Application Modernization Services Market Size, Share, Growth, and Industry Growth, By Type (COBOL, ADA, PL/1, RPG, Assembler, PowerBuilder, and Others), By Application (Emulation, Translation, and Business Rules Extraction), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Application Modernization Services Market REPORT OVERVIEW

• 
• Request a Free Sample to learn more about this report

The global application modernization services market size was USD 18640 million in 2022 and market is projected to touch USD 76913.2 million by 2031, exhibiting a compound annual growth rate (CAGR) of 15.1% during the forecast period.

Services employed in the transition of new applications in a business are called application modernization services. Application modernization combines new capabilities and application architecture into the business process and is primarily utilized in cloud-based re-platforming, re-engineering, and re-hosting. The modernization services enable businesses to use their current business application software to generate new business value. With a new version of the program that is compatible with recently updated operating systems and hardware systems, it help to increase the performance of the application.

Changing market trends and consumption patterns have led to a significant increase in the need for advanced application services, according to industry studies. These factors are anticipated to sustain industry and market growth throughout the projection period. Re-hosting, re-engineering, re-platforming, recoding, re-architecting, interoperability, replacement, and changes to an application's design. The number of legacy applications is increasing, which is anticipated to boost the need for this service.

COVID-19 Impact: Rise In Consumption of Internet Served Growth in the Market

The pandemic created a slump at the beginning of the lockdown. But, the IT industry rapidly adopted a remote work culture. The adoption of remote working led to increased demand for application modernization services as the IT industry was adopting this remote working model.  The rise in internet usage due to work-from-home activity boosted growth even during the pandemic. The demand for entertainment increased during the lockdown period, which boosted internet consumption. The outbreak of the pandemic created a lucrative growth opportunity for the application modernization services market. The remote working facility and virtual data access for the company and workforce succeeded in keeping the decline in productivity minimum. 

LATEST TRENDS

"Need For Improved Software Functionality to Increase Owing to Changing Business Environment"

The global application modernization services market is estimated to grow due to the increasing emphasis on the transformation and modernization of legacy systems, extensive workload migration to cloud-based services, and service-oriented structures, and rising demand for contemporary infrastructure to ensure business continuity. The market is forecasted to expand due to the adoption of cutting-edge technologies and the development of contemporary application technologies. The organization's functionality has a significant impact on the cost of application modernization. These factors are forecasted to serve application modernization services market growth.

Application Modernization Services Market Segmentation

• 
• Request a Free Sample to learn more about this report

• By Type Analysis

By type, the market is segmented into COBOL, ADA, PL/1, RPG, assembler, powerbuilder, and others.

The COBOL segment is expected to dominate the market due to the rising number of enterprises modernizing their applications to access a larger pool of developers. 

• By Application Analysis

Based on application, the market is classified into emulation, translation, and business rules extraction.

DRIVING FACTORS

"Various Advantages of the Service to Surge Growth in the Market"

Through automation and productivity improvements, application transformation aids in cost savings and organizational efficiency. The way the apps are created, tested, and maintained will be improved through the use of intelligent automation and AI techniques. Additionally, the pay-per-use or subscription-based business models provided by service providers have given a variety of businesses the opportunity to develop to their fullest potential. Despite a few small obstacles, including security worries and connection with other legacy systems, the market is anticipated to continue expanding quickly in the forecast period.

"Steady Adoption of Service Owing to Its Compatibility to Boost Service Demand"

The market is anticipated to develop as businesses increasingly employ enhanced software functionalities to boost business efficiency. To keep up with shifting consumer demands while maintaining technical growth, businesses are investing in cutting-edge technologies. The application modernization services market is anticipated to grow more rapidly as a result of technological advancement. Businesses are adopting modernizing application services for a few legacy apps, which further complicates compatibility difficulties. This can slow the market's expansion for application modernization services. These factors are anticipated to surge growth in the global market.

RESTRAINING FACTORS

"Lack of Skilled Employees to Hamper Market Growth"

Using application modernization services requires professionals, which may create challenges for the growth of the market. Moreover, the companies are using this service for some specific applications, which is estimated to create compatibility issues with other applications. These factors are expected to restrict the market growth.

Application Modernization Services Market REGIONAL INSIGHTS

• 
• Request a Free Sample to learn more about this report

"North America to Lead Market Accredited to the Growing Investment by Companies on Infrastructure "

North America is expected to hold a major part of the application modernization services market share attributable to the rising investment by companies on the development of hardware and advanced business applications. The U.S. is expected to hold about 35% of the overall market share owing to the growing adoption of infrastructure coupled with the rising demand for the software services. 

Europe is estimated to show significant growth in the global market due to the rising adoption of advanced technologies among IT and manufacturing companies. 

Asia Pacific is forecasted to show sizable growth in the global market owing to the accelerating investment by IT companies in IT infrastructure development. 

KEY INDUSTRY PLAYERS

"Key Players Focusing On Innovative Technology Development to Grow in the Market"

Businesses are working on developing new technology to offer more easy ways to increase product portfolio. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms. An extensive worldwide consumer base and the execution of operations through specialized distribution networks are other characteristics. The key companies strive to gain a higher market share by launching new products. 

List of Market Players Profiled

• Accenture (Ireland)
• Atos (France)
• Bell Integrator (U.S.)
• Capgemini (France)
• Cognizant (U.S.)
• Fujitsu (Japan)
• HCL (India)
• IBM (U.S.)
• Microsoft Inc. (U.S.)
• Tech Mahindra
• TCS (India)
• Wipro (India)
• Infosys (India)
• DXC (U.S.)
• Blu Age (France)
• TSRI (U.S.)
• Modern Systems (U.S.)
• Trinity Millennium (U.S.)
• Micro Focus (U.K.)
• Semantic Designs (U.S.)
• Evolveware (U.S.)
• Mapador (U.S.)
• Fresche Solutions Inc. (Canada)
• Asysco (Netherlands)
• Expersolve (U.S.)
• Metaware (U.S.)
• MOST Technologies (Israel)
• Freesoft (Italy)
• Language Portability Solutions (U.S.)

REPORT COVERAGE

An overview of the product is provided along with the product description. Numerous industry elements are included in the research. The market insights are prepared by utilizing large sample sizes for data-gathering modules. The study provides in-depth market insights. The stage includes gathering market data or related data using a variety of sources and tactics. It involves going over and organizing all the information gathered during the previous advance. It also covers the investigation of information discrepancies found across various information sources. Market statistical and coherent models are used to assess and estimate market data.