Saudi Arabia API Market

Market Overview:

Saudi Arabia API market size reached USD 2.2 Billion in 2024. The market is projected to reach USD 3.5 Billion by 2033, exhibiting a growth rate (CAGR) of 4.85% during 2025-2033. The widespread adoption of smartphones for social networking, increasing use of API for payment gateways, order processing, and inventory management, and continuous growth of the e-commerce platforms represent some of the key factors driving the market.

An application programming interface (API) is a set of rules, protocols, and tools that enable different software applications to communicate with each other. It serves as an intermediary that allows one application to request and exchange data or functionality from another application, typically over the Internet. It often includes authentication and authorization mechanisms to control access, ensuring data protection. It enables diverse software systems to work together, regardless of their programming languages or platforms. It helps abstract the underlying complexities of an application, providing a simplified interface for developers. It breaks down complex software into manageable components, promoting code reusability and maintainability. It facilitates the integration of various software and services, streamlining workflows and improving efficiency. It aids in reducing development time by allowing developers to reuse existing code, saving resources and development costs. It can lead to a seamless user experience by connecting different applications and services, making interactions more convenient. It is widely used in web development to enable communication between web applications, such as social media logins and payment gateways. It is also utilized by mobile app developers to access device features like global positioning system (GPS), camera, and notifications. Besides this, as it enables the Internet of Things (IoT) devices to transmit and receive data, facilitating remote monitoring and control of connected devices, the demand for API is increasing in Saudi Arabia.

Key Trends of Saudi Arabia API Market:

Growing adoption of cloud-based solutions

Rising use of cloud-based solutions is positively influencing the market in Saudi Arabia. Businesses continue to rely on APIs to link software systems, databases, and third-party tools as more firms are moving to cloud platforms for scalability, flexibility, and cost effectiveness. APIs facilitate seamless connectivity between cloud-based settings and on-premise infrastructure, improving operations and data transfer. Rapid deployment and innovations are also supported by cloud solutions, where APIs are essential for creating and overseeing services. Businesses are adopting APIs to gain access to cloud functions like analytics and storage without having to deal with the intricacies of the backend. The market is expanding as a result of the growing demand for reliable, secure, and scalable APIs brought on by Saudi Arabia's industries' continued spending on cloud services. Public cloud service expenditures are projected to hit USD 3.9 Billion by 2027, with an anticipated compound annual growth rate (CAGR) of 23.4%, according to research conducted by the International Data Corporation (IDC).

Rising utilization of the Internet of Things (IoT)

Increasing use of the IoT is fueling the market growth. As per the IMARC Group, the Saudi Arabia IoT market size reached USD 9,490.7 Million in 2024. APIs are crucial in facilitating real-time connection and data exchange as the number of smart devices in sectors like energy and transportation increases. IoT devices may transmit, receive, and analyze data across networks and cloud systems because of APIs. They facilitate the integration of various technologies, which helps firms automate, monitor, and control activities more easily. The need for effective and safe APIs is growing as a result of the expansion of automation projects under Vision 2030. Since APIs give structured access to IoT data, they also aid in analytics and decision-making.

Broadening of e-commerce portals

The expansion of e-commerce sites is stimulating the market growth. As per industry reports, the Saudi Arabia e-commerce market size reached USD 24.67 Billion in 2024. E-commerce businesses rely on APIs to connect online storefronts with payment gateways, inventory management systems, logistics providers, and customer service tools. APIs enable real-time data exchange, allowing businesses to update product listings, track shipments, process transactions, and manage customer interactions efficiently. As more retailers and entrepreneurs are moving online, the demand for customized, responsive, and scalable digital solutions is rising, making APIs essential for daily operations. APIs also support mobile commerce, personalized shopping experiences, and marketing automation. With the growing popularity of online shopping and digital payments in Saudi Arabia, e-commerce companies depend on reliable API infrastructure to deliver fast and smooth user experiences.

Growth Drivers of Saudi Arabia API Market:

Improving developer experiences and ecosystem maturity

Improving developer experiences and ecosystem maturity are offering a favorable market outlook. As tools, documentation, and support are becoming more accessible, developers are better equipped to create efficient and scalable applications across sectors like finance and retail. Mature ecosystems offer pre-built APIs, sandboxes, version control, and monitoring tools, which simplify integration and reduce development time. This encourages startups and enterprises to innovate and bring digital services to market quickly. Enhanced collaboration between API providers and users is also fostering a strong developer community, leading to the sharing of best practices and reusable components. As development is becoming more streamlined and efficient, more businesses are employing APIs, contributing to the steady growth of the market in Saudi Arabia.

Enterprise digitalization in the healthcare sector

Enterprise digitalization in the healthcare sector is creating the need for seamless data exchange between hospitals, clinics, pharmacies, and insurance providers. As healthcare organizations are adopting electronic health records (EHRs), telemedicine, and digital patient management systems, APIs enable secure and real-time integration of patient data, lab results, prescriptions, and billing information. APIs also support mobile health apps and wearable devices, helping doctors and patients monitor health conditions remotely. With digital platforms becoming central to healthcare delivery, APIs ensure that systems from different vendors can communicate effectively. This improves workflow efficiency, data accuracy, and patient outcomes. The shift towards digital transformation in line with national health goals is further accelerating API employment, making them essential tools in building a connected healthcare ecosystem in Saudi Arabia.

Increasing expenditure on smart city projects

High spending on smart city projects is propelling the market growth. As cities are becoming more connected through smart infrastructure, APIs enable real-time data exchange between transportation networks, utility systems, public safety services, and citizen platforms. APIs help integrate mobile apps and data analytics tools, allowing for efficient management of city operations and improved service delivery. In smart city environments, APIs support applications like traffic monitoring, energy management, digital payments, and e-governance. These integrations aid local authorities and private partners in developing scalable and responsive solutions for urban challenges. As Saudi Arabia is accelerating its smart city initiatives under Vision 2030, the demand for secure and flexible APIs is growing, fueling the expansion of the market across the country.

Saudi Arabia API Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, functionality and purpose, and industry verticals.

Type Insights:

• Open APIs (Public APIs)
• Partner APIs
• Internal APIs (Private APIs)
• Composite APIs
• RESTful APIs
• SOAP APIs
• GraphQL APIs

The report has provided a detailed breakup and analysis of the market based on the type. This includes open APIs (public APIs), partner APIs, internal APIs (private APIs), composite APIs, RESTful APIs, SOAP APIs, and graphQL APIs.

Functionality and Purpose Insights:

• Payment APIs
• Geolocation APIs
• Social Media APIs
• Weather APIs
• Machine Learning and AI APIs
• IoT APIs

A detailed breakup and analysis of the market based on the functionality and purpose have also been provided in the report. This includes payment APIs, geolocation APIs, social media APIs, weather APIs, machine learning and AI APIs, and IoT APIs.

Industry Verticals Insights:

• Healthcare API
• Financial API
• Retail and E-commerce API
• Travel and Hospitality API
• Telecommunications API
• Automotive API
• Government and Public Sector API

The report has provided a detailed breakup and analysis of the market based on the industry verticals. This includes healthcare API, financial API, retail and E-commerce API, travel and hospitality API, telecommunications API, automotive API, and government and public sector API.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia API Market News:

• April 2025: Groq revealed the exclusive introduction of Meta's Llama 4 Scout and Maverick models in the Middle East. Exclusively on GroqCloud™, developers had immediate access to Meta's most cutting-edge openly-available models. Llama 4 was accessible through GroqChat, GroqCloud Console, and Groq API.
• February 2025: Alinma Bank collaborated with IBM for hybrid cloud and AI integration technology to enhance its IT infrastructure and introduce a new API platform for its fintech and SME customers in Saudi Arabia. The latest service would allow Alinma’s clients to seamlessly access and integrate various digital solutions of the bank through API.
• February 2025: stc Group announced that it became the first operator in the MENA region to implement the Bridge Alliance API Exchange (BAEx), collaborating with Bridge Alliance to incorporate telecom APIs into its digital offerings. This action signified ten years of stc Group's association with Bridge Alliance, as both organizations committed to strengthening their partnership in the IoT and expanding it to telecom APIs. The collaboration was officially established at the LEAP global technology conference held in Riyadh, Saudi Arabia.
• December 2024: VOO Flights, a cutting-edge digital B2B marketplace for instant bookings of business aviation charter flights, introduced its latest solution, featuring a new API connection. The VOO Flights API targeted ‘tech brokers’ aiming to provide their clients with a high-quality booking experience, leveraging the extensive features of the VOO Flights marketplace.
• September 2024: Taker unveiled the aggregation service API to enhance sales for Saudi restaurants. The API enabled third-party apps and super-apps to present and advertise restaurant menus to users.
• June 2024: The Ministry of Hajj and Umrah, in collaboration with the Saudi National Bank, introduced the inaugural international digital wallet for pilgrims. The Nusuk Wallet enabled pilgrims to handle their finances and incorporates encryption technology for protection. It encompassed cutting-edge technologies, including AI, encryption, and biometric identity verification, along with advanced tools like API.

Saudi Arabia API Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia API market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia API market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia API industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.