Application Modernization Services Market Size By Type (Application Portfolio Assessment, Cloud Application Migration, Re-Platforming, Application Integration, UI Modernization, Post-Modernization), By Deployment, Organization Size, Application & Global F

Application Modernization Services Market Size By Type (Application Portfolio Assessment, Cloud Application Migration, Re-Platforming, Application Integration, UI Modernization, Post-Modernization), By Deployment, Organization Size, Application & Global Forecast, 2023-2032

Global Application Modernization Services Market is set to grow significantly from 2023 to 2032 owing to the high demand for these services to reduce code complexity.
Consistent modification of legacy systems by multiple developers over the years has resulted in spaghetti code, which is extremely complicated and rigid. These systems are incredibly difficult to change and cannot be modified frequently. The accelerating need by companies for a method for transferring these legacy systems into a setting where they can be readily upgraded and maintained has spurred the demand for application modernization services.
Companies must ensure that their apps can support their activities as they increasingly rely on digital platforms and procedures to promote development and innovation. To address this concern, market players are introducing new solutions. Citing an instance, in December 2022, Kyndryl, an IT infrastructure service provider, launched its Cloud Native Services, which will assist organizations in speeding up their cloud application modernization initiatives. It will also enable enterprises to migrate their on-premises apps to cloud service providers including AWS, GCP, and Azure using the new set of capabilities.
The application modernization services industry is segmented based on product, deployment, application, and region.
The application modernization services industry from the application integration segment is estimated to expand at more than 10% CAGR from 2023 to 2032. Modernization requires keeping a program running while safely exposing its features or data via APIs. This method, which greatly focuses on integration, allows new, cloud-native apps to leverage the capabilities of existing systems and data seamlessly. Moreover, the market is projected to be fueled by the increasing penetration of cloud technology.
By deployment, the hybrid cloud segment is projected to hold a sizeable revenue share in the application modernization services industry. Many organizations prefer hybrid cloud because it allows them to balance their usage of public and private cloud resources. Organizations can use a combination of cloud technologies to benefit from the scalability and cost benefits of the public cloud while maintaining control over their sensitive data in a private cloud, which is a major factor propelling the segment growth through 2032.
The application modernization services market from the automotive application segment is set to record significant growth through 2032. The ongoing efforts by telecommunications businesses to keep up with the newest technology and remain competitive by offering innovative services in the rapidly evolving sector of telecommunications are contributing to segment growth. Telecommunication organizations can access previously inaccessible features and functions by switching to cloud-based systems, thereby boosting the product adoption rate.
Regionally, the Asia Pacific application modernization services market is estimated to amass around USD 15 billion by the end of 2032. The rapid digitization of industries and the presence of major industry players across APAC will boost regional industry growth. Furthermore, enterprises in the APAC region are heavily investing in their application modernization initiatives to address the obstacles that legacy applications present in their digital transformation ambitions, particularly as they transition to new ways of working and serving customers remotely.