The growing digitalization has also resulted in a dramatic surge in the number of cyberattacks faced by e-commerce platforms. Over the last few years, the volume of attacks against online shopping platforms has increased significantly, as attackers are able to exploit different web applications. According to data from Akamai Technologies, one of the leading global API security providers, the e-commerce industry has been hit with 14 billion attacks over the last 15 months, leading to June 2023.
This data clearly indicates that e-commerce platforms are the top targets for API attacks in 2023. The data also revealed that retail, hotel, and travel firms are among the top thirteen industries targeted by intruders. These industries suffered 14.5 billion attacks or more than a third of all the cyberattacks studied by Akamai Technologies.
The rush to release web applications and application programming interfaces (APIs) to drive business growth during the global pandemic is the major factor behind the significant upsurge in attacks faced by e-commerce platforms over the last two years. With no proper API auditing and bug fixing, attackers have taken advantage of poor coding, security gaps, and design flaws to access personal and confidential information from e-commerce platforms.
This incident further showcases how vulnerable e-commerce platforms have become due to their behavior of responding to customer needs and demands without proper API audits. With such APIs ranging from hundreds to thousands in numbers, more such incidents are expected to emerge going forward. As a result, it is critical for e-commerce platforms to increase their security budget and conduct a thorough audit of all the secured and unsecured APIs, which are critical for running business operations.
Over the last few quarters, the demand for API security platforms and tools has increased significantly among businesses across all industries. To meet the growing demand and further strengthen their position in the global market, API security providers are entering into mergers and acquisition deals.
In H1 2023, a number of mergers and acquisition deals have been announced in the global API security market. IBM, for instance, announced the acquisition of Israel-based application security startup Polar Security in May 2023. In another acquisition deal, Zscaler announced the acquisition of Canonic Security, another Israel-based application security platform provider. These acquisition deals will enable IBM and Zscaler to strengthen their product offerings in the API security segment.
Going forward, TechInsight360 expects the trend of mergers and acquisition deals to further continue in the global market. Furthermore, innovative startups in the segment are also expected to raise funding rounds in H2 2023 and H1 2024, as the demand for API security tools and platforms continues to surge worldwide. The growth funding rounds are expected to drive the competitive landscape in the sector, while also players to expand their international presence. All of these factors indicate that the API security industry is poised for an accelerated growth trajectory over the next three to four years.
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