API Security Market Size To Grow At 26.5% CAGR From 2025 to 2030

API Security Market Size (2025 - 2030)

As per our research report, the API Security Market size is estimated to grow at a CAGR of 26.5% from 2025 to 2030.

API security means finding and fixing weaknesses and dangers in APIs. This is done using strong security methods like constant monitoring, encryption, and tools that spot threats. When APIs are on-site, keeping the hardware safe is key to stopping unauthorized entry and data leaks. This means using things like firewalls and systems that control who can get in, plus ways to detect intruders. For APIs in the cloud, security involves encryption, safe gateways, ways to check identities, and monitoring tools. Things like token-based authentication, systems that stop data loss, and automatic rules are used. With more companies going digital and moving to the cloud, there's a bigger need for good API security. Increasingly, businesses depend on linked systems, which makes them easier targets for cyberattacks like data breaches, ransomware, and phishing.

The pandemic changed things for API security. When lockdowns hit, everyone started going digital, and that meant a bigger need for secure APIs in all sorts of businesses. Companies moved their work online. Plus, there were way more cyberattacks during the pandemic, so people needed better API security, like zero-trust setups, API gateways, and software that could spot threats.

When IT centres and offices closed, more people wanted to manage APIs remotely on virtual platforms. This also led to wider use of cloud-based API security tools. These tools let cybersecurity people watch API traffic from afar, handle who gets access, and spot strange activity. Plus, the software helped companies automatically find threats, send out alerts right away, and stop harmful requests. AI and machine learning were added; security platforms could now find odd behaviours and act on them quickly.

Besides this, the API security tools had cool dashboards and game-like simulations. These made workers care more and helped everyone at the company learn about security.

Since the pandemic, more companies are using AI, big data, and machine learning to keep their APIs safe and sound. Also, with more people working from home and using cloud apps, manufacturers and developers are creating API security tools that are secure and work well with various cloud platforms, keeping company info safe.

One thing stopping this market from growing is that it costs a lot to get started. Also, small businesses don't add security measures as quickly as they should.

KEY MARKET INSIGHTS:

• Based on market segmentation by Product Type, API management is a big deal since it's how you control, secure, and keep an eye on APIs from start to finish. This means using API gateways, making sure only the right people get in, and keeping track of how things are going. All this is super vital for keeping things running well and staying safe, especially when you're dealing with complicated cloud stuff. Also, IAM tools are becoming more popular as it gets more important to have strong ways to check who people are and what they can access. This is because APIs are getting bigger, and we need to watch out for anyone trying to sneak in where they shouldn't.
• Based on market segmentation by Application, the banking, finance, and insurance industries lead in API security because they use APIs a lot for online banking, digital payments, and financial tech. They need strong security to keep financial information safe and follow the rules. Because they're often hit by cyberattacks, they're quick to use API security. API Management Solutions are the most popular and fastest-growing products as they are key to securing and managing APIs from start to finish. They have important features like API gateways, authentication, access control, and performance analysis. This makes them great for safely handling API traffic, especially in complex setups.
• Based on market segmentation by Region, North America leads the API security market because it has strong tech, uses lots of cloud services, and has tough data protection rules. Big tech companies, government plans, and cybersecurity investments all help. Lots of APIs are used in finance, healthcare, and e-commerce, so better security is needed because cyberattacks are more common. Asia-Pacific is growing fast because of digital changes, more internet use, better IT, and more awareness of cyber threats.

• Companies playing a leading role in the API Security Market profiled in this report are – Google Cloud (Apigee), Microsoft Azure, Amazon Web Services (AWS), Akamai Technologies, IBM Corporation, Broadcom Inc. (Layer7), Data Theorem, Salt Security, Noname Security, 42Crunch, Imperva, and Cequence Security.

By Product Type

• API Management Solutions
• Identity and Access Management (IAM) Solutions
• Web Application Firewalls (WAF)
• Security Information and Event Management (SIEM)

By Application

• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• IT and Telecommunications
• Retail and E-commerce

By Region

• • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East and Africa

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