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Rise in demand for cloud services, need to modernize legacy systems, better customer experience, driving the application modernization services deployment all over the globe
The application modernization services market size is projected to grow from USD 11.4 billion in 2020 to USD 24.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 16.8% during the forecast period.Increasing need to adopt cloud sevrices, for their scalability and flexibility, demand for modernizing legacy systems and applications, rise in remote work scenario, and better customer experience by applications is expected to drive demand for application modernization services. Every business user owns a website to serve, communicate, and interact with its end-users. In the world of the digital era, enterprises are catering to a global audience, physically dispersed over the globe. The website is one of the basic communication channels for customers to engage with enterprises. 24*7 availability of the website is therefore important for enterprises to meet the increasing demand for tech-savvy customers. Application modernization services market seems to be lucrative in the coming years with ubiquity in internet usage and scalability provided by cloud native applications
Cloud Application Modernizationsegment to grow at a higher CAGR during the forecast period
Cloud application migration services are used for porting applications from the current environment to cloud environments.It is a standard practice for organizations to choose cloud application migration to migrate legacy systems, and modernize them. With the flexibility provided by these services, more organizations are choosing cloud migration services, hence, it is expected to grow fastest during coming 5 years.
SMEs segment to grow at the highest CAGR during the forecast period
SMEs are expected to adopt application modernization services toenhance agility and reduceTCO to a significant extent. This is expected to boost the development of application modernization in the SMEs segment. SMEs face a greater resource crunch than large enterprises and require better methods to solve complexities and increase the cost optimization of their business processes. The adoption of application modernization services has been increasing in SMES across the globe, and this is expected to drive the growth of the overall application modernization services market.
Asia Pacific (APAC) region to record the highest market share in theapplication modernization servicesmarket in 2020
APAC is an emerging region for the application modernization services market. Australia, China, Japan, and India are the major countries contributing to the growth of the application modernization services market in APAC. Due to rise ininternet traffic, adoption of cloud services, IT services start-up ecosystem, enterprises in this region are becoming more competitive, and are focusing on offering better customer experience services to industries. Thus, the untapped potential of the APAC region is attracting investments by major companies. Most organizations are focusing on expanding their business operations in countries across the APAC region, which is expected to increase demand for application modernization services
- By Company Type: Tier 1 – 35%, Tier 2 – 39%, and Tier 3 – 26%
- By Designation: C-level – 55%, Directors – 40%, and Others – 5%
- By Region: North America – 38%,Europe– 40%, APAC– 21%,and Rest of the World (RoW)– 1%
This research study outlines the market potential, market dynamics, and major vendors operating in the application modernization services market. Key and innovative vendors in the application modernization service market include Accenture (Ireland),IBM (US), Atos (France), HCL(India),Capgemini(France),Bell Integrator (US),Blu Age (France),Cognizant (US), Aspire Systems (India),Dell (US),DXC Technology (US), EPAM Systems (US), Fujitsu (Japan), Hexaware (India), Infosys (India),Innova Solutions (US), LTI (US), Microfocus (UK), MongoDB (US),NTT Data (Japan), Oracle (US), Softura (US), TCS (India), Virtusa (US), and Wipro (India).These vendors have adopted many organic as well as inorganic growth strategies, such as new product launches, and partnerships and collaborations, to expand their offerings and market shares in the application modernization services market.
The market studycoversthe application modernization servicesmarket across different segments. It aims at estimating the market size and the growth potential of this market across different segmentsbased onservice, organization size, cloud deployment mode, vertical, and region. The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying the report
- The report is expected to help the market leaders/new entrants in this market by providing them information on the closest approximations of the revenue numbers for the overall application modernization servicesmarket and its segments.
- This report is also expected to help stakeholders understand the competitive landscape and gain insights to improve the position of their businesses and to plan suitable go-to-market strategies.
- The report also aims at helping stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.