Dublin, March 15, 2023 (GLOBE NEWSWIRE) -- The "Global Application Modernization Services Market by Service Type (Application Portfolio Assessment, Cloud application Migration, Application Re-platforming), Cloud Deployment Mode, Organization Size, Vertical and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The application modernization services market size is expected to grow from USD 15.2 billion in 2022 to USD 32.8 billion by 2027 at a Compound Annual Growth Rate (CAGR) of 16.7% during the forecast period.
As per service, the cloud application migration segment to hold the highest CAGR during the forecast period
The application modernization services market by service type is divided into application portfolio assessment, cloud application migration, application re-platforming, application integration, UI modernization, and post-modernization. Cloud application migration is estimated to hold the highest CAGR of 19.4% during the forecasted period of the application modernization services market.
A cloud application migration is the process by which a business moves some or all its data center capabilities onto the cloud, typically to use the cloud-based infrastructure offered by public cloud or private cloud services providers such as Oracle, TCS, or Microsoft Azure.
As more businesses migrate to the cloud, more migrations within the cloud are also happening as businesses switch between various cloud providers (known as cloud-to-cloud migration). Applications are moved to the cloud by businesses to benefit from lower costs, flexible scaling, and the ability to update software fast in response to demand changes.
The process of migrating on-premises or legacy infrastructure to the cloud is known as application migration. It applies when migrating IT processes, databases, and applications between clouds.
Organizations need to analyze each application's design, determine whether it could be implemented on the new platform, and make informed decisions if they want to move their apps to the cloud. It is crucial to carefully examine overall application migration criteria, considering all relevant factors such as resource allocation, business continuity, compliance, security, and cost considerations.
As per vertical, BFSI vertical holds the largest market size during the forecast period
The vertical segment is further sub-segmented into BFSI, healthcare and life sciences, telecommunication, IT & ITeS, retail & consumer goods, government and public sector, energy & utilities, manufacturing, and other verticals. As per vertical, the BFSI industry is expected to hold the largest market share during the forecast period.
Financial companies are causing more and more market disruption with their innovations, making it difficult for banks to keep up. Therefore, the banking industry's modernization of outdated applications offers customers quick and easy transactions. An outdated platform for vital financial services such as transaction processing, account registration, and loan approval is referred to as a legacy banking system.
The compatibility for advanced solution integration is not present in its out-of-date software components. Modern customers are accustomed to getting solutions quickly, or they will find another vendor. In this aspect, modernizing outdated banking applications speeds up project completion while reducing work complexity.
The act of updating, upgrading, or refining current or legacy apps so they may incorporate the newest computing techniques, such as modern languages, cloud infrastructure, and frameworks, is known as legacy application modernization. Due to severe regulations and outdated core platforms that keep them bound to decades-old legacy systems, banks are hesitant to adopt new technological advancements.
As per region, North America holds the largest market share during the forecast period
The application modernization services market is segmented into five regions, including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
In terms of global application modernization services market share, North America is anticipated to hold the largest market share in 2022, and this trend is anticipated to last throughout the forecast period. Top contributors to the market for application modernization services in North America include the US and Canada.
North America businesses are leading the way in embracing new technologies and quickly adjusting to the rapidly evolving technology ecosystem. Businesses may upgrade their outdated applications relative to the region's well-developed digital infrastructure ecosystem and high usage of cloud services.
The governments in this region have a clear goal for modernizing their outdated systems, making North America the most developed market for application modernization services. This area is home to the majority of large application service providers. The majority of the market growth for application modernization services comes from the US.
The market for application modernization services in this region is being driven by a number of factors, including robust healthcare and BFSI compliances, increased use of cutting-edge cloud technology, and improved citizen services.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 302 |
| Forecast Period | 2022 - 2027 |
| Estimated Market Value (USD) in 2022 | $15.2 Billion |
| Forecasted Market Value (USD) by 2027 | $32.8 Billion |
| Compound Annual Growth Rate | 16.7% |
| Regions Covered | Global |
Market Dynamics
Drivers
- Need for Improved Software Functionalities due to Changing Business Landscapes
- Demand for Flexibility and Scalability Through Cloud Computing
- Benefits of Integrating Modern Technologies with Software Systems
- Shift Toward Modernization by Cloud-Native Technologies
- Increase in Automation in Application Updates
Restraints
- High Costs and Complexities in Application Modernization Services
Opportunities
- Existence of Large Number of Legacy Applications
- Evolution of Open Standards for Software Development
- Proliferation of Kubernetes and Containerization
Challenges
- Reduction in Technology Spending due to COVID-19
- Lack of It Skills Among Employees
- Complexities Associated with Cloud-Native Concepts
Case Study Analysis
- Wovenware Designed Web Application to Meet Needs of Client
- Cloudhedge Suggested Migration and Deployment of Containers on IBM Cloud Platform
- Fujitsu to Help Client in Migrating Its Business-Critical Applications
- Tech Mahindra to Incorporate Tool-Based Application Assessment Solution
- Atos to Help Clients in Achieving Cost-Effective, Low-Risk Modernization, and Modular Design
- Trilio Enabled Csi-Piemonte to Offer Native Data Protection and Management Services
Companies Mentioned
- Accenture
- Aspire Systems
- Atos
- Bayshore Intelligence Solutions
- Bell Integrator
- Capgemini
- Cleveroad
- Cloudhedge
- Cognizant
- D3V Technology Solutions
- Dell Technologies
- Dxc Technology
- Epam Systems
- Fujitsu
- Geomotiv
- Hcl Technologies
- Hexaware Technologies
- Ibm
- Infosys
- Innova Solutions
- Lti
- Micro Focus
- Microsoft
- Mongodb
- Ntt Data
- One Six Solutions
- Opinov8
- Oracle
- Prime Tsr
- Soft Suave
- Softura
- Tcs
- Techahead
- Virtusa
- Wipro
For more information about this report visit https://www.researchandmarkets.com/r/me8ty4
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