What Transformation Has the Application Modernization Services Market Undergone?
The application modernization services market has seen considerable growth due to a variety of factors.
• In recent times, there has been a quick expansion in the size of the application modernization services market. It's projected to surge from $21.13 billion in 2024 to a whopping $24.58 billion in 2025, with an anticipated compound annual growth rate (CAGR) of 16.3%. This impressive growth during the historic period can be traced back to various factors such as optimization of business processes, cost efficiency, enhancement of user experience, data management complications, market rivalry, and the necessity for innovation.
What Is The Forecast For The Application Modernization Services Market By 2029?
The Application Modernization Services market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for application modernization services is projected to experience significant expansion over the upcoming years, escalating to a value of $51.92 billion in 2029 with a CAGR of 20.6%.
The predicted rise during the forecast period can be associated with various factors such as mobile-centric approaches, the shift to remote work practices, evolving customer demands, flexible scalability needs, data privacy and adherence to regulations, and promoting environmental sustainability. Notable trends anticipated within this period involve increased adoption of cloud-native, the architecture of microservices, containerization and orchestration, integration of DevOps, an API-first perspective, enhanced security and regulatory compliance, and the implementation of hybrid and multi-cloud strategies.
What Are The Essential Drivers Behind The Growth Of The Application Modernization Services Market?
The forecasted growth in the application modernization services market is anticipated to be prompted by an increasing number of enterprises utilizing digital technologies and applications. These digital technologies are electronic systems, devices, and resources used for data generation, storage, or processing. Using modern technologies, application modernization services support businesses in updating their IT infrastructure and applications. For example, Whatfix, an SaaS-based Indian digital adoption platform, reported in October 2023 that global IT spending is predicted to achieve a landmark of $5 trillion in 2024, displaying an 8.6% rise from 2023. This increase emphasizes the mounting importance companies are attributing to digital technologies to enhance their operations and acclimate to the shifting market requirements. Thus, the escalating number of enterprises employing digital technologies and applications is instrumental in propelling the application modernization services market.
How Is The Global Application Modernization Services Market Divided Into Key Segments?
The application modernization services market covered in this report is segmented –
1) By Type: Cobol, ADA, PL Or 1, RPG, Assembler, PowerBuilder, Others Types
2) By Cloud Deployment Mode: Private Cloud, Public Cloud, Hybrid Cloud
3) By Application: Post Modernization, Application Portfolio Assignment, Ui Modernization, Cloud Application Mitigation, Application Integration, Application Re Platforming
4) By Vertical: BFSI, Healthcare And Life Sciences, Telecommunications, IT And ITeS, Retail And Consumer Goods, Government And Public Sector, Energy And Utilities, Manufacturing, Others Vertical
Subsegments:
1) By Cobol: Cobol To Java Migration, Cobol To .NET Migration
2) By ADA: ADA Code Conversion, ADA Integration Services
3) By PL Or 1: PL Or 1 Modernization, PLOr 1 To Java Migration
4) By RPG: RPG To Java Migration, RPG Web Enabling
5) By Assembler: Assembler Code Conversion, Assembler Modernization Solutions
6) By PowerBuilder: PowerBuilder Migration To Web, PowerBuilder Application Reengineering
7) By Other Types: Legacy Application Modernization, Database Modernization, Custom Application Development
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What Trends Are Reshaping The Future Of The Application Modernization Services Market?
In the application modernization services market, technological innovations are considered a significant trend. Topnotch businesses in the market are adopting state-of-the-art technologies such as the SMART Modernization service, which relies on AI, machine learning, and expedites digital revolution technology to procure a competitive market advantage. For instance, in October 2023, AVEVA, a British firm specializing in industrial software, unveiled a refined strategy that includes a novel Hybrid Cloud Manufacturing Execution System. This groundbreaking system offers enhanced capabilities for real-time data manipulation and analytics, empowering manufacturers to fine-tune operations and boost decision-making. The introduction showcases AVEVA's dedication to encouraging digital transformation within the manufacturing industry by furnishing a flexible solution that capitalizes on the strength of hybrid cloud technology.
Who Are the Key Players In The Application Modernization Services Market?
Major companies operating in the application modernization services market include:
• Accenture PLC
• Aspire Systems Inc.
• Asysco Inc.
• Bell Integrator Inc.
• Blu Age Corp.
• Capgemini SE
• Cognizant Technology Solutions Corporation
• Dell Inc.
• DXC Technology Company
• EPAM Systems Inc.
• HCL Technologies Limited
• Hexaware Technologies Limited
• IBM Corporation
• Infosys Limited
• Micro Focus International PLC
• Microsoft Corporation
• Modern Systems Inc.
• Oracle Corporation
• Tata Consultancy Services Limited
• Tech Mahindra Limited
• The Software Revolution Inc.
• Wipro Limited
• Atos Information Technology Incorporated
• Deloitte Touche Tohmatsu LLC
• Cuelogic Technologies Pvt. Ltd.
• Mindtree Consulting Private Limited
• Larsen & Toubro Infotech Ltd.
• Virtusa Consulting Services Private Limited
• Nippon Telegraph and Telephone Public Corporation
• Trianz Holdings Private Limited
• Persistent Systems and Solutions Limited
• Sonata Software Ltd.
What Are The Regional Insights Into The Application Modernization Services Market?
North America was the largest region in the application modernization services market in 2024. The regions covered in the application modernization services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
