News
Kong Research Forecasts API Monetisation to Grow by 115% by 2027
October 2023 by Kong Inc.
Kong Inc. announced its most recent study, the company’s “2023 API Impact Report.” The research, undertaken by Kong experts and an economist from Brown University, explores the expanding macroeconomic influence of APIs and associated technologies in the U.S. and globally. By leveraging survey insights with economic data, the report underscores the growing influence that APIs will have on global economies and enterprises in the coming years. Moreover, the study also analyses the escalating risks of cybersecurity threats aimed at inadequately secured API technology infrastructures.
Key findings from the study include:
• API monetisation is projected to grow by 115% in the United States domestic market — from $3.97 billion in 2023 to $8.56 billion by 2027.
• The economic impact of APIs in the U.S. will increase from $2.1 trillion in 2023 to $2.8 trillion in 2027, a $640 billion increase and 30% relative growth rate.
• The global economic impact of APIs is expected to increase from $10.9 trillion in 2023 to $14.2 trillion over the next four years.
• The total value of APIs to artificial intelligence-related growth will reach $5.4 trillion in 2027, a 76% increase from 2023 estimates.
• The impact on blockchain, cryptocurrencies and web 3 is forecasted to increase 78%, from $2.5 trillion to $4.4 trillion.
“APIs represent the building blocks and critical infrastructure that enable businesses to innovate and deliver superior digital experiences,” said Marco Palladino, Chief Technology Officer and Co-Founder, Kong Inc. “And it’s not hard to anticipate that forward-thinking businesses that adopt API-first strategies today, will come out on top in the economic landscape that we foresee coming. This data attempts to quantify this sea change in the economic landscape.”
“What impressed us in developing this study was the sheer value of APIs as an economic catalyst,” said Dr. Christopher Whaley, Ph.D. and associate professor, Brown University. “They are the digital accelerators to our interconnected world, in which data and services flow freely, clearing the path for innovation and technology-led growth."
Methodology
This study examined both economic trends in API infrastructure and related technologies, as well as the cost of various API security vulnerabilities. Kong used statistical modelling to forecast future API inflation-adjusted economic growth, and the projected costs of security issues (both direct and indirect), weighted and adjusted for inflation as compiled by the US Bureau of Labor Statistics. This data was compared to the US Gross Domestic Product (GDP) productions developed by the Congressional Budget Office.
