Application Programming Interface (API) Security Market Landscape 2025: Forecast Data and Growth Strategy Insights

Application Programming Interface (API) Security

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What Is the Expected CAGR for the Application Programming Interface (API) Security Market Through 2025?
Over the recent past, we have observed a significant expansion in the application programming interface (API) security market size. This market is set for further growth from a figure of $1.02 billion in 2024, culminating to $1.35 billion in 2025, with a compound annual growth rate (CAGR) of 32.8%. Factors such as escalating cyber threats, the widespread use of cloud computing, increase in the use of APIs in software development, rise of mobile applications, and regulatory compliance needs have contributed to this growth trend in the historic period.

What’s the Projected Size of the Global Application Programming Interface (API) Security Market by 2029?
The market for API (Application Programming Interface) security is expected to witness a meteoric rise in the ensuing years, reaching a valuation of $4.28 billion by 2029, growing at a CAGR (Compound Annual Growth Rate) of 33.3%. The surge in this particular period can be ascribed to the proliferation of IoT-powered devices and applications, the broadening of microservices architecture, increased use of AI and machine learning in the security domain, the integration of blockchain technology, and an intensified focus on API security within DevOps practices. Key market trends for this forecast period encompass API security automation, sophisticated authentication procedures, a heightened focus on encryption and tokenization, API security testing and vulnerability control, and the adoption of top-tier API security norms and best practices.

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Top Growth Drivers in the Application Programming Interface (API) Security Industry: What’s Accelerating the Market?
As cyber threats continue to rise, the need for application programming interface (API) security in the market is similarly anticipated to grow. Cyber threats encompass any dangerous or harmful activities that manipulate computer systems, networks, and digital infrastructures. The rise in these threats is linked to the increasing dependency on technology and interconnected systems within businesses, which creates additional opportunities for potential vulnerabilities to be exploited. API security aids in the establishment of both authentication and authorization systems, which ensure that only approved users and applications have access to the APIs, protecting sensitive data from unauthorized access. For example, the Federal Bureau of Investigation (FBI), the US-based domestic intelligence and security service, reported in their Internet Crime Report (IC3) that in 2023, there were 880,418 cyber complaints, resulting in potential losses of more than $12.5 billion. This signifies an almost 10% rise in complaints and a 22% increase in losses compared to 2022. As such, the escalating complexity of cyber threats is expected to fuel the expansion of the application programming interface security market.

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What Trends Will Shape the Application Programming Interface (API) Security Market Through 2029 and Beyond?
Leading corporations in the application programming interface (API) security market are striving to create cutting-edge technologies, including machine learning API security systems. These systems use dynamic adaptation to anticipate and respond proactively to potential security threats as they evolve in real time. For instance, in August 2023, Traceable AI, a prominent American API security firm, debuted digital fraud preventative measures in its API security platform. This development involves machine-learning threat mitigation, distinct profiling of users and entities, active anomaly detection, and smooth integration with other security systems. Traceable AI’s countermeasures against digital fraud provide a comprehensive and adaptable strategy for protecting businesses from digital fraud, leveraging advanced technologies like graph machine learning and intelligent user profiling. This system shields against fraudulent operations across various APIs and digital interfaces.

What Are the Main Segments in the 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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Which Top Companies are Driving Growth 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

Which Regions Will Dominate the Application Programming Interface (API) Security Market Through 2029?
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.

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