Resources
About Us
Application Modernization Services Market by Type (Consulting, Cloud Migration, UI/UX Modernization, Application Containerization), Deployment Mode (Public, Private), Sector, Organization Size, and Geography - Global Forecast to 2030
Report ID: MRICT - 104838 Pages: 250 Jun-2024 Formats*: PDF Category: Information and Communications Technology Delivery: 24 to 72 Hours Download Free Sample ReportThe Application Modernization Services Market is projected to reach $40.2 billion by 2030, at a CAGR of 17.4% from 2024 to 2030. The growth of this market is driven by the growing need for improved software features due to dynamic business environments, the rising demand for flexibility and scalability in legacy applications and enterprises’ growing inclination toward modernizing legacy applications with cloud capabilities. However, security and privacy issues associated with application modernization services and the lack of IT skills among employees restrain the growth of this market.
The existence of a large number of legacy and mainframe applications, the increasing focus on omnichannel integration, and the rising adoption of containerization to create and deploy applications faster and more securely are factors expected to create significant opportunities for market growth. However, the high costs and complexities associated with application modernization services are major challenges for market growth.
The application modernization services market is segmented based on type, deployment mode, sector, organization size, and geography. The study also evaluates industry competitors and analyzes the market at the regional and country levels.
The key players profiled in the application modernization services market study are IBM Corporation (U.S.), Microsoft Corporation (U.S.), Oracle Corporation (U.S.), Hewlett Packard Enterprise Company (U.S.), HCL Technologies (India), Capgemini (France), Atos (France), Infosys Limited (India), Cognizant (U.S.), Dell Inc. (U.S.), Fujitsu Limited (Japan), Bell Integrator Inc. (U.S.), Kyndryl Holdings, Inc. (U.S.), Accenture (Ireland), and Softura (U.S.).
Click here to: Get a Free Sample Copy of this report
Application modernization, or legacy system modernization, is the practice of updating outdated programs and software to implement more modern protocols and programming languages. Legacy system modernization is essential to a business's overall digital modernization efforts. Businesses across the globe spend trillions of dollars on IT services and maintaining their enterprise applications and software. However, they can drastically cut these maintenance costs using legacy application modernization services and moving apps to the cloud. Application modernization services can help businesses increase their company’s productivity while cutting IT costs.
This shift to the cloud allows businesses to focus on operations instead of infrastructure. Many organizations have begun shifting their operations to virtual data centers and modernizing their applications to be cloud-enabled. For Instance, in February 2024, BT Group plc (U.K.), a British multinational telecommunications company, partnered with Kyndryl Holdings, Inc. (U.S.), an American multinational information technology infrastructure services provider, to help migrate some of its legacy mainframe applications to the cloud to enable API and microservices features and help with broader integration across BT Group systems as well as increased automation. Thus, enterprises’ rising inclination toward modernizing legacy applications with cloud capabilities is expected to support the growth of the application modernization services market during the forecast period.
Based on type, the application modernization services market is segmented into application modernization consulting services, cloud migration services, UI/UX modernization services, and application containerization services. The cloud migration segment is expected to grow at the highest CAGR during the forecast period.
Over the last decade, the adoption of cloud computing has risen due to increasing investments from small and medium-sized enterprises. Globally, many organizations have already switched to cloud platforms due to their benefits. In recent years, cloud adoption has become a significant consideration in IT cost reduction strategies. The growth of the cloud migration services segment is driven by the benefits offered, such as scalability, increased effectiveness, faster implementation, mobility, and disaster recovery.
Based on sector, the application modernization services market is segmented into BFSI, IT & telecom, retail, media & entertainment, healthcare & life sciences, government, manufacturing, transportation & logistics, energy & utilities, and other sectors. The BFSI segment is expected to grow at the highest CAGR during the forecast period, primarily due to the benefits of modernized applications for BFSI organizations, such as faster and more convenient transactions, reduced task complexity, improved security and compliance, clients’ demand for speed and advanced capabilities, and rising concerns over data security and privacy issues.
Furthermore, the rising adoption of cloud migration services by financial institutions is expected to create opportunities for the segment’s growth. For instance, in May 2022, Jefferies Group LLC (U.S.), an independent investment bank and financial services company, partnered with AWS (U.S.) to move its information technology services to the cloud.
Based on geography, the application modernization services market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the application modernization services market. The region's large share is attributed to its robust IT infrastructure, investments in digital infrastructure, and the presence of large enterprises. In addition, the rising adoption of application modernization services by businesses is expected to drive market growth in the region. For instance, in August 2022, Next Pathway Inc. (Canada), an automated cloud migration company, collaborated with Microsoft Corporation (U.S.) to accelerate the migration from legacy data warehouses and data lakes to Microsoft Azure.
Scope of the report:
Application Modernization Services Market, by Type
Application Modernization Services Market, by Deployment Mode
Application Modernization Services Market, by Sector
Application Modernization Services Market, by Organization Size
Application Modernization Services Market, by Geography
The application modernization services market is segmented based on type, deployment mode, sector, organization size, and geography. The study also evaluates industry competitors and analyzes the market at the regional and country levels.
The application modernization services market is projected to reach $40.2 billion by 2030, at a CAGR of 17.4% from 2024 to 2030.
Based on type, in 2024, the cloud migration segment is expected to account for the largest share of the application modernization services market.
Based on deployment mode, in 2024, the public cloud segment is expected to account for the larger share of the application modernization services market.
The growth of this market is attributed to the growing need for improved software features due to dynamic business environments, the rising demand for flexibility and scalability in legacy applications and enterprises’ growing inclination toward modernizing legacy applications with cloud capabilities. Furthermore, the existence of a large number of legacy and mainframe applications, the increasing focus on omnichannel integration, and the rising adoption of containerization to create and deploy applications faster and more securely are expected to create significant market growth opportunities.
The key players profiled in the application modernization services market study are IBM Corporation (U.S.), Microsoft Corporation (U.S.), Oracle Corporation (U.S.), Hewlett Packard Enterprise Company (U.S.), HCL Technologies (India), Capgemini (France), Atos (France), Infosys Limited (India), Cognizant (U.S.), Dell Inc. (U.S.), Fujitsu Limited (Japan), Bell Integrator Inc. (U.S.), Kyndryl Holdings, Inc. (U.S.), Accenture (Ireland), and Softura (U.S.).
Asia-Pacific is expected to record the highest CAGR during the forecast period. The growth of this regional market is primarily attributed to the accelerated digital infrastructure deployment and increasing IT spending across the region, the existence of technologically leading countries, such as China, South Korea, Japan, and India, and growing urbanization in developing countries in the region.
Published Date: Jun-2024
Published Date: Jun-2024
Published Date: Mar-2024
Published Date: Apr-2023
Please enter corporate email id here & we’ll send you a free sample.
Subscribe to get the latest industry updates