The global API Testing market is segmented on the basis of component, deployment type, vertical, and region. MarketsandMarkets forecasts the global API testing market to grow from USD 447.4 million in 2017 to USD 1,099.1 million by 2022, at a Compound Annual Growth Rate (CAGR) of 19.69%. Adoption of Agile and DevOps practices for software development and open API strategies adopted by businesses are some of the major driving factors of the API testing market.
API testing has become indispensable for continuous delivery of the technology solutions across industries. As software development teams adopt Agile and DevOps delivery models, continuous testing has become essential to reduce the time-to-market. Customer satisfaction is at the core of digital business strategy. APIs enable digital businesses to expand the reach of their services to external businesses through public APIs. Thus, the APIs enable the integration of a business’ assets with the external world. This integration allows the external businesses to access the data hidden behind the firewalls of the businesses thus vulnerable to the risk of unauthorized access. Also, providing uninterrupted services has become the need of the hour in today’s competitive environment. This can be achieved by leveraging the API testing solutions to offer optimum advantage of the Open API economy by the businesses.
In the API testing deployment type, the cloud-based solution is expected to grow at a higher CAGR during the forecast period. Enterprises and organizations are relying heavily on cloud services and cloud platforms to obtain resources on demand. With the cloud deployment, organizations can pay for the resources that they use, which reduces the cost of capital. Among verticals, BFSI is expected to grow at the highest CAGR in the API testing market during the forecast period. The Open API movement in the banking industry which exposes a wide range of banking APIs with other business is driving the API business in the banking industry.
The API testing market in APAC is expected to grow at the highest CAGR during the forecast period, as the region has the presence of creditable organizations that are gradually enabling the adoption of advanced technologies. In Japan, China, and India, the adoption of API testing solutions has primarily become a competitive advantage to enable the continuous delivery of software development. North America is expected to hold the largest market share during the forecast period.
Government directives for Open API strategies in the banking industry serves as an opportunity for the API testing market. API business models and monetization have become core of any business’ digitization strategy. Open APIs and Open Banking have gained traction and have grown from being purely technical topics to being of business relevance for banking institutions. Also, companies with digital focus, such as Google, Apple, Facebook, Twitter, Amazon, and Salesforce have grown at a fast pace in the past decade, owing to the business accelerating capabilities of the APIs.