API Banking Market to Reach $217.3 Billion, Globally, by 2032 at 24.7% CAGR: Allied Market Research

Digital transformation and technological advancements in API banking drive the growth of the API banking market.


Portland, OR, July 07, 2023 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled,API Banking Market by Component (Solution and Service), Deployment (On-premise and Cloud), and Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises): Global Opportunity Analysis and Industry Forecast, 2022-2032”. According to the report, the global API banking industry generated $24.7 billion in 2022, and is anticipated to generate $217.3 billion by 2032, witnessing a CAGR of 24.7% from 2023 to 2032. 

Request PDF Brochure: https://www.alliedmarketresearch.com/request-sample/5025 

Prime determinants of growth 

Open banking regulations, such as the European Union's Revised Payment Services Directive (PSD2) and similar initiatives in other regions, are fueling the growth of the global API banking market. Furthermore, banks are investing heavily in digital transformation to meet evolving customer expectations and stay competitive, thus supplementing the market growth. Simultaneously, rapid advancements in technology such as cloud computing, big data analytics, and artificial intelligence (AI), have paved the way for lucrative opportunities in the industry. Changing customer expectations and preferences have also been instrumental in driving the adoption of API banking. 

Report coverage & details: 

Report Coverage  Details 
Forecast Period  2022–2032 
Base Year  2022 
Market Size in 2022  $24.7 billion 
Market Size in 2032  $217.3 billion 
CAGR   24.7% 
No. of Pages in Report   230 
Segments Covered  Component, Deployment, Enterprise Size, and Region. 
Drivers  Open banking initiatives  Digital transformation   Enhanced security and compliance 
Opportunities  Technological advancements  Changing consumer demands 
Restraints  Regulatory compliance  Security concerns 

Covid-19 scenario 

  • The COVID-19 pandemic had a positive impact on the API banking market size. The pandemic accelerated digital transformation, increased reliance on remote banking, fostered open banking initiatives, improved security measures, and drove collaboration between banks and FinTech start-ups. 
  • However, the pandemic forced banks to accelerate their digital transformation efforts to ensure business continuity and meet changing customer needs. As physical branches faced restrictions and people increasingly relied on digital channels, banks needed to enhance their digital capabilities. API played a pivotal role in enabling faster development and integration of digital services, such as mobile banking apps, payment gateways, and online account access. 

Buy This Report (230 Pages PDF with Insights, Charts, Tables, and Figures) @ https://bit.ly/3D3osta 

The solution segment to maintain its leadership status throughout the forecast period 

Based on component, the solution segment held the highest market share in 2022, accounting for nearly two-thirds of the global API banking market revenue, and is estimated to maintain its leadership status throughout the forecast period, owing to the open banking initiatives, driven by regulatory mandates in several regions. Open banking requires banks to provide secure and standardized API, allowing authorized third-party providers to access customer data and initiate payments. This creates new opportunities for FinTech firms, start-ups, and other players to develop innovative applications and services that leverage the bank's API. However, the service segment is projected to manifest the highest CAGR of 26.7% from 2023 to 2032, as it offers consulting, integration, and customization services to banks, helping them adopt API banking solutions and implement digital transformation strategies effectively. 

The on-premise segment to maintain its leadership status throughout the forecast period 

Based on deployment, the on-premise segment held the highest market share in 2022, accounting for around three-fifths of the global API banking market revenue, and is estimated to maintain its leadership status throughout the forecast period, as on-premise API banking solutions offer greater customization options and flexibility compared to cloud-based alternatives. However, the cloud segment is projected to manifest the highest CAGR of 27.5% from 2023 to 2032. This is because cloud-based solutions offer scalability and flexibility, allowing banks and financial institutions to efficiently handle varying workloads and unpredictable traffic patterns. Cloud-based API banking facilitates seamless integration with third-party systems, FinTech applications, and partner platforms. API acts as a connector between different systems, allowing banks to offer a wide range of services and collaborate with external entities. 

The large enterprises segment to maintain its leadership status throughout the forecast period 

Based on enterprise size, the large enterprises segment held the highest market share in 2022, accounting for around two-thirds of the global API banking market revenue, and is estimated to maintain its leadership status throughout the forecast period, as large enterprises are actively embracing digital transformation to enhance their operational efficiency, improve customer experience, and gain a competitive edge. However, the small and medium-sized enterprises segment is projected to manifest the highest CAGR of 27.1% from 2023 to 2032, as API banking allows SMEs to integrate their financial systems with third-party providers, such as banks and FinTech companies. This integration enables SMEs to access a wide range of financial services easily.  

North America to maintain its dominance by 2032 

Based on region, North America held the highest market share in terms of revenue in 2022, accounting for nearly two-fifths of the global API banking market revenue, owing to the digitization of banking, FinTech partnerships, and an increase in customer-centric solutions. The digital transformation of the banking sector has accelerated the adoption of API banking in North America. However, the Asia-Pacific region is expected to witness the fastest CAGR of 29.0% from 2023 to 2032, and is likely to dominate the market during the forecast period. Regulatory authorities in Asia-Pacific, such as the Monetary Authority of Singapore (MAS) and the Reserve Bank of India (RBI) are taking great initiatives to promote open banking and encourage the use of API in the financial sector. These regulations have facilitated the development of API banking services and increased market adoption. 

Leading Market Players: - 

  • Infosys Limited 
  • IBM Corporation 
  • BankProv 
  • FidyPay 
  • Razorpay 
  • Google LLC 
  • Oracle Corporation 
  • Salesforce, Inc. 
  • SAP SE 
  • Cloud Software Group, Inc. 

The report provides a detailed analysis of these key players in the global API banking market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. 

Want to Access the Statistical Data and Graphs, Key Players' Strategies: https://www.alliedmarketresearch.com/api-banking-market/purchase-options 

API Banking Market Key Segments: 

By Component 

  • Solution 
  • Service 

By Deployment 

  • On-premise 
  • Cloud 

By Enterprise Size 

  • Large Enterprises 
  • Small and Medium-sized Enterprises 

Trending Reports in BFSI Industry (Book Now with 10% Discount + Covid-19 scenario): 

Banking Software Market by Component (Solution, Service), by Deployment Mode (On-premise, Cloud), by End User (Banks, Financial Institution): Global Opportunity Analysis and Industry Forecast, 2023-2032 

Application Programming Interface (API) Payments Market by Component (Solution, Service), by Solution type (Payment Processing, Payment Gateway, Payment Wallet, Point of Sale, Payment Security and Fraud Management), by Service Type (Professional Service, Support Maintenance, Managed Service), by Deployment Model (Cloud, On-Premise) and by Enterprises Size (Large Enterprise, Small Medium Enterprises): Global Opportunity Analysis and Industry Forecast, 2023-2032 

Banking BYOD Security Market by Component (Solution, Service), by Device Type (Laptop, Smartphone and Tablet), by Security Type (Device Security, Email Security, Application Security, Mobile Content Security, Network Security, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032 

AI in Banking Market by Component (Solution and Service), Enterprise Size (Large Enterprise and SMEs), Applications (Risk Management Compliance & Security, Customer Service, Back Office/Operations, Financial Advisory and Others) and Technology (Machine Learning & Deep Learning, Natural Language Processing (NLP), Computer Vision and Others): Global Opportunity Analysis and Industry Forecast, 2021-2030 

Machine Learning in Banking Market by Component (Solution, Service), by Enterprise Size (Large Enterprises, Small and Medium-sized Enterprises (SMEs)), by Application (Credit Scoring, Risk Management Compliance and Security, Payments and Transactions, Customer Service, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031 

About Us 

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain. 

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry. 

Contact: 

David Correa 
5933 NE Win Sivers Drive 
#205, Portland, OR 97220 
United States 
USA/Canada (Toll Free): +1-800-792-5285, +1-503-894-6022 
UK: +44-845-528-1300 
Hong Kong: +852-301-84916 
India (Pune): +91-20-66346060 
Fax: +1(855)550-5975 
help@alliedmarketresearch.com