API Security Market by Offering (Platform & Solutions, Services), Deployment Mode (On-premises, Cloud, Hybrid), Organization Size (Large Enterprises, Small and Medium-sized Enterprises (SMEs)), Vertical (Banking, Financial Services, and Insurance (BFSI), Government, Healthcare, Media and Entertainme

API Security Market Valuation – 2024-2031

The rising adoption of microservices architecture inside enterprises, combined with the need to ensure smooth connectivity and communication between disparate systems, is a major driver powering the API security market. According to the analyst from Market Research, the API security market is estimated to reach a valuation of USD 7809.26 Million over the forecast subjugating around USD 905.93 Million valued in 2023.

The exponential rise of API usage across industries, combined with the rising complexity of current digital ecosystems, is driving the API security market ahead. It enables the market to grow at a CAGR of 30.9% from 2024 to 2031.

API Security MarketDefinition/ Overview

API security is the set of methods and standards used to safeguard Application Programming Interfaces (APIs) from unauthorized access, data breaches, and cyber threats. Essentially, it entails safeguarding the communication routes and endpoints through which various software components, systems, or applications communicate and share data. This includes authentication, authorization, encryption, and monitoring measures that ensure only legitimate users and apps have access to API resources while preventing malicious actors from exploiting vulnerabilities.

Furthermore, API security is critical in a variety of domains, including e-commerce, finance, healthcare, and IoT, because APIs facilitate seamless integration, data sharing, and functionality across several platforms and devices. For example, in e-commerce, API Security enables secure transactions and safeguards user data during online purchases.

Which are the Factors that Surge the Demand for API Security?

The change to microservices design, combined with the broad use of cloud-based services, has resulted in an exponential surge in API usage. APIs are the foundation of microservices, allowing them to communicate with one another and with external services. As more businesses move their operations and data to the cloud, securing APIs becomes critical for protecting sensitive information from unwanted access and breaches.

APIs have become a prominent target for cyberattacks as the reliance on them for application functionality and data interchange increases. Attackers use API vulnerabilities to launch attacks including data breaches, account takeovers, and service interruptions. This has raised awareness of the importance of robust API security solutions that can identify and prevent such attacks, resulting in a demand for enhanced security technologies and procedures created expressly for API protection.

Furthermore, regulations and standards such as the General Data Protection Regulation (GDPR) in Europe, the California Consumer Privacy Act (CCPA), and the Payment Card Industry Data Security Standard (PCI DSS) place stringent requirements on data privacy, security, and compliance. Organizations must secure their APIs to protect personal and financial information, which necessitates the deployment of extensive API security procedures. Compliance with these standards protects not only customers’ data but also corporations from sanctions and reputational harm.

How will Security Concerns Hinder the Growth of the API Security Market?

The quantity of APIs in ecosystems has increased significantly as businesses use cloud services and microservices architecture more and more. Each API has its own set of protocols, standards, and security requirements, making it difficult to manage and secure them all efficiently. This complexity is exacerbated by the dynamic nature of APIs, where regular updates and modifications present new risks. Providing consistent security across all APIs, particularly in big and heterogeneous contexts, continues to be a significant challenge, influencing the market’s development.

Furthermore, having complete visibility into all API activities is critical for detecting and managing possible security risks. However, many businesses suffer from insufficient monitoring tools and policies, making it difficult to notice unusual behavior or unauthorized access in real-time. This lack of visibility exposes APIs to attacks for extended periods before they are identified, raising the risk of data breaches and other security problems and thereby limiting market expansion.

Category-Wise Acumens

How Does the Platform & Solutions Segment Propel the Growth of the Market?

According to Analysis, the platform & solution segment is estimated to hold the largest market share during the forecast period. Organizations are managing an ever-increasing number and complexity of APIs as microservice designs, cloud services, and IoT (Internet of Things) technologies become more widely adopted. This scenario needs powerful platforms and solutions that can provide full API security capabilities such as threat detection, encryption, authentication, and authorization to guard against a wide variety of cyber-attacks. Organizations desire integrated solutions that offer end-to-end API security driving demand for this segment.

Furthermore, the dynamic nature of APIs and the quick pace of digital transformation necessitate security solutions that are not only scalable but also capable of automating security policies and responses. Platforms and solutions frequently include capabilities that automate security policy enforcement, real-time threat detection, and response, minimizing the need for manual intervention and allowing enterprises to quickly scale API security as they develop. Scalability and automation are particularly appealing to firms looking to grow their digital ecosystems, favoring the platform and solutions segment.

How do Large Enterprises Propel the Demand for API Security Market?

The large enterprises segment is estimated to dominate the API security market during the forecast period. Large enterprises have complicated IT infrastructures and rely significantly on APIs for both internal and external operations, such as integration with partners, customers, and cloud services. The widespread use of APIs is critical for facilitating smooth communication across various systems and services. However, it poses substantial security weaknesses, which must be adequately controlled. Large enterprises require comprehensive API security solutions to safeguard their data and assure continuous service delivery, resulting in market domination.

Furthermore, large enterprises frequently have more financial and human resources available than smaller organizations. This enables them to invest in complete API security solutions, such as enhanced platforms and services, to defend against complex cyber threats. Their capacity to commit considerable funds to cybersecurity measures, such as API security, allows them to adopt and influence the development of cutting-edge security technology, reinforcing their market leadership.

Gain Access into API Security Market Report Methodology

Country/Region-wise Acumens

How Does Advance Technological Infrastructure Influence Market in North America?

According to Analyst, North America is estimated to dominate the API security market during the forecast period. North America, particularly the United States, is home to many of the world’s most prominent technological corporations and innovative startups. This region has a robust ecosystem that promotes the development and use of new technologies such as cloud computing, IoT (Internet of Things), and mobile applications, all of which rely significantly on APIs for operation and integration. The existence of these tech behemoths, as well as a thriving startup culture, fuels the need for sophisticated API security solutions that guard against data breaches, enable secure data interchange, and preserve service integrity.

Furthermore, North America has some of the most advanced cybersecurity infrastructures and a huge number of cybersecurity experts. The region’s emphasis on cybersecurity research, education, and training programs helps to develop a thorough awareness of API security concerns and solutions. This experience enables the development of cutting-edge API security tools and procedures, establishing North America as a leader in tackling growing API risks and vulnerabilities.

What Factors Contribute to the Potential Opportunities in the Asia Pacific region?

The Asia Pacific region is estimated to exhibit the highest growth within the API security market during the forecast period. The APAC region is going through a huge digital revolution, with businesses including banking, healthcare, retail, and telecommunications rapidly incorporating digital technologies to improve their services and reach. This change relies significantly on APIs to enable connectivity across various digital services and apps. The increase in API usage needs strong security measures to guard against potential vulnerabilities and attacks, which drives demand for API security solutions.

Furthermore, countries in the Asia-Pacific region are rapidly adopting cloud computing services and Internet of Things (IoT) technologies, resulting in an exponential increase in the number of APIs that must be managed and secured. Cloud and IoT devices rely on APIs for data sharing and integration, rendering them vulnerable to cyber-attacks. This example emphasizes the importance of modern API security solutions for protecting sensitive data and ensuring uninterrupted services.

Competitive Landscape

The competitive landscape of the API security market is defined by a dynamic interaction of numerous elements, such as technology breakthroughs, regulatory compliance, and evolving cybersecurity threats. Additionally, regulatory frameworks such as GDPR, CCPA, and PSD2 influence the industry by mandating strong data protection measures and driving enterprises to invest in API security solutions to maintain compliance.

Some of the prominent players operating in the API security market include

• Akamai Technologies
• Amazon Web Services (AWS)
• Apigee
• Auth0
• Axway Software
• Cequence Security
• Data Theorem
• F5 Networks
• Fortinet
• IBM Cloud
• Imperva
• Microsoft Azure
• Mulesoft
• Noname Security
• NS1
• Oracle
• Palo Alto Networks
• Red Hat
• Salt Security
• Sendian
• Spherical Defense
• Traceable AI

Latest Developments

• In March 2024, Imperva, a renowned API security provider, announced the expansion of its API security suite to include improved threat detection, bot control, and API lifecycle management capabilities. This complete package is intended to give enterprises with a one-stop shop for safeguarding APIs.
• In February 2024, Salt Security, which focuses on API security posture monitoring, concluded a $70 million Series C fundraising round. This major investment demonstrates the growing importance of API security and the rising demand for Salt Security’s solutions.
• In January 2024, Google Cloud and Apigee, their API management platform, announced a collaboration with Broadcom to improve API security on aging mainframe systems. This collaboration demonstrates the growing demand for secure APIs in all environments, including traditional IT infrastructure.

Report Scope

API Security Market, By Category

Offering

• Platform and Solutions
• Services

Deployment Mode

• On-premises
• Cloud
• Hybrid

Organization Size

• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

Vertical

• Banking, Financial Services and Insurance (BFSI)
• Government
• Healthcare
• Media and Entertainment
• Retail and eCommerce
• IT and Telecom
• Energy and Utilities
• Others

Region

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

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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