Application Transformation Global Market Report 2024

The global application transformation market has grown rapidly in recent years. It will grow from $14.68 billion in 2023 to $16.64 billion in 2024 at a compound annual growth rate (CAGR) of 13.4%. The growth observed in the historical period can be attributed to various factors, including digitalization initiatives, the obsolescence of legacy systems, the adoption of agile development practices, the integration of data analytics and artificial intelligence (AI), and the imperative to meet regulatory compliance requirements. These elements collectively played a crucial role in shaping the growth trajectory during the historic period.

The global application transformation market is expected to see rapid growth in the next few years. It will grow to $28.64 billion in 2028 at a compound annual growth rate (CAGR) of 14.5%. The anticipated growth in the forecast period can be attributed to accelerated digitalization efforts, the expansion of cloud computing, the overhaul of legacy systems, increased adoption of agile and DevOps practices, and a heightened focus on enhancing user experience. Major trends expected in the forecast period include innovation in business models, adherence to compliance and regulatory requirements, heightened considerations for cybersecurity, integration of Internet of Things (IoT) and edge computing technologies, and an increased emphasis on enhancing customer experience.

The application transformation market is poised for significant growth, driven by the escalating consumption of big data across various industries. The surge in data volumes, transition of data to cloud-based solutions, and the expanding user base in the IT sector have collectively amplified data creation. This necessitates extensive application transformation to accommodate the burgeoning data influx, ensuring that vital business applications remain relevant and aligned with contemporary user expectations. Embracing cloud and big data technologies while integrating DevOps and agile development concepts enables businesses to adapt their critical applications, thereby meeting evolving user demands. For instance, in January 2022, reports from the First side Guide, a Serbia-based IT provider, projected a global data production surpassing 79 zettabytes in 2021. This surge in big data consumption across industries is expected to drive the demand for the application transformation market.

The burgeoning demand for mobile applications is slated to be a pivotal driver propelling the application transformation market forward. Mobile applications, designed for smartphones and tablets, cater to a wide array of functionalities spanning entertainment, communication, productivity, and utility. Application transformation is crucial for mobile apps to stay competitive, evolve alongside changing user expectations, and remain in sync with market trends and technological advancements. By leveraging application transformation, organizations can optimize the potential of their mobile applications, ensuring sustained relevance and long-term success. For instance, as per Udonis Inc., a Croatia-based marketing specialist company, global mobile app downloads exhibited an 11% growth in 2022 compared to 2021, highlighting the robust demand driving the application transformation market.

Technological advancements stand out as a prominent trend shaping the application transformation market landscape. The adoption of cutting-edge technologies like big data analytics, the Internet of Things (IoT), 5G, and cloud computing has become prevalent in this domain. Leading companies in the market are actively leveraging and innovating with advanced technologies to maintain their competitiveness. For example, in June 2022, Siemens, a German technology company, launched Siemens Xcelerator - an open digital business platform aimed at accelerating digital transformation. This platform offers an array of IoT-enabled hardware, software, and digital services from Siemens and certified third parties. Siemens Xcelerator facilitates a transition toward more open applications, emphasizing cloud-based solutions, as-a-service models, and IoT-enabled equipment, setting the stage for continued evolution within the application transformation landscape.

Major players within the application transformation market are strategically embracing partnerships to expedite the transition of applications to cloud-based environments. These strategic alliances involve leveraging the strengths and resources of collaborating entities to mutually enhance their performance and success. For instance, in October 2022, Wipro Limited, an India-based IT company, forged a partnership with Outokumpu Oyj to accelerate the latter's migration of applications to the cloud. The collaboration aims to support Outokumpu's aspiration of becoming an agile, data-driven, and sustainability-focused business by facilitating the development of next-generation applications and establishing a Microsoft Azure-based platform for Outokumpu's corporate and factory applications. This initiative enables Outokumpu to swiftly adapt to evolving business needs, bolster productivity, reliability, and cost-efficiency in IT services, and concurrently reduce the carbon footprint of its IT infrastructure by optimizing power consumption. Outokumpu Oyj is a stainless-steel manufacturer headquartered in Finland.

In September 2022, Seidor, a Europe-based IT service management company, acquired a majority stake in Opentrends, augmenting its expertise in architecting secure application frameworks and enhancing capabilities in transforming, developing, and maintaining tailored experiences in cloud and omnichannel settings. This acquisition significantly broadens Seidor's consultancy services by integrating proficiency in cutting-edge technologies like artificial intelligence (AI) and the Internet of Things (IoT) and expanding its portfolio into sectors such as smart cities and connected vehicles. Opentrends, a Spain-based digital transformation company, specializes in crafting cloud applications and customer experience solutions.

Major companies operating in the application transformation market report are Accenture PLC, Atos SA, Cognizant, Fujitsu Ltd., HCL Technologies Ltd., International Business Machines Corporation, Microsoft Corporation, Micro Focus International PLC, Asysco Software B.V, Capgemini SE, Infosys Limited, Dell Technologies, Hexaware Technologies, Pivotal Software, CleverIS Technologies, TRIANZ Holdings Pvt. Ltd., Bell Integrator, LTI - Larsen & Toubro Infotech, Oracle Corporation, Happiest Minds Technologies Limited, Tech Mahindra, Unisys Corporation, Wipro Limited, DXC Technology Company, Mindtree Limited, Virtusa Corporation, Tata Consultancy Services Limited, Larsen & Toubro Infotech Limited, NTT DATA Corporation, Mphasis Limited

North America was the largest region in the application transformation market in 2023. The regions covered in the application transformation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the application transformation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary service types within application transformation include cloud application migration, application integration, application replatforming, application portfolio assessment, UI/UX modernizations, and other related services. Cloud application migration specifically entails the transfer of a software program from an on-premises server to a cloud provider's environment. This aspect of application transformation is crucial for improving user experience and performance. These services cater to both large enterprises and small and medium enterprises, spanning across various industry verticals such as Banking, Financial Services and Insurance (BFSI), retail, healthcare, IT and telecom, government, manufacturing, and others.

This report provides application transformation market statistics, including application transformation industry global market size, regional shares, competitors with application transformation market share, detailed application transformation market segments, market trends and opportunities, and any further data you may need to thrive in the application transformation industry. This application transformation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The application transformation market includes revenues earned by entities by application services and modernization, business process services, cloud solutions, core modernization, digital experience infrastructures and technologies. 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.

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.


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