Cloud API Market size was valued at USD 1.7 billion in 2024 and is anticipated to surpass USD 21.8 billion by 2037, registering a CAGR of 23.7% during the forecast timeline i.e. 2025-2037. In 2025, the industry size of cloud API is evaluated at USD 2.1 billion.
Cloud APIs are among the revolutionary changes that are emerging within the technological environment to bring disparate software applications and cloud services together with minimal resistance to interact. With the rising number of companies that have made the transition to cloud-based solutions, the demand for APIs has been high to make these applications scalable so they can leverage the potential of cloud computing. For instance, in October 2024, SoftwareOne launched its new cloud competency center in collaboration with AWS in Malaysia. This establishment will assist customers with generative artificial intelligence (AI) tools. In addition, it will offer a single API to access and leverage high-performing foundation models from top AI companies. This enables organizations to gain agility and scalability by empowering teams.
Furthermore, the growing interest in real-time analytics and the need to make data-driven decisions further fuel the growth of the cloud API market as organizations look for ways to process large quantities of data generated by the operations. For instance, in August 2024, Oracle announced that its Enterprise Communications Platform (ECP) will now integrate AT&T network APIs and IoT connectivity. Through this integration, users of Oracle's industry cloud applications will be able to connect and control their Internet of Things devices on the AT&T network from a single platform. Overall, these factors have been converging and propelling the market forward into its position as a critical enabler of digital transformation across industries.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
23.7% |
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Base Year Market Size (2024) |
USD 1.7 billion |
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Forecast Year Market Size (2037) |
USD 21.8 billion |
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Regional Scope |
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End user (Large Enterprise, Small & Medium Enterprise)
Large enterprise segment is poised to account for cloud API market share of more than 76.1% by the end of 2037, owing to the growing need for enhanced data interoperability and integration across diverse business units and systems. As a result, large enterprises are increasing investments and demanding cloud APIs to integrate and optimize their operations in a very data-driven business environment. For instance, in November 2024, Google Cloud and KPMG LLP announced a significant extension of their partnership aimed at promoting cybersecurity, data analytics, and generative AI among Fortune 500 companies. The Google Cloud practice will receive a historic USD 100 million investment from KPMG
Vertical (BFSI, IT and Telecommunication, Manufacturing, Education, Healthcare, and Media & Entertainment)
The IT and Telecommunication segment continues to hold a significant share of the cloud API market attributable to the rapid expansion of 5G technology, which requires stronger APIs to support the deployment and management of new services and applications. For instance, in September 2024, Ericsson announced collaborating with telecom giants such as América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon, Vodafone. This collaborative move aimed to open their networks and use a global platform for combined network APIs to make advanced network capabilities such as 5G easily accessible.
Our in-depth analysis of the global market includes the following segments:
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End user |
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Vertical |
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North America Market Statistics
North America in cloud API market is estimated to capture around 58.7% revenue share by the end of 2037. In order to enable remote work for their staff members, such as contact center agents and creative professionals, organizations are in greater need of safe and effective solutions. By providing specialized cloud-based API solutions that guarantee security, timeliness, and cost-effectiveness, providers are meeting this need.
The cloud API market in the U.S. is experiencing remarkable growth owing to the presence of well-established businesses rendering their expertise services in cloud services. Furthermore, businesses tend to invest more in widening their portfolios and gaining proficiency in cloud computing capabilities. For instance, in January 2024, AWS announced its plans to invest USD 14.9 billion by 2027 to support the growing artificial intelligence (AI) services in Japan and strengthen its cloud computing capabilities.
Several investments are also being made in the cloud API market in Canada, which greatly accelerates the uptake of cloud computing. For instance, in June 2024, the federal and provincial governments emphasized the value of the Arbutus Cloud infrastructure for Canada research. To revitalize the Arbutus Cloud infrastructure, the Digital Research Alliance of Canada provided USD 10.2 million, making it the country's top research cloud and one of the five National Host Sites. In addition, a USD 6.1 million investment was also announced by the British Columbian government to support the Arbutus Cloud renewal efforts.
Europe Market Analysis
The cloud API market in Europe is expected to be one of the emerging regions during the forecasted timeline. As businesses digitize their processes, maintaining data security and regulatory compliance becomes more important. Such technologically advanced solutions comply with regulations and offer strong security measures, many cloud providers are appealing to businesses that handle sensitive data. Moreover, the growing complexity of cloud solutions and the need for businesses to strategically use these tools are reflected in the emphasis on API management.
The cloud API market in Germany is significantly growing due to the rising need for application development and maintenance services and increasing reliance on cloud computing and mobile applications. For instance, in August 2024, IONOS introduced a platform for utilizing the most significant generative open-source AI models with its new AI Model Hub offering. The platform is housed in German data centers on IONOS' independent cloud infrastructure. Through a common API, businesses can incorporate the models that generate text and images into their applications.
The companies in the cloud API market in France are experiencing a transformation in providing efficacy in services to their end users. For instance, in December 2024, four top mobile operators in France namely Bouygues Telecom, Free, Orange, and SFR announced to collaborate to assist app developers in combating online fraud and safeguarding digital identities. of mobile users. Two network APIs such as KYC Match and SIM Swap being introduced by the operators for the French market under the new CAMARA standard.
The global cloud API market is highly competitive with the presence of several established players and new entrants. They are constantly offering high-end cloud API services, including API gateways, security, and analytics. For instance, in May 2024, Private AI released a Cloud API, a tool for its cutting-edge PII detection, redaction, and data minimization. This innovative API has the potential to handle and safeguard sensitive client data. The Private AI Cloud API is positioned to be a crucial tool for developers and businesses alike due to its unmatched ease of use, scalability, and accuracy. Here's the list of some key players:
Author Credits: Abhishek Verma
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