API Security and Management Market Size, Share and Trends 2025 to 2034

Regulatory scrutiny and cybersecurity alerts from organizations such as ENISA and CISA are catalyzing API security mandates beyond traditional tech hubs. As a result, sectors such as government, public services, and other regulated industries are expected to adopt API protection strategies at scale, accelerating global demand for policy enforcement, compliance, and API hardening capabilities.

Investment activity is shifting toward platforms that align with NIST-recommended controls, including automated API inventory, authentication and authorization hardening, and runtime threat detection and mitigation. These focus areas are now recognized as high-priority components in national and international cybersecurity frameworks.

The surging demand for API security and management is primarily driven by a sharp rise in API-targeted cyberattacks, which have increasingly made APIs the primary entry point for malicious actors. In 2025 alone, there were over 40,000 API-related security incidents across more than 4,000 environments, highlighting APIs as a dominant attack vector in the modern threat landscape. Further compounding the issue, DDoS attacks on APIs surged by 3,000% compared to traditional web assets, signaling a dramatic shift in attacker focus. As organizations continue to expose critical business logic and sensitive data via APIs, the need to secure and manage these interfaces becomes not just a best practice, but a strategic imperative. This growing threat surface is driving sustained investment in advanced API security solutions, tooling, and full lifecycle API protection frameworks.

A primary barrier to advancing API security lies in the lack of visibility and governance across the increasingly complex API ecosystem. Many organizations face difficulties in maintaining a complete and accurate inventory of their active and shadow APIs, leaving numerous endpoints unmonitored and highly susceptible to exploitation. According to recent research, 58% of companies monitor their APIs less than once per day and express low confidence in the accuracy of their API inventories. This visibility gap creates opportunities for attackers to exploit outdated, undocumented, or misconfigured interfaces, often resulting in severe data breaches and compliance risks.

The cloud-based segment led the API security and management market with about 55% share in 2024, mainly because of its flexibility, scalability, and overall cost-effectiveness. Organizations prefer cloud technology because it allows for easier integration, faster deployment, and better accessibility options. The strong position of cloud-based API security and management solutions is only reinforced by the rise of remote work due to get-the-job-done capitalism, digital transformation initiatives, and hybrid IT infrastructures.

The on-premise segment is expected to grow rapidly in the near future as organizations in highly regulated industries prioritize data control and security. Companies that handle private data, especially in banking, healthcare, and government, prefer on-premise solutions because of the compliance they offer, but they also want the added benefit of a customization layer that protects them from external threats or hacks. Overall, higher costs associated with this solution do not prevent its adoption.

The large enterprises segment dominated the API security & management market by capturing approximately 60% market share in 2024. This is mainly due to their wide API ecosystems and complex digital infrastructures. They invest heavily in successful API management systems that provide security, governance, and scalability across multiple applications, all of which are essential in industries such as BFSI, IT, and manufacturing.

The SME segment is expected to grow the fastest during the forecast period. The quick adoption of API security and management solutions among small and medium-sized enterprises (SMEs) is happening as these businesses aim to expand and secure data integration across different systems. The rise of affordable cloud platforms and growing cybersecurity focus enables SMEs to increase efficiency, enhance connectivity, protect their digital assets, and do so cost-effectively.

The BFSI segment held nearly 40% of the market share in 2024 due to its high use of APIs related to digital banking, payment gateways, and open banking frameworks. For financial institutions, managing and securing APIs is essential for protecting customer information, ensuring regulatory compliance, and enhancing access across digital service platforms.

The IT & telecom segment is expected to grow rapidly in the coming years due to the industry’s high adoption of APIs to support cloud, IoT, and 5G connectivity. API security and management are driven by the need for secure data sharing, automation, and interoperability. This enables service providers to enhance reliability, reduce latency, and improve the user experience.

Asia Pacific is experiencing rapid growth due to extensive digital transformation, cloud migrations, and a quickly expanding fintech ecosystem. The rising adoption of digital payments, open banking, and super apps has caused an exponential rise in API usage and introduced new security challenges. The surge in API-related cyber incidents and breaches has led organizations to adopt advanced API management and security solutions.

India is emerging as a growth epicenter, thanks to its extensive digital ecosystem and expanding fintech and e-commerce sectors. APIs have become the most vulnerable attack vector, often putting sensitive data and third-party integrations at risk. Incidents of API attacks increased by 126%, and Distributed Denial of Service (DDoS) attacks on APIs rose by 388%, making India the biggest target in the region. In response, enterprises in India are implementing AI-powered API gateways, runtime protection, and observability tools to bolster their API security posture and new compliance standards.

Vendors develop, code, and integrate security tools, including API gateways, authentication protocols, and traffic monitoring systems to safeguard communications between applications and external interfaces.

Vendors deploy solutions in cloud, on-premises, and hybrid environments, integrating them into the enterprise IT environment to ensure seamless monitoring, policy management, and incident response.

Products are sold through direct sales, technology partners, and managed security service providers (MSSPs), allowing products to be offered globally with solutions tailored to various industries and enterprise sizes.

Vendors offer customer support, continuous security updates, and real-time API activity dashboards to prevent breaches, enhance activity monitoring, and maximize system uptime.