Request Free Sample Report Buy Report
Home > Reports > Application Modernization Services Market: Information by Service (Application Portfolio Assessment), Vertical (BFSI, He

Application Modernization Services Market: Information by Service (Application Portfolio Assessment), Vertical (BFSI, Healthcare and Life Sciences), and Region — Forecast till 2029

Published At : 09 May, 2022
Updated At : 09 May, 2022
Market Snapshot
Base Year:
Study Period:
14.4 %
Fastest Growing Market:
Asia Pacific
Largest Market:
North America

Application modernization services are designed to transform legacy systems into new applications and integrate newer features and functionalities to the existing business. The application modernization takes place in terms of re-platforming in the case of cloud, re-hosting, and re-engineering to make sure that the application architecture is suited well for the organization. In short, application modernization is the process of rewriting, refactoring, or converting the legacy software programming models. Enterprises can replace the outdated legacy code with advanced versions. It also facilitates cost reduction during the implementation of cloud computing, analytics, and security capabilities.

There is an increasing demand for analytics and related technologies for faster recognition and delivery of services. With the growing adoption of cloud computing in various industrial and enterprise applications demands for faster analytics is likely to the global market growth. Small firms and enterprises rely on legacy applications as it is cost-effective and this presents a significant opportunity for the market to grow in the near future. The outbreak of COVID-19 has led to the large-scale enablement of remote working facilities. Companies have declared to supply all the essential infrastructure and security support to their client’s homes to ensure the business is continued. Such initiatives are also driving modern infrastructures and boosting the market economy

Market Dynamics

  • Enhanced Software Functionalities Assisting Business Landscapes to Drive the Market Growth

New software functionalities that assist in changing business rules and business processes drive the application modernization services market growth. Global enterprises are in constant need to continuously or periodically improve their business processes. Changing customer needs, technological advancements, and increasing market competition are further incrementing the demand. This business agility to survive and expand in competitive business environments is achieved by adopting the latest technologies and developing and delivering modern applications technology, which is driving the demand for application modernization services market share.

  • High Costs and Complexities in Infrastructure Hampers the Market

Advanced functionalities and features of application modernization are costly to implement and maintain. Hybrid cloud-based services are expensive to deploy; therefore, many small firms stick to their legacy systems or traditional on-premise approaches. Medium and large firms are investing on application modernization to handle complexities with legacy systems. There is a massive reduction in technology spending due to COVID-19, the impact of which does not seem to be resilient. Industry analysts have predicted that there would be a reduction in technology spending by corporate during the rest of 2020.

  • Existence of Legacy Applications to Provide Growth Opportunities 

Significant financial aid from governments and investors will help small and medium organizations that still use legacy systems due to budget constraints to adopting cloud-based application modernization services. The reluctance for modernizing the legacy systems and high dependency on existing systems, especially in the developing nations, can lead to higher unwanted costs in the long run. Thus, it is likely that enterprises would adopt legacy modernization services to modernize the environment in the years to come

Segmental Analysis of Application Modernization Services Market

The application re-platforming segment to hold the largest market size during the forecast period

The application re-platforming segment is expected to grow significantly during the forecast period owing to the faster application delivery, flexibility, scalability, and faster networking speeds of the segment. Various small, medium and large scale companies across all industry verticals are demanding application modernization services to integrate with their legacy systems and correct faults. There is also a rise in demand for cloud migration services to port applications to cloud environments

Rising Use of Cloud Application Migration across the SMEs Drives the Market Growth

Organizations around the world often choose cloud application migration to migrate legacy systems, and modernize them. These services are flexible; therefore, more organizations are choosing cloud migration services, making it one of the fastest-growing segments. As small and medium enterprises expand their reach in global businesses, they come across a greater resource crunch than large enterprises and require better methods to solve complexities. Therefore, there is an increased chance of adoption of application modernization services among SMEs across the globe, which is expected to drive the growth of the application modernization services market.

Telecommunications Segment to Witness the Fastest Growth Rate during the Forecast Period

The IT and telecom sector is anticipated to witness a large-scale adoption and deployments of application modernization services. Key vendors in the telecom sector are demanding different cloud infrastructures, such as containerization and microservices, to drive their businesses. This is supporting the growth of hybrid cloud infrastructure in order to assess the movement of applications to hybrid cloud. With a high demand for hybrid cloud services, the IT and telecom sector has become a significant market for managed application services.

It and the Telecom sector thus offer lucrative growth opportunities for the application modernization services market due to the high rate of technological adoption, and increasing demand for high-end security among enterprises. In addition to this, global telecommunication companies are encountering constant pressure to deliver innovative services at lower costs which have been escalated with the outbreak of COVID-19

Lockdowns and the work-from-home situation has projected high demands to deliver better security, uninterrupted cloud application performance, and flexible management. This demand is encouraging IT and Telcom service providers to purchase hardware, software, and regular administration of their networks from a third party

Regional Analysis of Application Modernization Services Market:

Rapidly Changing It Infrastructure in North America to Lead Drive the Application Modernization Market

Rapidly changing IT infrastructure, expanding small and medium enterprises (SMEs), and rising cybersecurity solutions drive the application modernization services market in North America. The emerging manufacturers and distributors of IT supply in the U.S. are replacing physical servers with a virtualized environment in order to reduce company spending. Canada is witnessing high demands in the multi-Cloud environment and increased adoption of automation in the region. Furthermore, emerging players in the region are offering innovative cloud-based solutions with a minimum investment and reduced deployment costs. Such approaches bolster the regional application modernization services market.

India to Spearhead Asia-Pacific’s Application Modernization Services Market

Growing population, massive technological shifts, and intensive technologies, to cater to the increasing software service demand in countries such as Australia, China, Japan, and India, drive Asia-Pacific’s application modernization market. Many Asian nations are expected to show promising opportunities to deploy application modernization solutions. The presence of a large number of prominent vendors, as well as government investments in technology-related services, foster the adoption of application modernization.

Emerging enterprises in developing nations such as India provides an impetus to market growth. India is tending to become one of the leading hubs for IT services and solutions. Many of the enterprises in India are providing application modernization services in and outside the country. Companies active in the application modernization services from India include Wipro, Infosys, HCL, and others. It can thus be foreseen that the region is likely to offer new expansion opportunities for global businesses in the future.

Key Companies

List of Application Modernization Services Market Suppliers

  • Accenture
  • IBM
  • Atos
  • HCL
  • Capgemini
  • Bell Integrator
  • Blu Age
  • Cognizant
  • Aspire Systems
  • Dell
  • DXC Technology
  • EPAM Systems
  • Fujitsu
  • Hexaware
  • Infosys
  • Innova Solutions
  • LTI
  • Microfocus
  • MongoDB
  • NTT Data
  • Oracle
  • Softura
  • TCS
  • Virtusa
  • Wipro
UNIT Value (USD Million/Billion)

North America, Europe, Asia-Pacific, SAMEA

Recent Developments

  • In February 2020, Cognizant, an American multinational corporation partnered with CECONY, an energy company that offers electric, gas, and steam services to upgrade applications, technology infrastructure, and legacy platforms. The partnership was in aim with enhancing operational efficiencies, enabling greater agility, and improving customer experience
  • In November 2019, Rackspace, an American-managed Cloud computing company, acquired Onica, an Amazon Web Services (AWS) Partner Network (APN) Premier Consulting Partner and AWS Managed Service Provider. With the acquisition Rackspace can leverage Onica’s innovative professional services capabilities, including strategic advisory, architecture, and engineering, and application development, to complement its existing managed cloud services capabilities
  • In December 2019, Atos, a global leader in digital transformation, acquired Maven Wave, a provider of technology-driven solutions to build core solution offerings for business digitalization. As a part of the agreement, Atos will utilize Maven Wave’s strength in advanced technologies in order to strengthen its application modernization portfolio

Application Modernization Services Market: Segmentation

By Service

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

By Vertical

  • BFSI
  • Healthcare and Life Sciences
  • Telecommunications
  • Retail and Consumer Goods
  • Government and Public Sector
  • Energy and Utilities
  • Manufacturing

By Region

  • North America
  • Europe
  • Asia-Pacific

Frequently Asked Questions (FAQs)

The market will be estimated to grow from the years 2017 to 2029.
Accenture, IBM, Atos, HCL, Capgemini, Bell Integrator, Blu Age, Cognizant, Aspire Systems, and Dell are the top players in the market.
The re-platforming segment is expected to be the leading segment in the market during the forecast period.
Enhanced software functionalities assisting business Landscapes are the key factor expected to drive the market during the forecast period.
North America is expected to hold the highest market share.
Report Metric Details
Market Size USD in Billion By 2030
Historical Data 2019-2020
Base Year 2021
Forecast Period 2022-2030
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered by Service (Application Portfolio Assessment), Vertical (BFSI, Healthcare and Life Sciences)
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors Accenture, IBM, Atos, HCL, Capgemini, Bell Integrator, Blu Age, Cognizant, Aspire Systems, Dell, DXC Technology, EPAM Systems, Fujitsu, Hexaware, Infosys, Innova Solutions, LTI, Microfocus, MongoDB, NTT Data, Oracle, Softura, TCS, Virtusa, Wipro,
Key Market Opportunities Growing Prevalence Of Technology Industry Helps To Grow Application Modernization Services Market Share
Table of Content Download Sample