Application Modernization Services Market Size and Growth 2034
Application Modernization Services Market Growth, Size, Trends Analysis- By Service, By Deployment, By Enterprise Size, By Industry Vertical - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
| Published: Sep-2025 | Report ID: IACT25162 | Pages: 1 - 247 | Formats*: |
| Category : Information & Communications Technology | |||
Application Modernization Services Market Introduction and Overview
According to SPER Market Research, the Global Application Modernization Services Market is estimated to reach USD 99.64 billion by 2034 with a CAGR 16.95%.
The report includes an in-depth analysis of the Global Application Modernization Services Market, including market size and trends, product mix, Applications, and supplier analysis. The global Application Modernization Services Market, valued at USD 20.82 billion in 2024, is projected to grow at a CAGR of 16.95% from 2025 to 2034. The push to reduce IT complexity and costs is accelerating the adoption of application modernization services. Legacy systems demand high maintenance and infrastructure, leading to inefficiencies and overhead. Modernization—through re-platforming, re-hosting, or refactoring—enables migration to cloud, containerized, or microservices architectures, improving efficiency and reducing costs. Additionally, outdated applications pose cybersecurity and compliance risks. Modernization enhances security through updated controls, encryption, identity management, and threat detection. Providers bring expertise in security best practices and compliance, helping organizations safeguard data and strengthen their overall IT security and operational posture.
By Service type:
Based on service type, the market is divided into segments such as cloud application migration, UI modernization, application re-platforming, application portfolio assessment, post-modernization, and application integration. Among these, application re-platforming has emerged as the leading segment and is expected to maintain its dominance. This growth is fueled by the increasing shift toward hybrid and multi-cloud strategies, allowing organizations to benefit from various cloud providers, reduce dependency, and manage costs effectively. Re-platforming services support smooth migration and deployment across diverse cloud environments while ensuring interoperability, consistency, and application portability.
By Deployment:
The market, based on deployment, is categorized into public cloud, private cloud, and hybrid cloud. Hybrid cloud has emerged as the leading segment, driven by the growing adoption of multi-cloud strategies. Organizations increasingly modernize applications to operate across multiple cloud providers, aiming to enhance agility, resilience, and innovation while reducing reliance on a single provider and optimizing cloud investments. Meanwhile, the private cloud segment is expected to grow at the fastest pace, as organizations prioritize business continuity and disaster recovery, fueling demand for modernization services tailored to secure, controlled environments.
By enterprise size:
The market, based on enterprise size, is divided into large enterprises and SMEs. In 2024, SMEs held the largest revenue share, driven by increasing digital adoption and the need to enhance their online presence. As consumer behavior shifts toward digital platforms, SMEs are modernizing applications to improve user experience, optimize e-commerce capabilities, and boost customer engagement. Application modernization service providers help SMEs upgrade interfaces, enhance performance, and integrate digital tools. Meanwhile, large enterprises are projected to grow fastest, as regulatory compliance, data protection, and risk management drive their demand for modernization services.
By Industry Vertical:
Based on industry vertical, the market is segmented into BFSI, retail and e-commerce, manufacturing, IT and telecommunication, energy and utilities, healthcare and life sciences, and others, including education and media. In 2024, the BFSI sector accounted for the largest revenue share, driven by growing security and compliance demands. With increasing cyber threats and strict regulations like GDPR and PSD2, financial institutions are modernizing applications to enhance security and meet compliance requirements. This includes adopting advanced measures such as encryption and multi-factor authentication to protect sensitive data and strengthen their IT infrastructure.
Regional Insights:
North America led the market in 2024, driven by growing concerns over cybersecurity and data privacy. With rising cyber threats and regulations like GDPR and CCPA, organizations are modernizing legacy applications to strengthen security, using encryption, access controls, and threat detection. In Asia Pacific, the market is set to grow rapidly, supported by strong digital infrastructure, government tech investments, and demand from established BFSI and healthcare sectors. Rapid industrialization and a thriving startup ecosystem further boost the need for modernization solutions.
Market Competitive Landscape:
The global Application Modernization Services Market is moderately consolidated, with several prominent players shaping the industry. Key companies include: IBM, Accenture, Infosys, Cognizant, Capgemini, Tata Consultancy Services, DXC Technology, HCL Technologies, Wipro, NTT DATA Corporation.
Recent Developments:
In January 2024, AveriSource launched Platform 2.0, designed to streamline application modernization. It offers improved user experience, interactive dashboards, and advanced analytics to support mainframe-to-cloud transitions and accelerate modernization efforts.
In January 2024, IBM acquired application modernization capabilities from Advanced to strengthen IBM Consulting’s mainframe modernization services. The move supports IBM Watsonx Code Assistant for Z, enhancing AI-driven modernization solutions.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2021-2034 |
| Base year considered | 2024 |
| Forecast period | 2025-2034 |
| Segments covered | By Service, By Deployment, By Enterprise Size, By Industry Vertical |
| Regions covered | North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa |
| Companies Covered | IBM, Accenture, Infosys, Cognizant, Capgemini, Tata Consultancy Services, DXC Technology, HCL Technologies, Wipro, NTT DATA Corporation. |
- Global Application Modernization Services Market Size (FY 2021-FY 2034)
- Overview of Global Application Modernization Services Market
- Segmentation of Global Application Modernization Services Market By Service Type (Application Portfolio Assessment, Cloud Application Migration, Application Re-Platforming, Application Integration, UI Modernization, Post-Modernization)
- Segmentation of Global Application Modernization Services Market By Deployment (Public Cloud, Private Cloud, Hybrid Cloud)
- Segmentation of Global Application Modernization Services Market By Enterprise Size (Large Enterprise, SMEs)
- Segmentation of Global Application Modernization Services Market By Industry Vertical (BFSI, Retail & E-commerce, Manufacturing, IT & Telecommunication, Energy and Utilities, Healthcare & Life Sciences, Other)
- Statistical Snap of Global Application Modernization Services Market
- Expansion Analysis of Global Application Modernization Services Market
- Problems and Obstacles in Global Application Modernization Services Market
- Competitive Landscape in the Global Application Modernization Services Market
- Details on Current Investment in Global Application Modernization Services Market
- Competitive Analysis of Global Application Modernization Services Market
- Prominent Players in the Global Application Modernization Services Market
- SWOT Analysis of Global Application Modernization Services Market
- Global Application Modernization Services Market Future Outlook and Projections (FY 2025-FY 2034)
- Recommendations from Analyst
1. Introduction
- 1.1. Scope of the report
- 1.2. Market segment analysis
2. Research Methodology
- 2.1. Research data source
- 2.1.1. Secondary Data
- 2.1.2. Primary Data
- 2.1.3. SPERs internal database
- 2.1.4. Premium insight from KOLs
- 2.2. Market size estimation
- 2.2.1. Top-down and Bottom-up approach
- 2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
- 4.1. Driver, Restraint, Opportunity and Challenges analysis
- 4.1.1. Drivers
- 4.1.2. Restraints
- 4.1.3. Opportunities
- 4.1.4. Challenges
5. Market variable and outlook
- 5.1. SWOT Analysis
- 5.1.1. Strengths
- 5.1.2. Weaknesses
- 5.1.3. Opportunities
- 5.1.4. Threats
- 5.2. PESTEL Analysis
- 5.2.1. Political Landscape
- 5.2.2. Economic Landscape
- 5.2.3. Social Landscape
- 5.2.4. Technological Landscape
- 5.2.5. Environmental Landscape
- 5.2.6. Legal Landscape
- 5.3. PORTERs Five Forces
- 5.3.1. Bargaining power of suppliers
- 5.3.2. Bargaining power of buyers
- 5.3.3. Threat of Substitute
- 5.3.4. Threat of new entrant
- 5.3.5. Competitive rivalry
- 5.4. Heat Map Analysis
6. Competitive Landscape
- 6.1. Global Application Modernization Services Market Manufacturing Base Distribution, Sales Area, Product Type
- 6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Application Modernization Services Market
7. Global Application Modernization Services Market, By Service Type, (USD Million) 2021-2034
- 7.1. Application Portfolio Assessment
- 7.2. Cloud Application Migration
- 7.3. Application Re-Platforming
- 7.4. Application Integration
- 7.5. UI Modernization
- 7.6. Post-Modernization
8. Global Application Modernization Services Market, By Deployment, (USD Million) 2021-2034
- 8.1. Public Cloud
- 8.2. Private Cloud
- 8.3. Hybrid Cloud
9. Global Application Modernization Services Market, By Enterprise Size, (USD Million) 2021-2034
- 9.1. Large Enterprise
- 9.2. SMEs
10. Global Application Modernization Services Market, By Industry Vertical, (USD Million) 2021-2034
- 10.1. BFSI
- 10.2. Retail & E-commerce
- 10.3. Manufacturing
- 10.4. IT & Telecommunication
- 10.5. Energy and Utilities
- 10.6. Healthcare & Life Sciences
- 10.7. Other
11. Global Application Modernization Services Market, (USD Million) 2021-2034
- 11.1. Global Application Modernization Services Market Size and Market Share
12. Global Application Modernization Services Market, By Region, 2021-2034 (USD Million)
- 12.1. Asia-Pacific
- 12.1.1. Australia
- 12.1.2. China
- 12.1.3. India
- 12.1.4. Japan
- 12.1.5. South Korea
- 12.1.6. Rest of Asia-Pacific
- 12.2. Europe
- 12.2.1. France
- 12.2.2. Germany
- 12.2.3. Italy
- 12.2.4. Spain
- 12.2.5. United Kingdom
- 12.2.6. Rest of Europe
- 12.3. Middle East and Africa
- 12.3.1. Kingdom of Saudi Arabia
- 12.3.2. United Arab Emirates
- 12.3.3. Qatar
- 12.3.4. South Africa
- 12.3.5. Egypt
- 12.3.6. Morocco
- 12.3.7. Nigeria
- 12.3.8. Rest of Middle-East and Africa
- 12.4. North America
- 12.4.1. Canada
- 12.4.2. Mexico
- 12.4.3. United States
- 12.5. Latin America
- 12.5.1. Argentina
- 12.5.2. Brazil
- 12.5.3. Rest of Latin America
13. Company Profile
- 13.1. IBM
- 13.1.1. Company details
- 13.1.2. Financial outlook
- 13.1.3. Product summary
- 13.1.4. Recent developments
- 13.2. Accenture
- 13.2.1. Company details
- 13.2.2. Financial outlook
- 13.2.3. Product summary
- 13.2.4. Recent developments
- 13.3. Infosys
- 13.3.1. Company details
- 13.3.2. Financial outlook
- 13.3.3. Product summary
- 13.3.4. Recent developments
- 13.4. Cognizant
- 13.4.1. Company details
- 13.4.2. Financial outlook
- 13.4.3. Product summary
- 13.4.4. Recent developments
- 13.5. Capgemini
- 13.5.1. Company details
- 13.5.2. Financial outlook
- 13.5.3. Product summary
- 13.5.4. Recent developments
- 13.6. Tata Consultancy Services
- 13.6.1. Company details
- 13.6.2. Financial outlook
- 13.6.3. Product summary
- 13.6.4. Recent developments
- 13.7. DXC Technology
- 13.7.1. Company details
- 13.7.2. Financial outlook
- 13.7.3. Product summary
- 13.7.4. Recent developments
- 13.8. HCL Technologies
- 13.8.1. Company details
- 13.8.2. Financial outlook
- 13.8.3. Product summary
- 13.8.4. Recent developments
- 13.9. Wipro
- 13.9.1. Company details
- 13.9.2. Financial outlook
- 13.9.3. Product summary
- 13.9.4. Recent developments
- 13.10. NTT DATA Corporation
- 13.10.1. Company details
- 13.10.2. Financial outlook
- 13.10.3. Product summary
- 13.10.4. Recent developments
- 13.11. Others
14. Conclusion
15. List of Abbreviations
16. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
Frequently Asked Questions About This Report
Application Modernization Services Market is projected to reach USD 99.64 billion by 2034, growing at a CAGR of of 16.95% during the forecast period.
Application Modernization Services Market grew in Market size from 2025. The Market is expected to reach USD 99.64 billion by 2034, at a CAGR of 16.95% during the forecast period.
Application Modernization Services Market CAGR of 16.95% during the forecast period.
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Application Modernization Services Market size is USD 99.64 billionfrom 2025 to 2034.
Application Modernization Services Market is covered By Service, By Deployment, By Enterprise Size, By Industry Vertical
The North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa is the highest Market share in the Application Modernization Services Market.
IBM, Accenture, Infosys, Cognizant, Capgemini, Tata Consultancy Services, DXC Technology, HCL Technologies, Wipro, NTT DATA Corporation.
The report includes an in-depth analysis of the Global Application Modernization Services Market, including market size and trends, product mix, Applications, and supplier analysis.
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