Global Application Modernization Services Market Size, Share, Growth Analysis, By Vertical, By Deployment Type, By Application - Industry Forecast 2024-2031

Global Application Modernization Services Market size was valued at USD 15.21 billion in 2022 and is poised to grow from USD 17.75 billion in 2023 to USD 61.06 billion by 2031, growing at a CAGR of 16.70% during the forecast period (2024-2031).

The global application modernization services market is poised for growth, driven by factors such as the rising demand for business agility and faster time-to-market, the effective utilization of big data technologies, and the integration of cloud computing into modernization strategies. This growth is fueled by the increasing need for enhanced software functionalities amid changing business landscapes, coupled with the flexibility and scalability offered by cloud computing, and the advantages of integrating modern technologies with existing software systems. Nevertheless, challenges such as the complexity and cost associated with modernization efforts may hinder industry expansion, alongside obstacles like the prevalence of legacy applications and the need for contemporary infrastructure post-pandemic. Additionally, decreased technology spending due to the COVID-19 pandemic and a shortage of IT skills among the workforce could pose further barriers to market growth.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Application Modernization Services Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Application Modernization Services Market Segmental Analysis

The global application modernization services market is segmented based on vertical, deployment type, application and region. Based on verticals, the market is segmented into healthcare, IT, telecommunication, energy and utilities, manufacturing, consumer goods and Retail. In terms of deployment type, the market is classified into hybrid cloud, private cloud, and public cloud. In terms of application, the market is segmented into post modernization, application portfolio assignment, UI modernization, cloud application mitigation, application integration, and application replatforming. Based on region, the market is widespread into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Application Modernization Services Market

Legacy applications often present intricate challenges in terms of maintenance, updates, and integration with contemporary technologies. Utilizing application modernization services can simplify and streamline these older applications, ensuring compatibility with modern platforms while enhancing their functionality.

Restraints in the Global Application Modernization Services Market

Companies seeking to update their outdated applications are deeply concerned about security, recognizing it as a paramount consideration in the modernization process. While modernization services offer opportunities for advancement, they also pose potential security vulnerabilities that require meticulous handling and resolution. The effective management of these risks is essential to ensure the sustained growth of this market segment during the forecast period.

Market Trends of the Global Application Modernization Services Market

A significant trend in the application modernization services market is the increasing adoption of cloud migration, driven by organizations' efforts to transition their legacy applications to cloud environments. This shift allows businesses to enhance scalability, agility, and cost-effectiveness while simultaneously bolstering security and reliability measures.