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Healthcare API Market Growth 2025–2035 | AI & Digital Health Funding Insights

By Md Nasiruddin | September 10, 2025

Bright and colourful cover image for Healthcare API Market Outlook 2025–2035 report, showing global healthcare innovation, AI, and digital health funding trends

Healthcare API Market | A Small Sector with Outsized Influence (Global Outlook 2025–2035)



At first glance, the healthcare API market looks almost trivial. In 2025, it is worth just $340 million worldwide — a rounding error in global healthcare spending. Even by 2035, it is forecast to climb only modestly, to about $540 million, implying steady but unspectacular growth of around 4–5% annually.



And yet, these numbers hide a more important story. APIs are the connective tissue of modern healthcare. They are the pipes through which electronic health records, insurance claims, wearable-device data, and even AI-driven insights flow.



Without them, the booming investments in healthtech — from $7.9 billion in the U.S. and Europe alone (WSJ, H1-2025) to $12.1 billion globally across 616 deals (Galen Growth) — would struggle to deliver value at scale.



In other words, if healthtech is the engine of innovation, APIs are the oil. The market may be small, but it is strategically indispensable.



What the Numbers Tell Us



The global healthcare API market sits at $0.34 billion in 2025 and should add roughly $200 million in new value over the next decade. The payments segment already accounts for about 30% of this, or just over $100 million today, making it the single most monetisable use case.



North America has 52% market share (~$177M in 2025) because of its developed IT infrastructure, high-pressure regulatory policy, and hyperscaler investments.



The remainder of the Healthcare API Market is divided between Europe, Asia-Pacific and smaller yet emerging markets such as the Middle East and South American markets.



Europe is in an upswing with health data programs by the EU, and India with its National Digital Health Mission (NDHM) prepares the ground to adopt APIs in the long-term.



Why the Healthcare API Market Is Embedded in Larger Digital Health Trends



Why does such a small market matter? Because APIs are not sold in isolation — they sit inside larger transformations.





None of these examples generate large standalone API revenues, but they enable billions in adjacent markets — from AI-driven diagnostics to value-based care contracts.



The Real-Time Capital Signal for the Healthcare API Market



Investment trends in 2025 underline why APIs matter. Global digital-health funding in H1-2025 hit $12.1B across 616 deals, despite being down 13% year-on-year. The U.S. accounted for $6.4B, with a striking $3.4B in Q2 alone, while Europe surged with $3.3B and the UK leading at $1.29B.



Crucially, AI-enabled companies absorbed 62% of total funding, raising far larger rounds than their non-AI peers. Ambience Healthcare’s $243M Series C and Qventus’s $105M Series D are good examples.



But here’s the catch: AI in healthcare cannot run without structured, real-time data — and that’s exactly what APIs in the Healthcare API Market are designed to deliver.



So, when investors pour billions into AI healthtech, they are indirectly betting on the quiet enablers: the API platforms that connect fragmented data sources.



Risks on the Horizon



None of this comes without friction. APIs are now prime attack surfaces, facing twice as many cyberattacks per host as web apps. Regulators, from the FDA to the European Commission, are tightening data integrity and privacy rules.



Standards also are not clean: various versions of FHIR exist, and openEHR uptake is uneven, and therefore integration is expensive and slow.



Such obstacles justify the fact that the growth is gradual rather than booming. The APIs used in healthcare need to juggle innovation and safety, compliance and interoperability, an elegant gesture that makes the process of adoption slower than that of consumer technology.



Where the Opportunities Lie



In spite of limitations, API providers will have new niches open to them in the next decade:



The most profitable section is the automation of payments.



Wearable normalization will become more significant when the insurers insist on standardized underwriting and engagement telemetry.



Privacy-sensitive de-identification is already in demand as AI models become more scalable over data sets.



The tools of observability and reliability will distinguish between the serious vendors and hobbyists; one example is the collaboration of IBM with API Holdings.



The combination of APIs, wearables and risk models used in insurtech can generate brand new revenue sources.



The Human Side of Strategy



To put it bluntly, the healthcare API market is the quiet middleman. Nobody brags about buying APIs, but every serious healthcare company needs them.



For founders, the message is clear: build FHIR-native, security-first platforms that solve integration headaches, not just flashy apps.



For investors, the advice is to follow the plumbing — infrastructure plays may look dull, but they are the ones that scale with every AI or telehealth rollout.



And for health systems and payers, the priority should be auditable, reliable pipelines that can prove ROI in billing cycles and patient outcomes.



Closing Thought



The healthcare API market may only add $200 million over ten years, but its importance cannot be captured by market size alone. Every dollar invested in AI, digital health, or wearables relies on an API somewhere in the chain. The capital surge of 2025 is proof enough: the spotlight may be on AI, but the stagehands — the API vendors — are the ones making the show run.



Or, to borrow a metaphor: APIs are the plumbing of digital health. The pipes may be narrow today, but without them, no one gets running water.



Making Sense of Healthcare APIs with MarketGenics


The numbers may look small — a $340M Healthcare API Market in 2025, rising to $540M by 2035 — but the conversations around interoperability, AI-readiness, and payments automation tell a bigger story. APIs are the invisible infrastructure of modern healthcare: they decide how fast telehealth scales, how reliable AI insights become, and how smoothly patients pay.



At MarketGenics, our role is to cut through the noise and translate these signals into actionable intelligence. Whether you’re building strategy around FHIR adoption, wearable data normalization, or API-enabled payments, we’re already tracking where capital, regulation, and technology are converging.



If your organization is navigating the next wave of digital health and the evolving Healthcare API Market, let’s talk.



Follow the MarketGenics Healthcare Strategy Report here on LinkedIn for ongoing analysis — the kind that helps you act, not just react.


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