Application Modernization Services Market
Application Modernization Services Market Size, Share & Trends Analysis Report by Type (Application Portfolio Assessment, Cloud Application Migration, Application Re-Platforming, and Others), by Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), by Size (Large Enterprise and SMEs), and by Industry Vertical Outlook (BFSI, Retail & E-Commerce, Manufacturing, IT & Telecommunication and Others) Forecast Period (2024-2031)
Application modernization services market is anticipated to grow at a significant CAGR of 17.0% during the forecast period (2024-2031). Application modernization services providing companies assist organizations in updating their existing software applications to enhance efficiency, security, and scalability. These services address challenges such as the cost and maintenance of legacy applications, the need to keep up with security threats, and the need for a user-friendly interface. By implementing these services, companies can improve their applications' performance and security.
Market Dynamics
Growing Usage of Cloud-Based Services
The growing trend of businesses migrating their applications to the cloud owing to its offered benefits such as increased scalability, improved performance, and reduced costs is a major contributor to the growth of the global market. Application modernization services can help businesses migrate their applications to the cloud and integrate them with other cloud-based services.
In March 2024, Fujitsu Limited partnered with Amazon Web Services (AWS) to accelerate the modernization of legacy applications through deployment on the AWS Cloud. Fujitsu and AWS deliver evaluation, migration, and enhancement services for legacy mission-critical applications currently operating on on-premise mainframes and UNIX servers, facilitating their transition to the AWS Cloud.
Market Segmentation
- Based on type, the market is segmented into application portfolio assessment, cloud application migration, application re-platforming, and others
- Based on deployment, the market is segmented into public cloud, private cloud, hybrid cloud
- Based on size, the market is segmented into large enterprises and SMEs
- Based on the industry vertical, the market is segmented into BFSI, retail & e-commerce, manufacturing, IT & telecommunication, and others
Application Portfolio Assessment is Projected to Emerge as the Largest Segment
The Application Portfolio Assessment (APA) segment holds the largest market share within application modernization services due to its strategic planning foundation and the need for inventory and clarity. APA supports organizations in understanding their existing application landscape by evaluating factors such as functionality, criticality, technologies, integration points, and maintenance costs. This comprehensive assessment allows businesses to prioritize applications needing modernization, ensuring resources are not wasted on unnecessary modernization. APA serves as a roadmap for application modernization, leading to an efficient and cost-effective journey.
In November 2023, NTT DATA partnered with Amazon Web Services (AWS) to integrate its UniKix Mainframe Replatforming software into the AWS Mainframe Modernization service. This software from NTT DATA aids in streamlining the process of modernizing legacy systems and applications, thereby assisting businesses in cutting down on expenses and complexities. This partnership enables NTT DATA to offer cost-effective cloud migration solutions to their clients.
IT and Telecommunication Sub-segment to Hold a Considerable Market Share
IT and Telecommunication sub-segments hold a considerable share in the application modernization services market due to the rapid technological change, security concerns, and improved user experience. Modern applications offer enhanced collaboration, reduced costs, and increased agility. These applications can enhance efficiency, optimize resource allocation, and enable real-time monitoring. They also provide better customer retention and data analytics, making them ideal for addressing security vulnerabilities and improving business efficiency. Security and compliance considerations play a significant role in propelling the adoption of application modernization services within the BFSI sector. With the rise of cybersecurity threats and stringent regulatory frameworks, such as GDPR and PSD2, financial institutions are under immense pressure to fortify their IT infrastructures and ensure data protection.
Regional Outlook
The global application modernization services market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
Global Application Modernization Services Market Growth by Region 2024-2031
North America Holds Major Market Share
North America's strong market position in the application modernization services sector is attributed to its well-developed IT infrastructure, focus on cybersecurity, demand for innovation and efficiency, and the presence of major service providers. The country's high-speed internet connectivity, reliable data centers, and mature cloud services market make it easier for businesses to adopt cloud-based solutions. The demand for innovation and efficiency is driven by the competitive nature of North American businesses, which leverage the latest technologies like cloud computing, AI, and machine learning. The culture of early adoption and government initiatives also contribute to the market penetration of application modernization services.
Market Players Outlook
The major companies serving the global application modernization services market include IBM Corp., Accenture Plc, Infosys Ltd., Cognizant, Tata Consultancy Services, and HCL Technologies among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in January 2024, IBM Corp. acquired application modernization capabilities from Advanced, increasing IBM Consulting's offerings in mainframe application and data modernization services. The acquisition is intended to enhance IBM's ability to provide a comprehensive range of options for modernizing mainframe applications, aligning with the abilities of IBM Watson Code Assistant for Z, a generative AI-assisted tool designed to expedite mainframe application modernization.
The Report Covers
- Market value data analysis of 2023 and forecast to 2031.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global application modernization services market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
1. Report Summary
• Current Industry Analysis and Growth Potential Outlook
1.1. Research Methods and Tools
1.2. Market Breakdown
1.2.1. By Segments
1.2.2. By Region
2. Market Overview and Insights
2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Findings
2.2.2. Recommendations
2.2.3. Conclusion
3. Competitive Landscape
3.1. Key Company Analysis
3.2. IBM Corp.
3.2.1. Overview
3.2.2. Financial Analysis
3.2.3. SWOT Analysis
3.2.4. Recent Developments
3.3. Accenture plc
3.3.1. Overview
3.3.2. Financial Analysis
3.3.3. SWOT Analysis
3.3.4. Recent Developments
3.4. Infosys Ltd.
3.4.1. Overview
3.4.2. Financial Analysis
3.4.3. SWOT Analysis
3.4.4. Recent Developments
3.5. Key Strategy Analysis
4. Market Segmentation
4.1. Global Application Modernization Services Market by Service Type
4.1.1. Deployment Portfolio Assessment
4.1.2. Cloud Deployment Migration
4.1.3. Deployment Re-Platforming
4.1.4. Others
4.2. Global Application Modernization Services Market by Deployment
4.2.1. Public Cloud
4.2.2. Private Cloud
4.2.3. Hybrid Cloud
4.3. Global Application Modernization Services Market by Size
4.3.1. Large Enterprise
4.3.2. SMEs
4.4. Global Application Modernization Services Market by Vertical Outlook
4.4.1. BFSI
4.4.2. Retail & E-commerce
4.4.3. Manufacturing
4.4.4. IT & Telecommunication
4.4.5. Others
5. Regional Analysis
5.1. North America
5.1.1. United States
5.1.2. Canada
5.2. Europe
5.2.1. UK
5.2.2. Germany
5.2.3. Italy
5.2.4. Spain
5.2.5. France
5.2.6. Rest of Europe
5.3. Asia-Pacific
5.3.1. China
5.3.2. India
5.3.3. Japan
5.3.4. South Korea
5.3.5. Rest of Asia-Pacific
5.4. Rest of the World
5.4.1. Latin America
5.4.2. Middle East & Africa
6. Company Profiles
6.1. Advanced Computer Software
6.2. Applied Information Sciences
6.3. Capgemini SE
6.4. CleverDev Software
6.5. Cognizant
6.6. DXC Technology
6.7. HCL Technologies
6.8. NTT DATA Corp.
6.9. ScienceSoft
6.10. Sunera Technologies
6.11. Tata Consultancy Services, Ltd.
6.12. Ventech Solutions
6.13. Winwire Technologies
6.14. Wipro Ltd.
1. GLOBAL APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SERVICE TYPE, 2023-2031 ($ MILLION)
2. GLOBAL APPLICATION PORTFOLIO ASSESSMENT MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
3. GLOBAL CLOUD APPLICATION MIGRATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
4. GLOBAL APPLICATION RE-PLATFORMING MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
5. GLOBAL OTHER MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
6. GLOBAL MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT 2023-2031 ($ MILLION)
7. GLOBAL APPLICATION MODERNIZATION SERVICES FOR PUBLIC CLOUD MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
8. GLOBAL APPLICATION MODERNIZATION SERVICES FOR PRIVATE CLOUD MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
9. GLOBAL APPLICATION MODERNIZATION SERVICES TREATMENT FOR HYBRID CLOUD MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
10. GLOBAL MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SIZE 2023-2031 ($ MILLION)
11. GLOBAL APPLICATION MODERNIZATION SERVICES FOR LARGE ENTERPRISE MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
12. GLOBAL APPLICATION MODERNIZATION SERVICES FOR SMES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
13. GLOBAL MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY INDUSTRIAL VERTICAL, 2023-2031 ($ MILLION)
14. GLOBAL APPLICATION MODERNIZATION SERVICES TREATMENT FOR BFSI MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
15. GLOBAL APPLICATION MODERNIZATION SERVICES TREATMENT FOR RETAIL AND E-COMMERCE MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
16. GLOBAL APPLICATION MODERNIZATION SERVICES TREATMENT FOR MANUFACTURING MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
17. GLOBAL APPLICATION MODERNIZATION SERVICES TREATMENT FOR IT AND TELECOMMUNICATION MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
18. GLOBAL APPLICATION MODERNIZATION SERVICES TREATMENT FOR OTHER END-USERS MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
19. GLOBAL APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
20. NORTH AMERICAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY COUNTRY, 2023-2031 ($ MILLION)
21. NORTH AMERICAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SERVICE TYPE, 2023-2031 ($ MILLION)
22. NORTH AMERICAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT, 2023-2031 ($ MILLION)
23. NORTH AMERICAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SIZE, 2023-2031 ($ MILLION)
24. NORTH AMERICAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY VERTICAL INDUSTRY OUTLOOK, 2023-2031 ($ MILLION)
25. EUROPEAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY COUNTRY, 2023-2031 ($ MILLION)
26. EUROPEAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SERVICE TYPE, 2023-2031 ($ MILLION
27. EUROPEAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT, 2023-2031 ($ MILLION)
28. EUROPEAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SIZE, 2023-2031 ($ MILLION)
29. EUROPEAN APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY VERTICAL INDUSTRY OUTLOOK, 2023-2031 ($ MILLION)
30. ASIA-PACIFIC APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY COUNTRY, 2023-2031 ($ MILLION)
31. ASIA-PACIFIC APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SERVICE TYPE, 2023-2031 ($ MILLION)
32. ASIA-PACIFIC APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT, 2023-2031 ($ MILLION)
33. ASIA-PACIFIC APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SIZE, 2023-2031 ($ MILLION)
34. ASIA-PACIFIC APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY VERTICAL INDUSTRY OUTLOOK, 2023-2031 ($ MILLION)
35. REST OF THE WORLD APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
36. REST OF THE WORLD APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SERVICE TYPE, 2023-2031 ($ MILLION)
37. REST OF THE WORLD APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT, 2023-2031 ($ MILLION)
38. REST OF THE WORLD APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY SIZE, 2023-2031 ($ MILLION)
39. REST OF THE WORLD APPLICATION MODERNIZATION SERVICES MARKET RESEARCH AND ANALYSIS BY VERTICAL INDUSTRY OUTLOOK, 2023-2031 ($ MILLION)
1. GLOBAL MODERNIZATION SERVICES MARKET SHARE BY DEPLOYMENT, 2023 VS 2031 (%)
2. GLOBAL APPLICATION MODERNIZATION SERVICES FOR PUBLIC CLOUD MARKET SHARE BY REGION, 2023 VS 2031 (%)
3. GLOBAL APPLICATION MODERNIZATION SERVICES FOR PRIVATE CLOUD MARKET SHARE BY REGION, 2023 VS 2031 (%)
4. GLOBAL APPLICATION MODERNIZATION SERVICES FOR HYBRID CLOUD MARKET SHARE BY REGION, 2023 VS 2031 (%)
5. GLOBAL APPLICATION MODERNIZATION SERVICES MARKET SHARE BY SERVICE TYPE, 2023 VS 2031 (%)
6. GLOBAL APPLICATION MODERNIZATION SERVICES FOR APPLICATION PORTFOLIO ASSESSMENT MARKET SHARE BY REGION, 2023 VS 2031 (%)
7. GLOBAL APPLICATION MODERNIZATION SERVICES FOR CLOUD APPLICATION MIGRATION MARKET SHARE BY REGION, 2023 VS 2031 (%)
8. GLOBAL APPLICATION MODERNIZATION SERVICES FOR APPLICATION RE-PLATFORMING MARKET SHARE BY REGION, 2023 VS 2031 (%)
9. GLOBAL MODERNIZATION SERVICES FOR OTHER APPLICATIONS MARKET SHARE BY REGION, 2023 VS 2031 (%)
10. GLOBAL APPLICATION MODERNIZATION SERVICES MARKET SHARE BY SIZE, 2023 VS 2031 (%)
11. GLOBAL APPLICATION MODERNIZATION SERVICES FOR LARGE ENTERPRISE MARKET SHARE BY REGION, 2023 VS 2031 (%)
12. GLOBAL APPLICATION MODERNIZATION SERVICES FOR SMEs MARKET SHARE BY REGION, 2023 VS 2031 (%)
13. GLOBAL APPLICATION MODERNIZATION SERVICES MARKET SHARE BY INDUSTRY VERTICAL OUTLOOK, 2023 VS 2031 (%)
14. GLOBAL APPLICATION MODERNIZATION SERVICES FOR BFSI MARKET SHARE BY REGION, 2023 VS 2031 (%)
15. GLOBAL APPLICATION MODERNIZATION SERVICES FOR RETAIL AND E-COMMERCE MARKET SHARE BY REGION, 2023 VS 2031 (%)
16. GLOBAL APPLICATION MODERNIZATION SERVICES FOR MANUFACTURING MARKET SHARE BY REGION, 2023 VS 2031 (%)
17. GLOBAL APPLICATION MODERNIZATION SERVICES FOR IT & TELECOMMUNICATION MARKET SHARE BY REGION, 2023 VS 2031 (%)
18. GLOBAL APPLICATION MODERNIZATION SERVICES FOR OTHER END-USER VERTICAL MARKET SHARE BY REGION, 2023 VS 2031 (%)
19. GLOBAL APPLICATION MODERNIZATION SERVICES MARKET SHARE BY REGION, 2023 VS 2031 (%)
20. US APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
21. CANADA APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
22. UK APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
23. FRANCE APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
24. GERMANY APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
25. ITALY APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
26. SPAIN APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
27. REST OF EUROPE APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
28. INDIA APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
29. CHINA APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
30. JAPAN APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
31. SOUTH KOREA APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
32. REST OF ASIA-PACIFIC APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
33. LATIN AMERICA APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
34. MIDDLE EAST AND AFRICA APPLICATION MODERNIZATION SERVICES MARKET SIZE, 2023-2031 ($ MILLION)
