Global API Security Market Size (2024 - 2030)

The Global API Security Market was valued at USD 30.59 Billion and is projected to reach a market size of USD 47.85 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.6%.

Industry Overview:

An Application Programming Interface (API) is the way in which two or more computers connect with each other through an interface. The API security means providing a secure transaction or exchange of information between various parties. Recently, there has been an increase in the cybersecurity issues and securing data has become a big problem. Organizations rely or data for so many things, such as identifying potential customers, making tailor made products and programs, and customizing the applications or websites. The service industry thrives on the data and information. Also, major product industries also rely on data such as sales data, market data and market share data. These data provide valuable insights to the companies on how to make their marketing communication plans. The growing attacks on cybersecurity and API has led organizations to adopt API security. This is a key driving factor behind the growth of the industry.

MARKET DRIVERS

Increasing demand for API security is driving growth in API Security Market

There has been an increasing demand for the API security systems to prevent various cyberattacks. These attacks are done by individuals or corrupt organizations to steal data and information. These instances of increasing cyberattacks have led companies to have a complete system of API security. The demand for software industry has increased as organization are highly dependent or information and software.

Rising SMEs is driving growth in API security Market

The rising demand form SMEs have increased the growth of API security market. The SMEs are now employing the enterprise models which help them in analysing and decision making. The whole process of data collection becomes easier with these enterprise models. The security of these enterprises is very important. These factors are increasing the growth in the API security market.

MARKET RESTRAINTS

Low awareness about API security is restraining growth in API security Market

There is lack of awareness among various organization about the cyberattack issues they might be prone of. This lack of awareness is not letting the organizations use the API securities. These securities are to provide a safe platform for all the parties to interact and share data. But this is not possible when organizations are not aware of the threats that can be caused in the absence of API security.

High cost of capital is restraining growth in API security Market

There is capital cost associated with onboarding API security service. The companies providing these services have a subscription model. The companies have to pay fee monthly or annually depending on their need. Some organizations do not have the resources to pay for these services which cost a lot. Due to this they refrain from getting these services. Hence, high capital cost is a major restraining factor for the growth of the API security market.

GLOBAL API SECURITY MARKET REPORT COVERAGE:

Market Segmentation Analysis

API Security Market – By Deployment Type:

• On-premise
• Cloud-based

In terms of deployment mode API security market can be segmented into two main types, On-premise and Cloud-based. In On-premise deployment the infrastructure of software deployment is done in the client office. Whereas, in the cloud-based deployment type the server is cloud based and the client uses the server through internet. Cloud is the cheapest and most used type of deployment.

API Security Market – By End User:

• Small Enterprises
• Medium Enterprises
• Large Enterprises

In terms of end user API security market can be segmented into three major categories, Small Enterprises, Medium Enterprises and Large Enterprises. Small enterprises use of API security is minimal. Medium enterprises use the API security to protect their information. For large enterprises it is crucial that they are protecting their data and information, hence, they are mostly used by large enterprises.

API Security Market – By Industry:

• BFSI
• IT & Telecom
• Government
• Healthcare and life sciences
• Retail and consumer goods
• Others

In terms of industry, the API security market can be segmented into six major categories. These are BFSI, IT & Telecom, Government, Healthcare and life sciences, Retail and consumer goods and Others. IT & Telecom industry use the API security in abundance. API security is very crucial to conduct their everyday processes. Government data breaches are happening these days due to interventions by the hackers. The healthcare and life sciences industry also rely heavily on API security.

API Security Market – By Region:

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

The API security’s biggest market is in North America. The USA's presence, which made significant early investments in the API security, is mostly to blame. The area is home to some of the largest automakers, including GM and Ford, making it the centre for failure analysis.

The United States also ranks among the major producers of crude oil and operates a number of oil rigs around North America. The Deepwater Horizon spill incident in 2010 caused by a mechanical failure further emphasised the value of failure analysis, which aids in determining the primary cause of the failure and serves to prevent it from occurring again.

API Security Market – By Company:

1. IBM,

2. Google

3. Oracle

4. Red Hat

5. Software AG

6. Axway

7. MuleSoft

8. Microsoft

9. SAP SE

10. Amazon Web Services, Inc. 

NOTABLE HAPPENINGS IN THE API SECURITY MARKET IN THE RECENT PAST:

• In September 2022, StackHawk launched deeper API security test coverage and is continuing to lead the market. The new project will help the company to gain market share and bring additional revenue.

• In September 2022, Gravitee.io raised USD 30 mn to create a platform to provide services related to API security. The company has invested by spending huge capital on the infrastructure.

COVID-19 Impact on API Security Market:

COVID-19 had a deep impact on the API security market. During lockdown the service industry grew a lot. The IT sector received a lot of projects. The only industry that could enable work from home was IT and service industry. Also, there were other industries which made use of work from home and hybrid work. The pandemic helped increase digital literacy of people and forced them to go digital. These instances increase the internet penetration which in turn helped the IT industry. In these ways, the COVID-19 had an important role in shaping the API security industry today.