Global Mainframe Market Overview:
Mainframe Market Size was estimated at 4.55 (USD Billion) in 2022. The Mainframe Market Industry is expected to grow from 4.79 (USD Billion) in 2023 to 7.6 (USD Billion) by 2032. The Mainframe Market CAGR (growth rate) is expected to be around 5.27% during the forecast period (2024-2032).
Key Mainframe Market Trends Highlighted
The mainframe market continues to evolve, driven by the need for increased computing power and data storage capacity. Key market drivers include the growing adoption of cloud computing, the rise of big data and analytics, and the increasing demand for secure and reliable infrastructure.
Opportunities for growth in the mainframe market lie in the expansion of cloud services, the development of new technologies such as artificial intelligence and machine learning, and the growing need for data security and compliance. Trends in recent times include the adoption of hybrid cloud architectures, the integration of mainframes with other systems, and the development of new software and applications specifically designed for mainframes.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mainframe Market Drivers
Rising Adoption of Cloud Computing
The Mainframe Market Industry is growing as a result of the increasing adoption of cloud computing. Mainframes are used for handling large-scale, mission-critical applications with a high level of security and reliability. As businesses are moving their operations to the cloud, mainframes are needed to serve as the platform for running those applications. Mainframes offer the right solution for the cloud era, where scalability, performance and security have become critical to meeting the business needs. In addition to that, the Mainframe Market Industry is also growing as a result of the increased use of hybrid cloud, where businesses have adopted both on-premises and cloud applications. The main reasons for the growth of the Mainframe Market Industry include the increasing usage of cloud computing. The Mainframe Market Industry is expected to grow for years to come, driven by the adoption of cloud computing.
Growing Need for Data Security and Compliance
The next or the fifth widespread driver in the Mainframe Market Industry is data security and compliance. Mainframes have a long history of data security storage, and businesses continue to use them to keep their information safe. Additionally, businesses are increasingly trying to adopt a compliance-first approach to managing user data and must comply with a range of rules and regulations, such as ensuring that all customer information is kept safe. As a result, the Mainframe Market Industry will continue to grow in the coming years.
Increasing Demand for High-Performance Computing
Another factor driving the growth of the Mainframe Market Industry is the increasing demand for high-performance computing. Mainframes are ideal for HPC applications as they can provide the requisite scalability, performance and reliability to execute intricate simulations and data Analysis. Businesses depend increasingly on HPC to gain insights from their data. HPC is also expected to be in demand in the years to come as businesses compete against one another for greater market share and economies of scale through HPC.
Mainframe Market Segment Insights:
Mainframe Market Technology Insights
The technology segment is likely to witness the maximum growth rate in the Mainframe Market. In 2023, this segment accounted for over 40.0% of by revenue of the Mainframe Market. The Mainframe Market is forecast to reach USD 5.2 billion by 2024, recording a CAGR of over 6.0%. The growth of the technology segment can largely be attributed to the adoption of the z/Architecture, Power Systems, System Z, IBM z15, and IBM z16 mainframes. z/Architecture, is developed by the IBM, for the mainframes, which offers a robust, scalable architecture for mainframes. It also offers high-performance computing, virtualization, and data management capabilities for mainframes, which makes it an ideal technology for several mission-critical applications across a broad range of industries.
Power Systems is the second technology for the mainframes in the market and is offered by IBM. It provides a robust, reliable platform for running enterprise applications, databases, and analytics workloads. System Z, which was also developed by IBM, is the other technology segment that is leading in the market. It is a highly reliable, secure high-end platform designed to process the data and transaction volumes of large enterprises. It is especially for a mission-critical application with these high security, reliability, and performance requirements. IBM z15 and IBM z16 are the latest versions of System Z, providing the mainframes an edge over the other technologies with their features of increased core counts, faster processors, memory capacity, and connectivity. The demand for IBM’s mainframe technologies is expected to grow as industries are required to process large volumes of data for analytics, speed, and connectivity to innovate and deploy new application technologies, among others. Industries such as banking, finance, healthcare, and government, among others, rely on the mainframes for data processing. With the increase in digital projects in the industries, there is a greater need for security, and mainframe technologies will continue to dominate the market in the upcoming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mainframe Market Application Insights
The Application segment plays a crucial role in shaping the Mainframe Market landscape. Enterprise Resource Planning (ERP) applications are expected to capture a significant market share, driven by the need for efficient business process management and data integration. The Customer Relationship Management (CRM) segment is also anticipated to witness substantial growth as businesses prioritize customer experience and relationship building. Supply Chain Management (SCM) applications are expected to gain traction due to the increasing demand for supply chain optimization and risk management. Transaction Processing applications will continue to be essential for high-volume transaction processing, particularly in financial institutions and e-commerce platforms. Data Analytics applications are projected to drive growth in the Mainframe Market, fueled by the rising adoption of data-driven decision-making and insights generation.
Mainframe Market Industry Vertical Insights
The Mainframe Market segmentation by Industry Vertical comprises Banking, Financial Services, and Insurance (BFSI), Government, Healthcare, Manufacturing, and Retail. BFSI held the largest market share in 2023, owing to the increasing adoption of mainframes for core banking applications, fraud detection, and risk management. The Government sector is expected to witness significant growth, driven by the need for secure and reliable systems for citizen data management and defense applications. Healthcare is another key vertical where mainframes are used for patient record management, medical imaging, and research. Manufacturing and Retail are also adopting mainframes for inventory management, supply chain optimization, and customer relationship management. The Mainframe Market revenue for Industry Vertical is projected to reach $3.2 billion by 2026, growing at a CAGR of 5.6% from 2023 to 2026.
Mainframe Market Deployment Model Insights
The Mainframe Market segmentation by deployment model comprises on-premises, cloud, and hybrid. In 2023, the on-premises segment held the largest market share of around 70%, owing to the requirement for stringent data security and regulatory compliance. However, the cloud segment is anticipated to witness the fastest growth rate during the forecast period of 2023-2032. This growth can be attributed to the increasing adoption of cloud-based services by enterprises to reduce infrastructure costs and improve operational efficiency. The hybrid segment is also expected to gain traction, as it offers a balance between on-premises and cloud deployment models, providing flexibility and scalability to businesses. By 2032, the Mainframe Market revenue from the cloud deployment model is projected to reach USD 2.5 billion, representing a significant increase from its valuation in 2023.
Mainframe Market Processor Type Insights
The Mainframe Market is segmented by Processor Type into Central Processing Unit (CPU), Graphics Processing Unit (GPU), and Tensor Processing Unit (TPU). The CPU segment accounted for the largest share of the market in 2023, and is expected to continue to dominate the market through 2032. The GPU segment is expected to grow at the highest CAGR during the forecast period. The growth of the CPU segment is primarily driven by the increasing demand for high-performance computing (HPC) applications. CPUs are essential for running complex simulations, data Analysis, and other compute-intensive tasks. The growth of the GPU segment is primarily driven by the increasing demand for artificial intelligence (AI) and machine learning (ML) applications. GPUs are designed to handle the massive parallel processing requirements of AI and ML algorithms. The TPU segment is a relatively new segment, but it is expected to grow rapidly over the forecast period. TPUs are designed specifically for AI and ML applications, and they offer significantly higher performance than CPUs and GPUs for these types of tasks. The growth of the TPU segment is expected to be driven by the increasing adoption of AI and ML in various industries, such as healthcare, finance, and manufacturing.
Mainframe Market Regional Insights
The Mainframe Market segmentation by region includes North America, Europe, APAC, South America, and MEA. North America holds a significant market share due to the presence of leading technology companies and the early adoption of advanced technologies. Europe is another major market driven by the need for modernization and digital transformation in various industries. APAC is expected to witness substantial growth due to rapid urbanization, increasing disposable income, and government initiatives to promote digital infrastructure. South America and MEA have a relatively smaller market share, but they are expected to grow steadily as businesses adopt modern technologies to improve efficiency and competitiveness. The Mainframe Market data shows that the market in North America is expected to reach USD 2.5 billion by 2024, while Europe is projected to reach USD 1.9 billion. APAC is estimated to reach USD 1.6 billion, followed by South America at USD 0.4 billion and MEA at USD 0.3 billion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mainframe Market Key Players And Competitive Insights:
Mainframe Market Key Players may discover long-term success through leveraging their core competencies. The Mainframe Market's major players have focused on innovation and developing new technologies to gain a competitive edge. The leading players are investing heavily in research and development, leading to Mainframe Market Development. The rising mainframe Market demand is expected to drive Mainframe Market growth in the upcoming decade. This creates an intense Mainframe Market Competitive Landscape with many large players.
The absolute leader in the Mainframe Market is IBM. IBM has been an innovative mainframe market player since the early mainframe market days, and the company continues to be among the best mainframe suppliers. IBM’s mainframes are well-known for their software, and more importantly, IBM has always excelled in providing superior services and software. IBM’s mainframes are also reliable, scalable, and secure.
Another entity important in the Mainframe Market is Unisys. This is another significant and influential supplier of mainframes in the mainframe market. Unisys’ mainframes are known for their performance, security, and reliability. Unisys has also done an excellent job in developing its software and service support for mainframes.
Key Companies in the Mainframe Market Include:
Mainframe Industry Developments
The Mainframe Market is projected to reach USD 7.6 billion by 2032, exhibiting a CAGR of 5.27% during the forecast period (2024-2032). The increasing adoption of cloud computing and the growing demand for data processing and storage are driving the growth of the market. Additionally, the growing need for security and compliance is also contributing to the market growth. Some of the recent news developments and current affairs in the Mainframe Market include: IBM announced the launch of its new z16 mainframe, which is designed to handle the increasing demands of data-intensive applications. Google Cloud announced a partnership with IBM to offer mainframe services on its cloud platform. Microsoft Azure announced the launch of its new Azure Stack HCI solution, which includes support for mainframe workloads. These developments indicate that the mainframe market is poised for continued growth in the coming years.
Mainframe Market Segmentation Insights
Mainframe Market Technology Outlook
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z/Architecture
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Power Systems
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System Z
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IBM z15
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IBM z16
Mainframe Market Application Outlook
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Enterprise Resource Planning (ERP)
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Customer Relationship Management (CRM)
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Supply Chain Management (SCM)
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Transaction Processing
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Data Analytics
Mainframe Market Industry Vertical Outlook
Mainframe Market Deployment Model Outlook
Mainframe Market Processor Type Outlook
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Central Processing Unit (CPU)
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Graphics Processing Unit (GPU)
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Tensor Processing Unit (TPU)
Mainframe Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
4.55 (USD Billion) |
| Market Size 2023 |
4.79 (USD Billion) |
| Market Size 2032 |
7.6 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.27% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Infosys, Unisys, TietoEVRY, Hitachi, IBM, Oracle, CSC, TSystems, NEC, Micro Focus, Hewlett Packard Enterprise, Broadcom, Fujitsu, Dell Technologies |
| Segments Covered |
Technology, Application, Industry Vertical, Deployment Model, Processor Type, Regional |
| Key Market Opportunities |
AIPowered AnalyticsCloud IntegrationSecurity EnhancementsEdge ComputingQuantum Computing |
| Key Market Dynamics |
Increasing Adoption of Cloud Based MainframesGrowing Demand for Data Security and ComplianceModernization of Legacy SystemsAdvancements in Processor TechnologyExpansion of Cloud Ecosystem |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Mainframe Market size was valued at 4.79 billion USD in 2023 and is projected to grow at a CAGR of 5.27% from 2024 to 2032, reaching 7.6 billion USD by 2032.
North America held the largest market share in 2023, accounting for 35.1% of the global market. Asia-Pacific is expected to grow at the highest CAGR of 6.2% during the forecast period.
Mainframes are primarily used in mission-critical applications such as transaction processing, data management, and analytics. They are also used in industries such as banking, finance, insurance, and government.
The key competitors in the Mainframe Market include IBM, Fujitsu, Hitachi, and Unisys. IBM is the leading vendor, with a market share of over 60%.
The growth of the Mainframe Market is driven by factors such as the increasing need for data processing and analytics, the adoption of cloud computing, and the growing demand for secure and reliable systems.
The Mainframe Market faces challenges such as the high cost of ownership, the shortage of skilled professionals, and the competition from cloud computing.
The future outlook of the Mainframe Market is positive. The market is expected to continue to grow in the coming years, driven by the increasing demand for data processing and analytics, the adoption of cloud computing, and the growing need for secure and reliable systems.
The key opportunities for growth in the Mainframe Market include the development of new applications, the adoption of new technologies, and the expansion into new markets.
The key threats to growth in the Mainframe Market include the rising cost of ownership, the shortage of skilled professionals, and the competition from cloud computing.
The key recommendations for addressing the challenges and opportunities in the Mainframe Market include investing in research and development, developing new applications, and expanding into new markets.
