Application Modernization Services Market Size By Type (Application Portfolio Assessment, Cloud Application Migration, Re-Platforming, Application Integration, UI Modernization, Post-Modernization), By Deployment, Organization Size, Application & Forecast, 2023-2032

Application Modernization Services Market Size

Application Modernization Services Market size was valued at USD 19.8 billion in 2022 and is projected to witness over 10% CAGR from 2023 to 2032.
 

The market growth is as many businesses are spending heavily on their IT budgets to maintain their outdated technology. Organizations are looking to switch from mainframe-based systems to distributed environments for reasons of cost savings. In order to compete and provide better services to their customers, many organizations must update their rigid legacy programs to more adaptive web infrastructures. The needs of other organizations for the integration of their legacy applications necessitate the use of web service technologies and service-oriented architectures. Organizations need to ensure that their software can be modified and upgraded as per requirements along with technology development.
 

The absence of sufficient skills and proper knowledge are some of the key barriers to modernizing apps. There are several reasons for this, some of which include the fact that the original programmers are no longer employed by the company or working on the same project, the lack of or outdatedness of technical documentation, the inaccessibility of external resources or libraries, and the extensive rewriting of the source code. The presence of various older programs, the emergence of open standards for software development, the expansion of Kubernetes, and containerization are all opportunities.
 

Application Modernization Services Market Analysis

Application modernization services market size from the application integration segment accounted for USD 3.5 billion in 2022. Application integration services allow the sharing of business data and processes among various applications in an organization. It allows seamlessly connecting a variety of cloud and on-premise apps to transform data required for business workflows. Companies that offer these services are expanding their market foothold through new investments. For instance, in October 2022, SaaS application integration firm Unito Inc. that it is looking to expand its market traction after a $20 million funding which brings its total amount raised to $32.9 million. The increasing integration of cloud technologies will shape segment growth.
 

Application modernization services market size from the SME segment will record over 10% CAGR through 2032. Large investments are needed to set up on-premises data storage infrastructure, which may be difficult for SME with tight budgets. For accuracy, efficacy, transparency, and productivity, SME prefer to use application modernization services to address these issues. A natural outcome of the rising demands for business agility, security, and scalability is the emergence of modernizing old applications and digital transformation within SME.
 

The application modernization services market from the IT & ITes segment is poised to exceed USD 10 billion by 2032. The majority of IT organizations are aware of the need of securing apps and underlying data and have already started app migrations, rapid DevOps processes, and adoption of software-as-a-service (SaaS) applications that are hosted in the cloud. The move to the cloud for apps has renewed interest in IT modernization, and businesses are looking to use the techniques, methods, and expertise in all of their application portfolio projects.
 

North America application modernization services market size is expected to surpass USD 25 billion by 2032. In 2022, the region had the biggest share of more than 50% of the global market. Cloud-based platforms are expected to grow because of increased digitalization and robust technological advancement. Increasing government investment in AI and IoT-based services is also helping to improve the application. The existence of major competitors and their revenue generation account for the biggest market share.
 

Application Modernization Services Market Share

Some of the leading companies involved in the application modernization services market are:

• Tech Mahindra Ltd
• Accenture
• IBM Corporation
• TATA Consultancy Services Limited
• Microsoft Corporation
• Infosys Limited
• Nutanix
• Oracle Corporation
• Deloitte
• Dell Inc
• Wipro
• Atos SE
• LTIMindtree Limited
• EPAM Solutions Hub
• HCL Technologies Limited
• Softura, Ernst & Young Global Limited 
• Cognizant.

Companies are partnering with other related firms to expand their market position. For instance, in April 2023, Infosys and LexisNexis started working together to provide information services across content, enterprise, and product applications. These services will provide content modernization, application modernization, life cycle upgrades, application maintenance and support, and application development and validation.
 

This application modernization services market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:

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Market, By Type

• Application portfolio assessment
• Cloud application migration
• Re-platforming
• Application integration
• UI Modernization
• Post-Modernization

Market, By Deployment

• Public cloud
• Private cloud
• Hybrid cloud
• Multi-cloud

Market, By Organization Size

• Large enterprise
• SME

Market, By Application

• BFSI
• Healthcare
• Telecommunication
• Retail & consumer goods
• Automotive
• IT & Ites
• Manufacturing
• Government & public sector
• Oil and energy
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Netherlands
  • Switzerland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa