Global API Security Market Size, Share Analysis Report By Offering (Platform & Solutions, Services (Design & Implementation, Consulting, Training, and Education, Support & Maintenance)), By Deployment Mode (On-Premises, Cloud-based, Hybrid), By Organization Size (Small & Medium Enterprises, Large Enterprises), By Industry Vertical (BFSI, IT & Telecom, Government, Manufacturing, Healthcare, Retail & E-commerce, Media & Entertainment, Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global API Security Market size is expected to be worth around USD 12,245.7 million by 2034, from USD 751.05 million in 2024, growing at a CAGR of 32.2% during the forecast period from 2025 to 2034. North America held a dominant market position, capturing more than a 42% share, holding USD 315.4 million in revenue.

API security involves the practices and protocols used to protect Application Programming Interfaces (APIs) from unauthorized access, attacks, and misuse. APIs are critical in facilitating communication and data exchange between different software applications, making them essential for modern digital services. They are prevalent in web and mobile applications, where they enable seamless integration and interoperability between different systems and services.

The growth of the API Security market can be attributed to several key factors that reflect the evolving digital landscape and the associated security challenges. Firstly, the widespread use of APIs across various industries to drive digital transformation has significantly increased the attack surface. This expansion necessitates robust security measures to protect APIs from a range of threats, including data breaches, bot attacks, and injection threats​.

Regulatory pressures are also a major driving force behind the adoption of enhanced API security practices. Regulations such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS) mandate stringent security measures to protect consumer data. Compliance with these regulations not only helps in avoiding hefty penalties but also strengthens trust with customers by safeguarding their personal information​.

The demand for API security solutions is primarily fueled by the critical role APIs play in digital transformation strategies, where they facilitate the integration of various cloud-based services and applications. The shift towards digital business models has significantly increased the number of APIs, each representing a potential entry point for security threats.

Recent trends in the API security market reflect a shift towards more sophisticated security solutions that integrate advanced analytics and AI-powered threat modeling. These technologies improve the ability to detect and respond to threats in real-time, offering dynamic protection for APIs across various deployment environments.

Organizations are increasingly adopting technologies such as Dynamic Application Security Testing (DAST) and cloud-based security solutions to enhance API security. These technologies offer advantages such as scalability, ease of management, and the ability to detect vulnerabilities in live applications, which is crucial for maintaining the integrity and security of APIs in real-time operational environments.

The adoption of these technologies is largely driven by their ability to provide robust security without hindering the flexibility and operational efficiency that APIs bring to digital applications. The integration of security into the API design and deployment phases helps in early detection of potential vulnerabilities, significantly reducing the risk of security breaches.

Key Takeaway

• In 2024, the Platform & Solutions segment led the API Security Market, capturing a dominant 68% share.
• The Cloud-based deployment model held the top position in 2024, accounting for approximately 60% of the global market.
• The Large Enterprises segment dominated in 2024, with a commanding 65% share of the API Security Market.
• The IT & Telecom sector emerged as the leading industry vertical in 2024, securing about 24% market share.
• The U.S. API Security Market was valued at USD 298.7 million in 2024, showing strong growth potential with a projected CAGR of 29.6%.
• North America led the global market in 2024, holding more than a 42% share, driven by rapid digital transformation and cybersecurity investments.

U.S. API Security Market Size

The market for API Security within the U.S. is growing tremendously and is currently valued at USD 298.7 million, the market has a projected CAGR of 29.6%. This expansion is driven by the increased use of APIs in several sectors such as finance, healthcare, and e-commerce has increased the attack surface and vulnerability to cyber threats which are leading towards the increased adoption of API security solutions.

The emergence of cyberattacks is more sophisticated than before in the cases of data breaches and bot-driven frauds are demanding the exponential need for increased adoption of advanced API security solutions. The emergence of strict regulatory requirements for data protection coupled with AI and machine learning used for threat detection is increasing the demand for advanced measures for API security.

For instance, in February 2025, Hydrolix, a leading data observability platform was honored to be named Akamai’s North America Qualified Computing Partner of the Year in recognition of its contributions to enhanced data analytics and observability services in the Akamai ecosystem.

Hydrolix has helped more than 300 customers leverage its TrafficPeak solution for real-time insights and also optimized data-driven decision-making processes. The partnership between Hydrolix and Akamai continues to set a new standard in cloud computing and data analytics.

In 2024, North America maintained a leading role in the Global API Security Market, commanding a substantial share of over 42%. This dominance is largely due to the region’s concentration of technological leaders and innovative startups that continually develop advanced API security solutions. Additionally, the swift adoption of cloud-based solutions across North America significantly contributes to the market’s growth.

Moreover, stringent regulatory requirements in sectors like finance and healthcare in Arab nations necessitate exceptionally high-security measures, further boosting demand for robust API solutions. Highlighting this trend, Palo Alto Networks, in March 2025, forged a multiyear partnership with the National Hockey League (NHL) to enhance digital security within the sports sector.

Offering Analysis

In 2024, the Platform & Solutions segment asserted its dominance in the Global API Security Market, securing a 68% share. This commanding presence is driven by an escalating demand for scalable, comprehensive solutions that offer end-to-end protection for APIs.

Leading tech companies such as Google, IBM, and Oracle are increasingly adopting integrated platforms that combine critical security functions – access control, encryption, threat detection, and monitoring – into a single, robust API security solution. This shift underscores a broader industry trend towards stringent security protocols to safeguard APIs against sophisticated cyber threats, thus ensuring the integrity and resilience of digital ecosystems.

Highlighting this trend, a strategic partnership was formed in February 2025 between Wiz and Check Point Software Technologies. This collaboration is designed to merge Check Point’s advanced threat prevention capabilities with Wiz’s expertise in cloud security posture management (CSPM), providing customers with a cohesive solution to identify and mitigate cloud security risks.

Deployment Mode Analysis

In 2024, the Cloud-Based segment held a dominant market position, capturing a 60% share of the Global API Security Market. The demand in this sector has been driven mainly by the rapid acceptance of cloud technologies across various industries, which has drastically increased the number of APIs deployed in cloud environments.

Cloud-based API security solutions are scalable, flexible, and cost-effective, and also protect from evolving cyber threats for their APIs. Digital transformation programs and consistent dependence on cloud infrastructure are pushing demand further for robust cloud-based API security.

For instance, In April 2025, CData announced the launch of the CData Embedded Cloud Service, to take advantage of a growing AI market. This service is designed to allow software vendors to easily set up data connectivity so that they can embed real-time data access into their applications. CData’s cloud solution aims to simplify the integration of many data sources and enhance AI applications and analytics.

Organization Size Analysis

In 2025, the Large Enterprises segment maintained a commanding presence in the Global API Security Market, securing a 65% share. This dominance stems from the extensive amounts of sensitive data and critical operations these organizations manage, making them prime targets for sophisticated cyber-attacks.

To counter these threats, large enterprises have significantly invested in robust security measures, including advanced API security solutions, to mitigate risks and ensure compliance with regulatory standards. The complexity of their multi-faceted IT infrastructures, which include numerous interconnected services and applications, necessitates comprehensive API security to safeguard their digital ecosystems.

The growing shift towards microservices and cloud-native architectures further amplifies the demand for tailored API security solutions among large enterprises. In a related development, on January 21, 2025, OpenAI launched “Project Stargate,” an ambitious initiative to propel advancements in artificial intelligence infrastructure.

This project represents a collaborative effort involving OpenAI, SoftBank, Oracle, and MGX, with an initial funding commitment of $100 billion, potentially scaling up to $500 billion over the ensuing four years. This initiative underscores the significant focus on enhancing technological capabilities to support sophisticated enterprise-level applications and security needs.

Industry Verticle Analysis

In 2024, the IT & Telecom sector emerged as a significant player in the global API Security Market, securing a 24% share. With the adoption of cloud APIs, telecom operators are enhancing their service offerings and capitalizing on their network investments.

This shift, however, introduces increased security challenges, as APIs that are not adequately protected can expose networks to cyberattacks. Consequently, robust API security measures have become crucial for protecting sensitive information and maintaining customer trust.

Highlighting the sector’s growing emphasis on security, in February 2025, Globe Telecom formed a strategic alliance with Nokia to bolster the security of banking APIs. This collaboration aims to safeguard sensitive financial data transmitted through APIs by employing Nokia’s advanced security solutions.

Key Market Segments

By Offering

• Platform & Solutions
• Services
  • Design & Implementation
  • Consulting, Training, and Education
  • Support & Maintenance

By Deployment Mode

• On-Premises
• Cloud-based
• Hybrid

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By Industry Vertical

• BFSI
• IT & Telecom
• Government
• Manufacturing
• Healthcare
• Retail & E-commerce
• Media & Entertainment
• Others

Drivers

Increase in Cybersecurity Threats Targeting APIs

The digital landscape has witnessed a significant upsurge in cybersecurity threats targeting Application Programming Interfaces (APIs), which facilitate the exchange of data between systems. This function, while crucial, positions APIs as prime targets for a spectrum of cyberattacks, including data breaches, denial-of-service (DoS) attacks, and various forms of injection attacks.

The vulnerabilities of secure APIs can lead to severe implications such as unauthorized access to sensitive data, disruption of services, and substantial financial losses. According to the 2025 Global State of API Security Report by Traceable AI, an alarming 57% of organizations have experienced data breaches via APIs in the past two years, with 41% reporting five or more incidents.

These breaches are often attributed to the inadequacy of traditional security measures like Web Application Firewalls (WAFs), which are increasingly unable to meet contemporary security demands. Indeed, 53% of surveyed organizations reported that these tools fail to detect or thwart API fraud effectively.

Furthermore, with 65% of organizations expanding their use of generative AI applications, the risk of exposing sensitive data has escalated, widening the attack surface even further. This development underscores the urgent need for the adoption of advanced, purpose-built API security solutions tailored to address the evolving landscape of threats.

Restraint

Lack of Skilled Professionals

In the realm of API security, a significant market restraint is the pervasive lack of skilled professionals equipped to manage and implement sophisticated API security measures. As APIs become increasingly integral to organizational operations, the complexity of securing them also escalates, underscoring a critical challenge in the recruitment or retention of qualified personnel.

Organizations are urgently seeking individuals who are adept at designing, implementing, and managing secure API solutions, but the availability of such skilled professionals is markedly scarce. This disparity between demand and supply, commonly referred to as the “skills gap,” poses a substantial hindrance to the effective minimization of API security risks within various environments.

This deficiency in specialized knowledge leads to delayed adoption of advanced security protocols, consequently heightening the vulnerability of organizations to cyberattacks. A report by Help Net Security in September 2022 illustrates the consequences of this skills gap, where a series of API security breaches were primarily attributed to the absence of adequately skilled personnel.

The breaches were facilitated by fundamental security oversights such as weak authentication protocols, inadequate authorization checks, and the neglect of rate limiting measures – errors that typically indicate a lack of specialized expertise necessary for robust API security.

Opportunities

Integration of AI and Machine Learning for Threat Detection

The integration of Artificial Intelligence (AI) and Machine Learning (ML) into API security represents a transformative shift in threat detection and response capabilities for organizations. By utilizing AI and ML algorithms, companies are now able to implement real-time anomaly detection systems that continuously monitor API traffic.

These systems identify unusual patterns or behaviors that may indicate a breach attempt, enhancing the proactive security measures of organizations. Furthermore, AI and ML contribute to predictive threat intelligence. This technology uses historical data and behavioral analysis to predict potential threats, enabling organizations to take preventive action before an attack materializes.

The automation of incident responses, facilitated by AI and ML, significantly decreases the time between threat detection, decision-making, and mitigation, culminating in a robust security posture that reduces reliance on traditional firewalls and manual inspections.

An example of this technology in action is SentinelOne’s integration of AI into its security platform. This platform employs a behavior-based AI engine to analyze anomalies, enabling real-time identification and response to emerging threats. By integrating AI-driven threat detection into their API security frameworks, organizations can stay ahead of cybercriminals, effectively minimizing the risk of data breaches and service disruptions.

Challenges

AI-driven API Vulnerabilities

As AI technologies become increasingly embedded in API ecosystems, they introduce new vulnerabilities, such as advanced prompt injection attacks. These attacks exploit the AI models within APIs by manipulating inputs to trigger unauthorized actions or data retrieval. This can lead to severe consequences such as data breaches and intellectual property theft.

For instance, a January 2025 report from Wallarm highlighted a staggering 1,205% increase in API vulnerabilities linked to AI, with 99% of these incidents stemming from API flaws. This trend underscores the critical need for enhanced security measures to protect AI-centric APIs from emerging threats like prompt injection and model manipulation attacks.

Latest Trends

Adoption of Zero Trust Architecture

The adoption of Zero Trust architecture is becoming a cornerstone of contemporary API security strategies. This approach is based on the principle of “never trust, always verify,” ensuring that every API access request undergoes rigorous authentication and authorization, regardless of the requester’s location or origin.

API gateways play a vital role in this architecture by securing all communications in transactions between applications, enforcing encrypted data transfer at each point, and significantly reducing the attack surface. For example, Menlo Security’s recent integration of Secure Application Access into Google Cloud Cloud WAN offers enterprises a comprehensive Zero Trust Access (ZTA) solution.

This integration facilitates secure access to both SaaS and private applications without the need for traditional network components, adapting to managed and unmanaged users or devices and enhancing security without sacrificing user experience.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Key Players Analysis

In March 2025, Google solidified its position in the cloud cybersecurity sector with the acquisition of Wiz, a notable startup in this field, for a record $32 billion. This acquisition marks the largest in Google’s history and significantly bolsters its cloud security capabilities.

Wiz’s technology enables organizations to effectively identify and address security vulnerabilities across their cloud environments. By integrating Wiz’s platform into Google Cloud, customers are expected to benefit from enhanced security measures, improving their ability to manage multiple cloud security protocols effectively.

April 2025 witnessed a significant development in the API security domain as Salt Security and CrowdStrike announced a strategic partnership. This collaboration aims to fortify API security by merging Salt Security’s API Protection Platform with CrowdStrike’s Falcon XDR platform.

The synergy between Salt Security’s API security solutions and CrowdStrike’s comprehensive threat detection capabilities is designed to provide organizations with broader visibility and more robust protection against API-related security threats.

Top Key Players in the Market

• Google
• Salt Security
• Akamai
• Data Theorem
• Axway
• Imperva
• Traceable
• Palo Alto Networks
• Fortinet
• Red Hat
• IBM
• Wallarm
• Oracle
• Software AG
• MuleSoft
• Microsoft
• Akana
• Avanan
• Cequence Security
• Data Theorem API
• Other Key Players

Recent Developments

• In April 2025, Akamai launched the App & API Protector Hybrid, expanding its Web Application Firewall (WAF) capabilities to safeguard web applications and APIs in diverse IT environments, including on-premises, cloud, and multi-cloud setups. This innovation underscores Akamai’s commitment to enhancing security adaptability and resilience against emerging threats.
• Meanwhile, in February 2025, Alinma Bank of Saudi Arabia partnered with IBM to spearhead its digital transformation. The collaboration entails developing a new API platform using IBM’s cloud and AI technologies, aimed at fostering innovative financial services. This strategic move will enable Alinma Bank to establish a secure, scalable API ecosystem, facilitating collaborations with fintech firms and third-party developers.

Report Scope