Mainframe Modernization Market Report 2026

Mainframe Modernization Market Overview

• Mainframe Modernization market size has reached to $18.12 billion in 2025 • Expected to grow to $36.18 billion in 2030 at a compound annual growth rate (CAGR) of 14.8% • Growth Driver: The Increasing Adoption of Cloud-Based Solutions Is Fueling the Growth of the Market due to Rising Multi-Cloud Usage • Market Trend: Leveraging Artificial Intelligence (AI) To Transform Legacy Systems And Accelerate Digital Growth • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Mainframe Modernization Market?

Mainframe modernization is the process of updating and transforming legacy mainframe systems to more modern, agile, and cost-effective technologies. It involves migrating applications, data, and workloads from traditional mainframes to cloud-based, distributed, or hybrid environments while preserving critical business functions. This modernization enhances scalability, performance, security, and integration with contemporary digital platforms. The main components of mainframe modernization are software, services, and hardware. Software refers to the tools and platforms used to modernize, transform, or integrate mainframe applications and data into modern cloud or hybrid environments. These are deployed on-premises, cloud-based, or hybrid, and are utilized by small and medium enterprises and large enterprises across applications such as core banking, risk and compliance, payments, customer management, and fraud detection, serving key end-users including banking, financial services and insurance (BFSI), healthcare, retail, government, manufacturing, information technology and telecommunications and others.

What Is The Mainframe Modernization Market Growth Forecast?

The mainframe modernization market size is expected to see rapid growth in the next few years. It will grow to $36.18 billion in 2030 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to growth of hybrid cloud mainframe strategies, adoption of automated modernization tools, increased use of containers and middleware integration, demand for real-time analytics on core data, expansion of managed modernization services. Major trends in the forecast period include mainframe to cloud migration programs, api enablement for core systems, automated code refactoring and conversion, hybrid mainframe integration architectures, modern devops for cobol workloads.

Global Mainframe Modernization Market Segmentation

1) By Component: Software, Services, Hardware 2) By Deployment Mode: On-Premises, Cloud-Based, Hybrid 3) By Enterprise Size: Small And Medium Enterprises, Large Enterprises 4) By Application: Core Banking, Risk And Compliance, Payments, Customer Management, Fraud Detection, Other Applications 5) By End-User: Banking, Financial Services, and Insurance (BFSI), Healthcare, Retail, Government, Manufacturing, Information Technology And Telecom, Other End-Users Subsegments: 1) By Software: Application Modernization Tools, Code Refactoring Tools, Automated Code Analysis Platforms, Middleware And Integration Software, Application Programming Interface Management Platforms 2) By Services: Consulting Services, Assessment And Roadmapping Services, Application Modernization Services, Replatforming And Rehosting Services, Cloud Migration Services 3) By Hardware: Enterprise Mainframe Systems, Compute Accelerators, Storage Systems, Input Output Subsystems, Networking Equipment

What Is The Driver Of The Mainframe Modernization Market?

The increasing adoption of cloud-based solutions is expected to propel the growth of the mainframe modernization market going forward. Cloud-based solutions are computing resources such as infrastructure, platforms, and software delivered over the internet on demand and managed by third-party providers. The shift towards cloud-based solutions is due to growing multi-cloud strategies that enhance resilience and reduce vendor lock-in. Mainframe modernization enables this driver by refactoring and application programming interface (API)-enabling legacy workloads to integrate with cloud-native services and run in hybrid or multi-cloud architectures. For instance, in March 2024, according to Flexera, a US-based computer software company, multi-cloud usage has seen a slight rise, increasing from 87% last year to 89% this year. Therefore, the increasing adoption of cloud-based solutions is driving the mainframe modernization industry.

Key Players In The Global Mainframe Modernization Market

Major companies operating in the mainframe modernization market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Accenture plc, International Business Machines Corporation, Oracle Corporation, Tata Consultancy Services Limited, Fujitsu Limited, NTT DATA Corporation, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Kyndryl Holdings Inc., DXC Technology Company, HCL Technologies Limited (HCLTech), Atos SE, Wipro Limited, Tech Mahindra Limited, LTIMindtree Limited, Unisys Corporation

Global Mainframe Modernization Market Trends and Insights

Major companies operating in the mainframe modernization market are focusing on innovative product launches such as artificial intelligence (AI)-enabled modernization services to speed migrations and lower risk. Artificial intelligence (AI)-enabled modernization services use generative-to-agentic artificial intelligence (AI) to automate analysis, code conversion, testing, and cutover planning across legacy mainframe estates. For instance, in June 2025, Kyndryl Inc., a US-based provider of information technology (IT) infrastructure services, launched Mainframe Modernization Services leveraging Amazon Web Services (AWS) agentic artificial intelligence (AI) capabilities (AWS Transform for Mainframe). It accelerates application and data migration off the mainframe, automates modernization tasks to reduce effort and errors, and provides advisory and implementation support to de-risk cloud transition.

What Are Latest Mergers And Acquisitions In The Mainframe Modernization Market?

In January 2024, International Business Machines Corporation, a US-based global information technology (IT) and consulting company, acquired Advanced Computer Software Group Limited for an undisclosed amount. With this acquisition, IBM aims to enhance its mainframe application and data modernization capabilities, combining talent, tools, and expertise to accelerate clients’ hybrid cloud transformation journeys and expand IBM Consulting’s modernization services. Advanced Computer Software Group Limited is a UK-based company, provides application modernization, cloud services, and industry-specific software.

Regional Insights

North America was the largest region in the mainframe modernization market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. 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 Mainframe Modernization Market?

The mainframe modernization market consists of revenues earned by entities by providing services such as rehosting, replatforming, refactoring, code transformation, testing and quality assurance, migration and assessment, consulting and advisory, maintenance and support. 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 Mainframe Modernization Market Report 2026?

The mainframe modernization 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 mainframe modernization 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.