Mainframe Modernization Services Market Overview
As per MRFR analysis, the Mainframe Modernization Services Market Size was estimated at 2.13 (USD Billion) in 2022. The Mainframe Modernization Services Market Industry is expected to grow from 2.29 (USD Billion) in 2023 to 4.5 (USD Billion) by 2032. The Mainframe Modernization Services Market CAGR (growth rate) is expected to be around 7.78% during the forecast period (2024 - 2032).
Key Mainframe Modernization Services Market Trends Highlighted
As organizations deal with complications from legacy systems and a need for digital transformation, services in mainframe modernization become more important. Key market drivers include the rising use of cloud computing, growing regulatory compliance requirements, and the necessity to improve customer experiences.
Mainframe environments can also be further optimized through the exploration of emerging technologies such as artificial intelligence (AI) and blockchain. As a result, while still maintaining business continuity and reducing downtime, organizations are embracing the integration of agile methods and DevOps methods, which enables them to modify their mainframes.
Managed services have recently become popular as they offer businesses adaptability, affordability, and specialist knowledge. Moreover, low-code/no-code platforms are making the process of Mainframe Modernization easier, which includes upskilling existing IT staff and speeding up project schedules for companies. This has increased the demand for reliable solutions to mainframe security and compliance, given the growing focus on data protection and privacy.
Figure 1: Mainframe Modernization Services Market Size, 2023-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mainframe Modernization Services Market Drivers
Growing Need for Digital Transformation and Modernization
At present, companies constantly face the need to upgrade and modernize obsolete legacy mainframe systems. Such service as a mainframe modernization refers to creating a modern view of large and difficult-to-maintain legacy systems by transforming them into useful objects. It allows aging mainframe applications to become cloud-native, faster to deploy, and more scalable and cost-effective. The given type of service is a relevant kind of service that helps to maintain the proper work of a company and, due to that, it helps to enhance the level of the provided services and stay competitive.
The increased demand for digital transformations and modernizations with the use of advanced technologies is the main driving force of the development of the Global Mainframe Modernization Services Market Industry.
Rising Adoption of Cloud Computing
Another market driver for the Global Mainframe Modernization Services Market Industry is the adoption of cloud computing. Cloud-based mainframe modernization solutions offer various benefits, such as improved agility, scalability, and cost optimization. Organizations can reduce their infrastructure costs, increase their operational efficiency, and access a broader selection of cloud-based services by moving their mainframe applications to the cloud.
The demand for mainframe modernization services is likely to continue to be driven by the increasing adoption of cloud computing in the future.
Government Regulations and Compliance
Government regulations and compliance requirements are also driving the adoption of mainframe modernization services. Mainframe systems are often used to process sensitive data, and organizations need to ensure that these systems are compliant with industry regulations and standards. Mainframe modernization services can help organizations meet these compliance requirements by updating their mainframe systems with the latest security features and patches.
By doing so, organizations can reduce their risk of data breaches and other security incidents, which can result in significant financial and reputational damage.
Mainframe Modernization Services Market Segment Insights
Mainframe Modernization Services Market Service Type Insights
There are five segments by service type in the Mainframe Modernization Services Market, which include Application Modernization, Infrastructure Modernization, Data Modernization, Security Modernization, and Other Services. The Application Modernization segment is projected to be the largest and is anticipated to have the highest market share in 2023, as the demand for modernizing legacy applications is increasing in order to enhance their efficiency and performance. The second largest segment is expected to be Infrastructure Modernization, as numerous organizations are upgrading and modernizing their existing mainframe infrastructures to accommodate new technologies and applications.
Data Modernization is anticipated to be the fastest-growing segment by service type during the forecast period, as many organizations are focusing on the modernization of data management systems to enhance data quality, accessibility, and security. Moreover, the demand for Security Modernization is also expected to grow notably in the future, as an increasing number of organizations are focusing on ensuring the safety of their mainframe systems from cyber threats. The growth of the market can be associated with the increasing adoption of mainframe modernization services by aspirants across diverse industry verticals to improve performance and optimize their mainframe systems.
Moreover, the increasing need for data modernization and security modernization services will also drive the growth of the market in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mainframe Modernization Services Market Deployment Model Insights
The Global Mainframe Modernization Services Market, on the grounds of the deployment model, is divided into on-premises, cloud, and hybrid markets. It is expected that the cloud segment will be the most popular during the period in question, and it will have a revenue of USD 1.2 billion by 2024. The trend can be explained by the growing popularity of cloud solutions and their cost-effectiveness, scalability, and convenience. Nevertheless, the on-premised model is also expected to be popular as companies need sensitive data to be stored on their premises or companies work in sectors that are strictly regulated by law.
Finally, the hybrid deployment model is also promising as it combines the major advantages of both on-premised and cloud models and enhances the flexibility and level of control over the companies’ IT infrastructure.
Mainframe Modernization Services Market Vertical Insights
The Global Mainframe Modernization Services Market is segmented into various verticals, including Banking, Financial Services, and Insurance (BFSI), Government and Public Sector, Healthcare, Manufacturing, Retail and Consumer Products, and Others. Among these, the BFSI vertical is expected to hold a significant market share in 2023, owing to the increasing adoption of digital technologies and the need for secure and reliable infrastructure to manage vast amounts of financial data. The Government and Public Sector vertical is also expected to witness steady growth, driven by initiatives to enhance citizen services and improve operational efficiency.
The Healthcare vertical is anticipated to gain traction as healthcare providers seek to modernize their legacy systems to improve patient care and meet regulatory compliance requirements. Other verticals such as manufacturing, retail, and consumer products are also expected to contribute to the overall market growth, albeit at a slower pace.
Mainframe Modernization Services Market Organization Size Insights
The Global Mainframe Modernization Services Market is segmented by Organization Size into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment held a larger market share in 2023 and is expected to continue to dominate the market through 2032. This is due to the fact that large enterprises have more legacy mainframe systems that need to be modernized, and they have the financial resources to invest in these projects. However, the SME segment is expected to grow at a faster rate during the forecast period as more and more SMEs realize the benefits of mainframe modernization.
The Global Mainframe Modernization Services Market revenue for the SME segment is expected to reach $1.2 billion by 2032, growing at a CAGR of 8.5% during the forecast period.
Mainframe Modernization Services Market Regional Insights
The Global Mainframe Modernization Services Market is segmented into North America, Europe, APAC, South America, and MEA based on region. North America is the largest region in the Mainframe Modernization Services Market, accounting for a significant share of the global revenue in 2023. The region is home to a large number of enterprises and organizations that have been early adopters of mainframe modernization services. Europe is the second largest region in the Mainframe Modernization Services Market, followed by APAC. The APAC region is expected to witness the fastest growth in the Mainframe Modernization Services Market during the forecast period.
The region is home to a large number of emerging economies that are rapidly adopting mainframe modernization services to improve their IT infrastructure and gain a competitive edge. South America and MEA are relatively smaller regions in the Mainframe Modernization Services Market, but they are expected to witness steady growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mainframe Modernization Services Market Key Players And Competitive Insights
Major players in the Mainframe Modernization Services Market industry are constantly striving to gain a competitive edge by offering innovative solutions and expanding their service portfolios. These players are investing heavily in research and development to introduce new technologies and enhance their existing offerings. Leading Mainframe Modernization Services Market players are also forming strategic partnerships and collaborations to strengthen their market position and increase their customer base. The Mainframe Modernization Services Market development is driven by the growing need for businesses to modernize their legacy mainframe systems to improve efficiency, reduce costs, and enhance security. Continuous advancements in technology and the emergence of new solutions are expected to fuel the growth of the Mainframe Modernization Services Market in the coming years.
A leading company in the Mainframe Modernization Services Market is IBM, a global technology leader. IBM provides a comprehensive suite of mainframe modernization services, including consulting, planning, implementation, and support. The company's focus on innovation and customer satisfaction has helped it maintain a strong market position. IBM's commitment to research and development has resulted in the introduction of cutting-edge solutions that address the evolving needs of businesses. The company's extensive experience in mainframe modernization and its global presence enables it to deliver tailored solutions to customers worldwide.
A competitor in the Mainframe Modernization Services Market is Wipro, an Indian multinational technology services company. Wipro offers a range of mainframe modernization services, including assessment, planning, design, implementation, and support. The company's focus on delivering cost-effective solutions and its strong track record in IT outsourcing have made it a preferred choice for businesses seeking mainframe modernization services. Wipro's global presence and its experience in working with diverse customers enable it to provide customized solutions that meet specific business requirements. The company's commitment to innovation and its investments in research and development have helped it gain a competitive edge in the Mainframe Modernization Services Market.
Key Companies in the Mainframe Modernization Services Market Include
Mainframe Modernization Services Market Industry Developments
The Global Mainframe Modernization Services Market is anticipated to reach a valuation of USD 4.5 billion by 2032, expanding at a CAGR of 7.78% from 2024 to 2032. Recent advancements in the IT sector have spurred the demand for mainframe modernization services. For instance, in February 2023, IBM announced a collaboration with Kyndryl to offer modernization services for mainframe systems, aiming to enhance the efficiency and agility of enterprise IT infrastructure. This partnership underscores the growing focus on leveraging advanced technologies to optimize mainframe environments.
Mainframe Modernization Services Market Segmentation Insights
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Mainframe Modernization Services Market Service Type Outlook
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Mainframe Modernization Services Market Deployment Model Outlook
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Mainframe Modernization Services Market Vertical Outlook
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Banking, Financial Services, and Insurance (BFSI)
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Government and Public Sector
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Healthcare
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Manufacturing
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Retail and Consumer Products
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Others
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Mainframe Modernization Services Market Organization Size Outlook
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Mainframe Modernization Services 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 |
2.13(USD Billion) |
| Market Size 2023 |
2.29(USD Billion) |
| Market Size 2032 |
4.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.78% (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, Wipro, Capgemini, T-Systems, Tata Consultancy Services, HCL Technologies, Micro Focus, IBM, Oracle, DXC Technology, Accenture, Cognizant, Atos. |
| Segments Covered |
Service Type, Deployment Model, Vertical, Organization Size, Regional. |
| Key Market Opportunities |
1 Cloud Migration2 Data Analytics3 Application Modernization4 RPA and AI Integration5 Infrastructure Optimization |
| Key Market Dynamics |
Rising cloud adoptionGrowing need for data securityIncreasing demand for agile and scalable IT infrastructure |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Mainframe Modernization Services Market size is expected to reach USD 4.5 billion by 2032, growing at a CAGR of 7.78% from 2024 to 2032.
North America is expected to dominate the Global Mainframe Modernization Services Market, followed by Europe and Asia Pacific.
Mainframe modernization services are primarily used for application modernization, infrastructure modernization, and data center optimization.
Key competitors in the Global Mainframe Modernization Services Market include IBM, DXC Technology, Infosys, Capgemini, and Accenture.
Key trends in the Global Mainframe Modernization Services Market include the adoption of cloud-based solutions, the use of artificial intelligence (AI) and machine learning (ML), and the increasing focus on data security and compliance.
Challenges facing the Global Mainframe Modernization Services Market include the lack of skilled professionals, the complexity of legacy systems, and the high cost of modernization projects.
Growth opportunities for the Global Mainframe Modernization Services Market include the increasing demand for digital transformation, the need to improve operational efficiency, and the growing adoption of cloud-based solutions.
The future outlook of the Global Mainframe Modernization Services Market is positive, driven by the increasing adoption of digital transformation initiatives and the need to improve operational efficiency.
Key drivers of the Global Mainframe Modernization Services Market include the need to improve operational efficiency, the increasing demand for digital transformation, and the growing adoption of cloud-based solutions.
Key restraints of the Global Mainframe Modernization Services Market include the lack of skilled professionals, the complexity of legacy systems, and the high cost of modernization projects.
