Global Application Modernization Services Market was valued at approximately USD 21.78 billion in 2023 and is anticipated to grow with a compound annual growth rate (CAGR) exceeding 10.02% over the forecast period from 2024 to 2032. Application Modernization Services are integral to upgrading and transforming legacy software systems to meet contemporary business requirements while leveraging modern technological advancements. These services include refactoring, re-platforming, re-hosting, and integrating new features to enhance the overall performance, security, and scalability of applications. By modernizing their applications, businesses can significantly reduce operational costs, improve user experience, and ensure seamless compatibility with the latest digital ecosystems. This modernization is critical for companies striving to maintain competitiveness, agility, and responsiveness in an increasingly fast-paced technological environment.
The Global Application Modernization Services Market expansion is driven by rising need for cost savings, increased demand for reducing code complexity, the necessity to accelerate time-to-market, rapid technological advancements, and the imperative to comply with regulatory requirements. Businesses are increasingly seeking cost savings, leading to a higher demand for services that can streamline and optimize legacy applications. The need to reduce code complexity is also driving the market, as simpler code structures lead to easier maintenance and scalability. Companies are under pressure to accelerate time-to-market for their products and services, pushing for modernization to stay competitive. Additionally, rapid technological advancements are prompting organizations to update their applications, while regulatory compliance requirements are further encouraging modernization efforts to ensure systems meet current legal standards. However, challenges such as a lack of proper knowledge and costly maintenance may hinder market growth during the forecast period.
The key regions considered for the market study includes Asia Pacific, North America, Europe, Latin America, and Rest of the World. In 2023, North America is expected to dominate the application modernization services market attributed to the growing adoption of cloud-based platforms driven by increased digitalization and robust technological advancements. Furthermore, increasing government investments in AI and IoT-based services are contributing to the market's growth by enhancing application performance. The presence of major competitors and their significant revenue generation accounts for the largest market share in this region.
Major market players included in this report are:
Tech Mahindra Ltd
Accenture
IBM Corporation
TATA Consultancy Services Limited
Microsoft Corporation
Infosys Limited
Nutanix
Oracle Corporation
Deloitte
Dell Inc
Wipro
Atos SE
Cognizant
Capgemini
HCL Technologies Ltd
The detailed segments and sub-segment of the market are explained below:
By Type:
Application Portfolio Assessment
Cloud Application Migration
Re-platforming
Application Integration
UI Modernization
Post-Modernization
By Deployment:
Public Cloud
Private Cloud
Hybrid Cloud
Multi-cloud
By Organization Size:
Large Enterprises
SMEs
By Application:
BFSI
Healthcare
Telecommunication
Retail & Consumer Goods
Automotive
IT & ITeS
Manufacturing
Government & Public Sector
Oil and Energy
Others
By Region:
North America:
U.S.
Canada
Europe:
UK
Germany
France
Spain
Italy
ROE
Asia Pacific:
China
India
Japan
Australia
South Korea
RoAPAC
Latin America:
Brazil
Mexico
RoLA
Middle East & Africa:
Saudi Arabia
South Africa
RoMEA
Years considered for the study are as follows:
Historical year - 2022
Base year - 2023
Forecast period - 2024 to 2032
Key Takeaways:
Market Estimates & Forecast for 10 years from 2022 to 2032.
Annualized revenues and regional level analysis for each market segment.
Detailed analysis of geographical landscape with Country level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of competitive structure of the market.
Demand side and supply side analysis of the market
