicles, infrastructure systems, and other physical items are integrated with internet connectivity and sensors, the massive volumes of data generated will need to be processed, stored and leveraged effectively. This is where cloud application programming interfaces (APIs) come into play. Cloud APIs help developers build applications and services that can easily access and make use of vast amounts of IoT data available on cloud platforms. They allow for seamless integration of different systems and data sources, as well as rapid development of innovative IoT-driven solutions.