API Security Market – By Deployment Type (On-Premise, Cloud-based), By Solution (API Security Software, API Security Services), By Organization Size (Small Enterprises, Medium Enterprises, Large Enterprises), By End User Vertical (BFSI, IT & Telecom, Government, Healthcare and Life Sciences, Retail and E-commerce, Media & Entertainment, Travel & Hospitality, Education, Power & Utilities, Industrial, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030

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.

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The “API Security Market Report - Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the API Security Market.

 

● 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.

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).

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. 

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.

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.

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.

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. 

 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)

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