With API marketplaces, API gateways, API management platforms, API directories — and more — it can be hard to keep track of all the API tools and technology available for developers today. This article examines two common API-related tools, an API marketplace, and an API gateway, and explains the differences.
What is an API Marketplace?
You are probably familiar with a variety of different online marketplaces including Amazon or Facebook Marketplace. On these sites, you can list an item for sale or buy something listed by another user on the platform. An API marketplace works in the same way as these other online marketplaces, allowing providers to list APIs and developers to consume them.
Like other types of marketplaces, a typical API marketplace has several components including a developer portal and an API provider portal. For example, RapidAPI is a marketplace that features a developer dashboard to monitor API usage, billing, and more. There is also a provider dashboard to define the API endpoints and pricing, track developer consumption of the API, and get insights into revenue earned.
Other key components of an API Marketplace include search capabilities, standardized documentation, API testing, code snippets, API key provisioning, discussions, and customer support services.
Ultimately an API marketplace makes it easy for developers to find and connect to APIs. A marketplace also allows providers to publish, monetize and manage APIs, without having to develop these systems themselves.
What is an API Gateway?
An API gateway is an architectural component that sits in front of the server to perform certain standard functionality required to make the API ready for real-world use. Every API is has a different purpose, but there are certain features all APIs need, including:
- Rate limiting
- Traffic management and routing
- API key authentication and authorization
- Logging and performance analytics
- Orchestrating and transforming underlying endpoints
- Securing API access
- Etc…
Instead of implementing these functionalities when building out the API, engineering teams can utilize an off-the-shelf API gateway that sits in front of their API to accomplish this functionality.
Common API gateways include commercial platforms like MuleSoft, Apigee, and Mashery. There are also open-source platforms like Kong and Tyk, and cloud-based solutions like Azure API Management and AWS API Gateway.
Related: Multiple API Gateways
Differences Between an API Marketplace and API Gateway
Despite these similarities, the purpose of an API Marketplace and an API gateway is fundamentally different. An API marketplace’s main purpose is to allow developers to discover and connect to many different APIs that have been created by different API providers. It also provides a platform for API providers to monetize or distribute their APIs.
In contrast, the main purpose of an API gateway is to coordinate how API requests are processed in a microservice architecture.
An API marketplace can also be used to manage many APIs from a variety of different API providers. An API gateway is typically only used to manage APIs from one provider.
Another way to think about the differences between an API marketplace and an API gateway is to consider the end-user. An API marketplace caters towards both API consumers and providers since it allows consumers to connect and discover APIs, and allows providers to expose their APIs. In comparison, an API gateway is more specifically geared towards a creator of an API.
Can an API Gateway and an API Marketplace Be Used Together?
Absolutely! Let’s take a look at an example of a company building a public API offering. The company building out their API might utilize an API gateway to consolidate all of their microservices into a single cohesive API connection experience. Once the API is built using an API gateway, then the company will utilize an API marketplace to launch publicly, market, manage, and monetize their public API offering.
Summary
API marketplaces and API gateways are both important programming tools. It is helpful to know how they compare so you know what scenarios to use them in. Review the chart below for a comparison of the two.
| API Marketplace | API Gateway |
|---|
| Goal | Help developers discover and connect to APIs | Help API providers secure and expose their microservices through a single API |
| Key Capabilities | Search, documentation, API testing, code snippets, user authentication, API analytics, discussions, API support | Rate limiting, user authentication, logging, usage tiers, injection prevention, transformation, orchestration |
| End-User | API consumers and API provider | API provider |
| Examples | RapidAPI | MuleSoft |
FAQs
An API marketplace caters towards both API consumers and providers since it allows consumers to connect and discover APIs, and allows providers to expose their APIs. In comparison, an API gateway is more specifically geared towards a creator of an API.
What is the difference between API and API gateway? ›
API Design: Creating well-defined endpoints and specifying the API's function, including request and response structures. API Gateway: Serving as the entry point for API requests, responsible for tasks like routing, load balancing, and request and response transformation.
What is an API marketplace? ›
An API marketplace is the key to taking your API strategy to the next level. It brings together all your APIs, packaged and ready to go. It gives you better tools to solve issues around governance, security, productization, and monetization.
What is the difference between API platform and API gateway? ›
Relationship and Key Differences Between API Gateway and API Management. In a word, the API gateway is a core element of the API management platform. While the gateway handles API traffic routing and security, the management platform covers the entire API lifecycle, ranging from API design to API monetization.
What is the difference between API portal and API gateway? ›
API activity accommodates faster, easier access to microservices through a gateway, with API requests through portals being better addressed in a system that affords customer control. By having this agility and scalability, any type of API can have a lasting lifecycle, even accommodating reusability over time.
What is the difference between API marketplace and API gateway? ›
It also provides a platform for API providers to monetize or distribute their APIs. In contrast, the main purpose of an API gateway is to coordinate how API requests are processed in a microservice architecture. An API marketplace can also be used to manage many APIs from a variety of different API providers.
What is the main purpose of API gateway? ›
An API gateway manages incoming requests and routes them based on key factors such as request path, headers, and query parameters, among others. It allows for efficient distribution of traffic and ensures proper load balancing among target endpoints.
What does API stand for in marketplace? ›
API stands for Application Programming Interface. In the context of APIs, the word Application refers to any software with a distinct function. Interface can be thought of as a contract of service between two applications.
What is rapid API marketplace? ›
rapidapi.com, the world's largest API hub, is used by over five million developers to find, test, and connect to thousands of APIs — all with a single API key. We call these developers that call existing APIs API consumers. It is also free and easy to add your API to the hub.
What is a data marketplace? ›
A data marketplace, or data market, is an online store where people can buy data. Data marketplaces typically offer various types of data for different markets and from different sources. Common types of data sold include business intelligence, advertising, demographics, personal information, research and market data.
An API gateway vs. load balancer comparison can be boiled down to the fact that they both manage traffic entering your website or application but have different roles. An API gateway handles authentication and security policies, while a load balancer API distributes network traffic across multiple servers.
What is the difference between API gateway and API endpoints? ›
An API Gateway integration type for a client to access resources inside a customer's VPC through a private REST API endpoint without exposing the resources to the public internet.
What is the difference between HTTP API and REST API gateway? ›
REST APIs support more features than HTTP APIs, while HTTP APIs are designed with minimal features so that they can be offered at a lower price. Choose REST APIs if you need features such as API keys, per-client throttling, request validation, AWS WAF integration, or private API endpoints.
What is an API gateway example? ›
API Gateway for Kubernetes
Such tools are tightly integrated with the Kubernetes API, support YAML, and can be configured through standard Kubernetes CLI; examples include NGINX Ingress Controller and NGINX Service Mesh.
Who needs API gateway? ›
An application that utilizes a great number of microservices forces client apps to handle too many endpoints. Additionally, when a client app is coupled to internal endpoints, any future change to these microservices can significantly impact the client apps. An API gateway helps solve these issues.
Is API the same as gateway? ›
APIs and API Gateways are distinct components of modern software development, each with its unique purpose and advantages. While APIs provide specific functionalities for software applications, API Gateways act as intermediaries that offer centralized control and security features for managing multiple APIs.
What is API gateway example? ›
Some examples of API gateway tools include DreamFactory, Amazon API Gateway, Apigee, Azure API Management, and Tyk. These tools provide a range of features for building, securing, and managing APIs at any scale.
Is rest API a gateway? ›
A REST API in API Gateway is a collection of resources and methods that are integrated with backend HTTP endpoints, Lambda functions, or other AWS services. You can use API Gateway features to help you with all aspects of the API lifecycle, from creation through monitoring your production APIs.
