Application Modernization Services Market Estimated to Hit USD 24.8 Billion by 2030, Growing at a 16.8% CAGR During 2022-2030 - Report by Market Research Future (MRFR)
Market Research Future
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Market Research Future
Application Modernization Services Market is Rising Due to Growing Budgets in Maintaining Existing Enterprise Applications
New York, US, May 19, 2022 (GLOBE NEWSWIRE) -- Application Modernization Services Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Application Modernization Services Market” information by Type, by Organization Size, by Industry Vertical and Region – Forecast to 2030” market size to reach USD 24.8 billion, growing at a compound annual growth rate of 16.8% by 2030.
Application Modernization Services Market Scope: The global application modernization services market is growing rapidly. Enterprises worldwide are increasingly spending on enterprise IT software and services and maintaining existing enterprise applications that run the business. Moving legacy applications onto a cloud and containers promises greater benefits, such as reduced IT spending, and these savings help bring a larger competitive advantage.
Dominant Key Players on Application Modernization Services Market Covered are:
Due to the growing digitization, application modernization has become extremely important for businesses recalibrating the application landscape to responsiveness and resilience at the enterprise scale. Many IT organizations and DevOps teams are working on application modernization projects. Growing advances and the increasing adoption of cloud-based technologies in enterprise infrastructure increase the market share.
Augmenting demand for cloud-based computing technologies for several applications is a major trend. Additionally, the emergence of low-code platforms that can accelerate hyper-automation & time-to-market, infrastructure modernization, and improve operational processes in manufacturing, retail, telecommunications, financial services, and public sectors has impacted the market rise positively.
Market USP Exclusively Encompassed: Market Drivers Rapid digitalization in manufacturing, retail, telecommunications, financial services, and public sectors creates vast demand for application modernization services. Moreover, the growing demand from organizations looking to quickly build and integrate applications & data services for their application and infrastructure modernization strategy boosts the application modernization services market size.
Service providers strive to unlock multiple modernization patterns through microservices, APIs, event-driven architectures, and more. Also, the continual growth in application development and deployment offers significant market opportunities, allowing developers to discover better ways to create and scale cloud-native IT infrastructures.
With their strong expertise in application modernization, industry players establish a clear roadmap to modernize legacy applications and systems. They leverage low-code platforms to offer the broadest range of application modernization services and thus enhance their industry expertise and capabilities.
They build advanced solutions that deliver advanced analytics, cloud, application modernization, digital infrastructure, and cybersecurity offerings to clients across various industries. Also, the growing adoption of migration tools that combine custom microservices platforms and cloud migration expertise to ease the transition of existing Pivotal Cloud Foundry (PCF) microservices workloads with reduced time and expense needed for backend infrastructure work substantiates market shares.
Application modernization services reduce an organization's efforts & expenses associated with modernization while improving efficiencies and accelerating the time to market for their digital transformation initiatives. The growing adoption of application modernization services in executing complex modernization initiatives and addressing key cloud migration & microservices challenges to enable users to quickly build a production-ready, enterprise-grade microservices platform influences the application modernization services market revenues.
Segmentation of Market Covered in the Research: The application modernization services market forecast is segmented into types, deployment types, verticals, and regions. The type segment is sub-segmented into post- modernization, application portfolio assignment, UI modernization, cloud application mitigation, application integration, application re-platforming, and others.
The deployment type segment is sub-segmented into the hybrid cloud, private cloud, and public cloud. The vertical segment is sub-segmented into healthcare, IT & telecommunications, energy & utilities, manufacturing, consumer goods & retail, and others. The region segment comprises Europe, North America, Asia Pacific, the Middle East & Africa, and others.
Regional Analysis The Asia Pacific region dominates the global application modernization services market. Many enterprises are rapidly implementing application modernization services, which acts as a key growth driver. Countries such as China, India and Japan are key contributors to the market. Besides, rising investments by key players in this market demonstrate the region's exceptional growth possibilities.
North America accounts for the second-largest share in the global application modernization services market. The region perceives vast adoption of advanced technologies and cloud platforms. It has high technical expertise in developing various applications and telecom services. The US accounts for the largest share in the regional market, followed by Canada and Mexico due to the growing adoption of application modernization services.
Besides, rapid upgrades in related technologies and increased awareness about the benefits of modernization services positively impact regional market growth. The market is also driven by the large presence of major players in this region. Rapid advent of various mobile applications, alongside their broad uptake and demand, fosters the application modernization services market size.
Competitive Landscape Highly competitive, the application modernization services market appears fragmented due to the presence of several well-established players. These players incorporate strategies, such as mergers & acquisitions, collaborations, expansion, and product/ technology launches to gain a larger competitive share.
Technology providers boost investments in developing products & services and improve design concepts. Other strategies these market players adopt are greater commercialization of their services, promotion initiatives through competitions & trade exhibitions, and increased collaboration.
For instance, recently, on April 21, 2022, Kyndryl, a leading global IT infrastructure services provider, announced a strategic partnership with SAP to help customers overcome digital transformation challenges. The partnership would enable Kyndryl to offer services complementing the RISE with an SAP solution, including proven migration tools & scalable offerings, application modernization, AI-driven business data management & analytics solutions, and more.
Kyndryl and SAP would also work on the following ERP services and solutions, including Modernization and cloud adoption services for the full SAP software environment, including non-SAP applications.
The expanded partnership would allow Kyndryl to focus on developing new solutions that would help solve the most complex digital business transformation challenges, leveraging SAP's Business Technology Platform (SAP BTP) and Kyndryl's deep expertise in AI and data & cyber resiliency services to accelerate and enable a cost-effective path to the cloud for customers.
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