Trends in the API Industry

The application programming interface (API) economy is chugging along full steam ahead. The API management market alone is expected to expand 35% by 2025, supported by the sheer number of web APIs coming to market. APIs have become ubiquitous across microservices architectures, public product initiatives, SaaS platform offerings, IoT and partner-partner integrations.

The industry has proliferated and continues to change, introducing new API use cases across all industries. This ubiquity creates a heightened need for an API program to maintain a quality developer experience and remain competitive. There are also different styles and specification options on the market, meaning designing the right API strategy is a moving target. And, amid peaking cyberattacks, developers now have a strong imperative to retain high security and reliability for these integration points.

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I recently met with the CEO at Stoplight, Steve Rodda, to discuss the above trends and other forces pushing the API industry forward in 2022. Below, we’ll dive into these trends to see how they affect API strategies and what developers need to know to stay on top of their applications.

Non-Software Companies Embrace APIs

As software eats the world, more companies are becoming software companies. And, an API strategy is part and parcel of this digital transformation. A big trend that Rodda recognizes is increased API strategies among traditionally non-software companies.

For example, Rodda explained how a large beverage manufacturer evolved to adopt APIs company-wide to better use and scale their data. Standardizing the API development and design process helped avoid the “rat’s nest” of custom code, said Rodda. “APIs are no longer a byproduct; they’re a design artifact,” he said.

APIs are no longer reserved for startup cloud-native unicorns like Stripe or Twilio, either. We now see many industries and sectors like supply chain management, health care, shipping, built environments and mainframe modernization adopting API approaches. The financial services sector is especially keen to open up APIs as open banking is being driven by regional regulation or market pressures.

A Rise in Internal API-First Adoption

ProgrammableWeb, the most comprehensive API directory, lists over 24,000 APIs at the time of writing. There’s no doubt that public-facing APIs are very well documented. But this is only a sliver of total API adoption.

The 2021 Postman State of API report found that only 15% of APIs are publicly available. Most APIs are either partner-facing (27%) or private (58%), according to the report. In fact, the most popular use case for APIs is integration between internal applications, programs or systems. Along with the growth of internal API use, API-first thinking is gaining mind share. Postman defined API-first as “defining and designing APIs and underlying schema before developing dependent APIs, applications or integrations.”

Internal use cases are less frequently discussed but are pervasive for large enterprises, said Rodda. Whereas in the past, development teams paid less attention to style guides and documentation for internal services, he now notices that these practices are shifting. The zero-trust approach is influencing teams to take more care in defining and standardizing internal APIs as if they’re external-facing. This also eases consumption. “You need to take care of the folks next door to you and treat them with just as much respect,” said Rodda.

The Growing Need for Robust API Security

APIs have a security problem. Many don’t handle authorization correctly and expose far too much information. A hacker can often escalate their privileges or simply swap a different user ID into an API call to return loads of sensitive data or even make changes to the data. Many HTTP API endpoints that are intended to be private really aren’t. As a result, OWASP lists broken object-level authorization as a top API vulnerability.

In recent years, we’ve seen what can happen when APIs are improperly configured. For example, a Facebook API lacked an authorization check for unlisted posts, allowing a client to post on any user’s behalf. A similar authorization hiccup occurred with Peleton that allowed hackers to alter any user’s back-end account. APIs constantly work with sensitive data and must carefully navigate the various data privacy regulations around the globe.

According to Rodda, a design-first mindset is vital to ward off security woes early in the API life cycle. This means deciding on a structure with a common design and choosing appropriate style guides well before coding. “Good documentation, good design guides and good discipline around building something with a cross-functional nature will increase security and scalability,” said Rodda. When you know what’s going on, you have more control and things are inherently more secure, he added.

OpenAPI Carries The Day

The OpenAPI specification, formerly known as Swagger, is an industry-standard specification for describing REST web APIs. OpenAPI can help direct your API’s design and development. OpenAPI tooling can also help generate useful documentation, sandboxes and SDKs, making it a valuable specification for creating interoperability between partners.

“OpenAPI is going to carry the day for a while,” said Rodda. The OpenAPI Initiative has gotten the support of big names in the tech industry. Yet, Rodda estimated only 40% of companies have adopted OpenAPI in production. Rodda said he believes tooling will make it easier for more groups to maintain OpenAPI adoption across their organization, reducing the redundancy of writing “yet another YAML file.”

REST is still by far the most-adopted API design style—59.7% of developers use REST for production APIs, according to RapidAPI’s State of APIs Developer Survey 2021 report. Yet, asynchronous event-driven communication protocols are gaining traction, and those protocols tend to prefer alternative description formats like AsyncAPI. Websockets, gRPC and GraphQL are other options consistently used by a significant percentage of API developers.

Developer Experience Matches User Experience

Another major trend is the rising importance of developer experience (DX). DX is akin to user experience but is all about increasing usability for developer consumers and improving their ongoing relationship with software-as-a-service. “DX is as big a deal as UI/UX these days, if not bigger,” explained Rodda. “Developer experience directly translates into efficiency and reusability.”

In the context of APIs, increased consideration of developer experience means reducing the onboarding effort and maintaining more reliable connections. For example, users will likely look to other solutions if a third-party API has poor uptime and routinely introduces a breaking change. Better DX likely will also equate to increased abstraction layers and more code generation. Rodda pointed to GitHub’s CoPilot as an example of the use of AI and automation in the developer-of-tomorrow’s workflow.

“We’ve evolved as a developer society,” said Rodda. Just as consumers expect high-quality real-time applications, developers expect highly performant APIs. To help get there, one increasingly popular philosophy is the API-as-a-product perspective. “If you treat it all as a product, you’re building it with the same standards and quality that you would share externally,” he explains. “Then, there’s no attention to detail that goes missing.”

Final Thoughts: The Design-First Mentality

More industries are utilizing APIs than ever before, and APIs are seeping into traditionally non-technical companies to aid their internal integration efforts. But data privacy is a pressing concern when opening up data, requiring careful measures. Taking a design-first approach with standards like OpenAPI could help organizations stay alert and ensure consistency across their portfolio of services.

There are other trends at work in the API economy, too. For example, one interesting Web3 initiative is an attempt to combine the world of blockchain and APIs by enabling on-chain smart contracts to interact with traditional HTTP APIs. There is also a lot of development activity around GraphQL, which could act as a command line for consuming multiple APIs, thus making integration easier.

Rodda said the biggest takeaway is that APIs should no longer be treated as byproducts. He compared it to a construction project: When building a house, you must start with a blueprint before installing the foundation, wall, roof or electrical system. Similarly, APIs require solid forethought to ensure stability and scalability.

Trends in the API Industry – DevOps.com