• In August 2023, SmartBear acquired Stoplight, enhancing their API development platform with advanced visibility and automation tools. Stoplight’s strengths in API governance and no-code editing complement SmartBear’s API design and enterprise capabilities, creating an efficient workflow for API development.

• In April 2022, SmartBear acquired Pactflow from DiUS, boosting their API development platform with leading contract testing collaboration tools.

• In April 2022, Katalon launched a Solution Partner Program to support testing and DevOps service providers in scaling test automation.

• In June 2023, SecureIQLab released WAF 3.0, featuring API security test cases for evaluating market-leading security solutions in today’s cyber threat landscape.

In this report, the API Testing Market has been segmented by Service, Deployment Model, Organization Size, Vertical, and Geography.

API Testing Market, Segmentation by Service

The API Testing Market has been segmented by Service into Framework and Platform.

Framework
The Framework segment remains a foundational pillar of the API Testing Market, enabling organizations to build structured and reusable test cases. As agile and DevOps methodologies gain traction, frameworks have secured approximately 55% of the market share. They are especially valued for streamlining the testing lifecycle, improving test coverage, and ensuring faster feedback loops.

Platform
The Platform segment offers a comprehensive environment for API testing by consolidating key functionalities such as scripting, automation, and analytics. Representing nearly 45% of the total market, platforms are increasingly preferred for their scalability, integration with CI/CD pipelines, and AI-enhanced capabilities. This segment is gaining ground with the rise in demand for cloud-native and collaborative testing solutions.

API Testing Market, Segmentation by Deployment Model

The API Testing Market has been segmented by Deployment Model into Public Cloud, Private Cloud, and Hybrid Cloud.

Public Cloud
The Public Cloud deployment model leads the API Testing Market, capturing nearly 50% of the share due to its affordability, flexibility, and ease of implementation. It is widely adopted by startups and mid-sized companies seeking rapid scalability without investing heavily in infrastructure. This model supports continuous integration pipelines and remote access, making it ideal for agile development teams.

Private Cloud
The Private Cloud segment appeals to enterprises that prioritize data privacy, compliance, and custom configurations. With about 30% of the market, private cloud environments are common in regulated industries such as finance and healthcare. These deployments offer enhanced security, internal governance, and dedicated infrastructure for API testing workflows.

Hybrid Cloud
The Hybrid Cloud model is emerging as a strategic choice, holding close to 20% of the deployment share. Combining the best of both public and private clouds, hybrid deployments offer flexibility, control, and cost optimization. This model is especially beneficial for enterprises navigating legacy infrastructure while adopting modern API testing approaches.

API Testing Market, Segmentation by Organization Size

The API Testing Market has been segmented by Organization Size into Large Enterprises and Small & Medium-Sized Enterprises (SMEs).

Large Enterprises
The Large Enterprises segment represents a substantial share of the API Testing Market, accounting for approximately 60%. These organizations typically manage complex digital infrastructures and require robust, scalable testing environments. Their high investment in automation, performance testing, and continuous integration makes API testing essential for maintaining application reliability and speed-to-market.

Small & Medium-Sized Enterprises
The SMEs segment is quickly growing, making up nearly 40% of the market. With the increasing demand for agile development cycles and budget-conscious solutions, SMEs are turning to lightweight, cloud-based API testing tools. Their adoption is driven by the need for quick deployment, scalability, and ease of integration without high upfront costs.

API Testing Market, Segmentation by Vertical

The API Testing Market has been segmented by Vertical into BFSI, Retail & Consumer Goods, Healthcare & Life Sciences, Manufacturing, Media, Entertainment & Gaming, IT & Telecommunications, Transportation & Logistics, Travel & Hospitality, and Others.

BFSI
The BFSI vertical leads the API Testing Market, contributing about 22% due to its reliance on secure, high-performance digital solutions. With APIs powering everything from mobile banking to fraud analytics, this sector requires continuous, rigorous testing to ensure compliance and uptime.

Retail & Consumer Goods
The Retail & Consumer Goods segment holds approximately 15% of the market. Retailers use APIs to connect e-commerce systems, inventory tools, and payment gateways. API testing ensures these integrations work flawlessly to deliver consistent and personalized customer experiences.

Healthcare & Life Sciences
Healthcare & Life Sciences contribute around 12% to the market, driven by the sector’s need for data privacy, secure integrations, and regulatory compliance. API testing is crucial for enabling interoperability across health apps, EHRs, and diagnostic tools.

Manufacturing
In the Manufacturing vertical, which makes up about 10%, API testing is key for ensuring the efficiency of smart systems and IoT-connected machinery. It supports smooth ERP integrations and automation across production lines.

Media, Entertainment & Gaming
This vertical, holding nearly 10%, depends heavily on APIs for content delivery, real-time interaction, and cross-device experiences. Media, Entertainment & Gaming require reliable testing to meet performance demands and reduce downtime.

IT & Telecommunications
With close to 12% market share, IT & Telecommunications rely on API testing for service orchestration, network management, and cloud-based offerings. Fast and secure data flow is critical to ensure business continuity.

Transportation & Logistics
Transportation & Logistics represent about 8% of the market. API testing supports efficient logistics networks, real-time fleet tracking, and route planning, which are crucial for cost control and customer satisfaction.

Travel & Hospitality
This segment comprises roughly 6%, where APIs are used for booking systems, loyalty platforms, and mobile travel apps. API testing ensures system availability and secure customer transactions in Travel & Hospitality.

Others
The Others category covers about 5%, including industries such as education and energy. These sectors increasingly use API testing to support digitization, automate workflows, and improve service delivery.

API Testing Market, Segmentation by Geography

In this report, the API Testing Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

API Testing Market Share (%), by Geographical Region

North America
North America leads the global API Testing Market with an estimated 35% market share. The region benefits from early cloud adoption, widespread DevOps practices, and the strong presence of API testing solution vendors. Industries like BFSI, healthcare, and IT are key contributors to this growth.

Europe
Europe represents about 25% of the market, driven by increasing regulatory compliance, cybersecurity standards, and enterprise API strategies. Countries such as the UK, Germany, and France are enhancing software quality by integrating automated API testing into their workflows.

Asia Pacific
The Asia Pacific region, holding around 20%, is expected to witness the fastest growth. The region’s booming digital economy, especially in China, India, and Southeast Asia, is driving the demand for scalable and efficient API testing solutions across both enterprises and startups.

Middle East and Africa
Middle East and Africa contribute approximately 10% of the global share. Government digitization projects, along with modernization efforts in the financial and telecom sectors, are fueling the adoption of API testing in nations like the UAE and South Africa.

Latin America
Latin America holds roughly 10% of the market. The rise in mobile applications, digital banking services, and software outsourcing in countries such as Brazil and Mexico is pushing the need for automated and reliable API testing frameworks.

This report provides an in depth analysis of various factors that impact the dynamics of Global API Testing Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Agile development practices
• Increasing digital transformation initiatives

• Growth in cloud adoption - Growth in cloud adoption is a key driver of the global API testing market, as modern software development increasingly relies on cloud-native architectures and microservices. APIs are central to cloud-based applications, enabling seamless communication between services and systems. As enterprises migrate to the cloud, the need for robust, scalable, and automated API testing tools becomes critical to ensure performance, reliability, and security across distributed environments.

  Cloud platforms demand continuous integration and delivery (CI/CD) pipelines, where API testing must be automated and integrated early in the development lifecycle. This has accelerated demand for cloud-compatible API testing solutions that support real-time validation, load testing, and monitoring. As cloud infrastructure continues to expand globally, the market for API testing is expected to grow in parallel, driven by the need for faster development cycles and high-performing, secure applications.

Restraints

• Heightened concerns over system security
• Shortage of skilled industry professionals

• Difficulties in seamless system integration - Difficulties in seamless system integration are a major restraint in the global API testing market, as enterprises often struggle to align testing tools with diverse platforms, applications, and legacy systems. Many organizations operate in heterogeneous IT environments, where APIs interact with various databases, software stacks, and external services. Ensuring compatibility and maintaining consistent testing workflows across such fragmented ecosystems can be complex and resource-intensive.

  Integration challenges can result in data inconsistencies, testing errors, or delays in deployment, especially in fast-paced development cycles. Without seamless interoperability between API testing tools and CI/CD pipelines, development teams may face bottlenecks that impact productivity and software quality. These integration hurdles often discourage adoption, particularly among businesses lacking advanced DevOps capabilities or standardized architectures, limiting the market’s scalability and efficiency.

Opportunities

• Expansion of IoT applications
• Rising adoption of microservices architecture
• Emphasis on API-first strategies

• Increasing focus on DevOps practices - Increasing focus on DevOps practices presents a major opportunity for the global API testing market, as organizations strive to accelerate software delivery while maintaining high quality and performance. DevOps emphasizes continuous integration, continuous testing, and continuous deployment, all of which rely heavily on automated API testing to validate service functionality and ensure seamless communication between components. As more enterprises adopt DevOps pipelines, the demand for integrated API testing tools is rapidly expanding.

  Modern development environments require rapid iteration and instant feedback, making real-time API validation and test automation essential. API testing solutions that align with DevOps workflows can help detect bugs early, reduce production errors, and improve collaboration between development and operations teams. With DevOps becoming a standard in agile development strategies, API testing is increasingly viewed as a critical enabler of faster innovation and reliable software delivery, driving future market growth.

Key players in Global API Testing Market include:

• SmartBear Software
• Micro Focus
• Tricentis
• Parasoft
• Postman
• Applitools
• Mabl
• Ranorex
• Katalon
• BlazeMeter

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis