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    UK Application Modernization Services Market

    ID: MRFR/ICT/57081-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    UK 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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    Table of Contents

    UK Application Modernization Services Market Summary

    The United Kingdom Application Modernization Services market is poised for substantial growth, reaching 2415 USD Million by 2035 from a base of 478.8 USD Million in 2024.

    Key Market Trends & Highlights

    UK Application Modernization Services Key Trends and Highlights

    • The market is projected to grow from 478.8 USD Million in 2024 to 2415 USD Million by 2035.
    • A compound annual growth rate (CAGR) of 15.85% is anticipated from 2025 to 2035.
    • The increasing demand for enhanced operational efficiency is driving market expansion.
    • Growing adoption of cloud computing due to the need for scalability is a major market driver.

    Market Size & Forecast

    2024 Market Size 478.8 (USD Million)
    2035 Market Size 2415 (USD Million)
    CAGR (2025-2035) 15.85%

    Major Players

    Tech Mahindra, Cognizant, Capgemini, Accenture, Infosys, Wipro, Atos, HCL Technologies, Tata Consultancy Services, Deloitte, Fujitsu, IBM

    UK Application Modernization Services Market Trends

    The fast development of technology and shifting consumer expectations are driving various transforming trends in the UK Application Modernizing Services Market. As UK companies try to improve scalability and flexibility, one clear trend is the growing move toward cloud-native apps. By means of programs like the Digital Strategy 2025, which stresses the use of new technologies to enhance public services and drive economic development, the UK government has urged digital transformation. This project drives the need for modernizing solutions, therefore helping companies to replace frequently ineffective and expensive outdated systems.

    One of the main forces in the industry is the demand for companies to lower expenses and increase operational effectiveness. Companies in many different fields all throughout the United Kingdom are realizing that modernization could result in improved performance and creativity. Organizations also upgrade their apps in response to cybersecurity issues, as older systems might not be able to manage the most recent security risks. This gives service providers a chance to provide strong modernization solutions that successfully handle these problems. Furthermore, worth investigating are chances for incorporating artificial intelligence and machine learning into application modernization.

    Using data analytics and artificial intelligence to improve customer experiences and make wise business choices is of growing appeal to UK enterprises. This tendency fits the continuous efforts in research and development throughout UK businesses. Using frameworks and approaches that support agile development and quicker release cycles has been more evident in recent years. Companies in the UK that embrace DevOps techniques and cloud computing keep looking for partners who can enable seamless migrations to updated apps while guaranteeing the least disturbance of current operations.

    Oriented by the cooperative efforts of companies and technology suppliers striving for a more technologically oriented economy, the UK Application Modernization Services Market is overall expected to be growing.

    UK Application Modernization Services Market Drivers

    Market Segment Insights

    UK Application Modernization Services Market Segment Insights

    UK Application Modernization Services Market Segment Insights

    Application Modernization Services Market Vertical Insights

    Application Modernization Services Market Vertical Insights

    The UK Application Modernization Services Market exhibits significant dynamism across various verticals, reflecting the diverse needs and challenges of industries today. The healthcare sector is witnessing a profound transformation as digital health solutions gain traction; modernization enables healthcare organizations to improve patient outcomes through enhanced data management and telehealth capabilities.

    In the IT sector, companies are increasingly focusing on cloud migration and agile solutions, driven by the demand for flexibility and efficiency in managing IT resources.Telecommunications is adapting as well, with modernization efforts aimed at optimizing network performance to accommodate the surging demand for data services and the rollout of 5G technology. 

    Energy and utilities are investing in modernization to leverage smart technologies, which optimize energy consumption and integrate renewable sources effectively, supporting the UK's commitment to sustainability and carbon neutrality. The manufacturing sector is also undergoing a significant change, emphasizing automation and IoT integration to drive operational efficiency and improve supply chain logistics, reflecting the need for better responsiveness to market demands.

    Consumer goods and retail are rapidly embracing modernization through e-commerce advancements and data analytics, enabling businesses to offer personalized experiences and adapt to changing consumer preferences. Overall, the UK Application Modernization Services Market segmentation reveals that each vertical plays a crucial role in fostering innovation and ensuring competitive advantage in a rapidly evolving economic landscape, contributing to the overall growth trajectory of the market. Each sector's importance can be seen not only in terms of modernization efforts but also in their potential for substantial contributions to the UK's economy and technological advancements.

    Application Modernization Services Market Deployment Type Insights

    Application Modernization Services Market Deployment Type Insights

    The UK Application Modernization Services Market, particularly within the Deployment Type segment, continues to evolve as organizations seek advantageous solutions that align with their operational objectives. The shift towards Hybrid cloud solutions is increasingly significant due to its ability to offer flexibility that allows businesses to utilize both on-premise and cloud resources, facilitating enhanced adaptability and resource management. Furthermore, Private cloud environments cater to organizations that prioritize security and compliance, making them vital for sectors handling sensitive data, such as finance and healthcare.

    Conversely, Public cloud services hold a significant share in the market, driven by their cost-effectiveness and scalability, appealing to small and medium enterprises looking for reliable infrastructure without heavy upfront investments. As the UK government promotes digital transformation initiatives and cloud adoption, these deployment strategies are essential in enabling rapid deployment while addressing varying business needs and risk profiles. Overall, the trends demonstrate a solid growth trajectory in the UK Application Modernization Services Market, bolstered by ongoing innovations and the critical role each Deployment Type plays in shaping the future landscape of application development and integration.

    Application Modernization Services Market Application Insights

    Application Modernization Services Market Application Insights

    The UK Application Modernization Services Market focuses on enhancing the efficiencies of existing software applications to meet current business needs with evolving technologies. Within this landscape, the Post modernization aspect symbolizes the final stage where upgraded applications are optimized for performance and scalability, ensuring that businesses can respond agilely to market changes. Application portfolio assignment plays a critical role as organizations assess which applications should be retained, retired or modernized, thereby streamlining their operations and maximizing IT investments.UI modernization reflects the increasing importance of user experience, making applications more user-friendly and visually appealing, which drives user adoption and satisfaction. 

    Cloud application mitigation focuses on transitioning legacy applications to cloud environments, providing organizations with scalability, cost efficiency, and flexibility. Application integration remains paramount as it ensures disparate systems can communicate effectively, fostering data consistency and enhancing operational efficiency. Lastly, application re-platforming involves transitioning applications to new platforms to exploit cloud capabilities without needing an overhaul, bridging gaps between legacy systems and modern cloud infrastructures.Each facet contributes significantly to the overall health and agility of the UK's digital ecosystem, driven by trends such as digital transformation and the increasing need for adaptability amid evolving customer expectations.

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

    Regional Insights

    Key Players and Competitive Insights

    The UK Application Modernization Services Market is experiencing significant evolution as organizations seek to enhance their digital capabilities and ensure agility in an increasingly competitive landscape. This sector is characterized by a plethora of service providers vying for a share of the market by offering innovative solutions tailored to the unique needs of businesses. Competitive insights reveal a dynamic environment where companies leverage technological advancements to modernize legacy applications, thereby enabling organizations to optimize their operations, improve user experiences, and drive operational efficiencies.

    The market is also impacted by factors such as regulatory changes, customer demand for cloud-based solutions, and the urgency to harness data analytics, which together shape the competitive strategies adopted by service providers in the region.

    Tech Mahindra holds a prominent position in the UK Application Modernization Services Market, bringing forth a robust set of strengths that set it apart from competitors. The company has established a reputation for delivering comprehensive modernization strategies that encompass end-to-end solutions, ranging from assessment and planning to migration and integration. By focusing on industry-specific methodologies and harnessing a network of innovation hubs, Tech Mahindra effectively addresses the unique challenges faced by UK enterprises in their modernization journeys.

    The firm also emphasizes partnerships with technology leaders and investment in research and development, enabling it to offer cutting-edge solutions that align with industry trends and client demands. Tech Mahindra's dedicated approach, combined with a strong track record of successful project implementations, reinforces its competitive edge in this rapidly evolving market.

    Cognizant is a significant player in the UK Application Modernization Services Market, recognized for its extensive portfolio of services designed to facilitate the modernization of applications for businesses across various sectors. The company provides an array of key products and services that include cloud migration, application integration, and advanced analytics solutions, which are tailored to streamline operations and enhance agility. Cognizant's market presence in the UK is strengthened by strategic mergers and acquisitions that have bolstered its technical capabilities and expanded its client base. 

    The company leverages its global expertise while adapting to local market needs, ensuring that its offerings resonate with UK clients. Its ability to combine industry knowledge with cutting-edge technology positions Cognizant as a leader in providing innovative application modernization services, driving meaningful transformations for organizations aiming to stay ahead in a digital-first world.

    Key Companies in the UK Application Modernization Services Market market include

    Industry Developments

    Recent developments in the UK Application Modernization Services Market have seen significant activity among major players. Tech Mahindra and Cognizant are focusing on enhancing digital capabilities, adapting to increasing demand for cloud services. In September 2023, Capgemini announced the acquisition of a specialized software firm to bolster its service offerings, aligning with the growing trend toward integration and modernization of legacy systems. 

    In October 2023, Accenture expanded its partnership with HCL Technologies, enhancing their joint portfolio of modernization solutions and reinforcing their commitment to innovate in the UK market. Additionally, Infosys and Tata Consultancy Services have reported steady growth, driven by the increasing need for businesses to modernize their IT infrastructure effectively, which is projected to rise as companies strive for operational efficiency. 

    In terms of market valuation, Wipro’s solid performance in recent quarters reflects a strong demand for application modernization, while Deloitte and IBM continue to lead discussions on strategy and digital transformation for organizations across various sectors. Major events over the past two years underscore the market's evolution, with increased investments in modernization reflecting the UK's push towards digital transformation across both public and private sectors.

    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 410.99(USD Million)
    MARKET SIZE 2024 478.8(USD Million)
    MARKET SIZE 2035 2415.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 15.848% (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 Tech Mahindra, Cognizant, Capgemini, Syntel, Accenture, Infosys, Wipro, Atos, Mastek, HCL Technologies, LTI, Tata Consultancy Services, Deloitte, Fujitsu, IBM
    SEGMENTS COVERED Vertical, Deployment Type, Application
    KEY MARKET OPPORTUNITIES Cloud migration acceleration, Legacy system integration, Increased demand for agility, Enhanced cybersecurity solutions, Adoption of microservices architecture
    KEY MARKET DYNAMICS Cloud adoption growth, Legacy system challenges, Demand for agility, Increasing cybersecurity threats, Need for cost efficiency
    COUNTRIES COVERED UK

    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 UK Application Modernization Services Market in 2024?

    The UK Application Modernization Services Market is expected to be valued at 478.8 million USD in 2024.

    What will be the market size of the UK Application Modernization Services Market by 2035?

    By 2035, the market size of the UK Application Modernization Services Market is projected to reach 2415.0 million USD.

    What is the projected CAGR for the UK Application Modernization Services Market from 2025 to 2035?

    The expected CAGR for the UK Application Modernization Services Market from 2025 to 2035 is 15.848%.

    Which sector will dominate the UK Application Modernization Services Market by 2035?

    By 2035, the IT sector is projected to dominate the market, reaching a value of 780.0 million USD.

    What is the expected growth in market value for the Healthcare vertical by 2035?

    The Healthcare vertical is expected to grow from 90.0 million USD in 2024 to 450.0 million USD by 2035.

    Who are some of the key players in the UK Application Modernization Services Market?

    Major players in the market include Tech Mahindra, Cognizant, Capgemini, Accenture, and IBM.

    What will be the market value for the Telecommunications vertical in 2035?

    The market value for the Telecommunications vertical is anticipated to reach 410.0 million USD by 2035.

    How much is the Energy and Utilities vertical expected to grow by 2035?

    The Energy and Utilities vertical is expected to grow to 220.0 million USD by 2035 from 50.0 million USD in 2024.

    What are the key growth drivers for the UK Application Modernization Services Market?

    Key growth drivers include the increasing demand for digital transformation and improved operational efficiencies.

    What is the forecasted market growth for the Manufacturing vertical by 2035?

    The Manufacturing vertical is projected to grow to 555.0 million USD by 2035, increasing from 103.8 million USD in 2024.

    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. UK
    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. UK Application
    69. Modernization Services Market, BY Deployment Type (USD Million)
    70. Hybrid
    71. cloud
    72. Private cloud
    73. Public
    74. cloud
    75. UK 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. Tech Mahindra
    111. Financial
    112. Overview
    113. Products Offered
    114. Key
    115. Developments
    116. SWOT Analysis
    117. Key
    118. Strategies
    119. Cognizant
    120. Financial
    121. Overview
    122. Products Offered
    123. Key
    124. Developments
    125. SWOT Analysis
    126. Key
    127. Strategies
    128. Capgemini
    129. Financial
    130. Overview
    131. Products Offered
    132. Key
    133. Developments
    134. SWOT Analysis
    135. Key
    136. Strategies
    137. Syntel
    138. Financial
    139. Overview
    140. Products Offered
    141. Key
    142. Developments
    143. SWOT Analysis
    144. Key
    145. Strategies
    146. Accenture
    147. Financial
    148. Overview
    149. Products Offered
    150. Key
    151. Developments
    152. SWOT Analysis
    153. Key
    154. Strategies
    155. Infosys
    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. Atos
    174. Financial
    175. Overview
    176. Products Offered
    177. Key
    178. Developments
    179. SWOT Analysis
    180. Key
    181. Strategies
    182. Mastek
    183. Financial
    184. Overview
    185. Products Offered
    186. Key
    187. Developments
    188. SWOT Analysis
    189. Key
    190. Strategies
    191. HCL Technologies
    192. Financial
    193. Overview
    194. Products Offered
    195. Key
    196. Developments
    197. SWOT Analysis
    198. Key
    199. Strategies
    200. LTI
    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. Deloitte
    219. Financial
    220. Overview
    221. Products Offered
    222. Key
    223. Developments
    224. SWOT Analysis
    225. Key
    226. Strategies
    227. Fujitsu
    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. UK Application Modernization Services
    251. Market SIZE ESTIMATES & FORECAST, BY VERTICAL, 2019-2035 (USD Billions)
    252. UK
    253. Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT
    254. TYPE, 2019-2035 (USD Billions)
    255. UK 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. UK
    264. APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY VERTICAL
    265. UK
    266. APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY DEPLOYMENT TYPE
    267. UK
    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

    UK 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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