Why Your API Program Needs an API Marketplace: 4 Reasons

Of enterprise leaders, 97% indicate that APIs are mission-critical and it is estimated that?90% of developers use APIs. APIs are an essential part of?digital transformation?of companies. These digital links enable infinite applications to communicate with each other and represent the “glue holding the connected world together.”

What is an API?

API stands for Application Programming Interface. It simply enables communication between two or more applications for:

• Connecting the front end to backend functionality and data
• Providing access to required data for internal and external users

APIs can save developers precious time it takes to write fresh code. The right APIs can help your company quickly integrate great programs and delight customers. For example, let's say you are building an application that needs geolocation capabilities to perform its primary function. You can build this geolocation software yourself painstakingly or you could discover a geolocation API on an API marketplace and integrate it with much less effort.

The market is aflood with APIs. “We estimate that the number of public and private APIs today is approaching 200 million, and by 2031 that number could be in the billions,” said Rajesh Narayanan, senior director and distinguished technologist at F5.

In a study conducted by?Forrester Consulting, the majority of companies surveyed “have published at least 100 APIs and an overwhelming majority – 86% – recognize the value of their APIs is not in their existence alone, but in their consumption.” Yet, a substantial 71% “agree or strongly agree that they didn’t experience the business results they had hoped for with their APIs.” And nearly all of them “know why: 69% expect return on APIs to increase – by 21% – if developers could more easily discover, subscribe, or use their APIs.” Higher API ROI hinges on higher API consumption.

What is an API marketplace? How can Enterprises with API Programs significantly benefit from using an API Marketplace?

An API marketplace provides a central location for businesses, developers, and other users to essentially make it easy to discover, access, govern, and purchase your APIs.

Four reasons why companies need an API marketplace:

1. API monetization and Revenue Generation: An API marketplace can contribute to API revenue generation for companies that have developed APIs by grouping and packaging APIs as products for customers to purchase. By strategically charging fees for certain API endpoints, an API program can have a positive impact on a company's overall revenue.
2. Speedier Time-to-Market: By centralizing and standardizing information and resources available for different APIs, a marketplace makes it easier for developers to not only quickly find the APIs they need but to understand how to consume them. By making APIs available on a marketplace, companies can reduce the time it takes for developers to discover and integrate them into their applications. The easier it is to?find and access an API, the faster partners and developers can create their apps and integrate them into their systems, rapidly bringing new products and services to market. As the digital links that enable countless disparate applications to communicate with each other,? APIs are “the glue holding much of our connected world together.” API catalog management is a key aspect of a marketplace. Developers can browse the API Marketplace to quickly find the APIs that provide the features they desire. API consumption is an important aspect of leveraging the power of APIs and is crucial to the success of the API economy. The API marketplace includes detailed documentation, code samples, and other resources to help developers get started with using the APIs.
3. Better Partner Relationships: A collaborative API marketplace can also help companies to build and maintain relationships with partners who can use their APIs. This can lead to development of new business opportunities.
4. Satisfied Developers: The Developer Experience (DX) refers to the overall perception and satisfaction of developers when they interact with a particular product, platform, or service. API marketplaces make it easy for developers to discover, learn, and use an APIs in their applications. A positive developer experience can help increase the adoption and usage of an API, as well as foster a sense of community and engagement among developers. On the other hand, a negative developer experience can lead to frustration, decreased adoption, and a lack of trust in an API or its provider.

DigitalAPICraft's One APIMarketplace and One APISandbox have the key API marketplace elements to craft enterprise API Ecosystems and help them realise significant ROI on API program investments. Available on SaaS, on-prem or hybrid models, DigitalAPICraft product suite can help convert enterprise digital challenges to competitive advantages. Download our ebook today https://digitalapicraft.com/ebook/