The Global Mainframe Market size is expected to reach $4.5 billion by 2031, rising at a market growth of 7.1% CAGR during the forecast period.
Government agencies at various levels rely on mainframes to handle critical functions, including citizen services, social security systems, taxation, and public safety. Mainframes provide the necessary infrastructure to manage large-scale data processing and ensure the security and integrity of sensitive information. For instance, agencies like the U.S. Social Security Administration use mainframes to process vast amounts of data related to social security benefits, ensuring timely and accurate service delivery to citizens. The ability to handle complex data requirements and provide reliable services underpins the significant revenue contribution from this segment. Thus, the government & public sector segment acquired 14% revenue share in the market 2023.
Mainframes are renowned for reliability, high-performance transaction processing, and robust security features. By integrating these capabilities with cloud services' scalability, agility, and cost-effectiveness, organizations can optimize their IT operations and better meet their businesses' dynamic demands.
Additionally, Companies like IBM have developed solutions to integrate AI with mainframe systems, enabling businesses to leverage AI-driven insights for better decision-making and operational efficiency. Thus, digital transformation initiatives are driving the expansion of the market.
However, mainframes require significant upfront investment. This investment includes the cost of the mainframe hardware, as well as the software and infrastructure required to effectively operate and maintain these systems. The price of mainframe hardware can be prohibitively high, running into hundreds or even millions of dollars depending on the configuration and capabilities required. Hence, the high initial costs associated with their acquisition, infrastructure setup, and ongoing maintenance present a significant challenge for many organizations, which may further deter their adoption.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Government agencies at various levels rely on mainframes to handle critical functions, including citizen services, social security systems, taxation, and public safety. Mainframes provide the necessary infrastructure to manage large-scale data processing and ensure the security and integrity of sensitive information. For instance, agencies like the U.S. Social Security Administration use mainframes to process vast amounts of data related to social security benefits, ensuring timely and accurate service delivery to citizens. The ability to handle complex data requirements and provide reliable services underpins the significant revenue contribution from this segment. Thus, the government & public sector segment acquired 14% revenue share in the market 2023.
Mainframes are renowned for reliability, high-performance transaction processing, and robust security features. By integrating these capabilities with cloud services' scalability, agility, and cost-effectiveness, organizations can optimize their IT operations and better meet their businesses' dynamic demands.
Additionally, Companies like IBM have developed solutions to integrate AI with mainframe systems, enabling businesses to leverage AI-driven insights for better decision-making and operational efficiency. Thus, digital transformation initiatives are driving the expansion of the market.
However, mainframes require significant upfront investment. This investment includes the cost of the mainframe hardware, as well as the software and infrastructure required to effectively operate and maintain these systems. The price of mainframe hardware can be prohibitively high, running into hundreds or even millions of dollars depending on the configuration and capabilities required. Hence, the high initial costs associated with their acquisition, infrastructure setup, and ongoing maintenance present a significant challenge for many organizations, which may further deter their adoption.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Driving and Restraining Factors
Drivers
- Growing trend towards hybrid cloud environments
- Rising investments in digital transformation
- Increase in IoT devices and big data projects
Restraints
- Substantially high initial costs
- Competition from cloud computing
Opportunities
- Rising demand for legacy system modernization
- Increasingly expanding their operations across borders
Challenges
- Perception of mainframes as outdated technology
- Environmental concerns related to the high energy consumption
Type Outlook
On the basis of type, the market is segmented into Z systems, GS series, and others. The GS series segment witnessed 27% revenue share in the market in 2023. Fujitsu's GS series mainframes are recognized for their scalability, flexibility, and high-performance capabilities.End Use Outlook
Based on end user, the market is classified into BFSI, IT & telecom, government & public sector, retail & e-commerce, travel & transportation, manufacturing, and others. The BFSI segment garnered 34% revenue share in the market in 2023. Financial institutions, encompassing banks, insurance companies, and investment firms, depend heavily on mainframes for their unparalleled processing power, security, and reliability.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment procured a remarkable revenue share in the market in 2023. European financial institutions, governed by stringent regulations like the General Data Protection Regulation (GDPR), depend on mainframes for secure and efficient data processing.Recent Strategies Deployed in the Market
- Mar-2024: IBM Corporation introduced the Mainframe Skills Council at the SHARE conference to cultivate a skilled and diverse mainframe workforce. The council comprises IBM, partners, academic institutions, and industry groups, focusing on addressing the mainframe skills gap and enhancing hybrid cloud strategies.
- Feb-2024: Singtel and Broadcom have partnered to enhance connectivity and edge computing with Singtel Paragon, an orchestration platform for 5G and edge cloud. They will establish a Joint Innovation Lab to support application development and accelerate 5G adoption.
- Jan-2024: IBM acquired application modernization capabilities from Advanced Business Solutions to enhance its mainframe services, supporting clients' hybrid cloud strategies with over 30 years of expertise. This acquisition complements IBM's watsonx Code Assistant for Z, enhancing application modernization and integration.
- Nov-2023: DXC Technology and ServiceNow are expanding their partnership to enhance service and workflow management by integrating ServiceNow’s advanced analytics and AI into DXC Platform X. This collaboration aims to boost innovation, efficiency, and productivity for over 500 joint customers.
- Nov-2023: BMC announces new AIOps capabilities in BMC Helix Operations Management, featuring advanced AI for dynamic service modelling, situation explainability, and container auto-detection. These innovations enhance visibility, efficiency, and problem-solving, ensuring higher service availability and resilience in complex IT environments.
- Sep-2023: BMC introduces new cloud and data integrations for Control-M and BMC Helix Control-M, enhancing workflow orchestration. These updates offer advanced connectivity for applications, data sources, and cloud services, aiming to improve collaboration, agility, and efficiency in enterprise environments.
List of Key Companies Profiled
- IBM Corporation
- Broadcom, Inc. (Symantec Corporation)
- DXC Technology Company
- Hewlett Packard Enterprise Company
- Atos Group
- Dell Technologies, Inc.
- HCL Technologies Ltd. (HCL Enterprises)
- BMC Software, Inc. (KKR & Co., Inc.)
- Fujitsu Limited
- Cognizant Technology Solutions Corporation
Market Report Segmentation
By Type
- Z Systems
- GS Series
- Others
By End User
- BFSI
- IT & Telecom
- Manufacturing
- Travel & Transportation
- Retail & E-commerce
- Government & Public Sector
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Mainframe Market by Type
Chapter 6. Global Mainframe Market by End User
Chapter 7. Global Mainframe Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- IBM Corporation
- Broadcom, Inc. (Symantec Corporation)
- DXC Technology Company
- Hewlett Packard Enterprise Company
- Atos Group
- Dell Technologies, Inc.
- HCL Technologies Ltd. (HCL Enterprises)
- BMC Software, Inc. (KKR & Co., Inc.)
- Fujitsu Limited
- Cognizant Technology Solutions Corporation
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 208 |
| Published | August 2024 |
| Forecast Period | 2023 - 2031 |
| Estimated Market Value ( USD | $ 2.63 Billion |
| Forecasted Market Value ( USD | $ 4.51 Billion |
| Compound Annual Growth Rate | 7.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
