Application Programming Interface (API) Security

Global Application Programming Interface (API) Security Market to Reach US$5.2 Billion by 2030

The global market for Application Programming Interface (API) Security estimated at US$956.4 Million in the year 2024, is expected to reach US$5.2 Billion by 2030, growing at a CAGR of 32.5% over the analysis period 2024-2030. API Security Platform & Solutions, one of the segments analyzed in the report, is expected to record a 35.4% CAGR and reach US$3.9 Billion by the end of the analysis period. Growth in the API Security Services segment is estimated at 25.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$260.6 Million While China is Forecast to Grow at 42.7% CAGR

The Application Programming Interface (API) Security market in the U.S. is estimated at US$260.6 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.4 Billion by the year 2030 trailing a CAGR of 42.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 25.9% and 29.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 27.6% CAGR.

Global API Security Market – Key Trends & Drivers Summarized

Why Has API Security Become a Top Priority in the Digital Landscape?

The rapid proliferation of APIs in modern digital ecosystems has made API security an urgent concern for businesses across industries. APIs serve as the backbone of web applications, cloud services, mobile apps, and Internet of Things (IoT) devices, enabling seamless data exchange and system interoperability. However, as organizations increasingly rely on APIs to integrate services, facilitate transactions, and automate workflows, they have also become prime targets for cyberattacks. High-profile breaches caused by API vulnerabilities have exposed sensitive user data, leading to financial losses and reputational damage for enterprises. Threats such as API scraping, authentication bypass, man-in-the-middle (MITM) attacks, and token hijacking are becoming more sophisticated, making robust API security essential. Regulatory frameworks like the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and Open Banking directives mandate strict API protection measures, compelling businesses to adopt advanced authentication, access control, and encryption mechanisms. Additionally, the shift to microservices architectures and cloud-native applications has expanded the API attack surface, necessitating continuous monitoring, automated security testing, and zero-trust security models to mitigate risks and safeguard digital assets.

How Are Emerging Technologies Enhancing API Security Measures?

Technological advancements in artificial intelligence (AI), machine learning (ML), and behavioral analytics are revolutionizing API security by providing real-time threat detection, anomaly monitoring, and automated response capabilities. AI-driven security tools can analyze API traffic patterns to identify unusual behaviors and detect malicious activities before they escalate into breaches. API gateways are evolving to incorporate AI-powered threat intelligence, enabling businesses to enforce granular access control policies and mitigate API-specific vulnerabilities such as injection attacks and credential stuffing. Additionally, blockchain technology is being explored for API authentication, providing decentralized identity verification and immutable logging of API transactions. The adoption of zero-trust architecture in API security strategies is another major trend, ensuring that every API request is verified, authenticated, and monitored, regardless of whether it originates from inside or outside the organization. Meanwhile, DevSecOps practices are gaining traction, integrating security directly into the API development lifecycle through automated security scanning, static code analysis, and API fuzz testing. As businesses continue to embrace digital transformation, the convergence of AI, blockchain, and automation is redefining API security strategies, making them more proactive, adaptive, and resilient against evolving cyber threats.

What Market Trends Are Driving the Demand for API Security Solutions?

The increasing adoption of API-driven business models, coupled with the expansion of cloud computing, fintech innovations, and IoT deployments, is fueling the demand for API security solutions. Organizations are leveraging APIs to create digital ecosystems that connect partners, customers, and third-party developers, but this openness also introduces security risks that must be addressed. The rise of Open Banking and embedded finance has accelerated the need for secure API implementations, as financial institutions must protect user transactions, prevent fraud, and comply with stringent data protection laws. Similarly, the healthcare industry is witnessing a surge in API usage for electronic health records (EHR) integration and telemedicine platforms, requiring robust security frameworks to ensure patient data privacy and HIPAA compliance. Meanwhile, the e-commerce sector relies heavily on APIs for payment processing, inventory management, and personalized customer experiences, making API security critical for preventing unauthorized access and data leaks. The growing reliance on multi-cloud and hybrid-cloud environments has further emphasized the need for API security solutions that provide centralized visibility, policy enforcement, and compliance tracking across distributed infrastructures. As businesses continue to expand their digital footprints, API security is becoming a core component of cybersecurity strategies, ensuring seamless and secure data exchange in interconnected environments.

What Are the Key Growth Drivers Fueling the API Security Market?

The growth in the API security market is driven by several factors, including the increasing sophistication of cyber threats, the widespread adoption of cloud-native applications, and the regulatory push for stronger data protection measures. The rapid expansion of AI and behavioral analytics in cybersecurity is enabling organizations to implement intelligent API security solutions that detect anomalies, prevent fraud, and automate response mechanisms. The proliferation of API-first development strategies, particularly in financial services, healthcare, and retail, is driving demand for API security platforms that provide end-to-end encryption, tokenization, and real-time monitoring. The shift toward zero-trust security models is also accelerating market growth, as enterprises seek to enforce strict identity and access management (IAM) policies for API interactions. Additionally, the rise of API sprawl—where organizations deploy hundreds or thousands of APIs across multiple environments—has created a need for centralized API security governance and automated discovery tools. The increasing integration of machine-to-machine (M2M) communication in industrial IoT (IIoT) and smart infrastructure is further expanding the API security landscape, requiring robust authentication mechanisms to protect critical systems. As digital ecosystems continue to evolve, API security will remain a crucial investment for enterprises, driving market expansion through continuous innovation, regulatory compliance, and the need for resilient, future-ready security frameworks.

SCOPE OF STUDY:

The report analyzes the Application Programming Interface (API) Security market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Offering (API Security Platform & Solutions, API Security Services); Deployment (On-Premise Deployment, Cloud Deployment, Hybrid Deployment); Organization Size (SMEs, Large Enterprise); Vertical (BFSI Vertical, IT & ITeS Vertical, Telecom Vertical, Government Vertical, Manufacturing Vertical, Healthcare Vertical, Retail & eCommerce Vertical, Media & Entertainment Vertical, Energy & Utilities Vertical, Transportation & Logistics Vertical, Travel & Hospitality Vertical, Research & Academia Vertical, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 48 Featured) -

• 42Crunch
• Akamai Technologies
• Akto
• Astra Security
• Beagle Security
• Cequence Security
• Checkmarx
• Data Theorem
• Google Apigee
• IBM Security
• Imperva
• Intruder
• Metlo
• Neosec
• Noname Security
• Noname Security
• Postman
• Pradeo
• Rakuten SixthSense Observability
• Salt Security

AI INTEGRATIONS
We`re transforming market and competitive intelligence with validated expert content and AI tools.

Instead of following the general norm of querying LLMs and Industry-specific SLMs, we built repositories of content curated from domain experts worldwide including video transcripts, blogs, search engines research, and massive amounts of enterprise, product/service, and market data.

TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.