Request Free Sample Report Buy Report
Home > Reports > Application Transformation Market: Information by Service Type (Cloud Application Migration, Application Integration), E

Application Transformation Market: Information by Service Type (Cloud Application Migration, Application Integration), Enterprise Size (Large Enterprises), and Region — Forecast till 2030

Published At : 15 Jul, 2022
Updated At : 18 Jul, 2022
Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
13.5 %
Fastest Growing Market:
Europe
Largest Market:
North America

The global application transformation market was valued at USD 12,017 million in 2021. It is expected to reach USD 37,563 million by 2030, growing at a CAGR of 13.5% during the forecast period (2022–2030). Application transformation is the process of getting rid of some of an organization's applications and moving others to the cloud. It makes sure that the apps meet the latest requirements for governance and compliance. The main goal of the application transformation products and services is to help IT departments deal with the growing use of social media and mobile computing in business. Its primary purpose is to assist business-critical applications in keeping up with user expectations and staying functional.

The global application transformation market is mainly driven by factors like the rise of cloud technology and the growing use of Big Data, the high cost of maintaining legacy applications, and the development and improvement of application transformation technology. It is also driven by the ongoing trend of modernizing legacy systems. Furthermore, more people are using new technologies like 5G, AI, ML, and IoT, which is expected to help the market grow during the forecast period. The growing need for digital transformation will also likely help the market over the next few years.

Get more information on this report Download Sample Report

Market Dynamics

Drivers: The Emergence of Cloud Technology

The cloud has become the most crucial tool for digital transformation. It also helps organizations become more modern by letting them use technologies like big data analytics, augmented reality, machine learning, and the Internet of Things (IoT). On the other hand, agile app development is made possible by the platform. Many businesses worldwide are moving their apps to the cloud, so they do not have to build or maintain their infrastructure. This is primarily driving the growth of the application transformation market.

Additionally, the rise of "big data" has made companies want to become "data-driven enterprises" to enjoy benefits like speed, flexibility, and security. Hence, big data is the most critical factor driving digital transformation in businesses. Consequently, there is a growing need to update old applications to meet big data needs.

Drivers: High Costs Associated with the Maintenance of Legacy Applications

Several businesses rely on various old systems to keep their businesses running. However, relying on infrastructure that is getting older is becoming more expensive. Several studies show that 60% to 80% of an organization's IT budget goes to running and maintaining legacy applications. For example, a report from the US Government Accountability Office (GOA) says that in 2019, the US federal government spent about USD 90 billion on IT. 80% of this money went toward maintaining and running expensive older systems and critical software components that were already in place. As a result, many organizations are creating new ways to interact, coming up with digital transformation strategies, and giving business partners, customers, and employees mobile cloud-based apps.

Restraint: Complexities Associated with the Legacy Systems

Legacy systems are usually pretty big in terms of how they work and how much code they have. Therefore, even a small update can cause many problems across the system. Any change or update to the old system takes time and work. Also, professionals with niche skills are needed to untangle legacy systems and understand how their business logic works. Further, the loss or lack of software documentation makes the problem more complicated. The complexity of legacy systems is expected to make it hard to change applications, which will likely slow the market growth during the forecast period.

What Are Future Growth Opportunities in the Global Application Transformation Market?

  • Booming Adoption of Advanced Technologies and Emerging Need for Digital Transformation Creates Umpteen Opportunities for Application Transformation

The rise of 5G technology, artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) has increased the need for the digital transformation of businesses in many different industries, such as IT and telecom, and medical and healthcare. For example, the above technologies have led to innovations in the healthcare field like Telemedicine, NextGen Med-tech devices, and Remote Surgeries. Therefore, there is a growing need for application transformation to meet new demands on enterprise systems. IoT, artificial intelligence (AI), and 5G are some of the leading forces behind digital transformation.

Digital transformation is using different digital technologies in business areas to better understand customer needs and build relationships that will last longer. The trend of digital transformation is growing in businesses all over the world. To move their businesses forward, companies now need a digital transformation strategy. Furthermore, to meet these business needs, digital transformation has enabled hefty investments in IT. Therefore, the digital transformation among businesses is a determining factor for the growth of the market during the next few years.

 

Segmental Analysis of the Global Application Transformation Market

The global application transformation market is segmented on the basis of the service type and enterprise size.

  •  Insights Into Service Type

Based on service type, the global application transformation market has two sub-segments, viz. Cloud Application Migration and Application Integration.

Cloud Application Migration accounts for the maximum market share and is expected to grow at a CAGR of 16.8% during the forecast period. The process of moving applications or other business elements to a cloud computing environment is called cloud application migration. It moves software from one computer environment to another. Most businesses worldwide spend time and money on cloud migration strategies, boosting the growth of this market segment. The cloud application migration market is growing because it can offer advanced technology, scalability, cost savings, and real-time access.

Application Integration is the process of making applications and systems built separately to work together. It makes it easier to manage, maintain, and keep the applications up-to-date and stops data from being duplicated and used more than once. The main reason for the rise in demand for application integration solutions is the need to move data between applications.

  •  Insights Into Enterprise Size

Based on enterprise size, the global application transformation market is classified into Large Enterprises and Small & Medium-Sized Enterprises.

Large Enterprises account for the highest market share and are expected to grow at a CAGR of 13% during the forecast period. Large enterprises are businesses that make more than USD 1 billion a year and have more than 1,000 employees. These businesses are looking for new ways to change their processes to work well. They are increasingly using application transformation services to offer customers a wide range of new services and respond quickly to their needs.

Small and medium-sized enterprises (SMEs) make less than USD 1 billion annually and have less than 1,000 employees. Small and medium-sized enterprises usually do not have much money or IT skills on staff. Nonetheless, these businesses are expected to grow steadily because they are increasingly turning to digital technology to find new ways to make money and compete with bigger companies.

 

Regional Analysis of the Global Application Transformation Market

The global application transformation market share is segmented across North America, Europe, Asia-Pacific, and LAMEA.

Which Region Accounts for Most Demand for Application Transformation?

Application Transformation Market Regional Analysis

Regional Growth Insights Request Sample Pages

North America commands the leading position in the global application transformation market and is expected to grow at a CAGR of 12% during the forecasted period. Major economies like the US and Canada invest big money in research and development, which helps in developing new technologies. Furthermore, prominent vendors like Microsoft Corporation, Oracle Corporation, and IBM Corporation continually develop new ways to transform applications. The size of the outsourcing industry and the need to cut IT costs in the region also pressurize companies to find other ways to cut costs. This has caused more people to want solutions for application transformation, driving the market.

Europe accounts for the second-largest market share. It is said to grow to USD 10,537 million at a CAGR of 13.1% during the forecast period. Primarily, the spread of the cloud drives the growth of the application transformation market in Europe. This is because it encourages small and medium-sized enterprises (SMEs) in the region to use application transformation solutions. These enterprises have become more interested in cloud deployment models as new technologies come out, and their costs go down. The growth of the market is also fueled by the rise in demand for retail applications.

Asia-Pacific is one of the regions where the application transformation market is growing the fastest. Application transformation services are getting a lot of money from countries like China, Japan, Thailand, India, and Indonesia. During the forecast period, Asia-Pacific is expected to have the highest growth rate. This is because countries like Australia, Japan, China, and India are working on digital transformation projects to meet the growing demand for software services.

Latin America has seen a surge in investment in application transformation services due to increased digitization across various businesses and sectors to reduce operating costs. In contrast, the Middle East and Africa only account for a minor portion of worldwide spending on application transformation. Still, the market is expected to benefit from the region's lucrative growth prospects.

 

Competitive Analysis

List of Top Application Transformation Market Companies

  • Accenture
  • Atos
  • Cognizant
  • Fujitsu
  • HCL Technologies Ltd
  • Hexaware
  • IBM Corporation
  • Microsoft Inc
  • TCS

 

Report Scope

Report Metric Details
Market Size USD 37,563 Million by 2030
CAGR 13.5% (2022-2030)
Historical Data 2019-2020
Base Year 2021
Forecast Period 2021-2030
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered Service Type, Enterprise Size
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors

Accenture, Atos, Cognizant, Fujitsu, HCL Technologies Ltd., Hexaware, IBM Corporation, Microsoft Inc., TCS.

Key Market Opportunities

Booming Adoption of Advanced Technologies

Key Market Drivers

The emergence of Cloud Technology

 

Recent Developments

  • June 2022- Accenture opened its new Advanced Technology Center in India to facilitate the development of technological aspects and improve the service.
  • June 2022- Atos, UCL, and ARM signed a collaboration deal to work on providing broader cloud computing possibilities for life sciences applications.
  • March 2022- Cognizant collaborated with Microsoft Inc. to offer a new virtual healthcare solution for remote patient monitoring and improved care.
  • May 2022- HCl Technologies launched a new product, ‘X,’ to power the world-class digital engagement for global consumer brands.

 

Global Application Transformation Market: Segmentation

By Service Type 

  • Cloud Application Migration
  • Application Integration

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • LAMEA
Table of Content Download Sample