Application programming interface (API) is a set of tools, protocols, and subroutines that is used to build applications and software. API can also be defined as a code that allows communication between software programs. API testing involves testing application programming interfaces (APIs) directly, and as part of integration testing, in order to determine if they meet expectations for functionality, reliability, performance, and security. The purpose of API testing is to enable an organization to monitor the lifecycle of the interface, and ensure that the requirements of the applications and developers are satisfied beforehand.

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API testing tools control and automate connections between an application and the API, while ensuring consistency between different API versions and implementations. Such tools employ security procedures and policies to authorize, authenticate, and manage access to API data. API testing is critical for any organization’s API approach as they have strategic importance. API testing software can be developed in-house by organizations or can be purchased through third-party providers.

Currently, businesses are increasingly becoming software-powered, customer-centric, and depend on connectivity. Connectivity thrives on APIs, and an increasing number of organizations are employing API solutions. Mobile applications developed for customer engagement require APIs to link transactions and enterprise data, which in turn is driving the API testing market. Implementation of digital strategies is of utmost importance for businesses to reach out to their customers, and this requires significant amount of investments in cloud, Internet of Things, mobile, and big data technologies. These digital advancements are driving organizations to incorporate and better integrate APIs, which require a secure and reliable API testing platform. A good API testing platform allows organizations to reshape the backend in case of any change in API, or integration with an external API. This capability of API testing solutions eliminates the need for the development team to make changes in the backend code, thus reducing their workload.

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The API testing market can be segmented based on component, deployment type, industry vertical, and geography. Based on component, the market can be classified into software and services. Furthermore, in terms of deployment type, the market can segregated into on-premise, cloud, and hybrid. Based on industry vertical, the API testing market can be segmented into retail, telecom, travel and transport, insurance, banking, energy and utilities, media and entertainment, government, aerospace and defense, healthcare, and automotive.

In terms of region, the global API testing market can be segmented into North America, South America, Europe, Asia Pacific, and Middle East & Africa. North America is anticipated to hold a prominent share of the global API testing market. This dominance is primarily due to the presence of several global players in this region, especially the U.S. and Canada. Europe is also projected to hold a significant position in terms of market share. This trend can be attributed to the increasing focus on innovations obtained from research and development and IT technologies in developed countries. Furthermore, the market in Asia Pacific is expected to expand at a rapid pace between 2018 and 2026. High rate of adoption of application performance related solutions along with increasing adherence toward the regulatory compliances are some factors driving the Asia Pacific API testing market.