Global Cloud API Market Estimated To Witness High Growth Due To Increasing Adoption of Cloud-Based Services And Surge In IoT Connected Devices
The Global Cloud API Market is estimated to be valued at US$ 2,104.3 Mn in 2024 and exhibit a CAGR of 13.5% over the forecast period 2024-2031. The market is driven by factors such as increasing adoption of cloud-based services by enterprises and surge in number of IoT connected devices. Furthermore, the need for cloud API services from SMEs is also contributing to market growth.
Market Dynamics:
The growth of the Global Cloud API Market is determined by two key drivers - increasing adoption of cloud-based services and surge in IoT connected devices. Firstly, the adoption of cloud-based services is increasing among enterprises as it helps reduce costs and improve scalability. This has boosted the demand for cloud API services that enable development of cloud-based applications. Secondly, the rapid growth of IoT technology has led to a surge in the number of connected devices. Since cloud APIs help develop applications for seamless connectivity of IoT devices, their demand is increasing from IoT platforms. These drivers are expected to propel the market expansion during the forecast period.
Two Key Market Drivers Propelling Growth of the Global Cloud API Market
Increased Adoption of Cloud-Based Solutions and Services
One of the major drivers of the global cloud API market growth is the increasing adoption of cloud-based solutions and services across various industries. Cloud technologies offer numerous benefits like scalability, flexibility, reduced costs and increased collaboration. This is compelling more organizations to migrate their infrastructure and applications to the cloud. As cloud adoption increases, the demand for cloud APIs is also growing as they enable developers to integrate cloud functionalities into their applications and services. The rapid proliferation of Software-as-a-Service (SaaS) and cloud-based business models is directly fueling the cloud API market expansion.
Growing Demand for App Development and Integration
Another key factor augmenting the cloud API market size is the rising demand for application development and system integration. Cloud APIs provide developers with the tools and capabilities required to build sophisticated applications that leverage cloud services. They allow easy integration of cloud databases, storage, compute, analytics and more into applications. This is supporting rapid innovation in mobile apps, web apps, IoT solutions and others. It is also facilitating app modernization initiatives. The thriving app economy and growing emphasis on digital transformation worldwide have significantly increased the need for cloud APIs among developers and integrators.
Two Major Restraints Inhibiting Cloud API Market Growth
Security and Compliance Concerns
Security issues continue to pose a challenge for wider adoption of cloud APIs. Exposure of APIs can introduce vulnerabilities that threat actors can exploit. This requires careful authentication, authorization and protection of API traffic. Ensuring privacy and compliance with regulations like GDPR also demands robust security models for cloud APIs. Failure to address security concerns sufficiently may discourage some organizations, especially those in regulated industries, from adopting cloud APIs.
Vendor Lock-in Risks
Another major restraint is the risk of vendor lock-in associated with cloud APIs. APIs developed specifically for one cloud platform limit flexibility and portability. Switching vendors becomes difficult due to dependencies on proprietary APIs. This decreases competition and may raise costs in the long run. To mitigate lock-in, cloud API providers need to support open standards and interoperability across multiple platforms. The lock-in challenge adversely impacts the cloud API purchasing decision of buyers prioritizing avoiding vendor dependency.
Two Key Market Opportunities for Cloud API Vendors
Integration with Serverless Computing
The emergence of serverless computing as a cost-effective way to run applications without managing infrastructure is opening new doors. Serverless architectures widely leverage cloud APIs and functions to build scalable workflows. By integrating their offerings with serverless platforms, cloud API vendors can gain traction in this growing domain. Serverless also facilitates innovation through lightweight APIs and code execution, presenting an opportunity.
Scope for Enhanced API Management Capabilities
Most organizations still need to enhance the way they publish, secure, document and monitor APIs as digital initiatives scale up. There exists a sizable opportunity for API management vendors to address these challenges through new API management capabilities beyond basic publishing and access control. Features like observability, monitoring, analytics, DevOps integrations etc. provide scope for cloud API providers to expand their value proposition and entrench their positions further.
In conclusion, while increasing cloud and application development demands drive the global cloud API market size, security and vendor lock-in issues need attention. Integration with serverless and fortifying API management functions also offer lucrative opportunities for cloud API vendors to accelerate growth.
Link: https://www.coherentmarketinsights.com/market-insight/cloud-api-market-1184
Key Developments:
- In January 2023, Google Cloud, the leading provider of cloud computing services, announced the broad release of Apigee Edge, the company's next-generation API management platform. Apigee Edge delivers a variety of enhanced features and capabilities, including support for microservices, real-time analytics, and machine learning integration. This release further strengthens Google Cloud's position as a premier provider of comprehensive API management solutions, empowering enterprises to effectively design, secure, and scale their API-driven digital initiatives. By continuously innovating and expanding the capabilities of Apigee Edge, Google Cloud is enabling its customers to unlock the full potential of their APIs and drive digital transformation across their organizations.
- In February 2023, IBM, the global technology and consulting giant, confirmed the acquisition of TIBCO Mashery, a leading API management platform. This strategic move will enable IBM to further strengthen and expand its comprehensive API management portfolio, providing clients with a complete end-to-end solution for designing, securing and scaling their API-driven digital initiatives.
- In December 2022, Agora, a prominent global provider of real-time engagement APIs, announced an agreement to sell its customer engagement cloud business, Easemob, to TI Cloud for approximately US$14.6 million.
- In April 2020, Google, renowned for its cutting-edge cloud computing services, launched the Google Cloud Healthcare API, making it widely accessible. This API simplifies the exchange of data among healthcare applications and solutions developed on the Google Cloud platform.
Key Players:
Amazon Web Services, Inc., Apigee Corporation, CA Technologies, Inc., Citrix Systems, Inc., Dell, Inc., Google Inc., IBM Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Rackspace Inc., Red Hat, Inc., SAP SE, TIBCO Software Inc. and VMware, Inc.
