The China open API market size was valued at USD 82 million in 2022 and is projected to reach USD 304 million by 2031, registering a CAGR of 15.5% during the forecast period (2023-2031).
API stands for application programming interface and is an essential component of software developers' technology. It is also commonly known as a public API or open-source technology, but open-source technology and an open API are distinct. The interface component of an API is a system that enables two or more software programs to communicate and interact without encountering any communication issues.
Open Application Programming Interface (API) or external API is a form of Application Programming Interface (API) readily accessible to third-party developers or with limited restrictions. Open API assists developers in integrating APIs with open-source data and associated services for application development. Notable end-users of the open API include the IT and telecommunications industry, banking, financial services, insurance (BFSI), and healthcare. It is also acquiring prominence in the travel and tourism sector, government and education, media and entertainment, energy and utility, and the media and entertainment industry. The Open API is designed to be readily accessible to third-party developers.
According to data released by insiderintelligence.com, the e-commerce industry has experienced exponential development over the past few decades. In 2022, the global e-commerce market was anticipated to tally USD 5.7 trillion. This number is anticipated to rise over the next few years, demonstrating the increasing success of borderless e-commerce for online retailers. In 2017, online purchases accounted for only 17.8% of total sales, a percentage that is projected to increase by 3% to 20.8% by 2023. In addition, it is anticipated that growth will continue, reaching 23% by 2025, a 5.2-percentage point increase in just five years.
The open banking, IT and telecom, and retail sectors have created a tremendously lucrative opportunity for open API usage. In 2021, Omdia surveyed payment issuers/acquirers about their organization's attitudes and plans regarding real-time payments and the creation of open APIs; more than 70% of respondents agreed that they view third-party developers and third-party providers (TPPs) as a new customer base and that their organization has a clear strategy regarding open APIs. This is a positive development, but providers are nearly equally likely to be concerned about the security of alternative payments. More than sixty percent of respondents are concerned about the security of open APIs, likely due to rising data protection regulations.
Companies worldwide exert additional effort to comprehend customer needs and efficiently meet them. With the increasing intensity of competition in all industries, both large and small and medium-sized enterprises (SMEs) are attempting to assess consumer needs and meet them accordingly. In addition, the growing number of third-party mobile applications is a major factor propelling the growth of the Open API Market over the forecast period. SaaS and hybrid cloud-based API deployments are increasing.
The China open API market is segmented based on product and application.
Based on product, the open API market is segmented into– Web API, Local API, and Program API.
The web API dominates the market and is expected to grow at a CAGR of 15.9% during the forecast period.
Based on application, the open API market is segmented into– BFSI, government, media and entertainment, IT and telecom, healthcare and life science, and others.
BFSI dominated the market and is expected to register a CAGR of 16.8% over the forecast period.
China's advantages include its superior industrial infrastructure, large-scale raw material manufacturing capacity, and relatively low labor and material costs. China's production costs are 20 to 30 percent lower than India's. China exports APIs to 189 countries and regions, most in Asia, Europe, and North America.
The Chinese API Market is expanding swiftly and is now recognized as one of the world's most dynamic emerging markets, attracting many international pharmaceutical companies. There are no ifs, ands, or buts about it: producing new APIs can be prohibitively expensive today, and the Chinese API Market offers numerous advantages. The pharmaceutical industry must investigate the most efficient and cost-effective means of producing safe and effective medications. China-based CDMOs may represent the path forward.
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