OK APIs aren’t quite a nation unto themselves – yet. But they are the building blocks of modern insurance systems, so it’s worth noting the latest trends in the market. Here’s the word from Rapid;
Rapid, the API hub provider that enables developers and enterprises to build, consume, and manage APIs, today released its 4th annual State of APIs Report, which highlights trends in software development and API usage. The report comprised insights from 850 individuals, including professional developers, and identified key trends on how the API economy is growing at a record pace, with 63% of developers relying more on APIs in 2022 than in the previous year. It also pointed out that the telecommunications, technology, and financial services sectors expect to utilize more APIs in 2023.
“This year’s report reaffirms that the market has shifted to where businesses focused on digital transformation now need to be an API business in order to thrive,” said Iddo Gino, CEO and founder, Rapid. “Many organizations rely on their developers for technologies that will help them stay competitive in today’s economy, and in turn the developers are increasingly leveraging APIs for speed and operational efficiency.”
APIs make it easy to adjust, transform, enrich and consume data and more than 75% of developers are prioritizing participating in the API economy or plan to prioritize it soon.
Key findings include:
- API economy surging: Approximately 70% of respondents expected to use even more APIs in 2023 than last year. The number of APIs grows with an organization’s size: nearly 40% of the largest companies – those with 10,000+ employees – have more than 250 internal APIs. In comparison, 64% of the smallest companies (1- 50 employees) use up to 10 internal APIs. Developers place more importance on APIs when they work in telecommunications (72%, up from 59% in 2021), technology (64%, up from 61% in 2021), and professional services (60%, up from 53% in 2021).
- Popularity in partner-facing and third-party APIs: while internal APIs remain the most common API type for developers (75%), more developers are working on partner-facing APIs (49%, up from 44% in 2021) or third-party APIs (54%, up from 49% in 2021). Partner-facing APIs grew nearly 10% in the technology industry.
- API monetization is on the rise: the number of organizations monetizing APIs in 2022 is up around 5% from previous years. API monetization is up 16% in the financial sector.
- API testing continues to be a top priority: more than 90% of developers are testing or plan to test their APIs, especially those in the financial services and telecommunications industries.