Context
API management is a foundational capability, allowing digital enterprises that share APIs internally, expose APIs externally to customers and partners, and use third-party APIs in applications to catalog, monitor, secure and control those APIs.
Innovation in this market has focused most recently on enabling customers’ AI use and incorporating AI-based capabilities to improve customer productivity around API search, design, testing and governance. Supporting multivendor API management deployment, multicloud computing strategies and hybrid deployment models has continued and expanded more widely across API management solutions.
The product changes associated with these trends may make it more difficult for software engineering leaders to identify the best solution for their organization’s needs. They should use the major use cases and critical capabilities outlined in this research to select the right API management technologies for their needs.
Critical Capabilities Definition
API Consumption
The ability to manage how third-party APIs are consumed, including Github APIs, logistics APIs such as Shippo, payments APIs such as Stripe and communications APIs such as Twilio.
API consumption capabilities include SLAs, monitoring and API key management. API consumption should also include support for AI consumers and agentic automation programs. A comprehensive set of adapters and connectors, mapping and translation capabilities, and industry-specific mapping and transformation features are often required to support effective use of third-party APIs.
API Design
The ability to create new APIs or new versions of APIs using generation tools or a design tool. This includes the ability to design APIs from scratch, to design APIs that virtualize existing APIs and to support linting (syntax checking, including checking for consistency against an API style guide).
At a basic level, this capability covers design requirements and effective API specifications to meet business needs and the iterative and collaborative creation of those specifications. Organizations may routinely use API design tools that support OpenAPI Specification (OAS), GraphQL or other specifications. Desirable features include the ability to use, manage and apply design guidelines, style guides, naming conventions and domain models. This includes support for alternative approaches to REST APIs, including GraphQL, gRPC and OData.
API Mediation
The ability to provide a mediation layer between an API consumer and API service implementation. A mediation layer provides protocol and message transformation, and it can protect and manage APIs through the enforcement of policies for security and traffic.
API mediation often involves protocol translation (for example, from SOAP to REST) or a modification to the message payload for consistency. This helps users to create multiple experiences for API consumers.
API Monetization
The ability to monetize APIs. This includes not just a selection of billing options, but also the ability to manage subscription usage plans and a variety of pricing models that are potentially different for various consumers of the same API.
API monetization is important in scenarios where APIs are productized, deliver access to valuable data (data-as-a-service APIs) or provide access to algorithms. Monetization builds on features such as fine-grained tracking and access control, and adds the ability to create usage plans. In these cases, API management vendors must provide support for a wide variety of API pricing models, such as subscription and pay-as-you-go. This should include the ability to change the pricing model for an API and to perform billing.
API Monitoring and Analytics
The ability to assess the availability and performance of APIs. This includes providing real-time tracking of the service level that API consumers are experiencing and triggering alerts when intervention is needed.
API monitoring also includes API traffic analysis for API usage insights and provides a security measure
by detecting suspicious patterns. API monitoring is used in preproduction environments to identify
performance issues early in the API development process. This also includes the ability to measure and
report the business value of APIs by providing features empowering API product managers and other
stakeholders to define, develop and measure meaningful business KPIs related to APIs.
API Portal
The ability to customize a developer portal based on developer experience, look and feel, community and sign-up workflows. With further customization and extensibility, API portals may also be used as the basis for creating API marketplaces.
Basic API portals provide API documentation (usually in Swagger/OAS). Organizations typically wish to customize API portals for their specific needs. Customization of the portal initially focuses on look and feel, then extends to adapting the workflow (for example, adapting the developer sign-up and approval process). In addition, features may be added to support and engage developers in order to develop a community and encourage innovation. API developer portals provided by vendors are typically built on top of a content management system such as WordPress or Drupal. In a hybrid model, API developer portals may be provided in the cloud, while API gateways may be provided on-premises by the same vendor.
API Testing
The ability to support a broad range of API testing scenarios, including (but not limited to) automated, functional, A/B testing scenarios and CI/CD pipelines.
This means testing for reliability, availability, performance, functional and nonfunctional requirements.
It also involves support for CI/CD automation and continuous quality testing of APIs. Security testing and support for broader API testing tools are also evaluated within this capability. The API testing capability also assesses vendor support for versioning, staging and quality-controlled deployments through its own offering or through partnerships. It also includes the use of AI techniques and features to optimize API testing, such as AI to generate synthetic data for API testing.
API Security
The ability to control API access with authentication and authorization standards, such as OAuth 2.0 and OpenID Connect, and to integrate with identity infrastructures such as identity providers (IdPs).
This also includes support for the OWASP API Security Top 10, scanning APIs and detecting suspicious
API usage, and defense against attacks on APIs. Additionally, it includes the ability to provide identity, access management and security for AI applications and agentic API consumers.
Deployment Flexibility
The ability to manage APIs in the cloud, on-premises or both. This includes support for common hybrid deployment patterns, such as on-premises API gateways with cloud-based management and reporting, and the ability to deploy lightweight API gateways in environments like Docker containers.
Many organizations expose API endpoints in the cloud to access services that are hosted on-premises or to provide on-premises gateways with reporting and management hosted in the cloud. Containerized deployments and cloud elasticity are especially important for APIs that are used in industry verticals with sporadic or seasonal spikes in demand. Organizations are increasingly looking for multicloud support and the flexibility to deploy APIs in a wide variety of runtimes (occasionally from different vendors). Organizations that use microservices, service mesh and east-west service patterns have additional requirements.
Event-Driven and Streaming
The ability to support event-driven APIs and streaming APIs through protocols such as Webhooks, WebSockets, AsyncAPI and server-sent events. This includes the ability to publish event-driven APIs in an API catalog.
This support should include the ability to apply policies to event-driven and streaming APIs. Currently, many API management products focus on synchronous request-response APIs. To support event-driven and streaming APIs, API management vendors must enable API usage to be managed at runtime through API gateways, while also enabling these types of APIs to be registered and consumed through an API developer portal.
Gateway Federation
The ability to support a federated API gateway architecture to manage APIs that are deployed in federated API gateway instances, including third-party gateways. This includes control plane support for policy management, administration and enforcement in a federated gateway environment.
Built-in support for a variety of cloud-provided gateways (that is, API gateways natively provided by major cloud vendors), container-hosted API gateways and third-party runtimes are increasingly in use
by organizations using a multicloud or multiproduct strategy. Support for cataloging and managing
APIs across multiple gateways, along with the ability to operationally control and govern such APIs, is an essential part of this capability.
Versioning and API Governance
The ability to version an API protects users against breaking changes while supporting governance for the product life cycle of an API.
API management products can be used by API providers to support a release notification, versioning and API deprecation strategy. Features to support proactive notifications of upcoming retirements and the ability to understand dependencies are necessary to support a mature governance practice.
AI Mediation and Protocol Support
The ability to mediate AI traffic, traffic between LLMs and built-in support for various emerging protocols like MCP and A2A.
This includes the ability to surface existing APIs to be provided as tools, resources and context to AI programs and other agentic applications, as well as support for diverse AI models and AI development tools. Effective mechanisms for cost management, traffic optimization and secrets management for LLMs and other AI consumption of APIs are also included. API management solutions should facilitate building an effective ecosystem of AI agents and AI applications using enterprise data and resources in a safe and secure manner via APIs.
Use Cases
AI Enablement
Organizations use API management to support AI initiatives, including managing the consumption and generation of AI APIs.
Managing AI APIs includes functionality to publish, rate-limit, mediate, secure and monitor API access to expensive AI-related resources like LLMs.
The AI enablement use case requires API management vendors to provide:
The ability to import AI API specifications, such as those from OpenAI or Mistral, so that usage of these APIs can be managed by the solution.
Management of API access by LLMs.
Cost optimization of AI APIs that are valuable to consumers or may be particularly resource-intensive.
Support for emerging trends, protocols and tools in AI engineering.
Mobile/Web Back-End APIs
Organizations use APIs as the back end for mobile and web apps. These APIs need to be managed and secured, including APIs in BFF patterns.
The mobile/web back-end APIs use case requires API management vendors to provide:
Support for frameworks used for web and mobile, such as React and Angular.
Client software development kits (SDKs) that may be used in mobile apps to manage API keys at the client side.
Support for authentication and authorization of web and mobile apps, using API keys, OAuth, OpenID Connect (OIDC) and other relevant standards.
Discovery of APIs used by mobile apps.
Integration Using APIs
Organizations use APIs to integrate applications, services and businesses. These APIs need to be managed by API management solutions.
The integration using APIs use case requires API management vendors to provide:
The ability to create and manage APIs for integration with common enterprise applications.
Multiprotocol support beyond REST, including event-based APIs and GraphQL.
Mapping and transformation support.
A hybrid model that enables the solution to be used behind the firewall and in the cloud, in order to support integration of on-premises applications and cloud-based applications.
Internal API Management
Organizations use APIs to share data and capabilities across teams. The discovery, access and usage of internal APIs must be managed and governed.
Discovery of internal APIs typically involves an internal developer portal, which may be part of a platform engineering initiative. Organizations must manage and govern APIs to encourage reuse across teams and business boundaries.
The internal API consumption use case requires API management vendors to provide:
A customizable API portal that matches internal business needs and can be a part of a wider internal developer portal or platform, such as Spotify Backstage.
Support for consumption and internal chargeback mechanisms between different teams.
Support for governing and versioning internal APIs.
Use of lightweight developer-friendly API gateways suitable for internal API usage.
Support for DevOps approaches, including CI/CD, automated functional testing and automated security testing.
Productizing APIs
Organizations use APIs outside of a single app or share them externally. These APIs must be treated as products so that third parties and customers can build and extend apps.
API products must be easy for developers to onboard and consume, while also providing metrics and reporting for product managers.
The productizing APIs use case requires API management vendors to provide:
Ability to create API products (for example, by grouping APIs and other resources together by business domain).
Features that support the API product manager.
API monetization and API consumption plans, such as subscription-based plans.
Business value reporting.
An API portal for ease of onboarding and ongoing support of new and existing customers.
Versioning and API governance to support new releases, updates and retirement of API products.
Distributed API Management
Organizations use multiple API gateways to support hybrid and multicloud strategies, thus requiring them to deploy and operate APIs across multiple gateway instances.
The distributed API management use case requires API management vendors to provide:
The ability to manage multiple gateway instances, including microgateways.
A central control plane for operational visibility and control.
The ability to collect statistics and metrics across gateway instances.
The ability to catalog APIs deployed across multiple gateways.
API portal support to search and discover APIs.
Built-in support for a variety of cloud gateways, lightweight API gateways and third-party gateways.
The ability to create and manage policies in a structured or hierarchical way across multiple API gateways.
Operational control of third-party gateways.