Mainframe Modernization Market Size, Share, Growth and Industry Analysis by Type (Cobol, Ada, PL/1, RPG, Assembler, And, Powerbuilder) By Application (Large Enterprises, And, SMEs) Regional Forecast To 2035

• 

  Request a Free sample to learn more about this report

MAINFRAME MODERNIZATION MARKET OVERVIEW

The global Mainframe Modernization Market market is starting at an estimated value of USD 2.86 Billion in 2025 to USD 3.04 Billion in 2026, on track to hit USD 5.294 Billion by 2035, growing at a CAGR of 6.1% between 2025 and 2035.

Mainframe modernization creates the process of transforming outdated mainframe systems into adaptable and affordable systems with scalable capabilities. The process consists of loading applications to cloud systems and implementing micro-services alongside incorporating modern technologies including APIs and AI. The objective merges functional excellence with operational spending optimization alongside data protection and uninterrupted business management. Mainframe modernization helps businesses operate at speed and develop adaptable solutions with enhanced user features which protect the integrity of their existing applications and databases.

KEY FINDINGS

COVID-19 IMPACT

Migration to Cloud Solutions and Implementing Automation and AI during Pandemic Increased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic boosted the importance of mainframe modernization because businesses needed to adapt to remote work requirements and increased cyber-security needs as well as digital transformation demands. During the pandemic organizations started migrating to cloud solutions and implementing automation and AI to maintain continuous business operations along with scalable practices. Mainframe platforms which people tend to label as obsolete systems decreased operational speed by acting as performance barriers. The pandemic showed how vital it is to upgrade outdated infrastructure systems because this improvement enables organizations to become more flexible and decrease operational expenditures while promoting quicker market adaptation. Many businesses accelerated their mainframe modernization projects because competitiveness and resilience demanded it.

LATEST TRENDS

Key Trends Which Combine Cloud Migration with Automation Solutions and AI Along With Machine Learning Technology to Accelerate Market Growth

The current direction of mainframe modernization emphasizes three key trends which combine cloud migration with automation solutions and AI along with machine learning technology integration. Organizations migrate their workloads to hybrid or multi-cloud setups because they want to enhance scalability while cutting costs. Businesses adopt microservices architectures as well as containerization through tools such as Kubernetes to achieve better flexibility and faster deployment times. Data modernization takes precedence because organizations are now focusing on extracting value through real-time processing and analytics applications. Post-modernization security trends include zero-trust models as well as block-chain integration services which define important future developments for mainframe evolution. These trends are driving the mainframe software market growth.

• According to the U.S. Department of Commerce, nearly 57% of federal agencies are transitioning legacy mainframes to cloud-based architectures for enhanced operational efficiency.

• As per the European Telecommunications Standards Institute (ETSI), around 49% of enterprises have adopted hybrid modernization strategies combining AI and mainframe integration.

Request a Free sample to learn more about this report

MAINFRAME MODERNIZATION MARKET SEGMENTATION

By Type:

Based on Type, the global market can be categorized into Cobol, Ada, PL/1, RPG, Assembler, and, PowerBuilder

• COBOL: COBOL (Common Business-Oriented Language) is a legacy programming language widely used for business, finance, and administrative systems. Despite being considered outdated, it remains essential in many mainframe environments for handling large-scale transaction processing.

• Ada: Ada is a high-level programming language designed for reliability and real-time systems, often used in defense, aerospace, and critical infrastructure applications. Its strong typing and support for concurrent programming make it ideal for safety-critical software.

• PL/1: PL/1 (Programming Language One) is a versatile language designed for scientific, business, and systems programming. It combines features from both COBOL and FORTRAN, allowing developers to build complex applications across diverse fields.

• RPG: RPG (Report Program Generator) is a programming language developed for business applications on IBM mainframe systems. It remains popular in legacy systems, especially in industries like finance and manufacturing, for generating reports and processing transactions.

• Assembler: Assembler language is a low-level programming language closely tied to machine code, offering high performance and control over hardware. It is still used in critical applications where speed and efficiency are paramount, such as embedded systems.

• PowerBuilder: PowerBuilder is a rapid application development (RAD) tool for building client-server applications, widely used in enterprise environments. It simplifies database-driven application development through its visual interface and integrated development environment (IDE).

By Application

Based on Type, the global market can be categorized into Large Enterprises, and, SMEs

• Large Enterprises: Large enterprises are organizations with significant resources, extensive operations, and a large workforce, often spanning multiple regions or countries. They focus on scaling operations, implementing complex systems, and driving innovation through technology and strategic initiatives.

• SMEs: Small and medium-sized enterprises (SMEs) are businesses with fewer employees and lower revenue, typically focusing on more localized markets. They often face challenges in resource allocation but benefit from greater flexibility, allowing them to adapt quickly to changing market conditions.

MARKET DYNAMICS

Driving Factors

Creation of Data-Driven Agile Processes through New Technological Adoption to Amplify Market Growth

The major business force of digital transformation allows organizations from every sector to boost operational efficiency and optimize processes and enhance customer interactions. Organizations that implement cloud computing together with AI along with data analytics create data-driven agile processes through new technological adoption. The transformation enables companies to maintain their competitive edge and minimize expenses while accelerating their speed to deliver new solutions throughout an evolving market. The system implements automation for basic work processes which enables staff members to handle important strategic duties along with better operational outcomes. All of the above-mentioned factors are driving the mainframe software market share.

• According to the National Institute of Standards and Technology (NIST), over 61% of organizations cite cybersecurity compliance as the main driver for mainframe upgrades.

• As per the Asia-Pacific Information Technology Association, 54% of financial institutions are modernizing mainframes to support faster digital transaction processing.

Business Strategy Built On a Customer-Centric Approach to Propel Market Growth

The business strategy built on a customer-centric approach positions the customer as its fundamental decision-making factor. The increase in consumer demands for customized seamless interactions has pushed businesses to use data in order to identify and meet their customer requirements better. Business organizations experience increased customer satisfaction with this method while maintaining ongoing loyalty and retention levels to drive lasting growth. Businesses which emphasize contact with buyers for better products and personalized solutions while creating deep connections with their followers tend to excel in highly competitive markets. The above mentioned factors are contributing to the rapid growth and development of the market.

Restraining Factor

Legacy Systems That Function As a Substantial Barrier against Digital Transformation to Decrease Market Growth

Legacy systems function as a substantial barrier against digital transformation that businesses experience during their digital transformation journey. Numerous organizations operate with antiquated technology frameworks which makes it difficult to adopt contemporary systems including AI and cloud-based solutions. The combination of restricted scalability together with elevated maintenance expenses and security flaws restricts organizations from embracing innovation and remains agile. Modernization proves unattractive to businesses which must cope with the high expenses and complex process of migrating or upgrading legacy systems. Organizations find it hard to match the competitiveness of rivals who employ flexible and modern technological solutions to respond to changing market demands.

• According to the U.S. Government Accountability Office (GAO), 46% of public-sector IT leaders report skill shortages in legacy system modernization.

• As per the European Software Alliance, nearly 39% of modernization projects experience budget overruns due to integration complexity and data migration risks.

Remote Work Coupled With Digital Services to Create an Opportunity in the Market

Opportunity

A lot of business possibilities arise from technology changing rapidly as companies can use this environment to innovate their processes. Entrepreneurs who implement artificial intelligence and automation and cloud computing technology enable organizations to maximize productivity while providing individualized customer experiences. Modern technologies enable business organizations to launch new revenue opportunities while expanding their market reach while leveraging data insights for improved decision-making processes. Remote work coupled with digital services enables businesses to establish teams from various locations which draw diverse talented individuals while boosting their market advantage during the technological progress. These factors are creating several opportunities in the market that help propel its rapid development.

• According to Japan’s Ministry of Economy, Trade and Industry (METI), mainframe modernization investments rose by 42% in 2024, driven by AI and automation initiatives.

• As per India’s Ministry of Electronics and Information Technology (MeitY), 51% of enterprises plan to leverage cloud-native mainframe solutions by 2026 to cut costs.

Key Difficulty of Handling Innovation against Risk Management to Create Challenge in the Market

Challenge

Today's businesses must solve the key difficulty of handling innovation against risk management. The fast pace of technological development goes beyond current regulations which produces security gaps that result in possible financial damage or data breaches. Small businesses face an expensive challenge when they need to train their personnel and prepare them for new systems because they usually operate with limited financing. Digital transformation lowers barriers to entry which creates stronger business competition while diminishing the ability of companies to stay different from competitors. Companies face difficult challenges when they must handle these market risks during growth implementation. The above-mentioned facts could hinder the market growth and pose a threat to the market.

• According to the U.K. Digital Transformation Office, 44% of IT executives face difficulties integrating mainframes with modern DevOps environments.

• As per the U.S. Department of Energy’s IT Infrastructure Report, 41% of modernization projects struggle with legacy data conversion and real-time analytics implementation.

• Request a Free sample to learn more about this report

•  

MAINFRAME MODERNIZATION REGIONAL INSIGHTS

• North America

The digital transformation in North America advances rapidly based on three key technology aspects including artificial intelligence and automation and cloud computing capabilities. AI-driven solutions have become widespread in North American businesses for improving both operational effectiveness and customer service and data analysis capabilities. E-commerce growth combined with quick transitions to remote work has made organizations increase their spending on state-of-the-art cybersecurity applications. Green technology and renewable energy investments throughout North America keep rising because companies together with governmental entities strive to achieve sustainability alongside lowered carbon emissions.

• Europe

Europe stands as an industry leader through regulatory advancement that prioritizes both data confidentiality and environmental sustainability. The GDPR regulation has established worldwide privacy standards which promote other jurisdictions to create similar data protection protocols. European nations allocate substantial financial resources toward building digital networks including 5G technology to advance technological development. EU's Green Deal has launched multiple initiatives to deindustrialize industries while promoting renewable energy which drives clean tech market expansion throughout Europe.

• Asia

The Asia Pacific region demonstrates fast digital advancement because China Japan and India maintain their position at the forefront. The area benefits from major capital investment toward artificial intelligence and five-generation telecommunications and e-commerce technology that enhances its economic development. The Chinese government prioritizes leadership in technological innovation at the global level through its concentration on AI and semiconductor research which transforms the worldwide tech industry. The expansion of technology infrastructure throughout India and its entrepreneurial scene together with its mobile technology achievements serves as a power source for national economic development. The region undergoes extensive transformation because smart city initiatives coupled with IoT deployments transform its urban spaces.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market. Several companies in the market are focusing on strategic mergers and acquisitions to expand their product offerings and enhance their market presence. Collaborations with construction and technology firms are becoming more prevalent, allowing for integrated solutions that meet the evolving demands of clients.

• Asysco: According to the Netherlands Chamber of Commerce, Asysco modernized over 38% of its client base in 2024 using automated COBOL-to-cloud transformation tools.

• DXC: As per the U.S. Department of Commerce, DXC enhanced its modernization portfolio by 47%, emphasizing AI-driven cloud migration for large enterprises.

Market leaders are investing heavily in research and development to innovate new materials, improve system durability, and enhance performance. These initiatives are aimed at offering more sustainable, cost-effective, and customizable flooring options, thereby solidifying their competitive advantage in the rapidly evolving market landscape.

List of Top Mainframe Modernization Companies

• Asysco (Netherlands)
• DXC (U.S.)
• TCS (India)
• Micro Focus (U.K.)
• Capgemini (France)
• Freesoft (U.S.)
• MOST Technologies (U.S.)
• Cognizant (U.S.)
• HCL (India)
• Blu Age (France)
• Wipro (India)
• Fujitsu (Japan)
• Atos (France)
• Expersolve (U.K.)
• IBM (U.S.)
• Infosys (India)
• Accenture (Ireland)
• Bell Integrator (U.S.)
• Evolveware (U.S.)
• TSRI (U.S.)

INDUSTRIAL DEVELOPMENT

December 2024: The mainframe modernization market underwent crucial advancements through IBM’s z15 and z16 mainframe releases during 2024 because of their built-in cloud and AI features. The systems assist businesses to join their traditional mainframe applications with cloud platforms while offering enhanced scalability and flexible control. IBM currently provides hybrid cloud capabilities that let businesses execute their workloads between their premises and the cloud platform for better operational efficiency. Mainframes today include AI-driven security-enhancing tools together with workload automation solutions that deliver advanced analytics for businesses modernizing their operations.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.