Global Open API Market Size By Product (Web API, Local API), By Application (Media & Entertainment, Government), By Geographic Scope And Forecast

Open API Market Size And Forecast

Open API Market size was valued at USD 3 Billion in 2024 and is projected to reach USD 15.53 Billion by 2031, growing at a CAGR of 25.15% during the forecast period 2024-2031.

Major factors which are playing a key role within the increasing popularity of open API are their features enabling third parties to create applications. On top of the platform, reduction in costs & speeding up time-to-market, adoption of social sharing practices for marketing purposes, and syndicate products and services across different platforms. The Global Open API Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Open API Market Definition

An Open API, also known as an external API, is basically a doorway freely available (or with some light restrictions) for developers outside the company. Think of it as a friendly handshake, allowing these developers to integrate the API into open-source data and services to build cool new applications. Who uses them? Well, you'll find them everywhere from IT and telecommunications to banking, financial services, and insurance (BFSI). And that's not all! Healthcare, travel and tourism, even government, education, media, entertainment, and energy and utilities are getting in on the action. The best part? Open APIs are designed to be super accessible, making life easier for all those third-party developers.

Developers are really excited about open APIs because they help us understand how different software programs talk to each other. Think of it as a cheat sheet that lets us skip writing tons of new code. This means we can spend more time building awesome and unique software! Since these APIs are usually freely available, apps work better together and get updated faster. But the coolest part is that open APIs let other developers create amazing add-ons and services that work with the main application. This gives companies a chance to get their products and services into other apps, reaching new customers and boosting sales.

Global Open API Market Overview

The open API is a type of application programming interference that allows access to the third-party developers for software program features to build applications and web services. The demand for the open API has shown strong growth in the past few years, however, the COVID pandemic further intensified its demand. The growth of the Open API Market is mainly accounted for higher demand for creating a business model for gaining higher revenues. The use of the open API is prominent to allow different platforms, systems, and apps to connect and share data.

Industries like IT, telecom, banking (BFSI), healthcare, and government are really pushing for more open APIs. A Rapid API survey found that over 90% of developers think API usage will stay the same or even go up in the next few years! Open APIs are popular because they let developers build cool, new features and services. In fact, the survey showed that the number of open APIs jumped by 4% from 2020 to 2021. What's driving this demand? Well, open APIs offer secure, controlled, and cost-effective access to specific data and system features. And as everything becomes more digital, we need APIs to connect users and servers more than ever.

Another prime factor pushing the demand for open APIs is the growing focus on the development of customer-centric products/services. Companies around the world are putting extra effort to understand the customer requirement and cater to them efficiently. With the growing intense competition in all industries, large as well as small and medium scale companies (SMEs) are looking to gauge the customer requirement and fulfill them accordingly. Also, the increasing number of third-party mobile applications is a key driver driving the Open API Market growth over the forecast period. Deployments of SaaS and Hybrid Cloud-based APIs are on the rise

The market is projected to show strong growth in the years to follow due to increased effort for the implementation of innovative and advanced application programming interfaces in various sectors. However, the higher cost of implementing Open API and uncertainty and vulnerability of the third-party apps in terms of security has emerged as the prominent factors hampering the market growth.

Global Open API Market Segmentation Analysis

The Global Open API Market is Segmented on the basis of Product, Application, And Geography.

Open API Market, By Product

• Web API
• Local API
• Program API

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When we look at the market by Product, we see it's divided into a few key areasWeb API, Local API, and Program API. The Web API segment is really leading the pack right now. Why? Well, Web APIs are just so convenient! They're easy to use, rely on common HTTP protocols, and can be used in all sorts of applications, from mobile apps to desktop software and even web applications. Think of a Web API as a translator, letting different software applications talk to each other. Salesforce introduced them way back in 2000, and while the basics haven't changed much, they've become incredibly versatile. You can use them as web servers or browsers, and build them with languages like Java or ASP.NET. Essentially, a Web API is like a super-powered web application that can provide services across your laptop, phone, and other devices. And get thisour analysis shows that Web APIs were the top dog in 2021 and are expected to keep growing strong for years to come.

Open API Market, By Application

• Media & Entertainment
• Government
• Education & Financial Institutions
• BFSI
• Information Technology & Telecommunication
• Healthcare & Life Sciences
• Others

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The market's split up by what it's used for – we're talking Media & Entertainment, Government, Education & Financial Institutions, BFSI, Information Technology & Telecommunication, Healthcare & Life Sciences, and a catch-all "Others." Right now, IT and Telecom are leading the pack. In those sectors, APIs are all about making sure different devices can talk to each other. Think about telecom – they're moving away from relying on hardware and leaning into software. With everyone wanting internet on their phones, telecom companies are feeling the pressure to use APIs. They're especially digging public APIs because it's a way to drum up more business and snag new customers. The Telecom scene is a tough one, with some big players dominating. So, everyone's trying to find new tech that'll bring in customers and give them an edge.

Open API Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle east and Africa
• Latin America

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When we look at the Global Open API Market by region, we see it broken down into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North America currently leads the pack with the biggest slice of the market, and we expect it to keep growing at a good clip in the coming years. What's driving this growth? Well, a big part of it is the increasing need for APIs in the healthcare industry. More and more, healthcare is becoming focused on the patient – a value-based approach that aims to improve care, results, and patient satisfaction. This shift towards patient-centric healthcare, particularly through the use of application programming interfaces (APIs), is fueling demand. Plus, with the rise of things like wearable medical devices and remote patient monitoring, the need for healthcare API solutions is only getting stronger.

Key Players

The “Global Open API Market” study report will provide a valuable insight with an emphasis on the global market. The major players in the market are Apigee Corp.(U.S.), International Business Machines Corporation (U.S.), Twillo, Inc.(U.S.), Google Inc.(U.S.), Orange SA (France), Wipro Limited (India), Oracle Corporation (U.S.), Banco Bilbao Vizcaya Argentaria (BBVA) (Spain), SAP SE (Germany) and Visa Inc. (U.S.).

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Key Developments

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.