How Has the Application Programming Interface API Security Market Size Evolved in Recent Years?
The application programming interface api security market has seen considerable growth due to a variety of factors.
• The market size for application programming interface (API) security has seen a significant increase in recent years. It is projected to expand from $1.02 billion in 2024 to $1.35 billion in 2025, at a compound annual growth rate (CAGR) of 32.8%.
Factors like the surge in cyber threats, widespread adaptation of cloud computing, the explosion of APIs in software development, the rise of mobile applications, and regulatory compliance obligations have contributed to the growth during the historic period.
What are the Market Size and Expected Growth Rates for the Application Programming Interface API Security Market?
The application programming interface api security market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the API (Application Programming Interface) security market is anticipated to experience significant expansion. It's projected to reach a valuation of $4.28 billion by 2029, growing at a compound annual growth rate (CAGR) of 33.3%.
This projected rise in the forecast period can be accredited to the proliferation of IoT devices and applications, increase in microservices architecture, growing prevalence of AI and machine learning in security frameworks, inclusion of blockchain technology, and an enhanced emphasis on API security in DevOps practices. Key trends during the forecast period are expected to include automation in API security, improved authentication methods, a heightened focus on encryption and tokenization, testing of API security and managing vulnerabilities, and promoting the use of API security standards and best practices.
Which Key Drivers Are Propelling The Application Programming Interface API Security Market's Growth?
The escalating cyber risks are predicted to fuel the growth of the application programming interface security market in the future. The term cyber threats encompasses potential risks and harmful activities that compromise computer networks, systems, and digital infrastructure. A surge in these threats can be associated with heightened dependency on tech and interlinked systems in business, which urges hackers to exploit system weaknesses. API security offers appropriate authentication and authorization procedures, ensuring that only approved users and software can access APIs. This act encourages the prevention of unwanted access and protection of critical information. For example, a report by the Internet Crime Report (IC3) from the Federal Bureau of Investigation (FBI), an intelligence and security service based in the US, indicated that in 2023, they recorded 880,418 cyber complaints. These complaints potentially surpassed $12.5 billion in losses. Indicating a growth of nearly 10% in complaints received and a 22% amplification in the losses experienced compared to 2022. Consequently, the growing complexity of cyber threats is anticipated to stimulate the expansion of the application programming interface security market.
What Are The Key Segments Within The Global Application Programming Interface API Security Market?
The application programming interface (API) security market covered in this report is segmented –
1) By Offering: Platform And Solutions, Services
2) By Deployment Modal: Cloud, On-Premise
3) By Organization Size: Large Enterprises, Small And Medium Enterprises
4) By Vertical: Banking, Financial Services, And Insurance (BFSI), Government, IT And Telecom, Manufacturing, Retail And Ecommerce, Media And Entertainment, Healthcare, Energy And Utilities, Other Verticals
Subsegments:
1) By Platform And Solutions: API Gateway Solutions, API Security Testing Tools, Threat Protection Solutions, Identity And Access Management (IAM) Solutions
2) By Services: Consulting Services, Implementation Services, Monitoring And Support Services, Training And Awareness Programs
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What Emerging Trends Are Influencing The Growth Of The Application Programming Interface API Security Market?
Key players in the API security market, such as Traceable AI, are implementing cutting-edge technologies including machine-learning API security systems that can dynamically adapt to the changing patterns of cyber threats. These systems are designed to anticipate, identify, and pre-empt potential security threats in a timely manner. In August 2023, Traceable AI, an American API security firm, introduced digital fraud prevention features on its API security platform. This invention boasts machine learning-driven threat and fraud prevention, unique user and entity profiling, proactive detection of anomalies, and flawless integration with other security platforms. Traceable AI's digital fraud prevention features provide a comprehensive and adaptable solution for protecting businesses from digital fraud. It leverages advanced technologies like graph machine learning and intelligent user profiling to guard against fraudulent activities via APIs and digital interfaces.
Who Are the Key Players In The Application Programming Interface API Security Market?
Major companies operating in the application programming interface (API) security market are:
• International Business Machines Corporation
• Oracle Corporation
• Palo Alto Networks Inc.
• Fortinet Inc.
• Akamai Technologies Inc.
• Software AG
• Axway Software SA
• MuleSoft
• Traceable Inc.
• WS02
• Ergon Informatik AG
• Sensidia
• Salt Security Inc.
• Avanan Inc.
• Cequence Security Inc.
• Data Theorem Inc.
• 42 Crunch Ltd.
• Apigee
• Noname Security
• Imperva Inc.
• Red Hat Inc.
• Moesif Inc.
• Forum Systems
• Wallarm Inc.
• Spherical Defense
What Are The Regional Insights Into The Application Programming Interface API Security Market?
Asia-Pacific was the largest region in the application programming (API) interface security market in 2024. The regions covered in the application programming interface (API) security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
