How big is the API Market | Global Demand, Share & Forecast 2025

Q: What are the major companies in the API market?

Postman, Microsoft Azure, MuleSoft, and IBM Corporation are some of the leading companies in the API market.

Q: What is the expected size of the API market by 2031?

The API market is projected to reach over USD 23.7 billion by 2031.

Q: What are the factors behind the growth of API market?

Key factors include rising digital transformation initiatives and the adoption of API-first development strategies.

Q: What is the CAGR of the API market during the forecast period?

The market is expected to grow at a CAGR of 13.5% from 2024 to 2031.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA5116

Publication Date: Jul 2025

How Big Is the API Market?

According to 6Wresearch internal database and industry insights, the Global API market was valued at USD 10.3 billion in 2024 and is expected to surpass USD 23.7 billion by 2031, expanding at a CAGR of 13.9%.

Key growth factors include rising digital transformation initiatives, the adoption of API-first development strategies, and the acceleration of fintech and e-commerce ecosystems leveraging APIs to create seamless integrations.

Growth Factors of the API Market

Increasing reliance on APIs in fintech for secure, fast, and real-time data exchange.
E-commerce platforms are expanding and need scalable integration tools on back-end databases.
Demand for omnichannel experience pushing APIs in mobile and web environments.
Growth in cloud adoption driving API-based integration among disparate systems.
Use of APIs in IoT environments to manage and streamline data flows across devices.
Increasing developer community and open API ecosystem encouraging third-party innovation.

API Market Trends

The API market is transitioning to a platform-based ecosystem, with APIs being, the building block of business innovation. It is increasingly being adopted by low-code/no-code API platforms. There is a stronger reliance on monetization of APIs. The need for observability of APIs is growing due to the desire for performance, monitoring, and governance tools for APIs. API security frameworks will now be important with the enterprise-wide adoption of API technology.

Emerging Developments in API Market

The API market will be transformed by the technological evolution, the reshoring of manufacturing in North American and Europe, and demand for High-potency API (HPAPI). One of the key developments is the integration of continuous manufacturing and flow chemistry, allowing for greater efficiency, cost control, and scalability. Companies are also adopting green chemistry practices to align with stricter environmental regulations.