Cloud API Market Size, Share, and Industry Analysis, By Type (PaaS APIs, SaaS APIs, IaaS APIs, and Cross-Platform APIs); By Enterprise Type (Small and Mid-sized Enterprises (SMEs) and Large Enterprises); By Industry (BFSI, IT and Telecom, Healthcare, Education, Manufacturing, Retail & E-commerce, and Others), and Regional Forecast, 2024-2032

A cloud API is a type of software interface that enables developers to connect various cloud computing services. It belongs to a set of application programming interfaces (APIs) that generally allow the transfer of data between software programs. APIs help developers to share data and functions among a range of applications without the need to re-write code or re-build existing functions in new apps.

The global cloud API market is estimated to experience growth owing to the rising adoption of cloud computing services across various industries, as they migrate to new technologies and adapt to technological changes. Additionally, the demand for enhanced operational efficiency and the use of DevOps automation to reduce time to market is driving the global cloud API market growth. Furthermore, enterprises are investing in cloud technology to pursue opportunities for digital transformation and AI, with cloud solutions being the preferred choice for new purchases.

• According to an Intel survey 2023, investments in public cloud services is soaring (USD 1.1 trillion by 2027), and is notably higher than expenditure on on-premises data center systems.


• In October 2023, the Microsoft Azure Incubations team had launched Radius, which is a cloud-based application platform that allows collaborative delivery and management of cloud-native applications by developers and platform engineers.

The global cloud API market experienced a notable surge in growth during the COVID-19 pandemic, largely due to the healthcare industry's adoption of cloud APIs. These APIs facilitated the real-time sharing of critical information, such as patient counts and medicine availability, with frontline authorities, including healthcare professionals, researchers, and government experts. Additionally, the pandemic led to an increase in e-commerce and cloud APIs played a vital role in enabling seamless money transfers between businesses and customers.

Impact of Generative AI on the Cloud API Market

Generative AI and large language models (LLMs) are expected to increasingly become accessible to users in the cloud via APIs and by being embedded directly into other applications. Companies will consume them as they are or will customize and fine-tune them with proprietary data. Further, the rapid emergence of generative AI models such as ChatGPT, Stable Diffusion, and DALL-E has sparked tremendous excitement about their potential business applications. Industry experts identified generative AI as one of the most influential technology trends in 2022, and nearly 40% of companies want to increase their AI investments due to generative AI, in the coming years.

To incorporate generative AI models into enterprise cloud systems, it is necessary to have strong APIs that can facilitate real-time communication for various AI tasks. These APIs must have endpoints that are designed to minimize latency and maximize throughput. Major cloud providers such as Amazon Web Services (AWS) and Microsoft Azure offer APIs and services that make it easier to integrate generative AI capabilities into systems.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on the Global Cloud API Market


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis By Industry

The demand for cloud APIs is increasing across various industries, including BFSI, IT and telecom, healthcare, education, manufacturing, retail & e-commerce, and others. The BFSI segment is predicted to experience significant growth over the forecast period. In the banking sector, cloud APIs aid in the integration of banking products, which can then be distributed to businesses, consumers, and partners. Cloud APIs also support customer needs by providing prompt and quick responses.

Cloud APIs are helpful in reducing technological complexities such as unpredictability in performance and data confidentiality. They also help in creating new values such as bringing all business stakeholders together, increasing reliability and cost control. Big technical companies such as Google LLC and Apple Inc., have ventured into new verticals by launching online payment services. The use of cloud APIs in the BFSI industry provides several benefits such as access to real-time transaction, a high level of data security, customized financial services, better user experience, and others.

Furthermore, surveys carried out by industry experts suggests that nearly 90% of bankers worldwide believe that open banking—which is enabled and facilitated through open APIs—is likely to boost their organizations’ organic growth by up to 10%. This is estimated to further propel the demand for cloud APIs in the BFSI sector over the forecast period.

Regional Analysis

The global cloud API market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. In 2023, a significant share of the market was held by North America, due to rising investments in technologies such as artificial intelligence (AI) and Internet of Things (IoT), particularly in lucrative markets such as the U.S. and Canada.

The Asia Pacific region is expected to record the highest growth rate during the forecast period. This is due to favorable government initiatives in the region that support cloud migration and digitalization, which are driving the market growth. In the current business scenario, providers of cloud application programming interface (API) services include both cross-platform cloud providers and independent cloud providers.

• In June 2023, Vonage, a global provider of cloud communications, had established an R&D Centre of Excellence in Bengaluru, India. The aim of this centre is to drive innovation and strengthen its presence in the Asia Pacific region. Through its Vonage Communications Platform (VCP), Vonage develops cloud APIs that enhance CPaaS solutions. These solutions encompass messaging, conversational voice, AI, and video functionalities.

Distribution of the Global Cloud API Market, By Region

• North America – 32%


• South America – 9%


• Europe – 26%


• Middle East and Africa – 13%


• Asia Pacific – 20%

Key Players Covered

The report provides the profiles of key players such as Amazon Web Services, Inc., Google Inc., Broadcom Inc., Citrix Systems, Inc., IBM Corporation, Red Hat, Inc., Oracle Corporation, Microsoft Corporation, Rackspace Inc., VMware, Inc., Zend Technologies Ltd., and Tibco Software Inc.

Key Industry Developments

• March 2024: Oracle introduced new generative AI features in the Oracle Fusion Cloud Applications Suite, to enhance decision-making and improve the employee and customer experience.


• August 2023: VMware, Inc. announced an updated version of its VMware Cloud, which provides its customers with new editions and capabilities to modernize, optimize, and secure their organizations. The VMware Cloud allows its customers to innovate faster, operate more efficiently, improve their threat defences, and recover more quickly from ransomware attacks.