API: Key market research findings
- Rise in API integration
- Digital connectivity through APIs
Technavio’s market research analysts estimate the global API as a service market, to generate revenues worth $965 million by 2020. Application programming interface (API) delivers available company data and services in the form of software response queries, and help organizations to build a digital economy. With intelligent API platforms, companies can easily predict the next plan of action and build application faster. The Americas dominate the global API as a service market, accounting for 58% of the overall market share. Rise in digitalization and need to integrate omnichannels have pushed banks to outsource API integration services over the cloud in the region.
The new market research report from Technavio provides a breakdown and analysis of the API segments by technology.
“Most organization are opting for cloud-based API management as it helps organizations to explore additional channels and allows easy integration with legacy applications. API integration helps companies to build a single hybrid cloud environment as many companies struggle to keep track of disparate systems. API as a service helps employees to access systems and define how other systems communicate with each other. Vendors such as Oracle are offering integration services delivered to customers and solution providers via the cloud,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
API management has acted as a catalyst in transforming traditional services into the digital enterprise by effectively leveraging IoT and big data. To achieve digital improvements across industry verticals, efficient management of APIs and services is the key for digital vendors to bridge the gap among different dimensions. In 2015, the manufacturing, IT, and retail sectors altogether accounted for more than 50% of the global IoT market. The BFSI sector accounted for less than 10% in the same year. However, the sector has high potential to use API as a service to transform digital connectivity among consumers and employees.
The leading vendors in the global API as a service market are CA Technologies, IBM, MuleSoft and TIBCO Software. Intense competition prevails in this market among leading as well as niche players, resulting in increased number of acquisitions. The market is experiencing high growth. Established vendors are acquiring niche players, thus posing a low threat of new entrants
A more detailed analysis is available in the Technavio report, Global API as a Service Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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