Application modernization services incorporate additional functionality, handles migration of legacy application to new applications. Organizations may update outdated software to work with more modern frameworks, languages, and infrastructure platforms. Instead of completely replacing the current system, application modernization allows businesses to increase security, integrity, and overall effectiveness. Moreover, the application modernization services provide various benefits like boosting productivity, reducing operational cost and technological debts, improves business agility and scalability and others. In addition, companies increasingly rely on digital technologies to operate, the need to modernize their legacy systems and applications has become a critical aspect of their digital transformation journey. Application modernization services refer to the process of updating and upgrading existing applications to align them with current business needs, improve performance, and increase efficiency. The services can include various techniques, such as refactoring, rehosting, rearchitecting, and rebuilding applications. Moreover, application modernization is the procedure of rewriting a legacy software program to align it more closely to the present business needs. The application modernization commonly takes places in the terms of re-platforming in case of cloud, re-hosting, re-engineering and many more, in turn to make sure that the application architecture is suited well for the business. In addition, application modernization boosts organizational agility and productivity. Businesses are switching from legacy software applications to cloud-based applications due to operational businesses are benefit from improved user experiences, quicker time to market, flexibility, and cost savings provided by cloud computing and data analytics capabilities. Furthermore, the application modernization services market is expected to expand as the need for cloud services grows due to their scalability and flexibility, as well as the demand for updating older systems and applications, the rise in remote work scenarios, and improved customer experience by applications. With the widespread use of the internet and the scalability given by cloud-native applications. Moreover, applications that are built for the cloud are simpler to grow and put no additional strain on an organization's current IT infrastructure. Over time, this generates enormous money for businesses. In the approaching years, these factors fuel the application modernization services market.
The application modernization services sector is growing as a result of growing integration of cloud and, dev-ops technology in application modernization and rise in demand for software functionalities. However, the market growth is constrained by high implementation cost of application modernization services and lack of skilled employees with expertise in application modernization. In contrast, increasing technological advancements in application features is spurring this market's growth during the forecasted period.
The global application modernization services market is segmented into service type, deployment mode, organization size, end-user, and region. By service type, the market is segregated into application portfolio assessment, cloud application migration, application re-platforming, application integration, and others. Depending on the deployment mode, it is divided into On-premise, and cloud. Depending on organization size, it is categorized into large enterprises and small & medium-sized enterprises. By end-user, it is divided into BFSI, IT & telecom, energy & utilities, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global application modernization service market is dominated by key players such as Alibaba Cloud, Cisco Systems Inc., Genexus, Qualcomm Technologies, IBM Corporation, Huawei Technologies, Agiletech Vietnam, Elluminati Inc., Line Corporation and Go To. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The study provides an in-depth analysis of the global application modernization services market forecast along with current & future trends to explain the imminent investment pockets.
Information about key drivers, restraints, & opportunities and their impact analysis on global application modernization services trends is provided in the report.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The quantitative analysis of the market from 2023 to 2032 is provided to determine the market potential
The application modernization services sector is growing as a result of growing integration of cloud and, dev-ops technology in application modernization and rise in demand for software functionalities. However, the market growth is constrained by high implementation cost of application modernization services and lack of skilled employees with expertise in application modernization. In contrast, increasing technological advancements in application features is spurring this market's growth during the forecasted period.
The global application modernization services market is segmented into service type, deployment mode, organization size, end-user, and region. By service type, the market is segregated into application portfolio assessment, cloud application migration, application re-platforming, application integration, and others. Depending on the deployment mode, it is divided into On-premise, and cloud. Depending on organization size, it is categorized into large enterprises and small & medium-sized enterprises. By end-user, it is divided into BFSI, IT & telecom, energy & utilities, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global application modernization service market is dominated by key players such as Alibaba Cloud, Cisco Systems Inc., Genexus, Qualcomm Technologies, IBM Corporation, Huawei Technologies, Agiletech Vietnam, Elluminati Inc., Line Corporation and Go To. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key Benefits For Stakeholders
The study provides an in-depth analysis of the global application modernization services market forecast along with current & future trends to explain the imminent investment pockets.
Information about key drivers, restraints, & opportunities and their impact analysis on global application modernization services trends is provided in the report.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The quantitative analysis of the market from 2023 to 2032 is provided to determine the market potential
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Key Market Segments
By Service Type
- Application Portfolio Assessment
- Cloud Application Migration
- Application Replatforming
- Application Integration
- Others
By Deployment Mode
- On Premises
- Cloud
By Organization Size
- Large Enterprises
- Small and Medium Sized Enterprises
By End User
- BFSI
- IT and Telecom
- Energy and Utilities
- Manufacturing
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Accenture
- DXC Technology Company
- IBM Corporation
- Atos SE
- Wipro
- Tata Consultancy Services Ltd.
- HCL Technologies Limited
- Cognizant
- Infosys Limited
- Oracle Corporation
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: APPLICATION MODERNIZATION SERVICES MARKET, BY SERVICE TYPE
CHAPTER 5: APPLICATION MODERNIZATION SERVICES MARKET, BY DEPLOYMENT MODE
CHAPTER 6: APPLICATION MODERNIZATION SERVICES MARKET, BY ORGANIZATION SIZE
CHAPTER 7: APPLICATION MODERNIZATION SERVICES MARKET, BY END USER
CHAPTER 8: APPLICATION MODERNIZATION SERVICES MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the application modernization services market was valued at $15.53 billion in 2022, and is estimated to reach $69.8 billion by 2032, growing at a CAGR of 16.5% from 2023 to 2032.Application modernization addresses the migration of legacy to new applications by integrating new functionalities. It lets organizations update older software for newer computing approaches, including newer languages, frameworks, and infrastructure platforms. Overall, app modernization enables enterprises to improve an existing system’s security, integrity, and overall efficiency rather than replacing it entirely. Moreover, it contains security risks as the company or vendor no longer supports it. In addition, legacy systems need expensive upkeep for an enterprise to keep them running.
Key factors driving the growth of the application modernization services market include the rise in integration of cloud and DevOps technology in application modernization, the rise in demand for improved software functionalities and the rise in government support for promoting the use of application modernization services. The increase in the requirement for enhanced software functionalities to provide a seamless experience to users is escalating the growth of this market. Some major trends such as low code and no code software development, DevSecOps, artificial intelligence (AI), augmented reality, virtual reality, and mixed reality are driving the market growth. Low code and no code options help in complementing software development pipelines by allowing users to develop, deploy, and manage software solutions and delivery pipelines, thus improving software functionalities and fostering market growth. In addition, DevOps through automation has led to more agile and faster software developments to improve the overall quality of software. Furthermore, an increase in reliance on AI is fueling the demand for better software among users as AI is replacing human intelligence and transforming into a self-earning and evolving entity. Moreover, the rise in the use of technologies such as augmented reality, virtual reality, and mixed reality, which combine reality and computer-generated content, that virtually create real images and that merge real-world environment and computer-generated environments respectively is increasing user expectations regarding application and software utility. Hence, all these factors are increasing the demand for better software functionalities among consumers and thus driving market growth.
The market also offers growth opportunities to the key players in the market. The increase in adoption of AI and ML technologies in the software sector has proliferated the demand for application modernization services. It is important to optimize application services with the integration of advanced AI and ML technologies. Leveraging automation trends and the use of these technologies in application modernization have a significant impact on the market. Organizations are increasingly turning to AI and ML to upgrade traditional applications and systems and make operations more efficient, safe, and economical. According to Accenture, in June 2022, nearly 60% of companies are leveraging AI to create significant opportunities further and develop efficient software models. Thus, the technological breakthrough in the development of applications led to surge in demand for application modernization services to improve service optimization through real-time monitoring and control. These factors are expected to propel the market growth.
Further, the implementation of AI and ML technologies helps to automate several of the repetitive and time-consuming tasks involved in modernizing an application. This may involve operations including code analysis, refactoring, and testing that AI and ML algorithms can complete much faster and more effectively than individual technicians. AI and ML can assist in locating security flaws in applications and systems, enabling businesses to implement modifications to safeguard against cyber-attacks and other security breaches. Hence, several companies and government authorities are leveraging advanced technologies with the intention of improving the modernization services of applications. For instance, in April 2022, the National Institute of Standards and Technology (NIST) unveiled a roadmap for the development of AI technical standards and related tools. It helps the U.S. speed the pace of reliable, robust, and trustworthy AI technology development, thus revolutionizing U.S. technological adoption. These technical developments in improved AI standards will significantly pave numerous opportunities for global market growth.
The application modernization services market is segmented into service type, deployment mode, organization size, end-user, and region. By service type, the market is segregated into application portfolio assessment, cloud application migration, application re-platforming, application integration, and others. Depending on the deployment mode, it is divided into On-premise and cloud. Depending on organization size, it is categorized into large enterprises and small & medium-sized enterprises. By end-user, it is divided into BFSI, IT & telecom, energy & utilities, manufacturing, healthcare, and others. Region-wise, it is analyzed across North America (the U.S., Canada), Europe (the UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study include Alibaba Cloud, Cisco Systems Inc., Genexus, Qualcomm Technologies, IBM Corporation, Huawei Technologies, Agiletech Vietnam, Elluminati Inc., Line Corporation, and Go To. The players in the market have been actively engaged in the adoption of various strategies such as acquisition, and partnership to remain competitive and gain an advantage over the competitors in the market. For instance, in September 2021, Tata Consultancy Services (TCS) launched an upgraded version of their product TCS MasterCraft Transform Plus known as version 5.0. This new version utilizes Machine Learning (ML) technologies to analyze apps more efficiently during modernization. Additionally, it improves user annotation in the documentation of the technical specifications and program flow when analyzing COBOL programs. Through this strategy, the company will enhance its application modernization technology product portfolio.
Key Market Insights
By service type, the application replatforming segment was the highest revenue contributor to the market and is estimated to reach $15.26 billion by 2032, with a CAGR of 13.7%. However, the application portfolio assessment segment is estimated to be the fastest-growing segment with a CAGR of 19.3% during the forecast period.By deployment mode, the on-premises segment dominated the global market and is estimated to reach $36.68 billion by 2032, with a CAGR of 15.5%. However, the cloud segment is expected to be the fastest-growing segment with a CAGR of 17.8% during the application modernization services Market Forecast.
Based on region, North America was the highest revenue contributor, accounting for $6.16 billion in 2022, and is estimated to reach $23.34 million by 2032, with a CAGR of 14.5%.
Companies Mentioned
- Accenture
- DXC Technology Company
- IBM Corporation
- Atos SE
- Wipro
- Tata Consultancy Services Ltd.
- HCL Technologies Limited
- Cognizant
- Infosys Limited
- Oracle Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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