Report:
Magic Quadrant for API Management
How does Gartner define the API Management market in 2023?
Gartner defines the application programming interface (API) management market as the market for software that supports API life cycle stages such as planning and design, implementation and testing, deployment and operation, and versioning and retirement. Organizations use APIs to modernize their architectures; efficiently integrate systems, services and partners; and create and monetize data and services. API management software enables organizations to discover, design, build, manage and secure APIs, regardless of their size, region or industry. It helps them improve composability, security and business resilience, and accelerate their growth.
Key Facts for Magic Quadrant for API Management in 2023
- Publication Date: 11-Oct-2023
- Document ID: G00782580
- Coverage: Worldwide
- Authors: Shameen Pillai, Kimihiko Iijima, and 5 more
- Core Purpose: This Magic Quadrant assesses 19 API management solution vendors to help software engineering leaders select the most suitable vendor for their organization's needs in managing APIs across the full life cycle.
Strategic Planning Assumptions
No strategic planning assumptions provided.
How was the API Management market evolved in 2023?
- The API management market grew by 17.1% in 2022 to $3.3 billion in revenue
- It is the fourth-fastest-growing segment of the application infrastructure and middleware market
- 19 vendors are assessed in this Magic Quadrant
- Organizations use APIs to modernize architectures, integrate systems and partners, and create and monetize data and services
- API management enables organizations to discover, design, build, manage and secure APIs regardless of size, region or industry
- Cloud adoption and cloud-native architectures are increasing API usage
- API security awareness is driving organizations to take charge of discovering and managing APIs
- The market remains dynamic with substantial merger and acquisition activity
- Organizations of all sizes and industries from all geographies are using more APIs
- Must-have capabilities include developer portal, API gateway, and policy management and analytics
What product features are required to be included in this year's evaluation?
- A developer portal — This provides a self-service catalog of APIs for enabling, marketing to, and governing ecosystems of developers who produce and consume APIs.
- An API gateway — This provides, or integrates with, third-party gateways for runtime management, security, policy enforcement, throttling, operational control and usage monitoring for APIs.
- Policy management and analytics — These provide security configuration, API mediation and API usage analytics.
What are the common features of top products in the API Management space?
- API design and development — These capabilities deliver a meaningful developer experience and tools to design and build APIs, and to enable API usage for existing systems.
- API testing — This provides a range of testing capabilities, from basic mock testing to advanced functional, performance and security testing of APIs.
Scope Exclusions
- Offerings specific to one industry
- Offerings limited to an adjacent market (such as iPaaS or application security)
- Vendors that generated less than $45 million in API management revenue in 2022 (or $6 million for open-source vendors)
- Vendors with fewer than 120 paying customers for API management in 2022
- Offerings not generally available as of June 2022
Inclusion Criteria
Vendors must, among other requirements:
- Actively market, sell and support products that provide capabilities as defined in the Market Definition for API Management
- Made the qualifying offering generally available as of June 2022
- Have a comprehensive, general-purpose offering not specific to one industry or limited to an adjacent market
- Generated revenue of at least $45 million from API management in 2022 (or $6 million for open-source vendors)
- Have had at least 120 paying customers for API management in 2022
Ability to Execute — Relative Weighting
- Product or Service - High
- Overall Viability - Medium
- Sales Execution/Pricing - Medium
- Market Responsiveness/Record - Medium
- Marketing Execution - Low
- Customer Experience - Medium
- Operations - Medium
Completeness of Vision — Relative Weighting
- Market Understanding - High
- Marketing Strategy - Low
- Sales Strategy - Medium
- Offering (Product) Strategy - High
- Business Model - Medium
- Vertical/Industry Strategy - Low
- Innovation - High
- Geographic Strategy - Low
FAQs
Q: What does this research cover?
A: This research covers the API management market, assessing 19 vendors based on their ability to execute and completeness of vision. It evaluates vendors across must-have capabilities (developer portal, API gateway, policy management and analytics), standard capabilities (API design and development, API testing), and optional advanced capabilities (API-based business models, monetization, ecosystem management, and automated governance). The research covers various deployment models including on-premises, cloud, hybrid, and multicloud implementations.
Q: Who should use this research?
A: Software engineering leaders should use this research to evaluate and select API management vendors that best align with their organization's specific needs and use cases. It helps assess vendors based on their API strategy, deployment requirements (cloud, on-premises, hybrid), organizational size, industry-specific needs, and whether they're focused on digital transformation, integration, modernization, or distributed API management. Organizations should use this alongside the companion Critical Capabilities for API Management research to make informed vendor selection decisions.
Q: What are the mandatory features of vendors included in this market?
A: To be included in this Magic Quadrant, vendors must provide three must-have capabilities: 1) A developer portal that provides a self-service catalog of APIs for enabling, marketing to, and governing ecosystems of developers who produce and consume APIs; 2) An API gateway that provides, or integrates with, third-party gateways for runtime management, security, policy enforcement, throttling, operational control and usage monitoring for APIs; and 3) Policy management and analytics that provide security configuration, API mediation and API usage analytics.
Q: What are some reasons for not being included in this report?
A:
Vendors may not be included in this Magic Quadrant for several reasons: having a product offering specific to only one industry; limiting their offering to an adjacent market such as iPaaS or application security rather than providing comprehensive API management; failing to meet minimum revenue thresholds ($45 million for traditional vendors or $6 million for open-source vendors); having fewer than 120 paying API management customers; or not having their offering generally available by June 2022. The offering must be comprehensive and general-purpose, available either directly from the vendor or via publicly announced partner agreements.
Q: What differentiates Ability to Execute vs. Completeness of Vision?
A: Ability to Execute measures how well vendors deliver on their current offerings and operational capabilities - focusing on product quality, sales performance, customer support, and operational excellence. It evaluates present-day execution and market presence. Completeness of Vision assesses vendors' understanding of market direction and their strategic plans for the future - focusing on market insight, innovation roadmaps, product strategy, and ability to anticipate and shape market trends. It evaluates forward-looking strategy and market positioning.
Reference
- Gartner, Magic Quadrant for API Management, 11-Oct-2023, ID G00782580
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