The Asia Pacific API management market is segmented into China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. Enterprises in the region increasingly adopt API management solutions in their core business functions. The growing need for API management across various industries and rising focus of organizations on improving and enhancing existing business systems drive the Asia Pacific API management market growth. Organizations are looking to spend more in Asia Pacific in 2022. Amid the COVID-19 pandemic, organizations across Asia Pacific have been looking for new revenue streams through investments in innovation and new business models. With the huge growth in digitization across industries, there is an increasing need for API management to drive process improvement and reimagine business models in the region. All such factors contribute to the API management market growth in APAC.
Increased internet penetration and consumption and the rapid adoption of API management fuel the API management market growth in India. According to a survey by CA Technologies, a majority of surveyed organizations in India recognized the importance of APIs in business growth, and API adoption has skyrocketed, with about 91% of organizations adopting APIs. Moreover, online banking has emerged as the primary mode of accessing banking services for customers in India due to its numerous advantages in the digital era. UPI has been widely adopted in the country, as it provides a straightforward, safe, and effective payment method, fostering digital payments and financial inclusion. APIs are fundamental to the UPI and online banking as they provide the technological framework for smooth communication and interaction between various organizations within the UPI ecosystem. Secure and effective API management is becoming important as the Indian banking industry embraces open banking and digital transformation.
China has witnessed huge growth in the API management market. The COVID-19 pandemic has accelerated digital adoption and digital service delivery around the world. The pandemic has brought different work styles to business entertainment. The digital model has become the new normal for customers and businesses of all sizes. This sudden spike in digital activity has created a huge growth in internet traffic in China, leading to an unprecedented demand for API management. Moreover, the increasing focus on data-driven decision making during the pandemic has increased the use of API management. All such factors contribute to the API management market growth in China.
Emergence of AI and ML Technologies Drives API Management Market Growth
Artificial intelligence (AI) and machine learning (ML) technologies have the potential to transform the API management industry. API management platforms are leveraging these technologies to automate processes such as API discovery, threat detection, and anomaly detection. This helps organizations reduce the burden on their IT teams and improve the efficiency and accuracy of their API management processes. AI in API management helps automatically generate documentation, provide recommendations for improvements, and monitor usage trends. Businesses can save money and time by utilizing AI instead of physical labor for certain operations. A large number of enterprises will start utilizing AI or ML technology services such as speech recognition, chatbots, predictive analytics, and customer service automation tools via API management. In the next two to three years, the market will witness a massive increase in applying ML for API management and provisioning. As the world of API development evolves and API adoption increases, new trends and functionality will emerge. Thus, the emergence of technologies such as AI and ML will provide lucrative opportunities for the API management market growth in the future.
API Management Market: Segmental Overview
Based on end users, the API management market is segmented into IT & telecom, BFSI, healthcare, government, manufacturing, and others. The IT & telecom segment is expected to dominate the market and register the highest CAGR in the API management market during the forecast period, as the IT & telecom industry uses API management the most.
API Management Market Analysis: Competitive Landscape and Key Developments
IBM Corporation; Microsoft Corporation; Oracle Corporation; Google LLC.; Broadcom; Software AG; Akamai Technologies; SAP SE; Postman, Inc.; and Amazon Web Services Inc. are among the major players operating in the API management market. The market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
- In April 2024, Cequence Solutions integrated with the Broadcom Layer7 API Gateway. Cequence now supports and integrates with the Broadcom Layer7 API Gateway using the Cequence Broadcom API Gateway Policy Plugin. Broadcom Layer7 API Gateways are extensible, scalable, and high-performance gateways to connect businesses’ important data and applications across any combination of container, cloud, or on-premises environments.
- In May 2024, Akamai Technologies, Inc., the cloud company that powers and protects life online, announced that it had entered a definitive agreement to acquire an API security company, Noname Security. Noname, one of the top API security vendors in the market, will enhance Akamai’s existing API Security solution and accelerate its ability to meet growing customer demand and market requirements as the use of APIs continues to expand. Akamai also expects to gain greater scale with Noname’s additional sales and marketing resources and established channel and alliance relationships.