Application Modernization Services Market Report 2026

Application Modernization Services Market Overview

• Application Modernization Services market size has reached to $24.39 billion in 2025 • Expected to grow to $60.95 billion in 2030 at a compound annual growth rate (CAGR) of 20.1% • Growth Driver: Cloud Computing's Surge Is Fueling Growth In The Application Modernization Services Market • Market Trend: IBM Revolutionizes Coding With Watsonx Code Assistant • North America was the largest region in 2025.

What Is Covered Under Application Modernization Services Market?

Application modernization refers to the technique of modernizing older software for newer computing methodologies. It helps in increasing agility and innovation, lowering costs and risks to streamline business and facilitate growth. The application modernization services are used to update older software that helps in developing new computing approaches, that includes newer languages, frameworks, and infrastructure platforms. The main types of application modernization services are COBOL, ADA, PL/1, RPG, assembler, power builder, and other types. COBOL is used to migrate COBOL applications in mass or stages to the target programming language and platform of preference. COBOL stands for Common Business-Oriented Language, a high-level programming language that uses the English language and is designed for business computer programs in industries such as finance and human resources The various cloud development modes are private cloud, public cloud, and hybrid cloud. The various applications are post-modernization, application portfolio assignment, UI modernization, cloud application mitigation, application integration, and application re-platforming. The various verticals are BFSI, healthcare, and life sciences, telecommunications, IT and ITeS, retail and consumer goods, government and public sector, energy and utilities, manufacturing, and other verticals.

What Is The Application Modernization Services Market Growth Forecast?

The application modernization services market size is expected to see exponential growth in the next few years. It will grow to $60.95 billion in 2030 at a compound annual growth rate (CAGR) of 20.1%. The growth in the forecast period can be attributed to increasing cloud migration investments, rising adoption of containerization technologies, expansion of hybrid cloud strategies, growing emphasis on application security modernization, increasing demand for continuous application innovation. Major trends in the forecast period include increasing adoption of cloud-native application architectures, rising demand for legacy application reengineering, growing use of microservices-based modernization, expansion of devops-driven modernization programs, enhanced focus on application scalability and resilience.

Global Application Modernization Services Market Segmentation

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

What Is The Driver Of The Application Modernization Services Market?

Increasing utilization of cloud computing is expected to drive the growth of the application modernization services market going forward. Cloud computing refers to the delivery of various computing services, including servers, storage, databases, networking, software, analytics, and more, over the internet. Cloud computing provides a scalable and flexible infrastructure, allowing businesses to easily scale their applications up or down based on demand. Application modernization services enable organizations to adapt their existing applications to leverage the scalability and flexibility offered by cloud platforms. For instance, in July 2024, according to CloudZero, a US-based cloud cost intelligence platform, more than 90% of organizations are utilizing cloud services, with approximately 67% operating in a public cloud environment and 45% using private clouds. Additionally, 48% of organizations plan to migrate at least half of their applications to the cloud within the next year, indicating a strong trend toward cloud adoption. Therefore, the increasing utilization of cloud computing is driving the growth of the application modernization services industry.

Key Players In The Global Application Modernization Services Market

Major companies operating in the application modernization services market are Accenture PLC; Aspire Systems Inc.; Asysco Inc.; Bell Integrator Inc.; Blu Age Corp.; Capgemini SE; Cognizant Technology Solutions Corporation; DXC Technology Company; EPAM Systems Inc.; HCL Technologies Limited; Hexaware Technologies Limited; IBM Corporation; Infosys Limited; Micro Focus International PLC; Modern Systems Inc.; 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; Trianz Holdings Private Limited; Persistent Systems and Solutions Limited; Sonata Software Ltd.

Global Application Modernization Services Market Trends and Insights

Major companies operating in the application modernization services market are focusing on product developments, such as AI-powered assistants, to sustain their position in the market. AI-powered assistants enterprise coding assistant refers to software tools that use artificial intelligence to help developers write code faster and more accurately. For instance, in October 2023, International Business Machines Corporation, a US-based multinational technology and consulting company, introduced Watsonx Code Assistant, a cutting-edge generative AI-powered assistant designed to assist enterprise developers and information technology (IT) operators in coding more efficiently and accurately. This innovative tool utilizes natural language prompts to streamline coding processes. Currently catering to two key enterprise use cases, it offers IT automation through Watsonx Code Assistant for Red Hat Ansible Lightspeed, facilitating tasks like network configuration and code deployment. Additionally, it addresses mainframe application modernization with Watsonx Code Assistant for Z, enabling the translation of COBOL to Java. In essence, IBM's Watsonx Code Assistant aims to enhance coding productivity by leveraging the power of artificial intelligence to understand and respond to natural language queries, thereby simplifying complex coding tasks for enterprise users.

What Are Latest Mergers And Acquisitions In The Application Modernization Services Market?

In May 2024, Rocket Software, a US-based software company, acquired OpenText's application modernization and connectivity (AMC) business for $2.275 billion. The acquisition enhances Rocket Software's capabilities in mainframe modernization, providing industry-leading tools for legacy system updates and positioning the company as a key player in facilitating transitions to hybrid cloud environments. OpenText, a US-based software company, offers a variety of strategies for application modernization, including platform upgrades, user experience enhancements, and operational optimizations

Regional Insights

North America was the largest region in the application modernization services market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Application Modernization Services Market?

The application modernization services market includes revenues earned by entities by providing rehosting, rearchitecting and recoding application modernization services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Application Modernization Services Market Report 2026?

The application modernization services market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the application modernization services industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.