API Testing Market Size, Share, Opportunities, And Trends By Offering (Software, Services), By Deployment Model (On-Premise, Cloud), By End-User Industry (Communication And Technology, BFSI, Retail, Media And Entertainment, Healthcare, Others), And By Geography - Forecasts From 2024 To 2029

Description

The API testing market is evaluated at US$1,003.278 million for the year 2022 and is projected to grow at a CAGR of 17.29% to reach a market size of US$3,065.363 million by the year 2029. 

Key Market Highlights:

• The need for API testing is driven by the growing use of microservices architecture.
• The market is expanding due to the growing demand for smooth integration between cloud apps.
• Adoption of API testing is accelerated by the rise of DevOps and Agile approaches.
• Efficiency of API testing is being revolutionized by AI and automation tools.
• The need for API testing is fueled by the growing usage of mobile apps and the Internet of Things.

API stands for Application Programming Interface, which is a programming interface that connects applications, a messaging system, or a database. API testing is a method used to ensure API endpoints and data-sharing functions are working as expected. Moreover, API testing prevents data corruption in transit and unexpected failures in database or endpoint connectivity. Furthermore, for efficient API testing, a proper testing strategy is necessary because it ensures that the crucial components required for specific API testing have been taken into consideration.

The application programming interface testing helps to confirm that the application’s APIs are interacting and saving data as intended. Further, it also tests each API and its functional area of the application impacted, and with every authentication, authorization, and encryption of data, API testing adds a layer of security testing, which is a crucial benefit of using API testing. Moreover, nowadays, data breaches have become very common, which can result from the interception or rerouting of messages and data.

Hence, to prevent such unauthorized users from accessing application data and restrict the cases of data breaches, API endpoint security testing is a must. Such relevant uses of these testing methods are acting as key factors propelling the API testing market during the forecast period.

Key players working in the market include IBM, Micro Focus (OpenText), SmartBear Software (Francisco Partners), Parasoft, Tricentis GmbH, Infosys, Runscope (BlazeMeter), Adobe, and Microsoft Corporation.

API Testing Market Trends

• Rising Investment

Rising investment in software development is also fueling the demand for API testing for R&D purposes. Advancements in technologies such as IoT, artificial learning (AI), and machine-learning technologies will further contribute to the growth of the API testing market during the projected period. The AI and machine learning advancements, coupled with the presence of big data, create new opportunities for the experimental adoption of AI/ machine learning.

For instance, IndiaAI is a joint initiative of the Ministry of Electronics and Information Technology, the National e-Governance Division (NeGD), and the National Association of Software and Services Companies (NASSCOM), highlighting that the increased technological investments, more internet penetration, and improved digital infrastructure have prompted the massive inclusion of AI in mainstream operations. Thus, the extensive AI growth and surging machine learning in most businesses are expected to drive the API testing market during the forecast period.

API Testing Market Dynamics

• Market Drivers

Increasing Adoption of Agile and DevOps Practices is Anticipated to Drive the Market’s Growth

The API testing market is anticipated to develop at a substantial rate due to the growing use of Agile and DevOps methodologies. Continuous integration, deployment, and testing are becoming increasingly important as companies move to Agile and DevOps approaches, speeding up software development and delivery. In this context, API testing is essential since it guarantees the smooth operation and integration of APIs at different phases of the development process.

Automated API testing becomes essential for verifying changes, finding regressions, and preserving overall software quality when Agile and DevOps emphasize quick iterations and frequent releases. Additionally, by automating repetitive testing processes, spotting errors early in the development process, and promoting speedy feedback loops, API testing helps teams achieve a faster time-to-market.

Market Restraints

• Complexity of Maintaining APIs

There are certain obstacles in the way of the API testing market's potential growth. The complexity of maintaining APIs across many ecosystems, such as hybrid and multi-cloud settings, is one prominent problem. It is frequently challenging to maintain uniform governance, security, and performance requirements across diverse endpoints because of this complexity.

Concerns about Data Privacy

The adoption of API testing is further hampered by concerns about data privacy, regulatory compliance, and the possibility of security breaches. These limitations are further exacerbated by integration difficulties and interoperability problems across various API testing platforms, which call for all-encompassing strategies to successfully solve them and guarantee the market's sustained growth.

Market Opportunities

• The Proliferation of Cloud Computing is Predicted to Impact the API Testing Market Growth

Numerous technological developments are anticipated to have a significant influence on the API The growth of the API testing market is expected to be greatly impacted by the spread of cloud computing. Robust API testing solutions are becoming increasingly necessary as organizations move more of their operations to the cloud to support cloud environments' integration, security, and scalability. API administration must be done well in cloud-native architectures to provide smooth communication between dispersed services and apps.

Additionally, companies can expand, develop, and interact across platforms and ecosystems more quickly using cloud-based APIs. This pattern emphasizes how crucial it is to have API testing systems that can handle the needs and difficulties associated with developing and implementing cloud-native applications. Thus, it is anticipated that the API testing market will experience consistent expansion propelled by the growing integration of cloud technologies throughout various sectors.

API Testing Market Segmentation Analysis

• By Offering

Based on offering, the market is classified into software and services.

Although the software tools are the backbone for automation and execution in the API testing market, the services segment is on a growth trajectory to emerge as the fastest-growing category, primarily as enterprises in every industry are increasingly looking for subject matter expertise, managed services, and tailored consulting services to improve API testing capabilities. As API testing is rapidly evolving to meet enterprise requirements of complex API spanning hybrid IT architectures, microservices-based applications, and multi-cloud ecosystems within enterprises, many organizations do not have the internal skillsets or resources for modern and automated end-to-end testing agendas at scale. This creates a need for professional services around useful methodologies like API testing consulting, API lifecycle management, test automation builds and consulting, test process and methodology training, and enhanced testing technical support needed for change requests. Furthermore, with organizations attempting to meet substantial pressure to deliver software at an accelerated pace without sacrificing quality standards in deliverables, managed services models for continuous API testing and monitoring are being adopted rapidly, with high adoption rates primarily in large BFSI, e-commerce, telecom engagement, and health and wellness organizations.

The service model encourages scalability, flexibility, and cost-effective solutions by eliminating a large, up-front capital investment in infrastructure and skilled resources. The increase in AI-based test automation and security-related testing frameworks also requires ongoing updating, maintenance, and integration, weighted toward third-party service providers. In geographies such as North America and Asia-Pacific, where development of cloud-native applications and digital transformation efforts are occurring rapidly, the services category is gaining traction as firms prefer to allow specialists to enable a faster Time to Market, greater reliability, and regulatory compliance. Collectively, they position services as an exciting and high-growth category of the API testing market, using ongoing strategic support to complement software adoption.

API Testing Market Regional Analysis

• By region, the market is segmented into North America, South America, the Middle East and Africa, and Asia-Pacific.

North America

The API testing market in the North American region is expected to hold a significant share during the forecast period as compared to other regions. Countries like the USA are leading the adoption of advanced security solutions, as developed countries are early adopters of new technology like cloud-based security solutions, etc.

Moreover, the presence of key market players like Cognizant and IBM, among others, is yet another factor fuelling the growth of the API testing market in the North American region. Furthermore, increasing demand in developing economies such as China and India is expected to further fuel the market growth in the Asia Pacific region.

Europe

In Europe, the API testing industry is growing rapidly, as the region maintains its commitment to digital transformation, extensive data protection regulations, and increased use of secure and dependable software integration in various sectors. Countries such as Germany, the UK, and France lead the way, fueled by their mature IT ecosystem, sophisticated banking and financial services sector, and quickly evolving healthcare and e-commerce industries, which generate considerable demand for modern API testing solutions. The General Data Protection Regulation (GDPR) is a key market driver, since it mandates strict compliance with data use and privacy, and compels organizations to invest heavily in API testing tools/services to ensure data security, traceability, and interoperability of applications. European enterprises are also adopting DevOps, Agile, and CI/CD tools at scale, embedding automated API testing into their software development lifecycles to improve release cycles and maintain quality.

Asia-Pacific

The Asia-Pacific API testing market is expanding rapidly. The region is undergoing an accelerated digital transformation, along with high levels of mobile and internet penetration, which is impacting the increasing adoption of cloud-native applications in various industries. Countries like China, India, Japan, South Korea, and small Southeast Asian economies are centers of demand as enterprises adopt APIs to fuel e-commerce platforms, fintech solutions, digital payments, healthcare systems, and smart cities. India and China are currently experiencing high adoption levels/demand due to their thriving start-up ecosystems and expanding online marketplaces, along with awareness attributable to government-backed programs or initiatives to promote digital payments and data services that rely on integrated APIs for reliability/scalability and automation of processes through an API testing framework.

South America

The South America API testing market is continuously growing, driven by the increasing regional adoption of digital technologies, expansion of e-commerce and online services, modernization of banking and financial infrastructure, etc. The largest markets are Brazil, Argentina, Chile, and Colombia, where growth is being driven by enterprises accelerating digital transformation and adopting cloud and mobile-first approaches to address a rapidly growing digital consumer population. Brazil, which is South America's largest economy, serves as a fintech innovation hub with the rapid emergence of digital banking and payment gateways and the implementation of open banking standards, all creating significant demand for secure and scalable API testing products to ensure data privacy, regulatory compliance, and reliability in third-party integrations. Similarly, a growing regional e-commerce and logistics marketplace associated with companies like Mercado Libre and the expansion of global companies in Latin America is contributing to the demand for API testing to ensure seamless interoperability across payments, delivery, and customer experience applications.

The Middle East and Africa

The API testing market is gaining traction in the Middle East and Africa as businesses, governments, and industries in the region accelerate digital transformation initiatives, invest in cloud platforms, and seek reliable and secure information technology infrastructure. Countries like the United Arab Emirates, Saudi Arabia, South Africa, and Nigeria are in focus due to accelerated fintech, telecom, healthcare, and e-commerce growth, which creates demand for rigorous API testing frameworks. For instance, in the Middle East, vision documents such as Saudi Vision 2030 and the UAE’s Smart Government establish a mandate to innovate public and private organizations' digital services by integrating APIs for cross-platform interaction. This greatly drives the need for performance, interoperability, and security-related testing to provide seamless customer experiences. In Gulf countries, especially, financial services businesses are moving toward open banking frameworks, setting the stage for rigorous API testing to comply with regulatory bodies, while protecting sensitive customer data.

API Testing Market Competitive Landscape

• Key Industry Players

Major participants in the API Testing market include IBM, Micro Focus (OpenText), SmartBear Software (Francisco Partners), Parasoft, Tricentis GmbH, Infosys, Runscope (BlazeMeter), Adobe, and Microsoft Corporation, all working toward advancing innovations related to sophisticated automation, artificial-intelligence capabilities, and cloud platform solutions. The companies are enhancing their portfolios through mergers and acquisitions, partnerships, and other enhancements to develop solutions to accommodate the rising need across the globe for integrated solutions, security, and continuous testing across several industries.

List of Key Company Profiled

• IBM
• Micro Focus (OpenText)
• SmartBear Software (Francisco Partners)
• Parasoft
• Tricentis GmbH
• Infosys
• Runscope (BlazeMeter)
• Adobe
• Microsoft Corporation 

API Testing Market Key Developments

• Product Launch: In July 2025, With Autonomous 2.2, teams can spend less time and effort creating and maintaining dependable end-to-end tests. To help teams discover bugs sooner and release with greater assurance, it integrates LLM-generated test steps, automatic test data generation, integrated API validation, and visual comparisons across environments. 
• Product Launch: In May 2025, Parasoft is a global leader in AI-automated software testing solutions, and it continues to enhance the customer experience by enabling customers to build and run smarter testing strategies. Building on its already rich legacy of AI advancements, Parasoft has added Agentic AI features to SOAtest to aid API test planning and creation. 
• Product Launch: In March 2025, A comprehensive platform for developing, expanding, deploying, and overseeing AI agents and agent teams throughout the organization, Oracle AI Agent Studio for Fusion Applications was unveiled by Oracle. The new AI Agent Studio, which is a component of the Oracle Fusion Cloud Applications Suite, gives clients and partners simple-to-use tools to develop personalized AI agents that can help achieve unprecedented levels of productivity and handle intricate business requirements.
• Collaboration: In August 2023, the top API security provider, Salt Security, unveiled the Salt Technical Ecosystem Partner (STEP) program, which enables businesses to use Salt's deep API adaptive intelligence more quickly and easily to lower risk throughout their API ecosystem. As part of the program, Salt is integrating its AI-driven API security insights across the current processes and tools used by organizations.
• Collaboration: In August 2023, leading software development and visibility tool vendor SmartBear recently launched SwaggerHub Portal, a new feature that allows users to personalize consumer-facing documentation that encourages API usage. With the help of this developer-focused solution, API providers can design bespoke landing pages and provide customers with a wealth of resources that are simple to use. 

API Testing Market Scope:

Segmentation:

• By Offering
  • Software
  • Services
• By Deployment Model
  • On-Premise
  • Cloud
• By End-User Industry
  • Communication and Technology
  • BFSI
  • Retail
  • Media & Entertainment
  • Healthcare
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others 
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others 
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others 
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

Table Of Contents

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. API TESTING MARKET, BY OFFERING

5.1. Introduction

5.2. Software

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Services

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

6. API TESTING MARKET, BY DEPLOYMENT MODEL

6.1. Introduction

6.2. On-Premise

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Cloud 

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

7. API TESTING MARKET, BY END-USER INDUSTRY

7.1. Introduction

7.2. Communication and Technology

7.2.1. Market Trends and Opportunities

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. BFSI

7.3.1. Market Trends and Opportunities

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

7.4. Retail

7.4.1. Market Trends and Opportunities

7.4.2. Growth Prospects

7.4.3. Geographic Lucrativeness

7.5. Media & Entertainment

7.5.1. Market Trends and Opportunities

7.5.2. Growth Prospects

7.5.3. Geographic Lucrativeness

7.6. Healthcare

7.6.1. Market Trends and Opportunities

7.6.2. Growth Prospects

7.6.3. Geographic Lucrativeness

7.7. Others

7.7.1. Market Trends and Opportunities

7.7.2. Growth Prospects

7.7.3. Geographic Lucrativeness

8. API TESTING MARKET, BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Offering

8.2.2. By Deployment Model

8.2.3. By End-User Industry

8.2.4. By Country

8.2.4.1. USA

8.2.4.1.1. Market Trends and Opportunities

8.2.4.1.2. Growth Prospects

8.2.4.2. Canada

8.2.4.2.1. Market Trends and Opportunities

8.2.4.2.2. Growth Prospects

8.2.4.3. Mexico

8.2.4.3.1. Market Trends and Opportunities

8.2.4.3.2. Growth Prospects

8.3. South America

8.3.1. By Offering

8.3.2. By Deployment Model

8.3.3. By End-User Industry

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.1.1. Market Trends and Opportunities

8.3.4.1.2. Growth Prospects

8.3.4.2. Argentina

8.3.4.2.1. Market Trends and Opportunities

8.3.4.2.2. Growth Prospects

8.3.4.3. Others

8.3.4.3.1. Market Trends and Opportunities

8.3.4.3.2. Growth Prospects

8.4. Europe

8.4.1. By Offering

8.4.2. By Deployment Model

8.4.3. By End-User Industry

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.1.1. Market Trends and Opportunities

8.4.4.1.2. Growth Prospects

8.4.4.2. Germany

8.4.4.2.1. Market Trends and Opportunities

8.4.4.2.2. Growth Prospects

8.4.4.3. France

8.4.4.3.1. Market Trends and Opportunities

8.4.4.3.2. Growth Prospects

8.4.4.4. Spain

8.4.4.4.1. Market Trends and Opportunities

8.4.4.4.2. Growth Prospects

8.4.4.5. Others

8.4.4.5.1. Market Trends and Opportunities

8.4.4.5.2. Growth Prospects

8.5. Middle East and Africa

8.5.1. By Offering

8.5.2. By Deployment Model

8.5.3. By End-User Industry

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.1.1. Market Trends and Opportunities

8.5.4.1.2. Growth Prospects

8.5.4.2. UAE

8.5.4.2.1. Market Trends and Opportunities

8.5.4.2.2. Growth Prospects

8.5.4.3. Israel

8.5.4.3.1. Market Trends and Opportunities

8.5.4.3.2. Growth Prospects

8.5.4.4. Others

8.5.4.4.1. Market Trends and Opportunities

8.5.4.4.2. Growth Prospects

8.6. Asia Pacific

8.6.1. By Offering

8.6.2. By Deployment Model

8.6.3. By End-User Industry

8.6.4. By Country

8.6.4.1. China

8.6.4.1.1. Market Trends and Opportunities

8.6.4.1.2. Growth Prospects

8.6.4.2. Japan

8.6.4.2.1. Market Trends and Opportunities

8.6.4.2.2. Growth Prospects

8.6.4.3. India

8.6.4.3.1. Market Trends and Opportunities

8.6.4.3.2. Growth Prospects

8.6.4.4. South Korea

8.6.4.4.1. Market Trends and Opportunities

8.6.4.4.2. Growth Prospects

8.6.4.5. Taiwan

8.6.4.5.1. Market Trends and Opportunities

8.6.4.5.2. Growth Prospects

8.6.4.6. Thailand

8.6.4.6.1. Market Trends and Opportunities

8.6.4.6.2. Growth Prospects

8.6.4.7. Indonesia

8.6.4.7.1. Market Trends and Opportunities

8.6.4.7.2. Growth Prospects

8.6.4.8. Others

8.6.4.8.1. Market Trends and Opportunities

8.6.4.8.2. Growth Prospects

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. IBM

10.2. Micro Focus (OpenText)

10.3. SmartBear Software (Francisco Partners)

10.4. Parasoft

10.5. Tricentis GmbH

10.6. Infosys

10.7. Runscope (BlazeMeter)

10.8. Adobe

10.9. Microsoft Corporation

Companies Profiled

IBM

Micro Focus (OpenText)

SmartBear Software (Francisco Partners)

Parasoft

Tricentis GmbH

Infosys

Runscope (BlazeMeter)

Adobe

Microsoft Corporation

Related Reports