LONDON--(BUSINESS WIRE)--According to their latest report, Technavio analysts expect the global API as a service market for 2016-2020 to reach USD 965 million by 2020, growing at a CAGR of over 30%.
According to Amit Sharma, lead research analyst at Technavio for cloud computing research, “API as a service is a relatively new IT concept. Organizations have now become increasingly dependent on mobile applications to access company resources. API delivers available company data and services in the form of software response queries. With intelligent API platforms, businesses can easily predict the next plan of action and develop applications faster.”
Technavio’s lead ICT market research analysts have identified the following four factors that will drive the global API as a service market:
- Strong control over cloud product development
- Highly competitive IoT market
- Mobile enablement
- Growing requirement for data and functional integration
Strong control over cloud product development
API as a service can significantly increase the performance of infrastructure management and deployment processes. Developers can build applications with greater efficiency as the service provides the necessary flexibility and enables cross-platforms for user-defined actions. Also, APIs allow organizations to integrate the existing software with the cloud API. However, this may expose the system to theft and external breaches.
API as a service provides better control over the product development processes for enterprises. Cloud APIs harness the power of analytics to allow organizations to deliver exceptional user experience. Cognitive computing and speech recognition are the most popular applications of API as a service.
Highly competitive IoT market
With the rise in digital transformation, many companies are entering into the IoT space. Companies such as Honeywell have introduced API support for their IoT programmed products. API has become one of the advanced technological widgets that bring together applications, devices, data, and the cloud. It establishes communication among different sensors deployed through multiple devices and also allows data analysis in the cloud.
APIs are a critical part of the ecosystem for service providers, that build tools and solutions to integrate API with their products. As APIs work well with digital products, Honeywell has integrated API solutions with its thermostat-based products to design more user-friendly products.
Mobile enablement
Organizations implement mobile workforce to improve their overall productivity. Companies worldwide are encouraging employees to use smartphones and tablets at the workplace as well as outside the office premises. APIs can help employees gain data access to mobile devices. Without APIs, working experience on devices might deteriorate due to the lack of dynamic programming interface. Some enterprises seek mobile strategies that involve moving traditional IT services to an API layer to create new experiences for their employees. Technavio expects mobile enablement to drive the use of API as a service and security for external interfaces over the forecast period.
Growing requirement for data and functional integration
Increased data proliferation and complexity have made it difficult to deploy and maintain reliable data interfaces. To overcome these issues, enterprises focus on data integration that offers on-demand accessibility and real-time synthesizing of data that requires APIs to perform functions. This helps organizations to perform real-time analysis for efficient decision-making process.
Also, this enables enterprises to monitor, transform, and deliver data; understand the business process; and reduce IT complexities. “API as a service helps perform data integration with different business processes from multiple sources and converts this into meaningful information,” says Amit.
Browse Related Reports:
- Global PaaS Market 2015-2019
- Global IT-as-a-Service (ITaaS) Market 2015-2019
- Global Data Protection as a Service (DPaaS) Market 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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