Application Programming Interface (API) Security Market

Application Programming Interface (API) Security Market Outlook

The revenue generated by the application programming interface (API) security market was USD 560.2 million in 2023 and is projected to increase to USD 760.8 million in 2024. The demand for API security is anticipated to soar at an astounding CAGR of 32.8% between 2024 and 2034, achieving USD 12,980.0 million by 2034 because of the increasing frequency of harmful attacks on APIs.

Emerging technologies like AI and cloud computing drive the demand for API security solutions. This allows API security suppliers to create creative solutions that satisfy the demands of API security companies using these new technologies.

Many companies need to learn how to use API management tools or know the advantages of API security. One of the main obstacles to the global application programming interface (API) security market expansion is ignorance and lack of awareness.

Attributes	Details
Market Value for 2024	USD 760.8 million
Market Size for 2034	USD 12,980.0 million
Market CAGR from 2024 to 2034	32.8%

Determinants of Growth in the Application Programming Interface (API) Security Sector

An Upsurge in API Adoption:

As APIs are used more widely in various industries to provide smooth communication and integration between a range of services and applications, there is an increased chance of security risks. The growing use cases and the vital role that APIs play in contemporary software development are the driving forces behind the application programming interface (API) security market growth.

Digital Transformation Campaigns:

Organizations worldwide are experiencing digital transformation to improve productivity, creativity, and customer experiences. Due to this, there is a greater reliance on APIs to link heterogeneous systems and provide digital services. API security is crucial for protecting private information and maintaining the integrity of digital ecosystems.

Growing Intricacy of Cyberthreats:

Attackers are always developing new strategies to exploit weaknesses, making cyber threats more complex. Since APIs are a desirable target for cybercriminals, enterprises must employ sophisticated security measures to identify and stop attacks and vulnerabilities connected to APIs. This factor surges the sales of application programming interface (API) security.

Attributes	Details
Market Value for 2019	USD 160.0 million
Market Size for 2023	USD 560.2 million
Market CAGR from 2019 to 2023	36.8%

Restraints Impacting the Evolution of API Security Technologies

The ever-changing nature of cybersecurity threats challenges API security. Security solutions fail to keep up with the rapid emergence of new attack avenues and advanced threats, inhibiting the application programming interface (API) security market growth.

Due to restricted resources and budgetary constraints, organizations cannot invest in reliable API security solutions, compromising security and hampering the application programming interface (API) security market expansion.

Balancing user-friendliness and implementing strong security measures are difficult. While adequate security results in vulnerabilities, more stringent security measures make APIs less functional.

Category-wise Outlook

The segmented market analysis of application programming interface (API) security is included in the following subsection. Based on comprehensive studies, the platform and solutions sector is leading the offering category, and the BFSI segment is commanding the vertical category.

Platform and Solutions Sector to Expand at a CAGR of 32.5% Through 2034

The platform and solutions segment is expected to accelerate at a CAGR of 32.5% through 2034. In light of the following, this dominance makes sense:

Top Segment	Platform and Solutions
Segment HCAGR	36.6%

• API security platforms and solutions provide thorough frameworks that guarantee a comprehensive approach to protecting digital assets.
• By adopting platforms and solutions, businesses implement standardized security controls that guarantee uniformity and compliance throughout their API ecosystem.
• Platforms and solutions are the go-to options because of their scalability and versatility in handling changing security concerns, surging the sales of application programming interface security solutions.

The BFSI Sector is Likely to Advance at a CAGR of 32.3% Through 2034

The BFSI segment is anticipated to develop at a CAGR of 32.3% from 2024 to 2034. Several factors about the preference:

Top Segment	BFSI
Segment HCAGR	36.4%

• Government rules in the BFSI sector demand strict API security measures to control financial fraud and data breaches, solidifying the industry's dedication to strong security protocols.
• As financial institutions work to preserve client trust in an increasingly digital environment, API security becomes essential due to the fintech industry's constant innovation and the growing acceptance of digital banking. This is anticipated to surge the application programming interface security market expansion.
• Positioning API security as a top priority becomes strategically necessary to reduce risks and maintain the resilience of financial ecosystems as the BFSI sector responds to rapidly changing cyber threats.

Country-wise Analysis

The application programming interface security market can be observed in the subsequent tables, focusing on the leading economies in Japan, China, South Korea, the United Kingdom, and the United States.

A comprehensive evaluation demonstrates that Japan has enormous opportunities due to its resilient application programming interface (API) security manufacturers.

API Security Market in Japan

The Japan application programming interface (API) security market is expected to develop at a 34.1% CAGR through 2034. This expansion is sustained by:

Nation	Japan
Market Size (2034)	USD 1,448.4 million

• API security adoption in industrial processes is rising due to Japan's commitment to Industry 4.0, which has increased attention to the security of these interfaces against cyber threats.
• With a focus on protecting connected devices and guaranteeing the integrity of data flows, API security conversations are shaped by Japan's leadership in IoT adoption.
• The convergence of contemporary digital developments and traditional business practices in Japan generates a distinct API security environment that calls for customized solutions that compromise innovation and risk reduction.

API Security Market in South Korea

Through 2034, the South Korea application programming interface (API) security market is predicted to flourish at a 34.0% CAGR. Below is an outline of this:

Nation	South Korea
Market Size (2034)	USD 842.1 million

• The demand for application programming interface (API) security solutions to protect vital infrastructure and communication networks is rising due to South Korea's emphasis on adopting 5G technologies.
• The growing digital transformation trend in South Korea pushes enterprises to focus on API security as they connect varied applications and services.
• The emergence of fintech innovation in South Korea has led to increased cybersecurity risks related to APIs, which has prompted increased awareness and investments in strong security measures.

API Security Market in China

Through 2034, the China application programming interface (API) security market is projected to expand at a strong rate of 33.6% CAGR. This is clarified by:

Country	China
Market Size (2034)	USD 2,115.3 million

• China's growing e-commerce and online payment sectors are propelling the demand for application programming interface security solutions that guarantee the integrity and confidentiality of transactional data.
• The adoption of API security in protecting sensitive data and deterring cyber threats is increasing in China due to the country's fast digitization and extensive usage of mobile applications.
• Incorporating artificial intelligence (AI) and cloud technologies into China's tech environment affects API security tactics and calls for flexible solutions to counteract changing cyber threats.

API Security Market in the United Kingdom

Through 2034, the United Kingdom application programming interface (API) security market is anticipated to evolve at a 33.4% CAGR. The following sources support this expansion:

Nation	The United Kingdom
Market Size (2034)	USD 529.4 million

• The adoption of API security measures is driven by the United Kingdom's emphasis on open banking and data-sharing efforts, which aim to protect the confidentiality and integrity of financial data.
• The United Kingdom's API security landscape is shaped by integrating APIs into healthcare systems, emphasizing safeguarding private patient information and ensuring that industry rules are followed.
• Organizations in the United Kingdom are forced to reevaluate and fortify their API security measures to conform to the changing regulatory environment due to the impact of Brexit on data protection legislation.

API Security Market in the United States

Through 2034, the United States application programming interface (API) security market is anticipated to endure at a 32.9% CAGR. This is explained as follows:

Nation	The United States
Market Size (2034)	USD 2,279.0 million

• The growing adoption of cloud-native applications and microservices architecture, which calls for sophisticated defense against potential vulnerabilities, contrives the United States application programming interface security market.
• The United States networked critical infrastructure makes application programming interface security increasingly more important, emphasizing thwarting any cyber threats that interfere with vital services.
• Organizations are pushed to implement creative API security solutions to protect sensitive financial data due to the financial sector, increasing its awareness of API-related cyber dangers.

Competitive Analysis

The market has a dynamic competitive environment, and key API security suppliers influence its development. Manufacturers of application programming interface security, such as Symantec, Palo Alto Networks, and IBM, are using their vast experience to offer reliable API security solutions.

Prominent API security businesses such as Imperva and Akamai Technologies substantially contribute by providing all-encompassing security services. Pioneering application programming interface security providers such as 42Crunch and Salt Security disrupt established conventions in the market with their fresh ideas and agility.

Strategic alliances and collaborations characterize the competitive ecosystem as businesses look to improve their capacities and tackle changing security issues. Advanced threat detection and prevention strategies are always sought in the application programming interface security market, and every vendor is vying for a significant share with a distinct value offer.

With the ever-changing digital landscape, these leading API security companies negotiate the competitive landscape to maintain the resilience and integrity of API ecosystems.

Notable Advancements

Company	Details
Noname Security	Noname Security, a United States-based company, and MindPoint Group, a cybersecurity consulting firm, entered a strategic partnership in April 2023. They created a sophisticated API security framework with a safe OVA deployment structure. Through this partnership, customers can quickly secure their API inventory and ensure the platform is secure by design.
Salt Security, Inc.	To highlight the growing significance of API security, Salt Security, Inc. worked with API testing leaders in August 2023 to enhance API security capabilities. The goal was to increase threat detection and mitigation within APIs.
Google	Google (Apigee) (United States) unveiled Apigee Advanced API Security in June 2022. The foundation of this extensive suite of API security capabilities is Apigee, Google's platform for managing APIs. Using Advanced API Security, organizations better identify and mitigate security threats within their APIs.
Imperva	Imperva (United States) launched Imperva API Security in March 2022, providing data classification and continuous API discovery. This software guarantees data protection and visibility for both cloud-native and legacy applications. It can be used as a stand-alone solution or with Imperva Cloud Web Application Firewall (WAF) to efficiently safeguard APIs in developer environments vulnerable to security flaws and unintentional exposure.

Key Application Programming Interface (API) Security Providers

• IBM
• Imperva
• Wallarm
• Salt Security
• Google
• Oracle
• Software AG
• Axway
• MuleSoft
• Microsoft
• Akana
• Moesif
• Avanan
• Cequence Security
• Data Theorem API

Key Segments

By Offering:

• Platform and Solutions
• Services

By Vertical:

• BFSI
• Government
• IT and Telecom
• Manufacturing
• Retail and E-commerce
• Media and Entertainment
• Healthcare
• Energy and Utilities
• Others

By Organization Size:

• Large Enterprises
• Small and Medium Enterprises

By Deployment Mode:

• Cloud
• On-premise
• Hybrid

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Asia

Frequently Asked Questions

What is the Current Application Programming Interface (API) Security Market Valuation?

The application programming interface security market to secure a valuation of USD 760.8 million in 2024.

How Big Can the Application Programming Interface (API) Security Market Be by 2034?

The API security market is estimated to reach USD 12,980.0 million by 2034.

What is the Growth Potential of the Application Programming Interface (API) Security Market?

Through 2034, the application programming interface security market is anticipated to expand at a 32.8% CAGR.

What Was the Historical Outlook of The Application Programming Interface (API) Security Market?

From 2019 to 2023, the application programming interface security market recorded a 36.8% CAGR.

Which Offering Segment to Dominate in the Application Programming Interface (API) Security Market?

The platform and solutions sector is likely to advance at a CAGR of 32.5% from 2024 to 2034.

Which Vertical Segment to Lead the Application Programming Interface (API) Security Market?

The BFSI sector is anticipated to develop at a CAGR of 32.3% between 2024 and 2034.