API-first strategies are becoming more commonplace throughout today’s digital strata. APIs connect microservices architectures, power new digital transformations and help development teams avoid reinventing the wheel for common functions. And although most are built to connect internal components, studies indicate a movement toward more externalization and monetization of public APIs.
Over three-fourths of developers now view participating in the API economy as a priority for their organization or plan to prioritize it soon, found Rapid’s newly released 2022 State of APIs report. The survey, which surveyed hundreds of professional developers, also uncovered a modest increase in companies seeking to generate direct revenue from APIs.
Below, we’ll review some intriguing statistics from the Rapid report and consider the major takeaways technology professionals should consider in the year ahead.
API Reliance Increases
Reliance on APIs is rising across the board. Over 62.6% of developers reported relying on them more in 2022 than in 2021. Internal APIs help avoid development duplication and third-party APIs can quickly integrate standard functionality related to payments, messaging, geolocation, data sharing and many more areas. For example, ChatGPT has demonstrated the power of standard APIs to deliver advanced AI/ML to the masses in a programmatic way.
As a result of this interest, the majority of organizations now consider participating in the API economy as a top priority. And as an organization grows larger, its reliance on APIs is likely to increase. A full 40% of the largest companies surveyed reported having more than 250 internal APIs. Nowhere is this more prevalent than in financial services. This finding makes sense, given how APIs can automate payments and underpin the open banking movement.
In terms of who is using APIs, it’s most commonly full-stack or backend developers, the report found. One intriguing factoid is just how much of this work is now dominating developers’ time. Impressively, 65.5% of developers reported spending ten hours or more working with APIs in their job; 14.5% of them said that work takes up all of their time.
Design Trends
In terms of design styles, various standards are used throughout the web development sphere. Yet REST is still king—69.3% of engineers used REST in production. REST is followed by webhooks, WebSockets, AsyncAPI, serverless and FaaS, SOAP, GraphQL, Kafka and gRPC, in descending order of popularity. Across the board, these statistics showed a steady increase from last year.
Of note is that most APIs are built for internal purposes. These often wrap a database or provide open access to an internal microservice. Private use cases are by far the most common approach; according to the report, 75.1% of respondents worked on internal APIs. These findings aligned with other industry reports, such as the Postman State of the API Report, which found that, in 2022, 58% of API initiatives were private.
Third-party APIs (53.9%) and partner-facing services (48.9%) trailed behind internal APIs in popularity. Interestingly, while internal use cases have remained steady, both partner and public-facing strategies have increased since last year. While the growth was a modest 5% for most sectors, partner-facing APIs in some industries grew by nearly 10%.
Spotlight on Monetization
Many still view APIs as operational glue for internal data or connecting partner services. Yet, the possibility of monetization through self-service developer portals shouldn’t be overlooked—countless API-first startups are actively gaining traction and funding. And monetizing this power is seen as a holy grail to some unicorn-chasing VC funds.
Most APIs are purely for in-house internal integrations and are typically not externalized to the outside world for profit. However, this is slowly changing. In fact, 42.6% of organizations are now monetizing APIs, representing an increase of about 5% from 2021.
As one may have guessed, financial services are leaders in monetizing their external APIs. The telecommunications industry is also noticeably active in monetization, too. Furthermore, with size comes increased monetization potential—about half of the companies with a large footprint of ten or more internal or external APIs also monetized them.
API Economy in 2023
Looking to the future, most anticipate more reliance on APIs across sectors — 69.2% expect to rely on APIs even more in 2023. Yet, organizations will have to grapple with particular hurdles in this newfound landscape. For example, a cloud skills gap might bar some groups from realizing the benefits of an API strategy. Other concerns include ungoverned sprawl, authorization concerns, shadow APIs and escalating attacks on public-facing endpoints. Also, some organizations are still determining how to best secure and scale their use of new styles, like GraphQL.
A standards-based approach that applies platform-wide governance will likely be necessary to maintain an efficient yet stable API footprint. To meet these high quality standards, testing is nearly universally applied—92.7% of those surveyed test their APIs or plan to do so. The most common tests ranged from functional testing to integration testing, acceptance testing and performance testing.
The Rapid 2022 State of APIs report received 850 responses from over 100 countries. For more insights, readers can view the complete results here.
