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 (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

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. The API security market is experiencing significant growth due to a surge in API-related breaches. This has created a strong need for effective API security measures to safeguard applications and integrations, combating evolving risks. APIs play a critical role in facilitating smooth communication and data exchange within application ecosystems, which has also fueled the adoption of robust API security solutions. As hackers increasingly target APIs due to their widespread usage and access to valuable data, the API security market continues to expand.

Furthermore, consistent investments and the rising demand for APIs are driving the growth of the API security market. These factors indicate promising growth prospects as organizations prioritize enhanced security and governance measures. Consequently, there is expected to be substantial growth in the demand for API security solutions in the foreseeable future.

By vertical, the BFSI segment accounts for a larger market share.

BFSI is one of the most heavily regulated industries in the world. As a result, businesses in this sector are under constant pressure to protect their sensitive data from cyberattacks. API security is a critical component of any BFSI organization’s cybersecurity strategy. The increasing adoption of cloud-based and microservices-based architectures in the BFSI sector drives the demand for API security solutions. The growing number of connected devices and the rising popularity of mobile banking are also contributing to the growth of the API security market in the BFSI vertical.

By deployment mode, the cloud segment accounts for a larger market share

Cloud deployment mode is gaining traction across the API security market for the following reasons:

Scalability: Cloud-based API security solutions can be scaled up or down quickly to meet the changing needs of an organization. It is essential for businesses that experience spikes in API traffic, such as during peak business hours or marketing campaigns.

Cost-effectiveness: Cloud-based API security solutions are often more cost-effective than on-premises solutions. Cloud providers typically offer a pay-as-you-go pricing model, meaning businesses only pay for the resources they use.

Ease of use: Cloud-based API security solutions are typically more straightforward than on-premises solutions. This is because cloud providers usually offer a user-friendly dashboard that makes it easy to manage API security policies.

Breakdown of primaries

The study contains various industry experts’ insights, from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:

By Company Type: Tier 1 – 25%, Tier 2 – 40%, and Tier 3 – 35%

By Designation: C-level – 30%, Directors – 35%, and Managers – 35%

By Region: North America – 15%, Europe – 25%, Asia Pacific – 30%, Middle East and Africa – 20%, Latin America – 10%

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 includes an in-depth competitive analysis of the key players in the API security market, their company profiles, recent developments, and key market strategies.

Research Coverage

The report segments the API security market and forecasts its size by offering (Platforms & Solutions and Services), Deployment mode (On-premises, Hybrid, and Cloud), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, IT and ITeS, Telecom, Government, Manufacturing, Healthcare, Retail and eCommerce, Media and Entertainment, Energy and Utilities, and other Verticals), and Region (North America, Europe, Asia Pacific, Middle East and Africa, and Latin America).

The study also includes an in-depth competitive analysis of the market’s key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key Benefits of Buying the Report

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall API security market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Surge in breaches involving APIs have fueled the growth of API security, and APIs have become a prime target for threat actors), restraints (Lack of skilled professionals for implementing API security solutions and impact of regulatory constraints on API security solutions), opportunities (Rapid demand of APIs to meet business needs and continuous rise in the investment in API security), and challenges (Traditional security controls may not provide sufficient protection for APIs and safeguarding sensitive data in decentralized architectures through consistent API management and security)

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the API security market.

Market Development: Comprehensive information about lucrative markets – the report analyses the API security market across varied regions.

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the API security market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players Google (Apigee) (US), Salt (US), Noname (US), Akamai (US), Palo Alto Networks (US), among others in the API security market strategies.