Cloud Application Programming Interface is a type of API that permits for the development of services and applications used for the provisioning of cloud platforms, software and hardware. A cloud application programming interface works as an interface or gateways that provides direct and indirect cloud software and infrastructure services to users. According to different services and solutions the cloud application programming interface varies. Majorly there are three types of services: software as a service, Platform as a Service and Infrastructure as a Service. The software as a service APIs (Application layer) helps to integrate with the cloud and underlying IT infrastructure. The Platform as a service APIs (Service level) helps to provide access and functionality for the cloud. Similarly, Infrastructure as a Service APIs (Infrastructure level) helps to control cloud resources and distributions.
A significant factor projected to drive growth of the global cloud API market is the proliferation of cloud computing services, as industries are migrating to new technologies and adapting to technological changes. Furthermore, high demand for increased operational efficiency along with use of DevOps automation to reduce the time to market is driving the global cloud API market growth across the globe. DevOps is a set of procedures that bring IT operations and software development together to provide high quality software delivery. In DevOps APIs enable the teams working together on a project to gain greater oversight, integration, management, and exposure of application functionality. CI (continuous Integration) and CD (Continuous Delivery) are improved by the use of APIs which helps to integrate various applications along the development lifecycle.
Rising concern about security for API driven applications is the major restraining factor for growth of the global cloud API market. Several security and development terms are still not answered about the API program. The concerns arise about unknown APIs (deprecated or hidden API’s), which can go unidentified by the security teams and this can lead to transmission of critical data, putting an organization’s business at high risk. Application logic flaws can enable fraud through scraping, account takeovers, and other forms of API abuse.
Global Cloud API Market - Impact of Coronavirus (Covid-19) Pandemic
In the Covid-19 pandemic, the global cloud API market witnessed significant growth owing to the use of cloud APIs by the healthcare industry. The cloud API’s helped provide real time data such as patient count, medicine availability to the frontline authorities such as health care professionals, researchers, and government experts. The e-commerce business also increased during the pandemic and cloud API’s helped seamless money transfer between businesses and customers.
North America region held a dominant position in the Global Cloud API Market in 2021
North America held a dominant position in the global cloud API market in 2021, followed by Asia Pacific region.
|Base Year:||2019||Market Size in 2021:||US$ 610 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||19.5 %||2030 Value Projection:||US$ 2947.3 Mn|
Amazon Web Services, Inc., CA Technologies, Inc., Citrix Systems, Inc., Google Inc., International Business Machines Corporation, Microsoft Corporation, Oracle Corporation., Rackspace Inc., Red Hat, Inc., Tibco Software Inc., VMware, Inc., and Zend Technologies Ltd
|Restraints & Challenges:||
Figure 1: Global Cloud API Market Share (%), By Region, 2021
North America held a dominant position in the global cloud API market in 2021 and is expected to maintain its dominance during the forecast period. Rise of Artificial Intelligence (AI) and Internet of Things (IoT) is expected to promote technological developments in the Information and Communication Technology (ICT) industry in the North America region which would drive growth of the cloud API market. Chatbot is an example of AI (Artificial Intelligence) that can be integrated with current applications, which serve various functions such as Amazon Echo, Azure Bot Service, IBM Watson Assistant, and others. Cloud AI APIs and services such as Amazon Rekognition, Microsoft Azure Computer Vision API, and Google Cloud Vision API give applications the ability to analyze images and identify elements such as public counting, cataloging automatically.
Asia Pacific region is expected show significant growth in the cloud API market in the forecast period. Countries such as India, Indonesia, and China, are emerging economies and e-commerce is also growing rapidly in these countries due to digitization. People are more inclined towards online purchasing activities. The use of cloud APIs in e-commerce has accelerated the retail business profits. APIs help online retailers reach out to more customers, provide wide range of products to customers, and help improve the automation process such as processing invoices, rolling out marketing promotions, and others and hence the use of cloud APIs is growing in the e-commerce sector, which directly impacts the cloud API market in Asia Pacific region.
BFSI segment is expected to drive the Global Cloud API Market during the forecast period
BFSI segment is expected to show propelling growth in the forecast period. In banking sector APIs help banking products to be integrated and they can be distributed to businesses, consumers, and partners. The APIs help support customer needs with prompt quick responses. Cloud APIs help to reduce technological complexities such as performance unpredictability, data confidentiality, and create new values such as uniting all business stakeholders, increase reliability and cost control. Major technical companies such as Apple Inc. and Google LLC have traversed new verticals by starting online payment services. The use APIs in the BFSI sector provides real time transaction access, high level of data security, better user experience, customized financial services, and others.
Figure 2: Global Cloud API Market Value (US$ Mn) Analysis and Forecast, 2017 - 2030
The global cloud API market was valued at US$ 610 Mn in 2021 and is expected to reach US$ 2947.3 Mn by 2030, growing at a CAGR of 19.5% between 2022 and 2030.
Major players operating in the global cloud API market include Amazon Web Services, Inc., CA Technologies, Inc., Citrix Systems, Inc., Google Inc., International Business Machines Corporation, Microsoft Corporation, Oracle Corporation., Rackspace Inc., Red Hat, Inc., Tibco Software Inc., VMware, Inc., and Zend Technologies Ltd.
Cloud Application Programming Interface is a type of API that permits for the development of services and applications used for the provisioning of cloud platforms, software and hardware. A cloud application programming interface works as an interface or gateways that provides direct and indirect cloud software and infrastructure services to users. The increasing adoption of smartphones and cloud technology are some of the major drivers which accelerates the demand of cloud APIs. According to Coherent Market Insights, by 2020 near 92 percent of the workloads will be processed by cloud data centers. Similarly in 2016, near 2.1 billion smartphone users present globally and is projected to reach 2.9 billion by 2020.
The increasing adoption of digitalization and rising penetration of internet users are some of the drivers which uplift the market in Asia Pacific region. According to Coherent Market Insights, in 2016, near 40.6% of the total Asia Pacific population uses internet and is projected to reach 48.8% by 2019. India, China, Japan are some of the major countries which drives the market in this region. In addition to this, the increasing adoption of cloud platform by e-commerce’s industry have also uplifted the market in this region. Due to various advantages such as auto scalability, cost savings, increased speed and security, easier management, high availability, the e-commerce’s companies adopting the cloud platform which also increased the demand of cloud APIs. Moreover, the increasing market of e-commerce in this region have uplifted the market of cloud APIs. According to India Brand Equity Foundation Organization, in 2016, e-commerce industry in India, generated revenue of US$ 15 billion and is projected to reach US$ 188 billion by 2025.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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