anonymous user Thanks for reaching out. Yes, your understanding is correct as mentioned in the Note section here.
Only the gateway component of API Management is deployed to all regions. The service management component and developer portal are hosted in the Primary region only.
As you are only looking for a DNS-based traffic load balancer that distributes traffic optimally to services across global Azure regions then you should use Azure Traffic Manager.
ATM delivers high availability for your critical applications by monitoring endpoints and providing automatic failover when an endpoint goes down. In your case, you need to add a different APIM endpoint to the traffic manager and configure routing method to route your traffic.
The same is documented here in the Tip section.
You may also front your backend services with Azure Traffic Manager, direct the API calls to the Traffic Manager, and let it resolve the routing automatically.
Only the Application gateway cannot be used for DR(Disaster recovery) scenarios. There is already a previous discussion on the same.