United States API Market

United States API Market Market Overview:

The United States API market size was valued at USD 37.87 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 420.32 Million by 2033, exhibiting a CAGR of 29.13% from 2025-2033. Western currently dominates the market, holding a market share of 35.3% in 2024. The rapid growth of the e-commerce sector significantly drives the U.S. API market, as APIs are essential for integrating diverse systems and services. E-commerce platforms depend on APIs for seamless payment processing, real-time inventory management, efficient order fulfillment, and enhanced customer relationship management. APIs enable these platforms to connect with third-party logistics, analytics tools, and marketing automation services, ensuring smooth operations and personalized shopping experiences. This increasing reliance on APIs supports scalability, operational efficiency, and competitive differentiation in the expanding digital commerce landscape is further impelling the United States API market share.

The growing demand for cloud computing, Internet of Things (IoT), and digital transformation is a key driver of the U.S. API market. Approximately 85% of companies view cloud API integration as essential for digital transformation, while 67% of developers actively use cloud APIs to enable workflow automation, reduce time-to-market, and enhance customer experiences. APIs facilitate seamless cloud connectivity, and support both microservices, and hybrid cloud models, allowing businesses to innovate rapidly, streamline operations, and personalize services. As enterprises modernize legacy systems and adopt SaaS platforms, the need for secure, scalable, and flexible APIs continues to rise, making them critical tools for maintaining competitiveness across sectors such as finance, healthcare, e-commerce, and retail.

The proliferation of e-commerce platforms and mobile applications is fueling API market growth in the U.S. APIs enable real-time connectivity between applications, payment gateways, inventory systems, and customer databases, ensuring seamless user experiences. As consumer reliance on mobile shopping and digital transactions grows, businesses deploy APIs to integrate third-party services like shipping, authentication, and personalized recommendations. Moreover, APIs facilitate omnichannel strategies by connecting web, mobile, and in-store systems. This demand for fast, reliable, and secure API solutions among e-commerce firms and app developers significantly propels market expansion, with scalability and automation being key priorities.

United States API Market Trends:

Proliferation of Open Banking and Fintech Services

The rapid evolution of open banking and fintech ecosystems in the U.S. is a significant driver of United States API market growth. Open APIs offer secure, standardized access to financial data, allowing third-party developers to create innovative services such as digital wallets, personal finance management tools, and instant lending platforms. Regulatory mandates and growing market demand for transparency and interoperability are encouraging traditional banks to open their systems to fintech firms via APIs. This fosters stronger collaboration between banks and startups, enabling quicker product development and improved user experiences. Notably, around 66% of consumers in 2025 are willing to share their financial data via APIs to receive personalized services, reflecting increasing customer trust in API-driven financial solutions. As demand for tailored, on-demand financial services rises, API adoption in banking and fintech is expected to accelerate further, ensuring secure data sharing and seamless payment integration.

Emergence of API Security and Management Solutions

With APIs taking center stage in digital business strategies, security and management issues have become top United States API market trend. Increasing utilization of APIs within cloud services, mobile applications, and IoT devices makes vendors vulnerable to threats such as data breaches, unauthorized usage, and cyberattacks. To address this, firms are spending heavily on API gateways, authentication techniques (e.g., OAuth 2.0), and threat detection software to protect their API ecosystems. In addition, traffic monitoring, versioning, and performance optimization API management platforms are widely sought after to provide reliability and scalability. This increased emphasis on security and governance necessitates the creation of strong API lifecycle management solutions, making security a competitive advantage in the API market.

Rise of API-Driven Healthcare Interoperability

Healthcare digitization and the demand for data interoperability are key trends propelling API adoption in the U.S. market. Regulatory mandates such as the 21st Century Cures Act require healthcare providers to grant patients seamless electronic access to their medical records through standardized APIs. Reflecting this, as of 2022, 90% of non-federal acute-care hospitals in the U.S. use APIs to enable patient access to electronic health records (EHRs), while 60% allow patient-submitted data via APIs. This promotes secure, real-time data exchange across hospitals, laboratories, insurers, and digital health applications, supporting care coordination, telemedicine, and personalized treatments. APIs also integrate EHR systems with wearable devices, remote monitoring tools, and mobile health apps, enhancing efficiency and patient engagement. As value-based care models expand, healthcare organizations increasingly depend on APIs to advance data analytics, service innovation, and overall healthcare delivery.

United States API Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States API market, along with forecast at the regional, and country levels from 2025-2033. The market has been categorized based on type, functionality and purpose, and industry vertical.

Analysis by Type:

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

RESTful APIs hold the largest market share of 55.75% in the U.S. API market due to their simplicity, scalability, and widespread compatibility with web services and cloud applications. Their lightweight architecture allows easy integration across various platforms, including mobile apps, websites, and enterprise systems, making them the preferred choice for developers. RESTful APIs use standard HTTP methods, enabling efficient communication and data exchange without the need for complex protocols, thus reducing development time and cost. Their stateless nature supports scalability and performance optimization, crucial for handling high-volume transactions in sectors like e-commerce, healthcare, and finance. Additionally, RESTful APIs are well-suited for microservices architectures, which are increasingly adopted by businesses to enhance agility, flexibility, and faster deployment of digital services.

Analysis by Functionality and Purpose:

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

Payment APIs account for 25.7% of the U.S. API market share, driven by the surge in digital transactions, e-commerce expansion, and mobile payment adoption. These APIs enable secure, real-time processing of online payments, credit card transactions, digital wallets, and contactless payments, ensuring seamless checkout experiences across web and mobile platforms. As consumers increasingly prefer cashless, instant, and frictionless payment options, businesses integrate payment APIs to support multiple gateways, currencies, and fraud detection tools. The rise of subscription services, peer-to-peer (P2P) transfers, and on-demand services also contributes to the growing demand for flexible and scalable payment APIs. Furthermore, evolving regulatory requirements for secure payment processing and data protection reinforce the importance of robust API-driven financial transaction solutions in various sectors.

Analysis by Industry Verticals:

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

Based on the United States API market forecast the healthcare APIs hold the largest market share of 30.8% in the U.S. API market due to the increasing push for interoperability, digital health transformation, and regulatory compliance. Government mandates, such as the 21st Century Cures Act, require healthcare providers to offer secure and standardized API-based access to electronic health records (EHRs), driving widespread API adoption. These APIs enable seamless data exchange between hospitals, clinics, insurers, and digital health applications, improving care coordination and patient outcomes. The rise of telemedicine, wearable health devices, and remote patient monitoring further fuels the demand for APIs to integrate real-time health data into clinical systems. Additionally, the shift toward value-based care models encourages healthcare organizations to leverage APIs for analytics, personalized treatments, and improved patient engagement.

Regional Analysis:

• Northeast
• Midwest
• South
• West

The Western region holds the leading market share of 35.3% in the U.S. API market due to the high concentration of technology companies, startups, and innovation hubs, particularly in areas like Silicon Valley. This region is a center for cloud computing, software development, and digital transformation initiatives, driving significant demand for APIs across various industries, including finance, healthcare, and e-commerce. The strong presence of major cloud service providers, along with widespread adoption of advanced technologies like AI, IoT, and machine learning, further boosts API utilization. Moreover, the region benefits from a skilled workforce, robust IT infrastructure, and a culture of innovation and collaboration, all of which foster rapid API development, deployment, and management, solidifying its dominance in the national market.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.

Competitive Landscape:

The competitive environment is extremely dynamic with fast-paced technological developments and growing demand for digital connectivity across industries. Market participants vary from niche API providers to major cloud service platforms providing feature-rich API management solutions. Competition is fierce as companies compete to provide scalable, secure, and high-performance APIs that enable microservices, cloud-native applications, and data-driven services. As vendors continue to prioritize improving API security, monitoring, and lifecycle management features to meet enterprise demands, open-source software platforms and low-code development platforms remain transformative forces in the industry by facilitating quicker API creation and deployment. Strategic partnerships, platform integration, and compliance with changing regulatory standards are foundational to differentiation in the market, with a focus on customization, flexibility, and developer-centricity.The report provides a comprehensive analysis of the competitive landscape in the United States API market with detailed profiles of all major companies.

Latest News and Developments:

• April 2025: Meta Platforms released a new application programming interface (API) for its Llama AI models, aiming to attract developers and companies that require adaptable artificial intelligence (AI) tools. The disclosure, which was made at the company's first AI developer conference, was a planned effort to compete with Google, OpenAI, and up-and-coming firms such as DeepSeek from China.
• February 2025: Aduna revealed that its business collaborators, AT&T, T-Mobile, and Verizon, will provide the first sophisticated network Application Programming Interfaces (API) for SIM swapping and number verification in the U.S. This partnership is a major turning point for the mobile ecosystem, bringing together pioneers in the field to enable developers and businesses with carrier-grade, standardized network API capabilities to create cutting-edge apps and value-added services for businesses.
• February 2025: The next-generation API security platform Traceable and the AI-native Software Delivery Platform Harness together revealed that they have signed a definitive merger contract, forming an advanced AI-native DevSecOps platform. With Harness and Traceable working together, software teams will be able to create, implement, and protect applications with ease, guaranteeing that security is integrated across the whole software lifecycle.
• January 2025: Lookout Inc. launched its latest Lookout Mobile Intelligence Application Programming Interfaces (APIs), increasing insight into company mobile security data at an exponential rate. Lookout Mobile Intelligence APIs allow security teams to incorporate vital security data from mobile devices into their current solutions. This makes it possible for security teams to see potential threats, dangerous patterns or anomalies, and cross-platform attacks.
• June 2024: Cambridge-based Akamai Technologies successfully acquired Noname Security, an application programming interface (API) security firm, for a transactional value of USD 450 Million. As the use of APIs continues to develop, Noname is anticipated to help Akamai better fulfill the needs of the market and rising client demands.

United States API Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States API market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States API market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists 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 United States 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.