Application Programming Interface (API) Security Market by Offering (Platforms & Solutions and Services), Deployment Mode (On-Premises, Hybrid, and Cloud), Organization Size (SMEs and Large Enterprises), Vertical and Region - Global Forecast to 2028
Application Programming Interface Security Market Size, Global Industry Share Forecast
[257 Pages Report] The global Application Programming Interface Security (API) Security Market size was valued $744 million in 2023 and is poised to reach over $3,034 million by the end of 2028, projecting a CAGR of 32.5% during the forecast period.
The expansion of the API security market is driven by the rise in API breaches, creating a strong demand for robust API security solutions. These solutions protect applications and integrations, effectively countering evolving risks. Additionally, the rapid growth of application ecosystems has played a significant role in promoting the adoption of API security measures. Hackers are increasingly targeting APIs due to their widespread usage and access to valuable data, further bolstering the growth of the API security market.
Moreover, ongoing investments and the growing demand for APIs are contributing to the expansion of the API security market. These factors indicate a promising growth trajectory for the market as organizations actively seek improved security and governance measures. Consequently, the demand for API security solutions is expected to witness a significant upsurge shortly.
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Application Programming Interface Security Market Dynamics
Driver: APIs have become a prime target for threat actors
APIs have become attractive targets for hackers due to their widespread use and access to valuable data. Common attacks on APIs include injection attacks, cross-site scripting, and authentication bypass. However, the focus on securing APIs often overlooks the importance of the authentication process. Static API keys, and long-lived credentials, can lead to vulnerabilities when employees leave an organization. Additionally, certain authentication mechanisms can unintentionally introduce API vulnerabilities. Therefore, APIs should be designed to enforce regular authentication and verify token validity within an identity or secret store. These measures help organizations strengthen API security, reducing the risks of unauthorized access and data breaches.
Restraint: Lack of skilled professionals for implementing API security solutions
Implementing API security solutions in an organization’s existing infrastructure requires assessing the API’s quality, flexibility, and stability. It is crucial to find a skilled developer with knowledge of software development and current API security trends, which can be time-consuming and costly in hiring and training. Additionally, integrating API security solutions across multiple platforms necessitates expertise and a well-established infrastructure.
Opportunity: Continuous rise in investment across API security vendors
The increasing demand for robust protection against data breaches and the recognition of API security as a major challenge for CIOs have led to rising investments in API security solutions. Traditional fragmented solutions are being replaced by more comprehensive and effective options offered by companies like Wib and Salt Security. These investments support innovative teams and technologies that address the growing API security blind spot. They enable API security companies to enhance their offerings, develop new technologies, and expand globally. This demonstrates the market's potential for development, innovation, and the creation of integrated API security platforms to address the critical need for protection in today's digital landscape.
Challenge: Traditional security controls may not provide sufficient protection for APIs
Traditional security controls like WAFs and SIEM systems are inadequate for securing APIs, as they struggle to detect disguised malicious activities. APIs bypass centralized controls, enabling attackers to exploit vulnerabilities unnoticed. Organizations with multiple data centers and cloud environments face challenges securing high volumes of east-west API traffic. Weak input validation for APIs poses risks to sensitive data. To effectively protect critical information, APIs require tailored security measures to mitigate these issues and enhance their overall security.
Application Programming Interface Security Market Ecosystem
By vertical, the Healthcare segment is to grow at the highest CAGR during the forecast period.
The widespread adoption of APIs in healthcare enables secure data exchange among different systems and applications. However, this increased usage also expands the potential attack surface for cybercriminals. Moreover, the sensitive nature of patient data, often stored within APIs, makes them an attractive target for hackers aiming to steal information or disrupt healthcare operations. As cyber threats become more sophisticated and targeted, healthcare organizations recognize the importance of safeguarding their APIs. This growth in API security is further fueled by the rise of telehealth and telemedicine, which rely on APIs for remote patient care and data exchange. Additionally, the adoption of cloud-based healthcare solutions and the proliferation of connected medical devices, both reliant on APIs, contribute to the increased focus on protecting these crucial interfaces in the healthcare industry.
By region, North America accounts for the highest market size during the forecast period.
The North American region accounts for the highest market size due to several key factors, such as stringent regulatory compliance, strong cybersecurity preparedness, collaborative initiatives by market players, increasing cyber threats, and economic and technological advancements. These factors drive the adoption of API solutions and services in the region to protect business and customer data and enhance overall cybersecurity. Key advancements in this field include cloud-based testing, mobile app security testing, and IoT security solutions. In collaboration with industry standards and training initiatives, governments are actively working to enhance application security.
Key Market Players
Google (Apigee) (US), Salt (US), Noname (US), Akamai (US), Data Theorem (US), Axway (US), Imperva (US), Traceable (US), Palo Alto Networks (US), Fortinet (US), Red Hat (US), Airlock by Ergon (Switzerland), Akana by Perforce (US), WS02 (UK), Forum Systems (UK), Cequence (US), Sensidia (Brazil), Spherical Defense (US), Neosec (US), Signal Sciences (US), Firetail (US), Resurface Labs (US), 42Crunch (Ireland), Aiculus (Australia), Gravitee (France) and Nevatech (Georgia) are the key players and other players in the API security market.
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Report Metrics |
Details |
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Market size available for years |
2017-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/USD Billion) |
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Segments covered |
Offering, Deployment Mode, Organization Size, Vertical, and Region |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Companies covered |
Major vendors in the global API security market include Google (Apigee) (US), Salt (US), Noname (US), Akamai (US), Data Theorem (US), Axway (US), Imperva (US), Traceable (US), Palo Alto Networks (US), Fortinet (US), Red Hat (US), Airlock by Ergon (Switzerland), Akana by Perforce (US), WS02 (UK), Forum Systems (UK), Cequence (US), Sensidia (Brazil), Spherical Defense (US), Neosec (US), Signal Sciences (US), Firetail (US), Resurface Labs (US), 42Crunch (Ireland), Aiculus (Australia), Gravitee (France) and Nevatech (Georgia). |
The study categorizes the API security market by offering, deployment mode, organization size, SME type, verticals, and regions.
By Offering:
- Platform & Solutions
- Services
By Deployment Mode:
- On-Premises
- Cloud
- Hybrid
By Organization Size:
- SMEs
- Large Enterprise
By Vertical:
- BFSI
- IT and ITeS
- Telecom
- Government
- Manufacturing
- Healthcare
- Retail and eCommerce
- Media and Entertainment
- Energy and Utilities
- Other Verticals (Transportation and Logistics; Travel and Hospitality; and Research and Academia)
By Region:
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- Latin America
Recent Developments
- In June 2022, Google (Apigee) (US) introduced Apigee Advanced API Security, a robust solution designed to assist customers in addressing their increasing API security requirements. This comprehensive set of API security features is built on Apigee, Google's API management platform. With Advanced API Security, organizations gain enhanced capabilities for detecting and mitigating security threats within their APIs.
- In July 2022, Salt Security (US) introduced significant enhancements to its advanced API Protection Platform. The updates strengthen threat detection and pre-production API testing capabilities, offering deeper insights into attacker behaviors, visual representations of API call sequences, and the ability to simulate attacks before deploying APIs into production. With these new features, Salt empowers organizations with comprehensive API usage visibility, enhances incident response speed, and improves overall business understanding.
- In April 2023, Noname (US) partnered strategically with MindPoint Group, a reputable cybersecurity consulting firm. Together, they developed an advanced API security platform in a secure OVA deployment format. This collaboration offers customers a simplified and quick approach to securing their API inventory while ensuring the platform is inherently protected.
- In March 2022, Imperva (US) introduced Imperva API Security, offering continuous API discovery and data classification. This product ensures data visibility and safeguarding across traditional and cloud-native applications. It can also be used alongside Imperva Cloud Web Application Firewall (WAF) or as a standalone solution, effectively protecting APIs in developer environments prone to security vulnerabilities and unintended exposure.
- In January 2021, Palo Alto Networks (US) launched Prisma Cloud 2.0, introducing the Web Application and API Security (WAAS) module. This module enables the discovery and protection of web applications and APIs across various clouds, offering customizable OWASP Top 10 protection, API security, and runtime protection. It provides security teams with a single dashboard integrated with the Defender unified agent framework for easy deployment and enabling protection for cloud-native applications.
Frequently Asked Questions (FAQ):
What are the opportunities in the global API security market?
The continuous rise in investment across API security vendors and the growing demand for APIs to meet business needs are a few factors contributing to the growth and creating new opportunities for the API security market.
What is the definition of the API security market?
API security is the process of safeguarding APIs against unauthorized access, data breaches, and malicious attacks. It involves protecting the connections between various applications and systems used by businesses. API security solutions assist in detecting and addressing vulnerabilities, enforcing access control, and monitoring API traffic for signs of harmful activity. The API security market encompasses solutions and services designed to help organizations shield their APIs from cybercriminals who target these critical connections.
Which region is expected to show the highest market share in the API security market?
North America is expected to account for the largest market share during the forecast period.
What are the major market players covered in the report?
Major vendors, namely, include Google (Apigee) (US), Salt (US), Noname (US), Akamai (US), Data Theorem (US), Axway (US), Imperva (US), Traceable (US), Palo Alto Networks (US), Fortinet (US), Red Hat (US), Airlock by Ergon (Switzerland), Akana by Perforce (US), WS02 (UK), Forum Systems (UK), Cequence (US), Sensidia (Brazil), Spherical Defense (US), Neosec (US), Signal Sciences (US), Firetail (US), Resurface Labs (US), 42Crunch (Ireland), Aiculus (Australia), Gravitee (France) and Nevatech (Georgia).
What is the current size of the global API security market?
The global API security market size is projected to grow from USD 744 million in 2023 to USD 3,034 million by 2028 at a Compound Annual Growth Rate (CAGR) of 32.5% during the forecast period.
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The study involved major activities in estimating the current market size for the API security market. Exhaustive secondary research was done to collect information on the API security industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the API security market.
Secondary Research
The market for the companies offering API security platforms, solutions, and services is arrived at by secondary data available through paid and unpaid sources, analyzing the product portfolios of the major companies in the ecosystem, and rating the companies by their performance and quality. Various sources were referred to in the secondary research process to identify and collect information for this study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, journals, and certified publications and articles from recognized authors, directories, and databases.
Various sources were referred to in the secondary research process to identify and collect information for this study. The secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from secondary sources, such as The SANS Institute, Information Systems Security Association (ISSA), Information Security Forum (ISF), European Cyber Security Organization (ECSO), European Union Agency for Cybersecurity (ENISA), UK Cyber Security Association (UKCSA), Association of Information Security Professionals (AISP), Japan Network Security Association (JNSA), National Association of Software and Services Companies (NASSCOM), Professional Information Security Association (PISA), Australian Information Security Association (AISA), Information Systems Security Association (ISSA), and National Cyber Security Authority (NCA).
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the API security market.
After the complete market engineering (calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types, industry trends, competitive landscape of API security solutions offered by various market players, and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key player strategies.
In the complete market engineering process, the top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
Following is the breakup of the primary study:
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the global API security market and estimate the size of various other dependent sub-segments in the overall API security market. The research methodology used to estimate the market size includes the following details: key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players, and extensive interviews were conducted for key insights from the industry leaders, such as CEOs, VPs, directors, and marketing executives.
All percentage splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added to detailed inputs and analysis from MarketsandMarkets.
Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
Palo Alto Networks defines API Security as “API security is the practice of protecting the application programming interface (API) from attacks that would maliciously use or attempt to exploit an API to steal sensitive data or disrupt services. API security employs strategies, techniques, and solutions to ensure that only authorized users can access and use an API and that the data transmitted through the API is protected from unauthorized access or manipulation.”
Key Stakeholders
- API Security/WAF/WAAP vendors
- Government agencies
- Independent Software Vendors (ISVs)
- System integrators
- Value-Added Resellers (VARs)
- IT security agencies
- System Integrators (SIs)
- Resellers and Distributors
- Information Technology (IT) Professionals
- Consultants/Consultancies/Advisory Firms
- Technology Providers
- Venture Capitalists, Private Equity Firms, and Startup Companies
Report Objectives
- To define, describe, and forecast the API security market based on offering, deployment mode, organization size, verticals, and regions
- To define, describe, and forecast the Application Programming Interface (API) security market by offering, deployment mode, organization size, vertical, and region
- To forecast the market size of five main regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
- To analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall market
- To provide detailed information related to the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the API security market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the API security market
- To profile the key players of the API security market and comprehensively analyze their market size and core competencies in the market
- To track and analyze competitive developments, such as new product launches; mergers and acquisitions; and partnerships, agreements, and collaborations in the global API security market
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Application Programming Interface (API) Security Market