API Management Market by Deployment, and Geography - Forecast and Analysis 2022-2026

API Management Market Forecast 2022-2026

The global API management market share is expected to increase by USD 6.70 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 20.56%. The primary factors propelling the market growth include the growing use of digital payment solutions, surging advancement in IoT and Big Data and increased demand for API-based connectivity.

What will the API Management Market Size be During the Forecast Period?

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Market: Key Drivers, Trends, and Challenges

Our researchers studied the historical data for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the application programming interfaces (API) management market. During the COVID-19 pandemic, the market demand has been impacted greatly. A holistic analysis of drivers will help in deducing the demands and refining marketing strategies to gain a competitive advantage.

Key Driver

The continuous growth in digital payments is driving the global application programming interfaces management market.  Digital payments have become a significant part of the banking industry. For instance, our research shows that digital payments are expected to constitute almost 90% of the total spent in Canada by 2030. Consequently, various banking institutions across the globe are offering digital payment solutions to improve banking processes. This helps many banking companies gain a competitive advantage over their rivals. In addition, this is also encouraging many traditional bankers who do not leverage digital payments to offer digital payment solutions in their product offerings. For instance, American Express Canada offers American Express payment, a digital payment solution. This offering is expected to replace plastic cards with virtual account numbers, allowing businesses to manage a wide range of corporate expenses smoothly.

Latest Trend

Banking and financial institutions are undergoing constant changes by revamping their processes and operations will increase the global application programming interfaces management market growth. This is spurred by technological innovations such as funds transfer through mobile applications and digital wallet apps. A digital wallet is a software-based system that makes online transactions through a mobile-based software application. These applications simplify online purchases and other cash transactions made through tablets, computers, or smartphones. The bank accounts of customers are linked with their digital wallets, and the user's credentials are verified and securely stored during transactions. Globally, the use of digital wallets is increasing continuously. This is encouraging various enterprises to launch digital wallets to cater to the growing demand from customers. Due to the growing number of digital wallets, enterprises in the banking industry need to opt for API to keep track of all the transactions made through digital wallets and maintain an effective database for safety. 

Major Challenge

A lack of strong and high-quality network is the major challenge hindering the application programming interfaces management market growth. Without a strong and good quality network connection, service providers cannot offer highly efficient and effective operations. To use software seamlessly, enterprises need to maintain a constant Internet connection around the clock. Furthermore, transferring data from connecting devices such as servers is a huge technical issue as companies need to provide high bandwidth connections. In addition, if the software is unable to update real-time transactions, especially in the investment banking sector, it can cost lead to huge monetary losses for enterprises. Also, customers use various services such as Internet banking, mobile banking, and digital payments, which are not possible without proper Internet connectivity. The low Internet speed in major economies such as Spain and Mexico when compared with the global average Internet speed poses a challenge to vendors in this market. For instance, in December 2021, the average broadband Internet speed in emerging economies was 50% slower than the global broadband Internet speed. Thus, the lack of Internet connectivity hampers end-user enterprises from performing several operations seamlessly, which, in turn, will restrict the growth of the global market during the forecast period.

This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable market analysis and report insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Which are the Key Regions for the Market?

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26% of the market’s growth will originate from North America during the forecast period. The US is the key market for the market in North America. Market growth in this region will be faster than the growth of the market in South America and the Middle East and Africa. 

Increased smartphone penetration and connectivity will facilitate the application programming interfaces management market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Deployment Segments in the Market?

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The market share growth by the cloud segment will be significant during the forecast period. Cloud-based API allows applications to communicate and transfer data to and from the cloud. It also integrates different cloud and on-premises applications, supporting developers and administrators even further in automating API provisioning, activation, setup, monitoring, and troubleshooting. 

Who are the Major API Management Market Players?

The report analyzes the market’s competitive landscape and offers information on several market companies, including:

• Akamai Technologies Inc.
• Alphabet Inc.
• Amazon.com Inc.
• Axway Software SA
• Boomi LP
• International Business Machines Corp.
• Kong Inc
• Microsoft Corp.
• Oracle Corp.
• Salesforce.com Inc.
• SAP SE
• Sensedia SA
• Software AG
• TIBCO Software Inc.
• Torry Harris Business Solutions
• Workato 
• WSO2 Inc.
• Broadcom Inc.
• Postman Inc.

This statistical study of the application programming interfaces (API) management market encompasses successful business strategies deployed by the key vendors. The market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market. 

Product Insights and News

• Akamai Technologies Inc.:- The company offers platforms for application (app) and API performance and CDN solutions.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the market research and growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the market forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global system software market  includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

Market Analyst Overview

The market is evolving rapidly with the digital revolution, embracing API-led connectivity to facilitate information sharing and drive digital transformation across various sectors. Industries such as healthcare, government, and supply chains are adopting API management solutions to enhance cybersecurity and address server accessibility limitations. Moreover, IoT integration, cloud platforms, and mobile apps play crucial roles in this transformation, particularly in urban and rural areas. With a focus on sustainable solutions and energy efficiency, IoT Gateway solutions and on-premises deployment types are gaining traction. 

Technological advancements, including analytics and robotic process automation, are driving digital initiatives and fostering collaboration within ecosystems, particularly in industries like BFSI and platform service providers. The programmer portal and APIs are enabling developers to create intelligent automation solutions and iPaas solutions, benefiting healthcare providers, medical research facilities, governmental organizations, and sectors facing supply chain disruptions. The Solution segment industry is experiencing significant growth, with a focus on reducing greenhouse gas emissions and optimizing hardware, including personal computers.

API Management Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 20.56%
Market growth 2022-2026	USD 6.70 billion
Market structure	Fragmented
YoY growth (%)	11.1
Regional analysis	North America, APAC, Europe, South America, and the Middle East and Africa
Performing market contribution	North America at 26%
Key consumer countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled	Akamai Technologies Inc., Alphabet Inc., Amazon.com Inc., Axway Software SA, Boomi LP, International Business Machines Corp., Kong Inc, Microsoft Corp., Oracle Corp., Salesforce.com Inc., SAP SE, Sensedia SA, Software AG, TIBCO Software Inc., Torry Harris Business Solutions, Workato, WSO2 Inc., Broadcom Inc., and Postman Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our Market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive market research and market growth and trends during the next five years
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions on upcoming market trends and analysis and changes in consumer behavior
• The market growth analysis of the API management industry across North America, APAC, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the market growth and forecasting of  market vendors

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