Global Application Modernization Services Market

Application Modernization Services Market Size, Share, Growth Analysis, By Vertical(Healthcare, IT, Telecommunication, Energy and utilities), By Deployment Type(Hybrid Cloud, Private Cloud and Public Cloud), By Application(Post Modernization, Application Portfolio Assignment, UI Modernization, Cloud Application Mitigation), By Region - Industry Forecast 2024-2031


Report ID: SQMIG45B2045 | Region: Global | Published Date: April, 2024
Pages: 197 |Tables: 95 |Figures: 76

Application Modernization Services Market Insights

Global Application Modernization Services Market size was valued at USD 15.21 billion in 2022 and is poised to grow from USD 17.75 billion in 2023 to USD 61.06 billion by 2031, growing at a CAGR of 16.70% during the forecast period (2024-2031).

The global application modernization services market is anticipated to be driven by the increasing demand for business agility and a quicker time to market, optimum utilization of big data technologies, and the integration of cloud computing into application modernization plans.

Increased demand for enhanced software functionalities brought on by changes in the business environment, increased demand for the flexibility and scalability provided by cloud computing, and the benefits of fusing contemporary technologies with software systems are just a few of the factors fueling the market growth for application modernization services. However, the complexity and price hike associated with application modernization are also anticipated to stall industry expansion. The prevalence of numerous legacy applications, the development of open standards for software expansion, and the post-pandemic need for contemporary infrastructure to ensure business continuity will all further create growth opportunities in the application modernization services market.

However, the decrease in technology expenditures driven on by the COVID-19 pandemic epidemic and the lack of IT skills among the workforce may provide barriers to the expansion of the application modernization services industry.

US Application Modernization Services Market is poised to grow at sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 15.21 billion

Largest Segment

Application Replatforming

Fastest Growth

Application Replatforming

Growth Rate

16.70% CAGR

Global Application Modernization Services Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)

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Application Modernization Services Market Segmental Analysis

The global application modernization services market is segmented based on vertical, deployment type, application and region. Based on verticals, the market is segmented into healthcare, IT, telecommunication, energy and utilities, manufacturing, consumer goods and Retail. In terms of deployment type, the market is classified into hybrid cloud, private cloud, and public cloud. In terms of application, the market is segmented into post modernization, application portfolio assignment, UI modernization, cloud application mitigation, application integration, and application replatforming. Based on region, the market is widespread into North America, Europe, Asia-Pacific, South America, and MEA.

Global Application Modernization Services Market Analysis by Application

The market for application modernization services has been divided into post modernization, application portfolios assignment, Ul modemnization, cloud application mitigation, application integration, and application replatforming. The market was dominated by the application replatforming segment in 2021, and due to the sector's improved networking speeds, flexibility, scalability, and quicker application delivery, it is anticipated that the segment would grow at the fastest rate over the forecast period, 2022– 2030. Numerous small, medium, and large-scale enterprises from various industry verticals are asking for application modemization services to communicate with their old systems and resolve problems. Services for migrating applications to cloud environments are becoming more and more necessary.

Global Application Modernization Services Market Analysis by Vertical

The market for application modernization services has been broken down by vertical into the following industries: healthcare, information technology, telecommunications, energy & utilities, manufacturing, consumer products, and retail. The telecommunications segment, which led market expansion in 2, is anticipated to experience the fastest growth over the forecast period of 2022–2030. Major telecom providers are asking for different cloud architectures, like containerization and microservices, to serve their businesses. This is encouraging the development of hybrid cloud architecture in order to assess the migration of apps to the cloud.

Global Application Modernization Services Market By Application, 2022 (%), 2023 (%)

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Application Modernization Services Market Regional Insights

North America holds the dominant position in the market for application modernization services. The expansion of the application modernization services market in the region will also be aided by the rise in infrastructure adoption, favorable infrastructure conditions, and an increasing number of application modernization projects throughout the course of the forecast period. 

Due to the expansion of businesses, Asia Pacific is predicted to experience considerable growth in the market for application modernization services. Additionally, it is anticipated that the expansion of IT services firms as a result of sizable government investments to modernize the IT infrastructure will fuel the growth of the application modernization services market in the region in the upcoming years. Growing populations, major technological breakthroughs, and intensive technologies to fulfill the expanding demand for software services in countries like Australia, China, Japan, and India are driving the Asia-Pacific application modernization industry. Numerous Asian nations are predicted to present fantastic opportunities for putting application modernization strategies into practice. Application modernization is encouraged by the presence of numerous well-known vendors and by government investments in technology-related services.

Global Application Modernization Services Market By Geography, 2022-2030, 2024-2031
  • Largest
  • Fastest

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Application Modernization Services Market Dynamics

Global Application Modernization Services Market Drivers

Growing Complexity of Legacy Applications

  • Legacy applications can be complex and difficult to maintain, update, and integrate with modern technologies. Application modernization services can help simplify and streamline legacy applications and make them more compatible with modern platforms.

Increasing Demand for Cloud-based Solutions

  • The demand for cloud-based solutions is growing, as companies seek to improve scalability, flexibility, and security while reducing costs. Application modernization services can help companies to modernize their legacy applications and make them cloud-ready.

Global Application Modernization Services Market Restraints

Security Concerns

  • Security is a major concern for companies looking to modernize their legacy applications. Modernization services may introduce new security risks, which need to be carefully managed and addressed. This, in turn, may impact the overall growth of this market in the forecast period.

Lack of Skilled Professionals

  • There is a shortage of skilled professionals who can help companies modernize their legacy applications. This can make it difficult for companies to find the right expertise and resources to complete their modernization projects.

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Application Modernization Services Market Competitive Landscape

The global application modernization services market is highly competitive with the presence of a large number of players. The market is characterized by the presence of both established players and new entrants offering a wide range of services. These companies are focusing on various strategies such as mergers and acquisitions, partnerships, and collaborations, to expand their market presence and gain a competitive edge. For instance, in 2020, Accenture announced the acquisition of Sentelis, a data science and machine learning company, to enhance its artificial intelligence and machine learning capabilities.

Global Application Modernization Services Market Top Player’s Company Profiles

  • Capgemini SE
  • Cognizant Technology Solutions Corp.
  • HCL Technologies Ltd.
  • IBM Corporation
  • Infosys Limited
  • Micro Focus International plc
  • Mindtree Limited
  • Mphasis Ltd.
  • NTT Data Corporation
  • Oracle Corporation
  • SAP SE
  • Tata Consultancy Services Limited
  • Tech Mahindra Ltd.
  • Unisys Corporation
  • Virtusa Corporation
  • Wipro Limited
  • Zensar Technologies Ltd.

Recent Developments

  • In August 2021, Cognizant announced the acquisition of TQS Integration, an Irish consulting firm specializing in digital transformation services, to enhance its capabilities in the life sciences and manufacturing sectors.
  • In June 2021, Atos announced the launch of its new Cloud-Native Development Factory, a platform that enables organizations to modernize their legacy applications and develop cloud-native applications using modern technologies such as microservices, containers, and DevOps.

Application Modernization Services Key Market Trends

  • Cloud Migration: Cloud migration is a major trend in the application modernization services market, as more and more organizations are looking to move their legacy applications to the cloud. Cloud migration enables organizations to improve scalability, agility, and cost-efficiency, while also enhancing security and reliability.
  • Agile Development: Agile development is gaining popularity in the application modernization services market, as it enables organizations to quickly and efficiently modernize their legacy applications while maintaining quality and minimizing risk. Agile development methodologies such as DevOps and CI/CD are being increasingly adopted by application modernization service providers.
  • Automation and AI: Automation and AI are being increasingly integrated into application modernization services to improve efficiency and reduce costs. Automation tools such as robotic process automation (RPA) and AI-powered analytics are being used to automate manual tasks and improve decision-making.
  • Legacy Modernization: Legacy modernization is a key trend in the application modernization services market, as organizations seek to modernize their legacy systems and applications to improve efficiency, security, and functionality. Modernization strategies such as re-platforming, re-hosting, and re-architecting are being used to modernize legacy systems.
  • Industry-specific Solutions: Application modernization service providers are increasingly offering industry-specific solutions to meet the unique needs and requirements of different industries. This trend is driven by the growing demand for customized solutions that can address specific business challenges and opportunities.

Application Modernization Services Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, we found that the Application Modernization Services market is Increased demand for enhanced software functionalities brought on by changes in the business environment, increased demand for the flexibility and scalability provided by cloud computing, and the benefits of fusing contemporary technologies with software systems are just a few of the factors fueling the market growth for application modernization services. However, the complexity and price hike associated with application modernization are also anticipated to stall industry expansion. The prevalence of numerous legacy applications, the development of open standards for software expansion, and the post-pandemic need for contemporary infrastructure to ensure business continuity will all further create growth opportunities in the application modernization services market. Automation and AI are being increasingly integrated into application modernization services to improve efficiency and reduce costs. Automation tools such as robotic process automation (RPA) and AI-powered analytics are being used to automate manual tasks and improve decision-making.

Report Metric Details
Market size value in 2023 USD 15.21 billion
Market size value in 2031 USD 61.06 billion
Growth Rate 16.70%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Vertical
    • Healthcare, IT, Telecommunication, Energy and utilities, Manufacturing, Consumer goods and Retail
  • Deployment Type
    • Hybrid Cloud, Private Cloud and Public Cloud
  • Application
    • Post Modernization, Application Portfolio Assignment, UI Modernization, Cloud Application Mitigation, Application Integration, and Application Replatforming
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Capgemini SE
  • Cognizant Technology Solutions Corp.
  • HCL Technologies Ltd.
  • IBM Corporation
  • Infosys Limited
  • Micro Focus International plc
  • Mindtree Limited
  • Mphasis Ltd.
  • NTT Data Corporation
  • Oracle Corporation
  • SAP SE
  • Tata Consultancy Services Limited
  • Tech Mahindra Ltd.
  • Unisys Corporation
  • Virtusa Corporation
  • Wipro Limited
  • Zensar Technologies Ltd.
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Application Modernization Services Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Application Modernization Services Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Application Modernization Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Application Modernization Services Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Application Modernization Services Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Application Modernization Services Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Application Modernization Services Market size was valued at USD 15.21 billion in 2022 and is poised to grow from USD 17.75 billion in 2023 to USD 61.06 billion by 2031, growing at a CAGR of 16.70% during the forecast period (2024-2031).

The application modernization services market is highly competitive with the presence of a large number of players. The market is characterized by the presence of both established players and new entrants offering a wide range of services. These companies are focusing on various strategies such as mergers and acquisitions, partnerships, and collaborations, to expand their market presence and gain a competitive edge. For instance, in 2020, Accenture announced the acquisition of Sentelis, a data science and machine learning company, to enhance its artificial intelligence and machine learning capabilities. 'Accenture plc', 'Atos SE', 'Capgemini SE', 'Cognizant Technology Solutions Corp.', 'Fujitsu Ltd.', 'HCL Technologies Ltd.', 'IBM Corporation', 'Infosys Limited', 'Micro Focus International plc', 'Mindtree Limited', 'Mphasis Ltd.', 'NTT Data Corporation', 'Oracle Corporation', 'SAP SE', 'Tata Consultancy Services Limited', 'Tech Mahindra Ltd.', 'Unisys Corporation', 'Virtusa Corporation', 'Wipro Limited', 'Zensar Technologies Ltd.'

Legacy applications can be complex and difficult to maintain, update, and integrate with modern technologies. Application modernization services can help simplify and streamline legacy applications and make them more compatible with modern platforms.

Cloud Migration: Cloud migration is a major trend in the application modernization services market, as more and more organizations are looking to move their legacy applications to the cloud. Cloud migration enables organizations to improve scalability, agility, and cost-efficiency, while also enhancing security and reliability.

North America holds the dominant position in the market for application modernization services. The expansion of the application modernization services market in the region will also be aided by the rise in infrastructure adoption, favorable infrastructure conditions, and an increasing number of application modernization projects throughout the course of the forecast period. 

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