API economy: Constraints to its growth and development

In generic terms, API is a way for two applications to communicate with each other over a network using a common language. It has evolved to be a powerful tool for companies across various industries such as banking, healthcare, online retail, and others, to speed up their business operations. APIs are an integral part of the digital economy. Due to the non-availability of API economy data, this research shows the contribution of a selected sample of API companies in strengthening the digital economy. In Objective 1, this research has measured the growth of the APIs economy and digital economy at the macro level, Objective 2 measures the growth pattern of each company in the sample, Objective 3 identifies the APIs-related constraints through a literature review, Objective 4 classifies APIs related constraints into three different categories i.e. APIs as a Product constraint, APIs as a Service constraint and APIs as a Product-Service constraint. A review of the literature on this subject has shown that there are constraints related to Scalability, Manageability, Security, and possibly other challenges that restrict the building of an effective ecosystem of APIs. Therefore, an exploratory study-based approach has been taken in this research that helps in measuring the growth of companies in the presence of API-specific constraints/challenges that create roadblocks in achieving companies’ objectives. Overall, the findings of this research will help in creating new knowledge and information about various APIs specific constraints, risks, and challenges that affect APIs and Digital Economy’s growth.