Application Modernization Services

Application Modernization Services

Global Application Modernization Services Market to Reach US$74.6 Billion by 2030

The global market for Application Modernization Services estimated at US$29.9 Billion in the year 2024, is expected to reach US$74.6 Billion by 2030, growing at a CAGR of 16.4% over the analysis period 2024-2030. Application Re-Platforming Services, one of the segments analyzed in the report, is expected to record a 15.8% CAGR and reach US$25.2 Billion by the end of the analysis period. Growth in the Application Integration Services segment is estimated at 16.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$8.3 Billion While China is Forecast to Grow at 15.7% CAGR

The Application Modernization Services market in the U.S. is estimated at US$8.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$11.4 Billion by the year 2030 trailing a CAGR of 15.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 14.5% and 14.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.0% CAGR.

Global Application Modernization Services Market - Key Trends and Drivers Summarized

What’s Driving the Urgent Need for Application Modernization?

The rapid pace of digital transformation across industries has made it imperative for businesses to revisit their legacy systems. These outdated systems, often built on obsolete technologies, struggle to keep up with the demands of modern business environments. Companies are increasingly turning to application modernization services to breathe new life into these legacy systems, ensuring they are compatible with current and emerging technologies. The need for increased agility, scalability, and enhanced security is pushing organizations to modernize their applications, enabling them to respond swiftly to market changes, regulatory demands, and consumer expectations. Moreover, the integration of advanced technologies like AI, machine learning, and data analytics into existing systems is crucial for companies aiming to stay competitive in a tech-driven landscape.

How Are Cloud-Native and Microservices Architectures Shaping the Market?

The adoption of cloud-native architectures and microservices is significantly influencing the application modernization landscape. As organizations shift from monolithic to more flexible and scalable microservices architectures, the need for modernized applications that can operate efficiently in such environments has become paramount. Cloud migration strategies are also playing a crucial role, as more businesses move their operations to the cloud to leverage its cost benefits, scalability, and global accessibility. This migration often necessitates the modernization of existing applications to ensure they are cloud-ready and can fully exploit the benefits of cloud platforms. Moreover, the rise of containerization technologies, which allow applications to be deployed consistently across various environments, is further driving the demand for application modernization services. These technologies are not just trends but critical enablers that are shaping how businesses approach IT infrastructure and operations.

What Role Do Regulations and Cybersecurity Play in Modernization?

Regulatory compliance and cybersecurity concerns are increasingly influencing the market for application modernization services. As data privacy laws become more stringent globally, organizations are under pressure to ensure their applications comply with these regulations. Legacy systems, often not designed with modern compliance standards in mind, are at a higher risk of non-compliance, leading to potential legal and financial repercussions. This has spurred a wave of modernization initiatives aimed at upgrading applications to meet current regulatory requirements. Simultaneously, the growing threat landscape in cybersecurity is driving organizations to modernize their applications to protect against vulnerabilities inherent in older systems. Modernized applications are typically more secure, incorporating the latest security protocols and practices to safeguard against data breaches and cyber-attacks. This dual focus on compliance and security is a critical factor driving the need for application modernization across various industries.

What’s Fueling the Growth in the Application Modernization Services Market?

The growth in the application modernization services market is driven by several factors, reflecting a combination of technological advancements and evolving business needs. The shift towards cloud-based solutions is a primary driver, as businesses increasingly recognize the need to optimize their applications for the cloud to enhance performance and reduce costs. The rise of remote work and the need for flexible, scalable IT infrastructure have further accelerated the adoption of modernization services. Additionally, the growing complexity of IT environments, with the proliferation of IoT devices and the adoption of edge computing, has expanded the scope for application modernization. This complexity necessitates the continuous evolution of applications to maintain efficiency and competitiveness. Furthermore, the increasing integration of AI and machine learning into business processes is pushing companies to modernize their applications to support these advanced technologies. The focus on improving customer experience, ensuring business continuity, and maintaining a competitive edge in an increasingly digital marketplace are also crucial drivers propelling the growth of application modernization services. These factors collectively underline the critical role of modernization in the future-proofing of business operations.

SCOPE OF STUDY:

The report analyzes the Application Modernization Services market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service (Application Re-Platforming, Application Integration, Cloud Application Migration, Application Portfolio Assessment, Other Services); Organization Size (Large Enterprises, SMEs); Vertical (BFSI, Healthcare & Life Sciences, Telecommunications, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 31 Featured) -

• Accenture
• Asysco, Inc.
• Atos SA
• Bell Integrator
• Capgemini SE
• Cognizant Technology Solutions Corporation
• Fujitsu Ltd.
• HCL Technologies Ltd.
• IBM Corporation
• Macrosoft Inc.
• Micro Focus International PLC
• Oracle Corporation
• Tech Mahindra Ltd.
• UST Global

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