API Management Market Expected to Reach $41.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “API Management Market," The api management market was valued at $2.2 billion in 2021, and is estimated to reach $41.5 billion by 2031, growing at a CAGR of 34.5% from 2022 to 2031.

The global API Management Market Growth is influenced by a number of factors, including demand for Public and Private APIs to Accelerate Digital Transformation, increased mobile applications and users, social media penetration. 

In 2021, on the basis of component, the solutions segment dominated the API Management Industry in 2021, and is expected to maintain its dominance in the upcoming years. Moreover, businesses must disclose more data through APIs to create rich, personalized app experiences for internal users, customers, and partners, as the number of apps and smart devices required in the digital world grows exponentially. Organizations across all industries require a strong life cycle API Management Software solution that allows them to track the success of their API-driven enterprises. The API management market is divided into three segments: API platform, API analytics, and API security. API Management Software solutions are in high demand because enterprises need to seamlessly link their systems and components with apps and devices.

On the basis of industry vertical, the IT and telecom segment dominated the API Management market in 2021, and is expected to maintain its dominance in the upcoming years. The market is likely to benefit from increased adoption of the Internet of Things (IoT), device integration, and wearable devices in the telecom industry. However, the healthcare segment is expected to witness the highest growth rate during the forecast period, as API is built within healthcare organizations to increase interoperability, efficiency, or analytics visibility of applications, services, or digital tools.

On the basis of organization size, the large enterprises segment dominated the API Management market in 2021, and is expected to maintain its dominance in the upcoming years, as large businesses increasingly depend on software-based services to generate revenue, the creation and maintenance of APIs has become a major part of business strategy. However, the SMEs segment is expected to witness the highest growth rate during the forecast period, SMEs will be able to obtain a greater number of electronic invoices and technology upgrades. This will make working more convenient. This is also gaining traction in mid-sized businesses.

Post COVID-19, the API Management market size is estimated to grow from $2,215.1 million in 2021 to reach $41,460.6 billion by 2031, at a CAGR of 34.5%. The COVID-19 outbreak has low impact on the growth of API management market, as the adoption of API management solutions has increased in the face of unprecedented circumstances. The ongoing pandemic has caused social stress and economic devastation throughout the world. Countries' unemployment rates have risen because of the closure of production facilities and manufacturing units around the world. In addition, outburst effects of COVID-19 are leading countries, as well as the global economy towards recession. However, the world markets, on the other hand, are gradually opening up to their full potential, and demand for solutions and services is witnessing growth. The adoption of API management is increasing significantly after COVID, due to surge in digitalization, increase in sales of smartphones and WFH policies. Post COVID-19 impact, the penetration of API managements has increased significantly as they offers several advantages such as public and private APIs that is accelerating digital transformation. The COVID-19 pandemic has had no negative influence on the market growth, it is expected to give several chances for market expansion during the forecast period. Significant investments for strong customer connectivity and API technologies in both developing and developed economies is anticipated to drive the demand for the API management market.

KEY FINDINGS OF THE STUDY

• On the basis of component, in 2021, the solution segment dominated the API management market size. However, the services segment is expected to exhibit significant growth during the forecast period.
• Depending on industry vertical, the IT & telecom segment generated highest revenue in 2021.
• On the basis of organization size, the large enterprises segment generated the highest revenue in 2021. However, the small & medium enterprises segment is expected to exhibit significant growth during the forecast period
• On the basis of region, North America dominated the market in 2021. However, Asia-Pacific is expected to witness significant growth in the upcoming years.

Some of the key API management industry players profiled in the report include Amazon Web Services (AWS), Axway, Google, IBM, Microsoft Corporation, Oracle Corporation, Red Hat, SAP SE, Software AG, TIBCO. This study includes API management market share, API Management Market Trends, API management market analysis, and future estimations to determine the imminent investment pockets.