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    GCC Application Modernization Services Market

    ID: MRFR/ICT/57087-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    GCC Application Modernization Services Market Research Report By Vertical (Healthcare, IT, Telecommunications, Energy and utilities, Manufacturing, Consumer goods and retail), By Deployment Type (Hybrid cloud, Private cloud, Public cloud) and By Application (Post modernization, Application portfolio assignment, UI modernization, Cloud application mitigation, Application integration, Application re-platforming)- Forecast to 2035

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    GCC Application Modernization Services Market Research Report- Forecast to 2035 Infographic
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    Table of Contents

    GCC Application Modernization Services Market Summary

    The GCC Application Modernization Services market is poised for substantial growth, projected to reach 1506 USD Million by 2035 from a base of 228 USD Million in 2024.

    Key Market Trends & Highlights

    GCC Application Modernization Services Key Trends and Highlights

    • The market is expected to grow from 228 USD Million in 2024 to 1506 USD Million by 2035.
    • A compound annual growth rate (CAGR) of 18.72 percent is anticipated for the period from 2025 to 2035.
    • The increasing demand for cloud-based solutions is likely to drive the market expansion significantly.
    • Growing adoption of digital transformation initiatives due to the need for operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 228 (USD Million)
    2035 Market Size 1506 (USD Million)
    CAGR (2025-2035) 18.72%

    Major Players

    Cognizant, SAP, Hewlett Packard Enterprise, Capgemini, Fujitsu, Accenture, Wipro, Infosys, Atos, Tata Consultancy Services, Microsoft, Oracle, IBM

    GCC Application Modernization Services Market Trends

    The GCC Application Modernization Services Market is experiencing significant growth driven by several key market drivers. The regional emphasis on digital transformation is evident as governments and private sectors in the GCC nations aim to enhance productivity and operational efficiencies. The Vision 2030 initiatives in countries like Saudi Arabia and the UAE's National Innovation Strategy underline a strategic push towards modernization and innovation, accelerating the demand for application modernization services. 

    Moreover, the ongoing shift towards cloud computing and the increased adoption of hybrid IT infrastructure are transformative trends reshaping the market landscape in the GCC. Organizations in the region are exploring opportunities to leverage emerging technologies such as artificial intelligence, machine learning, and the Internet of Things. These technologies can be integrated into existing applications to improve functionality and drive business value. The increasing desire for enhanced user experiences and streamlined processes fosters investment in modernized applications that can better meet consumer demands. 

    Additionally, the regulatory frameworks being established in GCC countries encourage digital upgrades within organizations, paving the way for the adoption of modernization services. Recent trends also indicate a shift towards agile development methodologies and DevOps practices as companies recognize the need for faster deployment and iterative improvements in their applications.

    The rise of remote work and digital collaboration tools has further accelerated the urgency for organizations to modernize their legacy systems, ensuring higher resilience and scalability during evolving market conditions. As GCC countries continue to focus on economic diversification and technological advancement, the application modernization services market is expected to expand, reflecting the region's commitment to creating a robust digital economy.

    GCC Application Modernization Services Market Drivers

    Market Segment Insights

    GCC Application Modernization Services Market Segment Insights

    GCC Application Modernization Services Market Segment Insights

    Application Modernization Services Market Vertical Insights

    Application Modernization Services Market Vertical Insights

    The GCC Application Modernization Services Market showcases robust opportunities within the Vertical segment, encompassing diverse industries such as Healthcare, IT, Telecommunications, Energy and Utilities, Manufacturing, and Consumer Goods and Retail. Each industry in the GCC region is experiencing significant transformation driven by advancements in digital technologies and changing client expectations. For example, the Healthcare sector, which is rapidly adopting e-health services and telemedicine solutions, sees application modernization as pivotal for improving patient care and streamlining operations, especially in the wake of recent global health challenges.

    Concurrently, the IT domain continues to grow substantially as organizations seek to enhance operational effectiveness and offer innovative services through modernized platforms. In the Telecommunications industry, ongoing investment in network capabilities and the integration of IoT (Internet of Things) technologies are key drivers requiring companies to modernize their applications for improved connectivity and customer engagement. The Energy and Utilities sector is increasingly focused on sustainability and efficiency; thus, modernizing applications facilitates better resource management and supports the integration of renewable energy sources.

    In Manufacturing, the push towards Industry 4.0 is driving demand for smarter applications that can facilitate automation and data analytics for operational excellence. Lastly, the Consumer Goods and Retail segment is realizing considerable benefits from application modernization, as companies seek to enhance user experiences and streamline supply chain processes amid shifting consumer behaviors.

    Overall, the Vertical segment within the GCC Application Modernization Services Market represents a fertile ground for growth, underpinned by critical technological advances and evolving market dynamics across these key industries.As a result, businesses are poised to harness the benefits of modernized applications to drive competitive advantage and operational efficiency.

    Application Modernization Services Market Deployment Type Insights

    Application Modernization Services Market Deployment Type Insights

    The GCC Application Modernization Services Market is increasingly shaped by the Deployment Type segment, which includes Hybrid cloud, Private cloud, and Public cloud options. As organizations across the GCC region progressively seek to enhance operational efficiency and business agility, the demand for these deployment models is on the rise. Hybrid cloud solutions are particularly significant, as they offer flexibility in orchestrating workloads between on-premises and cloud environments, providing organizations with tailored strategies that fit diverse needs.Furthermore, Private cloud services cater to businesses that require heightened security and compliance, especially in sectors heavily regulated within the GCC. 

    On the other hand, Public cloud options are gaining traction among small and medium-sized enterprises seeking cost-effective solutions to scale their operations without the burden of managing their infrastructure. The growing digital transformation initiatives across the GCC, supported by government-led strategies aimed at diversifying economies and enhancing technological capabilities, are expected to drive further adoption of these deployment models.The market trends also highlight that organizations are increasingly looking for seamless integration and interoperability between various cloud environments, fueling innovations in Application Modernization Services.

    Application Modernization Services Market Application Insights

    Application Modernization Services Market Application Insights

    The GCC Application Modernization Services Market has showcased robust trends driven by technological advancement and business transformation needs, particularly within the Application segment. Organizations in the GCC are shifting focus towards Post modernization strategies, which play a critical role in enhancing performance and extending the lifecycle of existing applications. Application portfolio assignment is gaining traction as businesses aim to optimize resource allocation and improve service delivery, ensuring better alignment with organizational goals.UI modernization stands out as a vital component, providing enhanced user experiences that are crucial for retaining a competitive edge in the rapidly evolving digital landscape. 

    Cloud application mitigation is increasingly important as companies move to cloud infrastructures, emphasizing the need for seamless and secure integrations. Furthermore, Application integration remains a fundamental aspect to ensure interoperability among diverse platforms, enhancing efficiency. Similarly, Application re-platforming is significant for businesses to adapt their legacy systems to modern environments, promoting agility and responsiveness.This segment overall reflects a dynamic landscape shaped by innovation, increasing demand for efficiency, and the necessity for organizations to remain relevant in a tech-driven market.

    Get more detailed insights about GCC Application Modernization Services Market Research Report- Forecast to 2035

    Regional Insights

    Key Players and Competitive Insights

    The GCC Application Modernization Services Market has emerged as a pivotal segment within the technology landscape, driven by the increasing need for organizations to adapt to rapidly changing digital environments. In this region, a variety of factors are influencing the competitive dynamics, including the push for cloud adoption, the need for enhanced security measures, and the evolution of consumer expectations around user experience. Companies are increasingly focusing on updating legacy applications to leverage the benefits of new technologies such as artificial intelligence and machine learning, while also seeking to improve operational efficiency. 

    This has led to a competitive arena filled with both established players and newcomers vying for market share, each offering distinct value propositions and capabilities tailored to the unique regional demands of the Gulf Cooperation Council.Cognizant holds a significant position within the GCC Application Modernization Services Market, leveraging its robust technological expertise and extensive industry experience. The company’s strong focus on digital transformation positions perfectly to assist organizations in the GCC region with their modernization efforts.

    By providing tailored solutions that encompass cloud services, application re-engineering, and data analytics, Cognizant has successfully established itself as a trusted partner for businesses looking to innovate while optimizing costs. 

    Its strategic collaborations with local enterprises and its understanding of the GCC's regulatory landscape further strengthen its market presence, enabling Cognizant to offer relevant solutions that resonate with clients striving for agility and competitive advantage.SAP is another key player in the GCC Application Modernization Services Market, where it offers a comprehensive suite of products and services aimed at empowering organizations to embrace digital transformation. SAP's market presence is marked by its strong emphasis on enterprise resource planning and data management solutions that help businesses streamline operations and gain actionable insights.

    Its key offerings, including SAP S/4HANA, serve as conducive environments for application modernization, allowing organizations to transition legacy systems effectively. 

    SAP has formed strategic alliances and partnerships within the region, further enhancing its reach and capabilities. Additionally, its focus on innovation through mergers and acquisitions allows it to integrate new technologies and solutions that cater specifically to the needs of GCC businesses, providing them with robust tools to navigate the complex digital landscape.

    Key Companies in the GCC Application Modernization Services Market market include

    Industry Developments

    The GCC Application Modernization Services Market has witnessed significant developments recently, particularly with heightened demand for cloud adoption and digital transformation among enterprises. Companies like Accenture and Fujitsu have expanded their service offerings, focusing on enhancing customer experiences through innovative application solutions. In terms of mergers and acquisitions, Tata Consultancy Services announced a strategic acquisition in January 2023 aimed at bolstering its application modernization capabilities, while SAP has been actively collaborating with various regional players to enhance its market position. 

    Moreover, significant growth in market valuation has been noted, driven by increased investments in technology by governments, particularly in the United Arab Emirates and Saudi Arabia, which are prioritizing digital initiatives as part of their national visions. This growth trajectory is further supported by initiatives from IBM and Oracle, who are leveraging artificial intelligence and analytics to modernize applications across multiple sectors. 

    Additionally, regulatory frameworks by the governments encouraging digital transformation have boosted the market landscape, leading to optimistic projections for the coming years. As a result, major players like Cognizant and Infosys are also expanding operations within the GCC region to capitalize on the evolving market dynamics.

    Market Segmentation

    Application Modernization Services Market Vertical Outlook

    • Healthcare
    • IT
    • Telecommunications
    • Energy and utilities
    • Manufacturing
    • Consumer goods and retail

    Application Modernization Services Market Application Outlook

    • Post modernization
    • Application portfolio assignment
    • UI modernization
    • Cloud application mitigation
    • Application integration
    • Application re-platforming

    Application Modernization Services Market Deployment Type Outlook

    • Hybrid cloud
    • Private cloud
    • Public cloud

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 195.71(USD Million)
    MARKET SIZE 2024 228.0(USD Million)
    MARKET SIZE 2035 1506.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 18.723% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Cognizant, SAP, Hewlett Packard Enterprise, Capgemini, Fujitsu, Accenture, Wipro, Infosys, Nokia, Mavenir, Atos, Tata Consultancy Services, Microsoft, Oracle, IBM
    SEGMENTS COVERED Vertical, Deployment Type, Application
    KEY MARKET OPPORTUNITIES Cloud migration acceleration, Legacy system upgrades, Increased demand for agile solutions, Emphasis on cybersecurity compliance, Integration of AI technologies
    KEY MARKET DYNAMICS cloud migration adoption, legacy system integration, regulatory compliance requirements, demand for scalability, cost optimization initiatives
    COUNTRIES COVERED GCC

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the expected market size of the GCC Application Modernization Services Market in 2024?

    The GCC Application Modernization Services Market is expected to be valued at 228.0 million USD in 2024.

    What is the projected market size for the GCC Application Modernization Services Market by 2035?

    By 2035, the market is anticipated to reach a value of 1506.0 million USD.

    What is the expected compound annual growth rate (CAGR) for the GCC Application Modernization Services Market from 2025 to 2035?

    The expected CAGR for the GCC Application Modernization Services Market is 18.723% from 2025 to 2035.

    Which vertical is projected to have the largest market share in the GCC Application Modernization Services Market in 2035?

    The IT vertical is projected to have the largest market share, valued at 400.0 million USD in 2035.

    What is the anticipated value of the Healthcare segment in the GCC Application Modernization Services Market by 2035?

    The Healthcare segment is expected to reach a valuation of 215.0 million USD by 2035.

    Who are the key players in the GCC Application Modernization Services Market?

    Major players in the market include Cognizant, SAP, Hewlett Packard Enterprise, Capgemini, and Accenture.

    What is the projected market size for the Telecommunications sector in the GCC Application Modernization Services Market in 2035?

    The Telecommunications sector is expected to achieve a market size of 300.0 million USD by 2035.

    What challenges and opportunities might impact the GCC Application Modernization Services Market in the coming years?

    The market may face challenges such as technological changes, but opportunities for growth exist through digital transformation across various sectors.

    What is the expected market size for the Energy and Utilities segment in 2035?

    The Energy and Utilities segment is anticipated to have a market size of 250.0 million USD by 2035.

    How much is the Manufacturing vertical expected to grow in the GCC Application Modernization Services Market by 2035?

    The Manufacturing vertical is expected to grow to a market value of 341.0 million USD by 2035.

    1. EXECUTIVE
    2. SUMMARY
    3. Market Overview
    4. Key Findings
    5. Market Segmentation
    6. Competitive Landscape
    7. Challenges and Opportunities
    8. Future Outlook
    9. MARKET INTRODUCTION
    10. Definition
    11. Scope of the study
    12. Research Objective
    13. Assumption
    14. Limitations
    15. RESEARCH
    16. METHODOLOGY
    17. Overview
    18. Data
    19. Mining
    20. Secondary Research
    21. Primary
    22. Research
    23. Primary Interviews and Information Gathering
    24. Process
    25. Breakdown of Primary Respondents
    26. Forecasting
    27. Model
    28. Market Size Estimation
    29. Bottom-Up
    30. Approach
    31. Top-Down Approach
    32. Data
    33. Triangulation
    34. Validation
    35. MARKET
    36. DYNAMICS
    37. Overview
    38. Drivers
    39. Restraints
    40. Opportunities
    41. MARKET FACTOR ANALYSIS
    42. Value chain Analysis
    43. Porter's
    44. Five Forces Analysis
    45. Bargaining Power of Suppliers
    46. Bargaining
    47. Power of Buyers
    48. Threat of New Entrants
    49. Threat
    50. of Substitutes
    51. Intensity of Rivalry
    52. COVID-19
    53. Impact Analysis
    54. Market Impact Analysis
    55. Regional
    56. Impact
    57. Opportunity and Threat Analysis
    58. GCC
    59. Application Modernization Services Market, BY Vertical (USD Million)
    60. Healthcare
    61. IT
    62. Telecommunications
    63. Energy
    64. and utilities
    65. Manufacturing
    66. Consumer
    67. goods and retail
    68. GCC Application
    69. Modernization Services Market, BY Deployment Type (USD Million)
    70. Hybrid
    71. cloud
    72. Private cloud
    73. Public
    74. cloud
    75. GCC Application Modernization
    76. Services Market, BY Application (USD Million)
    77. Post
    78. modernization
    79. Application portfolio assignment
    80. UI
    81. modernization
    82. Cloud application mitigation
    83. Application
    84. integration
    85. Application re-platforming
    86. Competitive Landscape
    87. Overview
    88. Competitive
    89. Analysis
    90. Market share Analysis
    91. Major
    92. Growth Strategy in the Application Modernization Services Market
    93. Competitive
    94. Benchmarking
    95. Leading Players in Terms of Number of Developments
    96. in the Application Modernization Services Market
    97. Key
    98. developments and growth strategies
    99. New Product Launch/Service
    100. Deployment
    101. Merger & Acquisitions
    102. Joint
    103. Ventures
    104. Major Players Financial Matrix
    105. Sales
    106. and Operating Income
    107. Major Players R&D Expenditure.
    108. Company
    109. Profiles
    110. Cognizant
    111. Financial
    112. Overview
    113. Products Offered
    114. Key
    115. Developments
    116. SWOT Analysis
    117. Key
    118. Strategies
    119. SAP
    120. Financial
    121. Overview
    122. Products Offered
    123. Key
    124. Developments
    125. SWOT Analysis
    126. Key
    127. Strategies
    128. Hewlett Packard Enterprise
    129. Financial
    130. Overview
    131. Products Offered
    132. Key
    133. Developments
    134. SWOT Analysis
    135. Key
    136. Strategies
    137. Capgemini
    138. Financial
    139. Overview
    140. Products Offered
    141. Key
    142. Developments
    143. SWOT Analysis
    144. Key
    145. Strategies
    146. Fujitsu
    147. Financial
    148. Overview
    149. Products Offered
    150. Key
    151. Developments
    152. SWOT Analysis
    153. Key
    154. Strategies
    155. Accenture
    156. Financial
    157. Overview
    158. Products Offered
    159. Key
    160. Developments
    161. SWOT Analysis
    162. Key
    163. Strategies
    164. Wipro
    165. Financial
    166. Overview
    167. Products Offered
    168. Key
    169. Developments
    170. SWOT Analysis
    171. Key
    172. Strategies
    173. Infosys
    174. Financial
    175. Overview
    176. Products Offered
    177. Key
    178. Developments
    179. SWOT Analysis
    180. Key
    181. Strategies
    182. Nokia
    183. Financial
    184. Overview
    185. Products Offered
    186. Key
    187. Developments
    188. SWOT Analysis
    189. Key
    190. Strategies
    191. Mavenir
    192. Financial
    193. Overview
    194. Products Offered
    195. Key
    196. Developments
    197. SWOT Analysis
    198. Key
    199. Strategies
    200. Atos
    201. Financial
    202. Overview
    203. Products Offered
    204. Key
    205. Developments
    206. SWOT Analysis
    207. Key
    208. Strategies
    209. Tata Consultancy Services
    210. Financial
    211. Overview
    212. Products Offered
    213. Key
    214. Developments
    215. SWOT Analysis
    216. Key
    217. Strategies
    218. Microsoft
    219. Financial
    220. Overview
    221. Products Offered
    222. Key
    223. Developments
    224. SWOT Analysis
    225. Key
    226. Strategies
    227. Oracle
    228. Financial
    229. Overview
    230. Products Offered
    231. Key
    232. Developments
    233. SWOT Analysis
    234. Key
    235. Strategies
    236. IBM
    237. Financial
    238. Overview
    239. Products Offered
    240. Key
    241. Developments
    242. SWOT Analysis
    243. Key
    244. Strategies
    245. References
    246. Related
    247. Reports
    248. LIST
    249. OF ASSUMPTIONS
    250. GCC Application Modernization Services
    251. Market SIZE ESTIMATES & FORECAST, BY VERTICAL, 2019-2035 (USD Billions)
    252. GCC
    253. Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT
    254. TYPE, 2019-2035 (USD Billions)
    255. GCC Application Modernization
    256. Services Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    257. PRODUCT
    258. LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    259. ACQUISITION/PARTNERSHIP
    260. LIST
    261. Of figures
    262. MARKET SYNOPSIS
    263. GCC
    264. APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY VERTICAL
    265. GCC
    266. APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY DEPLOYMENT TYPE
    267. GCC
    268. APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY APPLICATION
    269. KEY
    270. BUYING CRITERIA OF APPLICATION MODERNIZATION SERVICES MARKET
    271. RESEARCH
    272. PROCESS OF MRFR
    273. DRO ANALYSIS OF APPLICATION MODERNIZATION
    274. SERVICES MARKET
    275. DRIVERS IMPACT ANALYSIS: APPLICATION
    276. MODERNIZATION SERVICES MARKET
    277. RESTRAINTS IMPACT ANALYSIS:
    278. APPLICATION MODERNIZATION SERVICES MARKET
    279. SUPPLY / VALUE
    280. CHAIN: APPLICATION MODERNIZATION SERVICES MARKET
    281. APPLICATION
    282. MODERNIZATION SERVICES MARKET, BY VERTICAL, 2025 (% SHARE)
    283. APPLICATION
    284. MODERNIZATION SERVICES MARKET, BY VERTICAL, 2019 TO 2035 (USD Billions)
    285. APPLICATION
    286. MODERNIZATION SERVICES MARKET, BY DEPLOYMENT TYPE, 2025 (% SHARE)
    287. APPLICATION
    288. MODERNIZATION SERVICES MARKET, BY DEPLOYMENT TYPE, 2019 TO 2035 (USD Billions)
    289. APPLICATION
    290. MODERNIZATION SERVICES MARKET, BY APPLICATION, 2025 (% SHARE)
    291. APPLICATION
    292. MODERNIZATION SERVICES MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    293. BENCHMARKING
    294. OF MAJOR COMPETITORS

    GCC Application Modernization Services Market Segmentation

     

     

     

    • Application Modernization Services Market By Vertical (USD Million, 2019-2035)

      • Healthcare
      • IT
      • Telecommunications
      • Energy and utilities
      • Manufacturing
      • Consumer goods and retail

     

    • Application Modernization Services Market By Deployment Type (USD Million, 2019-2035)

      • Hybrid cloud
      • Private cloud
      • Public cloud

     

    • Application Modernization Services Market By Application (USD Million, 2019-2035)

      • Post modernization
      • Application portfolio assignment
      • UI modernization
      • Cloud application mitigation
      • Application integration
      • Application re-platforming

     

     

     

     

     

     

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