Application Programming Interface (API) As A Service Market to Expand at a 18% CAGR by 2029, Reaching US $13.87 Billion
The Business Research Company
The Business Research Company’s Application Programming Interface (API) As A Service Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 27, 2025 /EINPresswire.com/ -- How Much Is The Application Programming Interface (API) As A Service Market Worth?
The market size of the application programming interface (API) as a service has experienced substantial growth in the past few years. Its growth is projected to continue from $6.05 billion in 2024 to $7.16 billion in 2025, marking a compound annual growth rate (CAGR) of 18.3%. The historical growth of this sector is linked primarily to factors such as the widespread adoption of cloud-based solutions, increasing demand for software integration, the popularity of mobile and web applications, the proliferation of digital transformation initiatives, and the growing requirement for real-time data connectivity.
In the upcoming years, rapid expansion is anticipated in the market size of application programming interface (API) as a service. It's predicted to rise to $13.87 billion in 2029, observing a compound annual growth rate (CAGR) of 18.0%. The surge during this forecast period can be linked to the escalating dependence on hybrid and multi-cloud settings, growth of the internet of things (IoT) and amplification of the connected devices landscape, along with the broadening of digital ecosystems across multiple industries. Key trends to watch for in this period include progress in API management technology, intensified research and development in API security and analytics, advancement in AI-based API performance enhancement, an emerging trend of event-driven and asynchronous APIs, and improvements in API lifecycle automation tools.
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What Are The Factors Driving The Application Programming Interface (API) As A Service Market?
The proliferation of cloud-based solutions is anticipated to stimulate the expansion of the API-as-a-Service market. Cloud-based solutions signify those services, applications, or storage systems that are provided and used through the internet rather than via local servers or personal devices. The uptick in cloud-based solutions owes much to scalability; these allow companies to adapt their computing resources as per their needs and cut down on infrastructure costs. In effect, API as a Service bolsters cloud-based solutions by offering flexible, safe, and standardized interfaces that facilitate a smooth integration, exchange of data, and communication across different cloud applications, enhancing interoperability, automation, and overall operational productivity. For example, Eurostat, a government organization in Luxembourg, stated in December 2023 that 45.2% of enterprises in the European Union acquired cloud computing services, with adoption rates of 77.6% for large enterprises, 59% for medium-sized enterprises, and 41.7% for small businesses. Hence, the escalating adoption of cloud-based solutions is propelling the growth of the API as a Service market.
Who Are The Major Players In The Application Programming Interface (API) As A Service Market?
Major players in the Application Programming Interface (API) As A Service Global Market Report 2025 include:
• 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
What Are The Key Trends And Market Opportunities In The Application Programming Interface (API) As A Service Sector?
Key businesses in the API as a service market, like Postman, are prioritizing the creation of cutting-edge tools, such as workflow automation through AI, to boost API integration and usefulness. An AI-driven workflow automation tool is a technology that uses artificial intelligence to simplify complicated processes, boost efficiency, and facilitate uninterrupted communication between APIs and apps. For example, in January 2024, Postman, an American company specializing in API development and management, unveiled its AI Agent Builder in the Postman API Platform. This groundbreaking tool allows developers to build smart agents capable of connecting, managing, and automating workflows using APIs and large language models (LLMs) with little to no coding. The builder integrates in real-time with Postman’s API Network, granting access to thousands of public APIs and enabling users to conceive, test, and launch agent-driven solutions right from the platform. The AI agent builder not only streamlines developer work, but also promotes API uptake and caters to the increasing demand for intelligent, automated API services.
Which Segment Accounted For The Largest Application Programming Interface (API) As A Service Market Share?
The application programming interface (api) as a service market covered in this report is segmented –
1) By Product Type: Application Programming Interface (API) Management Solutions, Application Programming Interface (API) Development Tools
2) By Deployment Model: Public Application Programming Interface (API) As A Service, Private Application Programming Interface (API) As A Service, Hybrid Application Programming Interface (API) As A Service
3) By Industry Vertical: Healthcare, Finance And Banking, Retail, Telecommunications, Govement, Education
4) By Application: Web Applications, Mobile Applications, Internet Of Things (IoT) Applications, Cloud Applications
5) By End User: Small And Medium Enterprises (SMEs), Large Enterprises, Individual Developers
Subsegments:
1) By Application Programming Interface (API) Management Solutions: Application Programming Interface (API) Gateway, Application Programming Interface (API) Security, Application Programming Interface (API) Analytics, Application Programming Interface (API) Monitoring And Reporting, Application Programming Interface (API) Lifecycle Management, Application Programming Interface (API) Traffic Management
2) By Application Programming Interface (API) Development Tools: Application Programming Interface (API) Design Tools, Application Programming Interface (API) Testing Tools, Application Programming Interface (API) Documentation Tools, Application Programming Interface (API) Integration Tools, Application Programming Interface (API) Debugging Tools, Application Programming Interface (API) Version Control Tools
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What Are The Regional Trends In The Application Programming Interface (API) As A Service Market?
The Application Programming Interface (API) As A Service Global Market Report 2025 identified North America as the leading region for the specified year, with Asia-Pacific forecasted to exhibit the most rapid growth. The report includes a comprehensive regional coverage of Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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