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API Security Market- By Organization Size (Small, Medium, Large Enterprises), By End User Vertical (BFSI, IT & Telecom, Government, Healthcare and Life Sciences, Retail and E-commerce, Media & Entertainment, Education, Others), By Geography - Global Opportunity Analysis & Industry Forecast 2023-2030
API Security Market Overview:
API Security Market size is estimated to reach $6.3 billion by 2030, growing at a CAGR of 25.4% during the forecast period 2023-2030. Increasing adoption of APIs to leverage cloud-based services and build digital ecosystems is driving the demand for API security solutions among organizations. This trend is expected to boost the growth of the API Security Market during the forecast period.
Additionally, the rising number of cybersecurity threats is compelling organizations to adopt API security solutions. APIs are a common target for attackers willing to disrupt services or steal data. As per recent studies, it was estimated that US-based companies have lost somewhere between $12 billion and $23 billion in 2022 alone from API data breaches. Organizations are investing in API security solutions to mitigate these risks and ensure the security of their sensitive data. These factors positively influence the API Security industry outlook during the forecast period.
Market Snapshot:
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API Security Market - Report Coverage:
The “API Security Market Report - Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the API Security Market.
| Attribute | Segment |
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By Deployment Type |
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By Solution |
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By Organization Size |
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By End Use Verticals |
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By Geography |
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COVID-19 / Ukraine Crisis - Impact Analysis:
● The COVID-19 pandemic accelerated the adoption of digital technologies and cloud-based solutions, which has led to increased use of APIs by organizations. The raised concerns about security have boosted the demand for API security solutions. On the other hand, the pandemic has caused economic uncertainty, causing some organizations to cut back on IT spending, especially on investment in API security solutions. Also, the shift to remote work has made it difficult for the organizations to secure their APIs in this new environment.
● The conflict between Russia and Ukraine could lead to an increase in cyberattacks, including attacks on APIs. This would boost the demand for API security solutions as organizations look for ways to protect themselves from these threats. Also, the conflict is causing economic uncertainty in the region, which could impact the IT spending and investment in API security solutions. Additionally, the supply-chain disruptions caused by the conflict may impact the availability of IT resources, which could further impact the market.
Key Takeaways:
● Fastest Growth of Asia-Pacific Region
Geographically, in the global API Security market share, Asia-Pacific is analyzed to grow with the highest CAGR of 25.9% during the forecast period 2023-2030. The increasing adoption of APIs and cloud-based solutions in the region along with the rising number of cyber threats and regulatory compliance requirements are boosting the growth of the region's API Security Market share. According to Imperva, a cybersecurity firm, APAC governments have taken a variety of approaches to open banking and the advent of open banking has brought about a transformative shift for both businesses and consumers. With the growing demand for these services, banks and fintech companies will increasingly depend on application programming interfaces (APIs).
● Cloud-based Segment to Register the Fastest Growth
In the API Security Market analysis, the cloud-based segment is estimated to grow with the fastest during the forecast period. There are several factors boosting the growth of this segment. Firstly, cloud-based API security solutions can easily scale up or down depending on the changing needs of the organization. It offers greater flexibility than on-premise solutions. Also, cloud-based solutions usually require lower upfront costs.
● BFSI Sector is the Fastest Growing Segment in the Market
According to the API Security Market forecast, the BFSI sector is estimated to register the fastest growth during the forecast period. The financing institutions are increasingly adoption APIs to enable new digital services, such as peer-to-peer payments and mobile banking. These services require strong API security to prevent fraud, protect customer data and comply with regulatory requirements.
According to the Salt Labs State API Security Report Q1 2022, API attack traffic has increased 681 percent in the past 12 months (of publishing the report). Since financial institutions and fintech firms hold tremendous amount of valuable data, they are the perfect target for such attackers.
● Increasing Adoption of APIs
APIs are increasingly becoming a crucial component for modern digital businesses. They allow organizations to share data and services quickly and easily between different systems and applications. However, APIs create new security risks, making API security solutions critical to protect against cyber threats while ensuring regulatory compliance. This is one of the major factors driving the growth of the API Security Market during the forecast period.
● Growth of Digital Transformation Initiatives
The growth of digital transformation initiatives is analyzed to witness significant growth during the forecast period 2023-2030 as organizations strive to remain competitive in the digital age and keep up with evolving technologies. Data and analytics will increasingly contribute to innovation, helping businesses derive insights and achieve desired outcomes As per IndustryARC’s findings, the global digital transformation market is projected to surpass $1.3trillion by 2027. The shift to software-as-a-service (SaaS) platforms is expected to dominate the digital transformation landscape, enabling easier collaboration, improved productivity, and organizational flexibility. These trends underscore the ongoing need for organizations to adapt, innovate, and leverage digital technologies to drive growth, meet evolving customer expectations, and address market dynamics. APIs can facilitate the integration of various digital tools and services, enabling organizations to effectively implement their digital transformation strategies and leverage the benefits of automation, data analytics, and SaaS platforms. By leveraging APIs, organizations can seamlessly connect different systems, access relevant data, and streamline processes, ultimately accelerating their digital transformation efforts and achieving desired outcomes. The growing adoption of APIs is further set to drive the API security market during the forecast period.
● API Security implementation challenges and risks to impede to market growth
Implementing API security can pose several challenges and risks that organizations need to address. APIs expose endpoints that handle object identifiers, increasing the attack surface and creating potential vulnerabilities for Object Level Access Control issues which can lead to unauthorized access and data exposure. Implementing authentication mechanisms incorrectly can compromise authentication tokens and allow attackers to assume other users' identities. Weak authentication methods or flawed implementation can lead to unauthorized access and compromised API security. Lack of or improper authorization validation at the object property level can lead to excessive data exposure or manipulation by unauthorized parties. APIs require resources such as network bandwidth, CPU, memory, and storage to fulfill requests. Without proper rate limiting and resource management, malicious actors can launch Denial of Service (DoS) attacks, exhausting resources and disrupting API availability. These technical challenges are set to hinder the API security market growth in the future.
API Security Market Share (%) By Region, 2022
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Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the API Security Market.
The top 10 companies in this industry are listed below:
1. Akamai Technologies (Prolexic, Kona Site Defender)
2. Amazon Web Services, Inc. (AWS Shield, AWS WAF)
3. Apigee Corp. (Apigee Edge, Apigee Sense)
4. Auth0® Inc. (Auth0 API Management, Auth0 WebAuthn Passwordless)
5. Axway Software SA (Axway API Gateway, Axway SecureTransport)
6. Barracuda Networks, Inc. (Barracuda CloudGen Firewall, Barracuda WAF-as-a-Service)
7. Computer Associates International, Inc. (CA API Gateway, CA Single Sign-On)
8. Checkmarx Ltd. (Checkmarx CxSAST, Checkmarx CxIAST)
9. Cisco Systems, Inc. (Cisco Umbrella, Cisco API Security)
10. Cloudflare, Inc. (Cloudflare API Shield, Cloudflare Access)
Scope of Report:
| Report Metric | Details |
|---|---|
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Base Year Considered |
2022 |
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Forecast Period |
2023–2030 |
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CAGR |
25.4% |
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Market Size in 2030 |
$6.3 billion |
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Segments Covered |
Deployment Type, Solution, Organization Size, End User Vertical and Region |
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Geographies Covered |
North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, New Zealand and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), Rest of the World (Middle East and Africa). |
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Key Market Players |
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Key Market Players
- Akamai Technologies
- Amazon Web Services, Inc. (AWS)
- Apigee Corp. (Google Cloud)
- Barracuda Networks, Inc.
- Cisco Systems, Inc.
- Cloudflare, Inc.
- ForgeRock, Inc.
- IBM Corp.
- Imperva, Inc.
- Rapid7, Inc.
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1. API Security Market - Overview
1.1. Definitions and Scope
2. API Security Market - Executive Summary
3. API Security Market - Comparative Analysis
3.1. Company Benchmarking - Key Companies
3.2. Global Financial Analysis - Key Companies
3.3. Market Share Analysis - Key Companies
3.4. Patent Analysis
3.5. Pricing Analysis
4. API Security Market - Start-up Companies Scenario
4.1. Key Start-up Company Analysis by
4.1.1. Investment
4.1.2. Revenue
4.1.3. Venture Capital and Funding Scenario
5. API Security Market – Market Entry Scenario Premium
5.1. Regulatory Framework Overview
5.2. New Business and Ease of Doing Business Index
5.3. Case Studies of Successful Ventures
6. API Security Market - Forces
6.1. Market Drivers
6.2. Market Constraints
6.3. Market Challenges
6.4. Porter's Five Force Model
6.4.1. Bargaining Power of Suppliers
6.4.2. Bargaining Powers of Customers
6.4.3. Threat of New Entrants
6.4.4. Rivalry Among Existing Players
6.4.5. Threat of Substitutes
7. API Security Market – Strategic Analysis
7.1. Value Chain Analysis
7.2. Opportunities Analysis
7.3. Market Life Cycle
8. API Security Market – by Deployment Type (Market Size – $Million/$Billion)
8.1. On-premise
8.2. Cloud-based
9. API Security Market – by Solution (Market Size – $Million/$Billion)
9.1. API Security Software
9.2. API Security Services
10. API Security Market – by End User Vertical (Market Size – $Million/$Billion)
10.1. BFSI
10.2. IT & Telecom
10.3. Government
10.4. Healthcare and Life Sciences
10.5. Retail and E-commerce
10.6. Media & Entertainment
10.7. Travel & Hospitality
10.8. Education
10.9. Power & Utilities
10.10. Industrial
10.11. Others
11. API Security Market – by Organization Size (Market Size – $Million/$Billion)
11.1. Small Enterprises
11.2. Medium Enterprises
11.3. Large Enterprises
12. API Security Market – by Geography (Market Size – $Million/$Billion)
12.1. North America
12.1.1. The U.S.
12.1.2. Canada
12.1.3. Mexico
12.2. Europe
12.2.1. UK
12.2.2. Germany
12.2.3. France
12.2.4. Italy
12.2.5. Spain
12.2.6. Russia
12.2.7. Rest of Europe
12.3. Asia-Pacific
12.3.1. China
12.3.2. India
12.3.3. Japan
12.3.4. South Korea
12.3.5. Australia & New Zealand
12.3.6. Rest of Asia-Pacific
12.4. South America
12.4.1. Brazil
12.4.2. Argentina
12.4.3. Chile
12.4.4. Colombia
12.4.5. Rest of South America
12.5. Rest of the World
12.5.1. Middle East
12.5.2. Africa
13. API Security Market – Entropy
14. API Security Market – Industry/Segment Competition Landscape
14.1. Market Share Analysis
14.1.1. Market Share by Product Type – Key Companies
14.1.2. Market Share by Region – Key Companies
14.1.3. Market Share by Country – Key Companies
14.2. Competition Matrix
14.3. Best Practices for Companies
15. API Security Market – Key Company List by Country Premium
16. API Security Market - Company Analysis
16.1. Akamai Technologies
16.2. Amazon Web Services, Inc. (AWS)
16.3. Apigee Corp. (Google Cloud)
16.4. Barracuda Networks, Inc.
16.5. Cisco Systems, Inc.
16.6. Cloudflare, Inc.
16.7. ForgeRock, Inc.
16.8. IBM Corp.
16.9. Imperva, Inc.
16.10. Rapid7, Inc.
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The API Security Market is projected to grow at 25.4% CAGR during the forecast period 2023-2030.
Global API Security Market size is estimated to be $1.3 billion in 2023 and is projected to reach $6.3 billion by 2030.
The leading players in the API Security Market are Akamai Technologies, Amazon Web Services, Inc. (AWS), Apigee Corp. (Google Cloud), Auth0® Inc., Axway Software SA and others.
Growing adoption of APIs, increased focus on DevOps and agile development, rise of microservices architecture and shift to cloud-based solutions are some of the major API Security Market trends in the industry which will create growth opportunities for the market during the forecast period.
Rising number of cybersecurity threats, regulatory compliance and increasing complexity of IT environments are the driving factors of the market.