According to Postman, API tools and services are evolving to meet the needs of companies recognizing APIs as the building blocks of modern software.
Postman CEO, Abhinav Asthana, stated that more companies are adopting an API-first approach to software development, and this approach has been proven to outperform organizations that haven’t. In addition to the technical advantages, organizations are also seeing a direct impact on their bottom line, with many reporting their APIs as revenue generators. Asthana believes that this shift, combined with the increasing use of AI tools, is fundamentally changing the way software is built, with APIs at the center of this transformation.
A recent survey conducted by Postman revealed that almost two-thirds of respondents stated that their APIs generate revenue. Of those respondents, 43% reported that their APIs generate over a quarter of their company’s revenue. Among various industries, the financial services and advertising sectors specifically placed a high importance on API revenue generation, ranking it as the second measure of their API success, after usage.
The survey also found that when deciding whether to integrate with an API, 47% of respondents considered price as a top consideration. This is an increase from 41% over the past two years. While other factors were ranked higher than pricing, this finding suggests that API consumers are becoming more cost-conscious in light of the economic contraction in the tech industry.
Furthermore, the survey revealed that a majority of API professionals are utilizing generative AI in their work. Specifically, 60% of respondents reported using generative AI, with more than half using it to find bugs in their code and over a third relying on AI to generate code. In terms of future projects, developers expressed excitement about building AI-powered apps.
In terms of investment, 92% of respondents expect investments in APIs to either rise or remain the same over the next 12 months, an increase from 89% the previous year. This suggests a sense of optimism among some quarters that the worst of the tech industry’s economic contraction is behind us. Additionally, fewer respondents indicated that they plan to cut API investments this year.
As for API security, the survey found that it improved for most respondents, with a decrease in the frequency of security incidents in 2023. However, certain sectors, such as automotive, education, and retail, reported higher rates of monthly incidents compared to the average.
The survey also highlighted the presence of an elite group of API-first leaders, with 11% of respondents identifying themselves as part of this group. This percentage has increased from 8% in the previous two years. API-first leaders excel in various metrics, including their ability to quickly produce APIs and recover in the event of an API outage.
Overall, the survey conducted by Postman highlights the growing importance and adoption of APIs in modern software development. It also underscores the role of AI in enhancing API functionality and the potential for APIs to generate revenue for organizations. With a majority of respondents expecting increased or stable investments in APIs, it appears that APIs will continue to play a significant role in shaping the future of software development.