Global Application Modernization Services Market Insights Forecasts to 2033

• The Global Application Modernization Services Market Size was Valued at USD 16.84 Billion in 2023
• The Market Size is Growing at a CAGR of 16.31% from 2023 to 2033
• The Worldwide Application Modernization Services Market Size is Expected to Reach USD 76.29 Billion by 2033
• Asia Pacific is expected to Grow the fastest during the forecast period.

The Global Application Modernization Services Market Size is Anticipated to Exceed USD 76.29 Billion by 2033, Growing at a CAGR of 16.31% from 2023 to 2033.

Market Overview

Application modernization services are those that are used in a firm to transition new applications. Application modernization integrates new capabilities and application architecture into business processes, and it is most commonly used in cloud-based re-platforming, re-engineering, and re-hosting. Modernization services assist firms in producing new business value by leveraging their existing business application software. A new version of the program that is compatible with recently upgraded operating systems and hardware systems contributes to improved application performance. With the help of application modernization services, businesses may upgrade from antiquated platforms or programs to more current ones and add new capabilities to provide them with the newest features available. Modernization includes switching to a containerized or serverless architecture that frequently deploys application code and isolates programs from the underlying host environment, making them more effective than virtual machines. Businesses must boost cost-effectiveness and innovation while maintaining or enhancing performance and dependability.  Most businesses continue to rely on old equipment and software, which raises operating expenses and jeopardizes their operations. Shorter time-to-market, reduced technical debt, and lower operating expenses are the primary motivators for IT leaders to modernize their ageing applications.

Report Coverage

This research report categorizes the market for the global application modernization services market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global application modernization services market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global application modernization services market.

Driving Factors

Modernizing application services are becoming increasingly popular in the restaurant and hotel industry, because of the increased use of online meal delivery services. In addition, application modernization services are frequently utilized for food ordering and delivery, allowing users to explore menus, place orders, and pay for meals directly from the app. Application modernization services can also link with many meal delivery platforms, allowing customers to conveniently access multiple food delivery alternatives in one location. For instance, Plaxonic published Evobee, a hyperlocal application modernization service, in December 2021 to revolutionize local logistics. The website allows for home delivery of food, groceries, taxi bookings, and other appointment services. As a result, these modern tactics provide a dependable solution for restaurant and hotel customers. Several commercial and public firms are attempting to provide effective application modernization service solutions to the restaurant and hotel industries.

Restraining Factors

It is significant for organizations to begin the process with an application evaluation and select the appropriate approach for software modernization focusing on business goals to take into account the costs and difficulties involved with the modernization procedures. As a result of increased costs and complexity, the global market for application modernization services is hampered.

Market Segmentation

The global application modernization services market share is classified into type, deployment and application.

• The re-platforming segment is expected to hold the largest share of the global application modernization services market during the forecast period.    

Based on the type, the global application modernization services market is categorized into application portfolio assessment, cloud application migration, re-platforming, application integration, UI modernization, and post-modernization. Among these, the re-platforming segment is expected to hold the largest share of the global application modernization services market during the forecast period. Better networking speeds, flexibility, scalability, and application delivery are all advantages of this market. Many small, medium, and large-scale enterprises from various industry verticals are looking for application modernization services to interface with their old systems and resolve challenges. The demand for cloud migration services, which transfer applications to cloud environments, is also growing.

• The private cloud segment is expected to grow at the fastest CAGR during the forecast period.    

Based on the deployment, the global application modernization services market is categorized into hybrid cloud, private cloud, and public cloud. Among these, the private cloud segment is expected to grow at the fastest CAGR during the forecast period. The demand for private cloud-based solutions is increasing as businesses look to improve scalability, flexibility, and security while lowering costs. Companies can use application modernization services to modernize and cloud-enable their outdated applications. Major telecom providers want various cloud designs, such as containerization and microservices, to support their operations. This encourages the creation of a hybrid cloud architectures to evaluate the migration of apps to the cloud.

• The IT & telecom segment is expected to hold a significant share of the global application modernization services market during the forecast period.

Based on the application, the global application modernization services market is categorized into BFSI, healthcare, telecommunication, retail & consumer goods, automotive, IT & telecom, manufacturing, government & public sector, oil & energy, and others. Among these, the IT & telecom segment is expected to hold a significant share of the global application modernization services market during the forecast period. The majority of IT businesses understand the importance of safeguarding apps and underlying data and have already begun app migrations, rapid DevOps processes, and the use of cloud-hosted software-as-a-service (SaaS). The transition to the cloud for apps has reignited interest in IT modernization, and firms are trying to incorporate the strategies, processes, and expertise into all of their application portfolio projects.

Regional Segment Analysis of the Global Application Modernization Services Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global application modernization services market over the predicted timeframe.

North America is projected to hold the largest share of the global application modernization services market over the forecast period. A cutting-edge IT infrastructure and easily available technical knowledge. Because of its established end-user industries and suppliers, the United States has the greatest market share in North America for application modernization, which helps to boost corporate productivity and worker efficiency. American organizations are adopting cloud-based services to benefit from its high flexibility, scalability, and low maintenance costs. Several small and big modernization service providers, including Accenture, ATOS, Capgemini, HCL, Cognizant, IBM, and TCS, are headquartered in the United States and are among the primary drivers of the country's application modernization services industry expansion. FedRAMP is a standardized approach to security evaluation, authorization, and continuous monitoring for cloud products and services developed by the United States.

Asia Pacific is expected to grow at the fastest CAGR growth of the global application modernization services market during the forecast period. It is expected that the rise of IT services firms as a result of significant government spending to update IT infrastructure would drive the growth of the regional application modernization services market in the coming years. Growing populations, important technology advancements, and intensive technologies to meet the rising demand for software services in nations such as Australia, China, Japan, and India are propelling the Asia-Pacific application modernization sector. Many Asian countries are expected to provide excellent prospects for putting application modernization methods into action. The presence of many well-known suppliers, as well as government investments in technology-related services, encourages application modernization.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global application modernization services market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

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

Key Market Developments

• In April 2023, Infosys and LexisNexis began collaborating to provide information services for content, enterprise, and product applications. These services will include content and application modernization, life cycle updates, application maintenance and support, and application creation and validation.

• In January 2023, the business established Capgemini Invent, the Capgemini Group's digital innovation, design, and transformation brand, which enables CxOs to predict and influence the direction of their organizations' futures. Over 10,000 strategists, data scientists, product and experience designers, brand experts, and developers collaborate in approximately 40 studios and more than 60 offices worldwide to build breakthrough digital services, products, experiences, and business models for long-term success.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global application modernization services market based on the below-mentioned segments:  

Global Application Modernization Services Market, By Type

• Application Portfolio Assessment
• Cloud Application Migration
• Re-Platforming
• Application Integration
• UI Modernization
• Post-Modernization

Global Application Modernization Services Market, By Deployment

• Hybrid Cloud
• Private Cloud
• Public Cloud

Global Application Modernization Services Market, By Application

• BFSI
• Healthcare
• Telecommunication
• Retail & Consumer Goods
• Automotive
• IT & Telecom
• Manufacturing
• Government & Public Sector
• Oil & Energy
• Others

Global Application Modernization Services Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa