What is API management?

API management platforms are key to an effective API strategy, where APIs are accessible, secure and adaptable across environments. They enable enterprises to seamlessly integrate data, functions and services, reducing the need to build custom configurations for every integration between components.

Because APIs essentially turn services into modular building blocks, developers rely on them to create new apps and enhance existing ones. One important feature of API protocols and architectures such as simple object access protocol (SOAP), GraphQL and representational state transfer (REST) is enabling client applications and users to interact with apps and services. But API management platforms can also facilitate interactions between an enterprise’s internal resources and legacy systems, enabling real-time data exchanges and facilitating business automation.

Some 74% of developers say that they use an API-first strategy when building and connecting apps and services, according to Postman’s 2024 State of the API report. Meanwhile, API networks are growing more intricate, with an average of 26–50 APIs powering a single application. This complexity can introduce security vulnerabilities, data incompatibilities and computational strain, among other issues.

The problem is amplified for larger enterprises: Organizations that generate at least USD 10 billion in annual revenue manage on average 1,400 APIs, with some of the largest organizations overseeing more than 10,000, according to a 2024 report from multicloud firm f5. At that scale, organizations might struggle to maintain oversight and enforcement across the network. In turn, misconfigurations and inefficiencies are more likely to emerge—and more difficult to address.

To respond to these challenges, many organizations use API management platforms capable of maintaining and governing increasingly vast API networks. These management solutions often feature a gateway that handles user queries and security, a developer portal that collects and maintains API documentation, a reporting system that analyzes usage data and a lifecycle management component that tracks API functions from creation through retirement.

With API calls accounting for about 71% of all web traffic, per cybersecurity firm Thales, API management tools are likely to become only more integral to enterprise functions in the years ahead. A Fortune Insights report projects that by 2032, the API management market value is expected to reach USD 32.8 billion.

API management platforms facilitate the access, distribution, control and analysis of APIs in an enterprise setting. APIs can be public (available to anyone), private (accessible to only internal developers) or partner-based (available to select partners). Most modern platforms can manage public, private and partner APIs at the same time, eliminating the need to maintain a separate management system for each environment.

API management platforms empower developers, both internal and external, to build and integrate applications while maintaining high standards of performance, security and governance. They achieve these standards in part through a central control plane that sets performance benchmarks, oversees and tracks API usage and enforces regulations and policies. Gateways also play a key role by implementing encryption and authentication strategies and dynamically routing requests to appropriate backend services. Finally, an analytics layer gives developers a deeper understanding of how each API is being used, helping them optimize performance and refine functions.

Many API management platforms offer end-to-end services, meaning they monitor and manage every stage of an API’s journey, from initial testing and rollout to versioning, performance tracking, traffic management and eventual decommissioning. While developers are often the primary users of APIs themselves, DevOps, cybersecurity, infrastructure and product teams might also interact with the API management platform to varying degrees, with role boundaries defined by a centralized platform team.

API management solutions touch nearly all aspects of an organization’s API ecosystem. They are often made up of the following components:

An API gateway is a central router that helps clients seamlessly interface with connected systems and services. API gateways handle all routing requests, composition and protocol conversions between clients and applications. They are also capable of converting requests and responses across formats, eliminating interoperability issues between distinct services.

They can use key security authentication and enforcement protocols, including Transport Layer Security (TLS) encryption and Open Authorization (OAuth), to maintain safe connections. Finally, API gateways enable developers to easily use microservices (including Kubernetes-based and serverless architectures) as managed APIs without navigating a complex back-end.

API developer portals provide API documentation, catalogs, testing tools, configurations and more through a centralized hub, making it easier for developers to discover, study and use available services. Portals streamline the developer experience with built-in collaboration tools, code samples and usage guidelines. Consistent documentation and release notes also facilitate communication between teams, reducing application development costs and improving time to market.

Portals often feature self-service capabilities that enable developers to build and deploy their own apps and integrations while maintaining the organization’s security and governance protocols. Finally, developers can easily subscribe to new services and request their own API keys—special codes that authenticate their app and give it permission to make API calls.

API management solutions help organizations track API traffic, usage and performance through automated metrics and analytics tools. Enterprises can create and view custom dashboards, error reports and revenue trackers to maintain oversight and make better-informed business decisions. For example, an enterprise might refine or retire an API that has lower-than-average retention, or it might scale up infrastructure to accommodate a usage surge.

Advanced platforms use simulated user journeys (also called simulation reporting) to anticipate how customers might respond to different scenarios, such as ordering a product or logging in to a service. This strategy enables teams to proactively troubleshoot design flaws and bottlenecks before they impact customers. API analytics tools can also flag usage anomalies, latencies, authentication errors and data breaches, adding an additional layer of reliability to the network.

API management platforms help ensure that APIs effectively serve clients throughout their lifecycle, playing a critical role in an organization’s broader digital transformation strategy. Platforms often include built-in standards and guardrails that help teams maintain consistent design patterns even as they bring new APIs online.

API management solutions use automated tests to identify how well new APIs integrate with already-existing apps—and help ensure that updates do not compromise the integrity and security of current systems. They might use formats such as OpenAPI Specification (OAS)—an open source standardization language for defining and describing REST APIs—to improve interoperability and maintain consistency across the API ecosystem.

Management platforms can also employ a standardized versioning system—which uses distinct codes to differentiate between newer and older iterations of a particular API—so that enterprises can quickly roll out updates without interrupting current integrations. Finally, after a particular API becomes obsolete, the platform can help permanently retire it and replace it with a more effective alternative without interrupting service.

API management platforms often include monetization tools that help enterprises charge subscriptions or usage fees for access to proprietary APIs. For example, an e-commerce site might pay for access to a third-party API that handles digital transactions, rather than building its own payment processing application from scratch. Or, an airline might use an AI startup’s API to build an LLM-powered customer service chatbot, instead of training its own model independently.

Under a software as a service (SaaS) model, the client is able to quickly access applications and services through the cloud and scale up resource usage only when necessary. Rather that designing and maintaining each service on their own, enterprises can outsource certain tasks—such as social media integration, payment processing, analytics and file management—to externally hosted services, with the API serving as the intermediary.

Organizations can choose from several monetization strategies to manage access to these services. A freemium model enables third-party developers to use some features at no cost while charging a premium for more advanced tools. Tiered subscriptions give access to different features at different price points, while usage-based models help clients pay only for the services they use. APIs supporting booking and payment systems might use a transaction-based system, charging clients each time a user makes a purchase through the API.

Centralized API management solutions are considered the gold standard for securing API integrations in an enterprise setting because they can provide visibility and insight into every API in the network. By monitoring API activity in real time, organizations can spot potential vulnerabilities in operating systems, networks, drivers and API components, track data leaks and detect breaches to improve overall API security. Organizations often employ multiple techniques to help make networks more resilient. They include:

Management platforms often use encryption and digital signatures to secure data and manage access. One common approach is Hypertext Transfer Protocol Secure (HTTPS), which uses the cryptographic technique TLS to help ensure safe communication between clients and APIs.

Identity and access management (IAM) involves assigning special signatures to every user in the system to improve visibility. Users are required to verify their identity each time they enter the system through techniques such as multifactor authentication and two-factor authentication. Authorization mechanisms assign employees a certain level of access depending on their job function, and regular audits help ensure that there are no gaps in the system.

Posture management is the practice of identifying and addressing misconfigurations and vulnerabilities and making regular updates to improve overall security and API design. This approach often involves active testing, or running simulations to detect errors before they impact system performance and security.

API providers can set up guardrails and policies that protect API networks from cyberattacks, downtime and other issues. Rate limiting, or allowing a limited number of API requests in a particular time period, can offer protection from distributed denial-of-service attacks (DDoS), which involve exploiting a system with an overflow of requests. Quotas perform a similar function by assigning only a certain number of requests to each client in advance. Finally, robust monitoring platforms can track compliance and provide documented evidence to counteract disputes.

Digital transformation is a modernization strategy that aims to integrate digital technology into all areas of an organization’s operations to accelerate innovation and respond dynamically to customer needs. API management platforms contribute to this goal by:

Digital transformation is an ongoing, long-term strategy that often takes years to fully implement. Most organizations do not have the budget or capacity to completely revamp workflows and systems with a single reset. API management platforms can address this problem by helping organizations maintain existing infrastructure while gradually incorporating newer, cutting-edge technologies.

Because API management platforms facilitate data exchanges across diverse formats, platforms and environments, they enable older components to work seamlessly with newer ones.

For example, an organization might integrate an advanced, cloud-based analytics platform with a legacy enterprise resource planning system, unlocking new data insights while maintaining the stability of the existing model. API consumers also benefit because they do not need to repeatedly learn new systems or revise their workflows to accommodate emerging technologies.

API management empowers teams to integrate resources across the organization, providing greater context for the data they collect. API platforms also enable teams to share and reuse existing APIs, instead of building duplicates from scratch, significantly reducing development timelines.

Centralized developer portals enhance efficiency by helping developers locate and learn about relevant apps, while self-service mechanisms help teams dynamically implement those tools based on current needs. Finally, API management platforms foster a modular building approach, where teams can create new applications by connecting multiple existing components or data sources, leading to speedier and more efficient deployments.

API management empowers teams to integrate resources from across the organization, providing greater context into the data they collect. API platforms also enable teams to share and reuse existing APIs, instead of building duplicates from scratch, significantly reducing development timelines.

Centralized developer portals enhance efficiency by helping developers locate and learn about relevant apps, while self-service mechanisms help teams dynamically implement those tools based on current needs. Finally, API management platforms foster a modular building approach, where teams can create new applications by connecting multiple existing components or data sources, leading to speedier and more efficient deployments.

API management platforms can help companies maintain a secure environment by standardizing and enforcing key protocols such as authentication, authorization, traffic monitoring, data encryption, rate limiting and more. This capability is especially valuable for organizations undergoing digital transformation—when maintaining visibility across data, microservices and applications spread over complex multicloud and hybrid environments can pose a significant challenge.

A cohesive API management strategy can improve data compliance by giving organizations a comprehensive view of user and API behavior. For example, enterprises might log every API request so that it can be easily traced back to the user who submitted it. Management platforms also enforce rules around what data is accessed, how it’s accessed and how it’s transferred or shared.

API gateways, the unified endpoints that serve as intermediaries between client and API, play a critical role in compliance. They are designed to protect user data, even as clients submit requests or retrieve information. Access keys and security tokens can help administrators maintain granular access control over all of their API integrations.

For example, a social media company might use optimized API gateways to comply with the General Data Protection Regulation (GDPR), a 2019 European Union law that dictates how user information should be transferred, stored and protected. A doctor’s office, meanwhile, might use a gateway to access patients’ medical histories and appointments without violating the Health Insurance Portability and Accountability Act (HIPAA), which gives patients control over sensitive personal data in the United States.

Because APIs are an integral part of modern IT frameworks, enterprises are likely to expand the number of APIs they use over time. As API networks grow more complex, enterprises might struggle to monitor and maintain each of them. Common challenges that API management helps address include:

Like SaaS sprawl, API sprawl refers to the unchecked expansion of APIs within an enterprise. This issue tends to be common in integrated cloud environments, where APIs can exist across both private on-premises and public cloud services. One risk is that developers on different teams might inadvertently duplicate each other’s work. API sprawl can also lead to incompatibility issues and data siloes.

As the system grows more complex, it becomes more difficult to track APIs that are no longer in use, potentially leading to security vulnerabilities. Zombie APIs are APIs that have been forgotten or abandoned but have yet to be deleted. Meanwhile, rogue or shadow APIs are still in active use but operate outside of an organization’s security and governance structure. These APIs often lack regular updates or proper configuration, putting them at particular risk, with an estimated 31% of malicious transactions targeting lost or unmanaged APIs.

Companies can address this issue by refining their versioning and documentation practices, standardizing API architectures and promoting reuse, when multiple teams perform tasks with a shared API to improve efficiency. API management platforms also offer lifecycle management tools that track APIs from deployment to decommissioning. A key element is helping ensure that APIs are retired when they become inactive.

Companies might struggle to keep complex API environments safe and secure. Misconfigurations, which arise when APIs are not appropriately deployed or updated, can lead to downtime and security lapses. Enterprises might also struggle to track which personnel should have access to which services.

To address these risks, many companies centralize and standardize their monitoring, security and governance mechanisms, helping ensure that every API is accounted for, even in distributed environments. Organizations might also perform routine audits to root out naming errors, redundancies, shadow APIs (ones that were created outside of the formal governance structure) and other issues.

One major challenge with API management is that it can be difficult to track and manage every user who interfaces with the system. If there are weak rules around usage, or limited means of enforcing those rules, clients might be more likely to violate compliance regulations or overburden the network. Excessive resource usage can add strain to the system, leading to runaway costs, reduced performance and delayed response times.

Developers might find it difficult to discover new APIs or the best uses for them, especially as IT networks grow in scale. In response, organizations can implement robust tagging and cataloging systems and make every API accessible through a centralized portal.

Onboarding can be another challenge, with developers struggling to adopt new APIs on their own. However, software development kits, sandbox environments and accessible instructional materials can empower teams to independently experiment with and adopt new APIs.

API management solutions can help enterprises maximize the value of their API infrastructure while reducing the risks associated with API frameworks. Many organizations continually refine their API management strategy to optimize workflows, enhance security and improve performance.

One notable benefit of using an API management solution is the ability to deploy and reuse integrations quickly and efficiently. For organizations that need to manage APIs across multiple environments, systems and applications, rebuilding these integrations from scratch can be time-consuming and draining on internal resources. Effective API management strategies encourage teams to share API documentation and coding constructs, significantly reducing development costs and time to market.

API management platforms can improve operational efficiency by standardizing and enforcing rate limits, quotas, caching, throttling and other policies. Centralized oversight also helps enterprises spot bottlenecks and dynamically funnel resources to services in need of additional capacity. Some management platforms can even generate APIs for different databases and services automatically, reducing the need for manual integrations and freeing up developers to work on higher-level tasks.

Automation also plays a major role. For example, in an e-commerce context, APIs managed through the central platform can help facilitate real-time inventory updates each time a customer places an order. And when stock runs low, integrated systems can independently initiate a reorder process. This workflow helps ensure that there is always enough inventory on hand, while at the same time preventing wasteful spending.

API management can improve agility by enabling previously disconnected services and data sources to interact with each other. Through effective API management, teams are no longer limited by their own data and services. They can access resources from across the organization—or even outside of the organization, in the case of external APIs. Separate platforms, such as customer relationship management (CRM) and enterprise resource planning (ERP) systems, can also work together, enabling automated workflows and synchronizations across platforms and tools.

With visibility across the entire system, developers can adjust the behavior and parameters of multiple APIs simultaneously through a central interface, speeding up development cycles. API management also supports modular development structures, helping teams scale up individual components and giving them a deeper, more precise level of control over those services. Finally, standardized versioning and security protocols help ensure that rollouts are compatible with every API in the system, enabling more seamless integrations.

By managing all APIs through one unified and centrally visible platform, enterprises can maintain control and governance over each API while giving developers a wide degree of latitude. Automated governance systems can help detect architectural flaws and misconfigurations so that administrators do not have to manually search for errors. Centralized systems can also reduce compatibility issues because separate services share key architectural similarities. Finally, data silos are less likely because documentation portals and central inventories enable each team to view and contribute to shared metrics and documentation, establishing a single source of truth across the organization.

Many API management platforms include built-in monitoring tools that can automatically and continually detect intrusions and unusual usage spikes alongside dedicated security information and event management (SIEM) systems. Management platforms also set API policies, such as throttling, rate limiting, authentication, logging and occasionally load balancing, which are enforced through the central gateway.

These tools can be paired with state-of-the-art security protocols, including OAuth, JSON Web Token (JWT) and OpenID to help individual teams maintain system-wide safety standards. Finally, lifecycle tools can track APIs from initial rollout to retirement with oversight into each stage and a standardized decommissioning process to prevent APIs from being lost or forgotten.