API Management Market

[136 Pages Report] The API management market size is estimated to grow from USD 606.8 million in 2016 to USD 2,665.3 million by 2021, at a Compound Annual Growth Rate (CAGR) of 34.4%. Increasing demand for private and public APIs, growing popularity of Web APIs, and growing number of mobile devices are the major growth drivers of the market. In this study, 2015 has been considered as the base year and 2016-2021 as the forecast period.

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Market Dynamics

Drivers

• Growing demand for private and public APIs
• Growing popularity of web APIs
• Increasing number of mobile device users

Restraints

• API security issues

Opportunities

• Increasing adoption of IoT

Challenges

• Server availability constraints

Growing demand for private and public APIs drives the global API management market

APIs are most commonly categorized into private APIs, accessible to a limited set of third parties, and public APIs, accessible publicly. Organizations are increasingly deploying public APIs to cater to customer requirements and provide round-the-clock support services. For instance, APIhound, an API search engine provider estimates the availability of over 50,000 public web APIs in 2016, and the number is growing rapidly. Moreover, the number of private APIs is also increasing as businesses are adopting private APIs for routing data and for internal communication. According to 3Scale, the number of inbound service enquiries has more than doubled at the end of 2015 and is expected to continue with the same trend. Furthermore, APIs provide the necessary platform that allows communication between various software programs. Businesses are increasingly becoming software oriented and consumer centric, Moreover, the dependency on connectivity through APIs is growing, further fueling the growth of both public and private APIs. Hence, to manage the increasing number of APIs, organizations are rapidly adopting API management solutions.

Objectives of the Study:

The main objective of this report is to define, describe, and forecast the global API management market on the basis of solutions, services, deployment types, organization sizes, industries, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report aims to strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the total market. The report attempts to forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product developments, and Research & Development (R&D) activities in the market.

The research methodology used to estimate and forecast the API management market begins with capturing data on key vendor’s revenues through a secondary research using sources such as Uptime Institute and IEEE. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of primary profiles is depicted in the figure below:

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The API management ecosystem comprises vendors such as Akana, Inc. (U.S.), Apiary, Inc. (U.S.), Axway, Inc. (France), CA Technologies, Inc. (U.S.), Cloud Elements, Inc. (U.S.), Dell Boomi, Inc. (U.S.), DigitalML (U.S.), Fiorano Software, Inc. (U.S.), Google, Inc. (U.S.), Hewlett-Packard Enterprises Co. (U.S.),  IBM Corporation (U.S.), Mashape Inc. (U.S.), Microsoft Corporation (U.S.), MuleSoft, Inc. (U.S.), Nexright (Australia), Oracle Corporation (U.S.), RedHat, Inc. (U.S.), SAP SE (Germany),  Sensedia (Brazil), SnapLogic, Inc. (U.S.), Software AG (Germany), TIBCO Software, Inc. (U.S.), Torry Harris Business Solutions, Inc. (U.S.), Tyk Technologies Ltd. (U.K.), and WSO2, Inc. (U.S.).; service providers, system integrators, and enterprises.

Major Market Developments

• In November 2016, Rogue Wave Software, Inc. announced the acquisition of Akana, Inc., a leading API management vendor. This acquisition was aimed to aid Rogue Wave Software in tapping the rapidly growing API management market
• In October 2016, CA Technologies announced the launch of CA Live Creator, equipped with point-and-click functionality. The new launch provides organization to automatically create an API for an application or any particular data set they choose
• In January 2016, Axway announced the acquisition of Appcelerator Inc. The acquisition was aimed to expand Axway's suite of digital business to help enterprises achieve digital transformation

The target audiences of the API management market report are:

• API management vendors
• CSBs
• Application development platform providers
• Managed Service Providers (MSPs)
• CSPs
• System integrators
• Consultancy firms/advisory firms
• Investor and venture capitalists

 “Study answers several questions for the stakeholders, primarily which market segments will focus in next two to five years for prioritizing the efforts and investments”.

Scope of the Report:

The research report categorizes the API management market to forecast the revenues and analyze the trends in each of the following subsegments:

By Component:

• Solutions
• Services

By Solution:

• API Portal
• API Gateway
• API Analytics
• Administration
• Security
• Monetization

API Management Market By Service

• Training and Consulting
• Integration
• Support and Maintenance

By Deployment Type:

• On Premise
• Cloud

By Organization Size:

• SMEs
• Large Enterprises

By Industry:

•  BFSI
• IT and Telecom
• Government and Defense
• Healthcare and Life Science
• Retail and Consumer Goods
• Media and Entertainment
• Travel and Transportation
• Manufacturing
• Others (Education, Energy & Utilities)

By Region:

• North America
• Europe
• Middle East and Africa (MEA)
• Asia-Pacific (APAC)
• Latin America

Critical questions which the report answers

• What are the industries which the API management companies are exploring?
• Which are the key players in the market and how intense is the competition?

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis:

• Product matrix which gives a detailed comparison of product portfolio of each company

Geographic Analysis:

• Further breakdown of the North America API Management market
• Further breakdown of the Europe market
• Further breakdown of the APAC market
• Further breakdown of the MEA market
• Further breakdown of the Latin America market

Company Information:

• Detailed analysis and profiling of additional market players

The API management market is expected to grow from USD 606.8 million in 2016 to USD 2,665.3 million by 2021, at a high Compound Annual Growth Rate (CAGR) of 34.44% during the forecast period. Due to the growing web APIs, organizations are increasingly requiring API management solutions. API management solutions can be deployed for both on-premises and cloud-based infrastructures. The enterprises are in continuous need of consumable APIs that can securely transform back-end capabilities, further driving the demand for efficient API management solutions.

The report provides detailed insights into the global API management market, which is segmented on the basis of solutions, services, deployment types, organization sizes, industry verticals, and region. In the solution segment API Portal holds the higher market share as it facilitates provisioning of platform for using APIs. In terms of services, integration services are expected to dominate the market and contribute the largest market share, whereas, support and maintenance is set to grow at the highest CAGR during the forecast period. Increasing adoption of both public and private APIs across all the verticals and the increasing adoption of API management solutions are further fueling the growth of the API management market.  

Growing popularity of web APIs to drive the growth of API management market

BFSI

The BFSI industry collectively includes organizations that are into banking services such as core banking, corporate, retail, investment, private, and cards; financial services such as payment gateways, stock broking, and mutual funds; and insurance services covering both life and general insurance policies. The BFSI sector is constantly evolving and is characterized by intense competition, worldwide expansion, consolidation, varied regulatory norms, and constantly changing consumer demands. API management solution offers API platform for secure creation, delivery, and management of scalable, reliable APIs which offer development team to create multiple applications within the same security and service quality of the BFSI industries. API platforms offer open communication between BFSI industries and their customers & emerging partners. Furthermore, it also offers end-to-end API management solution for designing, implementing, securing, managing, monitoring, and publishing APIs available on cloud, on-premises, and hybrid deployment.

IT and Telecom

Growing number of users and increasing adoption of various technologies related to media and digital content are driving the demand for efficient and secure API systems across this industry. Moreover, IT and telecom companies face the challenge of evolving customer requirements and the ever-changing needs arising out of change of plans, devices, and payment models making things more complicated for operators. This industry is constantly facing the need of tailoring applications to deliver a hyper-personalized experience which has resulted in the requirement to learn about customer preferences in real time. API management solution helps in improving customer engagement and drive customer loyalty by offering personalized experience with reduced costs. The API management solutions offer APIs platform for the telecommunication and IT services in which the APIs access the services such as content services and online services provided by the telecommunication and IT companies. API management offers technology services, connectivity services, device integration services, and business services for telecommunication and IT industries which includes hosting, caching, payments, connectivity support, analytics, billing, accounting, and coupons. Some of the major companies offering API management solutions to IT and telecom are IBM Corporation, SAP SE, Software AG, and TIBCO Software.

Government and Defense

The government and defense industry includes all the government organizations, agencies, and defense sector. This industry has to deal with various security issues such as safety, tax collection, public interest, and sensitive data. In addition, the government and defense sector has faced challenges in creating a multi-channel business application, ensuring license renewal on-time, streamlining procurement process while on-boarding with new trading partners, and maintaining accurate real-time location & inventory usage. The API management solution helps to overcome these challenges by offering a secure & encrypted platform for maintaining and transmitting sensitive data, real-time analytics for tracking and understanding location and usage patterns of the products for the government and defense sector. Furthermore, the API management solution provides security and defense, protects the sensitive data by handling authentication and authorization, encrypting data, preventing threats and attacks on government agencies & defense sector by deploying API gateway on cloud and on-premises. The API management solution enables secure platform for digital communication for the government and defense sector at reduced cost. It also offers API gateway for recruitment campaigns, healthcare appointments for military employees, and training programs. There has been a surge in the government agencies moving to cloud so that they can securely deliver better services to citizens.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for API management?

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The report covers all the major aspects of the API management market and provides an in-depth analysis across the regions of North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and Latin America. North America is expected to hold the largest share in the market. The APAC region is projected to have great opportunities in this market and would grow at the highest CAGR by 2021, due to the presence of various developing countries, growing number of API providers, and increasing adoption of API management technology.

However, requirement of additional security for APIs may act as the restraining factor for the market. Various vendors are coming up with innovative API management solutions and products due to the emerging demand for Web APIs. Axway provides API lifecycle management products, analytics, application development, and other offering across various industry verticals. It has also adopted strategies such as new product development in this market. The other major vendors providing API management solutions and services are Akana, Inc. (U.S.), Apiary, Inc. (U.S.), Axway, Inc. (France), CA Technologies, Inc. (U.S.), Cloud Elements, Inc. (U.S.), Dell Boomi, Inc. (U.S.), DigitalML (U.S.), Fiorano Software, Inc. (U.S.), Google, Inc. (U.S.), Hewlett Packard Enterprises Co. (U.S.),  IBM Corporation (U.S.), Mashape Inc. (U.S.), Microsoft Corporation (U.S.), MuleSoft, Inc. (U.S.), Nexright (Australia), Oracle Corporation (U.S.), RedHat, Inc. (U.S.), SAP SE (Germany),  Sensedia (Brazil), SnapLogic, Inc. (U.S.), Software AG (Germany), TIBCO Software, Inc. (U.S.), Torry Harris Business Solutions, Inc. (U.S.), Tyk Technologies Ltd. (U.K.), and WSO2, Inc. (U.S.). These players adopted various strategies such as new product launches, partnerships, collaborations, and expansions to become competitive in the market.