Application Programming Interface (API) as a Service Global Market Report 2025

The application programming interface (API) as a service market size has grown rapidly in recent years. It will grow from $6.05 billion in 2024 to $7.16 billion in 2025 at a compound annual growth rate (CAGR) of 18.3%. The growth in the historic period can be attributed to rising adoption of cloud-based solutions, growing demand for software integration, increasing use of mobile and web applications, expansion of digital transformation initiatives, and higher need for real-time data connectivity.

The application programming interface (API) as a service market size is expected to see rapid growth in the next few years. It will grow to $13.87 billion in 2029 at a compound annual growth rate (CAGR) of 18%. The growth in the forecast period can be attributed to increasing reliance on hybrid and multi-cloud environments, expansion of the Internet of Things (IoT) and connected device ecosystems, and growth of digital ecosystems across industries. Key trends in the forecast period include technological advancements in API management platforms, research and development in API security and analytics, innovations in AI-driven API performance optimization, the rising adoption of event-driven and asynchronous APIs, and advancements in API lifecycle automation tools.

The rising adoption of cloud-based solutions is expected to drive the growth of the API-as-a-Service market going forward. Cloud-based solutions refer to services, applications, or storage delivered and accessed over the internet rather than through local servers or personal devices. This adoption is fueled by scalability, allowing businesses to easily adjust computing resources based on demand and reduce infrastructure costs. API as a Service supports cloud-based solutions by providing scalable, secure, and standardized interfaces that enable seamless integration, data exchange, and communication between diverse cloud applications, enhancing interoperability, automation, and overall operational efficiency. For example, in December 2023, Eurostat, a Luxembourg-based government organization, reported that 45.2% of enterprises across the European Union purchased cloud computing services, with 77.6% of large enterprises, 59% of medium-sized enterprises, and 41.7% of small businesses adopting cloud services. Therefore, the rising adoption of cloud-based solutions is driving the growth of the API-as-a-Service market.

Key companies in the API-as-a-Service market are focusing on developing advanced solutions, such as AI-powered workflow automation tools, to enhance API integration and usability. AI-powered workflow automation tools leverage artificial intelligence to streamline complex processes, improve efficiency, and enable seamless interaction between APIs and applications. For instance, in January 2024, Postman, a US-based API development and management platform provider, launched its AI Agent Builder within the Postman API Platform. This tool enables developers to create intelligent agents that can connect, orchestrate, and automate workflows using APIs and large language models (LLMs) without extensive coding. It provides real-time integration with Postman’s API Network, offering access to thousands of public APIs, and allows users to design, test, and deploy agent-driven solutions directly from the platform. The AI Agent Builder enhances developer productivity, accelerates API adoption, and supports the growing demand for intelligent, automated API solutions.

In November 2024, Nokia Corporation, a Finland-based technology and telecommunications company, acquired RapidAPI Inc. for an undisclosed amount. Through this acquisition, Nokia aims to enhance its network API solutions and ecosystem by integrating RapidAPI’s leading API hub technology and developer platform to accelerate API monetization and innovation. RapidAPI Inc. is a US-based cloud technology company specializing in API connectivity, management, and integration services.

Major players in the application programming interface (api) as a service market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Deloitte Touche Tohmatsu Limited, Accenture plc, International Business Machines Corporation, Oracle Corporation, Ernst & Young Global Limited, Broadcom Inc., SAP SE, Tata Consultancy Services Limited, NTT DATA Corporation, Capgemini S.E., Infosys Limited, DXC Technology Company, HCL Technologies Limited, Wipro Limited, Akamai Technologies Inc., WSO2 Limited, Jitterbit Inc., and SnapLogic Inc.

North America was the largest region in the application programming interface (API) as a service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in application programming interface (API) as a service report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the application programming interface (API) as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The application programming interface (API) as a service market research report is one of a series of new reports that provides application programming interface (API) as a service market statistics, including application programming interface (API) as a service industry global market size, regional shares, competitors with an application programming interface (API) as a service market share, detailed application programming interface (API) as a service market segments, market trends and opportunities, and any further data you may need to thrive in the application programming interface (API) as a service industry. This application programming interface (API) as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Application programming interface (API) as a service refers to a cloud-based delivery model that allows developers to create, manage, and integrate APIs without the need to build or maintain backend infrastructure. It provides scalable tools and platforms for connecting applications, data, and services across environments. This approach simplifies API development, improves interoperability, and accelerates integration between diverse software systems.

The key components of API as a service are API management solutions and API development tools. API management solutions are platforms, tools, and processes used to create, publish, secure, monitor, and analyze APIs throughout their lifecycle. They are deployed through public, private, and hybrid API as a service models and serve various industry verticals, including healthcare, finance and banking, retail, telecommunications, government, and education. These solutions are applied in web applications, mobile applications, Internet of Things (IoT) applications, and cloud applications, catering to end users such as small and medium enterprises (SMEs), large enterprises, and individual developers.

The application programming interface (API) as a service market consists of revenues earned by entities by providing services such as API design and development, API management and monitoring, API integration and orchestration, authentication and security management, and analytics and performance optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The application programming interface (API) as a service market also includes sales of API gateways, developer tools, software development kits (SDKs), integration frameworks, cloud-based API platforms, and related middleware solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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