API Security Market Size and Overview:

The API Security Market was valued at USD 11.03 Billion in 2024 and is projected to reach a market size of USD 29.82 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 18.03%.

With the strategic transition to API-driven architecture, the organization has notably enhanced its delivery efficiency and operational effectiveness. A clear example of this improvement is the marked increase in the productivity of agile teams following the deployment of an internal developer portal. This platform enables seamless discovery and management of APIs, substantially reducing integration complexities across teams and systems. It also supports large-scale reuse of functionalities, minimizing redundancy in development efforts.

Key Market Insights:

APIs have played a pivotal role in the organization’s digital transformation by facilitating the modularization of its IT infrastructure and supporting the modernization of critical platforms, including the payments hub and trade finance systems.

As a result, a largely unified codebase now supports multiple entities and geographic locations, enabling quicker implementation of new features.

This advancement has also enhanced the organization’s agility in international markets, overcoming previous limitations imposed by legacy technologies.

The widespread implementation of microservices architecture has led to a proliferation of APIs, each requiring dedicated security protocols. To effectively manage authentication, authorization, and threat detection, organizations must establish and enforce comprehensive API security strategies.

API Security Market Drivers:

Rising Incidents of API Breaches, Growing API Economy, and Increasing Adoption of Microservices Architecture to Drive Market Expansion.

Organizations are increasingly recognizing the significance of API-related security incidents, prompting a growing demand for robust API security solutions. As APIs serve as critical enablers of integration and are responsible for handling sensitive information, securing them has become essential to mitigate cyber threats and prevent unauthorized access.

The widespread use of APIs to enable seamless interaction between applications and services has heightened the risk of security vulnerabilities. This increasing dependence on APIs is driving the market demand for advanced security frameworks capable of preventing data breaches and safeguarding digital assets.

Adoption of Artificial Intelligence (AI), Development of Niche Security Solutions, and Growth in Emerging Economies to Unlock New Market growth.

Leveraging artificial intelligence (AI) in API security enhances real-time anomaly detection, thereby improving threat identification and incident response capabilities. AI-driven automation also plays a crucial role in proactively mitigating attacks and strengthening the overall security posture.

The development of industry-specific API security solutions enables organizations to address the unique risks associated with their sectors—such as financial fraud in banking or the protection of sensitive patient data in healthcare. Tailored security frameworks can also contribute to improved operational efficiency and regulatory compliance.

As enterprises expand their digital infrastructure, the rise of digital transformation initiatives across the Asia-Pacific region is accelerating the demand for advanced API security measures. With increased cloud adoption and evolving regulatory requirements, the region presents significant growth opportunities for API security providers.

API Security Market Restraints and Challenges:

Shortage of Skilled Professionals Poses a Challenge to Market Growth.

In the domain of API security, one of the most pressing market restraints is the widespread shortage of skilled professionals capable of implementing and managing advanced API security frameworks. As APIs continue to play an increasingly critical role in enterprise operations, the complexity associated with securing them grows accordingly, highlighting a significant talent gap in the industry.

Organizations are actively seeking experts with the capability to design, deploy, and maintain secure API environments. However, the availability of such specialized talent remains limited. This imbalance between demand and supply—commonly referred to as the "skills gap"—represents a major barrier to effectively mitigating API-related security risks across diverse IT ecosystems.

The lack of domain-specific expertise often results in delayed adoption of modern security measures, thereby increasing exposure to potential cyber threats. Many security breaches can be traced back to basic oversights, including weak authentication practices, insufficient authorization controls, and the failure to enforce rate limiting—issues that typically stem from inadequate technical knowledge in API security best practices.

API Security Market Opportunities:

Incorporation of Artificial Intelligence and Machine Learning in Threat Detection Presents Significant Market Opportunities.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) into API security marks a significant advancement in how organizations detect and respond to cyber threats. Leveraging AI and ML algorithms, companies can now deploy real-time anomaly detection systems that continuously monitor API activity for irregular patterns or behaviors indicative of potential security breaches.

These technologies enhance proactive defense mechanisms by enabling predictive threat intelligence. Through the analysis of historical data and behavioral trends, AI and ML can forecast possible threats, allowing organizations to implement preventive measures before malicious activity occurs.

AI and ML also streamline incident response processes by automating key actions—drastically reducing the time between threat detection, decision-making, and remediation. This automation supports a more agile and resilient security framework, decreasing reliance on traditional firewalls and manual security checks.

A notable example is SentinelOne’s use of AI within its cybersecurity platform. The platform integrates a behavior-based AI engine that monitors for anomalies, enabling real-time threat identification and response. By embedding AI-powered threat detection into API security strategies, organizations can stay ahead of evolving cyber threats, significantly lowering the risk of data breaches and operational disruptions.

API SECURITY MARKET REPORT COVERAGE:

API Security Market Segmentation:

API Security Market Segmentation By Offering:

• Platform & Solutions
• Services
  • Design & Implementation
  • Support & Maintenance
  • Consulting, Training, and Education

The Platform & Solutions segment has emerged as the dominant force in the global API security market. This leadership position is fueled by a growing demand for scalable and holistic solutions that deliver comprehensive, end-to-end API protection.

Major technology providers such as IBM, Google, and Oracle are increasingly embracing unified platforms that integrate essential security functionalities—such as access management, data encryption, real-time threat detection, and continuous monitoring—into a single, cohesive API security framework. This approach reflects a broader industry movement toward more rigorous security standards aimed at defending APIs from sophisticated cyber threats, thereby maintaining the integrity and reliability of digital infrastructures.

Emphasizing this market direction, a strategic alliance was established in February 2025 between Wiz and Check Point Software Technologies. The collaboration aims to combine Check Point’s advanced threat prevention technologies with Wiz’s capabilities in cloud security posture management (CSPM), offering a unified solution that enables organizations to proactively identify and address cloud security vulnerabilities.

API Security Market By Deployment Mode:

• Cloud-based
• On-Premises
• Hybrid

The Cloud-Based segment maintained a leading position in the market, driven primarily by the widespread adoption of cloud technologies across diverse industries. This trend has significantly increased the volume of APIs deployed within cloud environments.

Cloud-based API security solutions are favored for their scalability, flexibility, and cost-efficiency, while also providing robust protection against the evolving landscape of cyber threats targeting APIs. Ongoing digital transformation initiatives and a growing reliance on cloud infrastructure continue to accelerate the demand for advanced cloud-based API security offerings.

Illustrating this momentum, in April 2025, CData introduced the CData Embedded Cloud Service to capitalize on the expanding AI market. This new service is designed to enable software vendors to seamlessly establish data connectivity, embedding real-time data access directly within their applications. CData’s cloud-based solution aims to streamline the integration of multiple data sources, thereby enhancing AI-driven applications and analytics capabilities.

API Security Market By Organization Size:

• Small & Medium Enterprises
• Large Enterprises

The Large Enterprises segment sustained a dominant position in the global API security market. This prominence is largely attributed to the vast volumes of sensitive data and critical business operations these organizations handle, which make them primary targets for advanced cyber threats.

In response, large enterprises have made substantial investments in comprehensive security frameworks, including sophisticated API security solutions, to reduce risks and maintain compliance with stringent regulatory requirements. Their complex IT environments—characterized by numerous interconnected applications and services—demand robust API security measures to protect their expansive digital infrastructure.

The accelerating adoption of microservices and cloud-native architectures further drives the need for customized API security solutions tailored to the unique challenges faced by large enterprises. Reflecting this trend, on January 21, 2025, OpenAI announced “Project Stargate,” a significant initiative aimed at advancing artificial intelligence infrastructure.

This collaborative project involves OpenAI, SoftBank, Oracle, and MGX, with an initial funding commitment of $100 billion, potentially increasing to $500 billion over the next four years. The initiative highlights the growing emphasis on enhancing technological capabilities to support complex enterprise applications and evolving security demands.

API Security Market By Industry Vertical:

• BFSI
• Government
• IT & Telecom
• Healthcare
• Manufacturing
• Media & Entertainment
• Retail & E-commerce
• Others

The IT & Telecom sector has established itself as a key contributor to the global API security market. The adoption of cloud APIs by telecom operators is enhancing service delivery and maximizing returns on network infrastructure investments.

However, this transformation also introduces heightened security risks, as insufficiently protected APIs can become entry points for cyberattacks on networks. As a result, implementing robust API security protocols is essential to safeguard sensitive data and preserve customer confidence.

Demonstrating the sector’s increased focus on security, in February 2025, Globe Telecom entered into a strategic partnership with Nokia aimed at strengthening the protection of banking APIs. This collaboration leverages Nokia’s advanced security technologies to secure sensitive financial information exchanged through APIs.

API Security Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

North America continues to hold a dominant position in the global API security market. This leadership is largely attributed to the region’s concentration of technology giants and innovative startups consistently developing cutting-edge API security solutions. Additionally, the rapid adoption of cloud-based technologies across North America further propels market expansion.

In parallel, stringent regulatory frameworks in sectors such as finance and healthcare across Arab nations drive the demand for heightened security measures, thereby accelerating the need for advanced API security solutions. Illustrating this trend, Palo Alto Networks announced a multiyear partnership in March 2025 with the National Hockey League (NHL) to strengthen digital security within the sports industry.

Meanwhile, the Asia-Pacific region is projected to experience the highest growth rate in the API security market. Rapid digital transformation, expanding IT infrastructure, and an increasing number of cyber threats are driving demand for sophisticated API security solutions. Key countries including China, India, Japan, and Australia are witnessing substantial cybersecurity investments, supported by government initiatives, growing awareness, and broader adoption of cloud services. Overall, the regional outlook is highly favorable, presenting significant opportunities for growth and innovation across major markets.

COVID-19 Impact Analysis:

The COVID-19 pandemic has had a nuanced impact on the API security market. Although the overall demand for API security solutions remained robust, the pandemic introduced both challenges and growth opportunities.

The heightened reliance on digital services and remote work during this period accelerated API adoption, resulting in an increased focus on API-related security risks. Organizations have prioritized strengthening API security measures to ensure secure communication, protect sensitive information, and mitigate the elevated risks posed by growing cyber threats.

Latest Trends and Developments:

The adoption of Zero Trust architecture is increasingly becoming fundamental to modern API security strategies. This framework operates on the principle of “never trust, always verify,” requiring stringent authentication and authorization for every API access request, irrespective of the user’s location or origin.

API gateways serve a critical function within this architecture by securing communications between applications, enforcing encrypted data transmission at all stages, and substantially minimizing the potential attack surface. For instance, Menlo Security’s recent integration of Secure Application Access with Google Cloud WAN provides enterprises with a comprehensive Zero Trust Access (ZTA) solution.

This integration enables secure connectivity to both SaaS and private applications without relying on traditional network infrastructure. It accommodates both managed and unmanaged users or devices, thereby enhancing security measures while maintaining an optimal user experience.

Key Players in the Market:

1. Google
2. Akamai
3. Salt Security
4. Data Theorem
5. Imperva
6. Fortinet
7. Palo Alto Networks
8. Traceable
9. Microsoft
10. Oracle

Market News:

In March 2025, Google reinforced its leadership in the cloud cybersecurity sector through the acquisition of Wiz, a prominent startup in the field, for a record $32 billion. This transaction represents the largest acquisition in Google’s history and significantly enhances its cloud security portfolio.

Wiz’s technology empowers organizations to identify and remediate security vulnerabilities across diverse cloud environments. The integration of Wiz’s platform into Google Cloud is expected to deliver improved security capabilities, enabling customers to manage complex cloud security requirements more effectively.

In April 2025, the API security landscape experienced a major development with the announcement of a strategic partnership between Salt Security and CrowdStrike. This collaboration seeks to strengthen API security by combining Salt Security’s API Protection Platform with CrowdStrike’s Falcon XDR platform.

The integration of Salt Security’s API defense solutions with CrowdStrike’s extensive threat detection technologies aims to offer organizations enhanced visibility and stronger protection against API-related security threats.