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    US Application Modernization Services Market

    ID: MRFR/ICT/16370-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US 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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    US Application Modernization Services Market Research Report - Forecast till 2035 Infographic
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    Table of Contents

    US Application Modernization Services Market Summary

    The United States Application Modernization Services market is poised for substantial growth, expanding from 3.5 USD Billion in 2024 to 19 USD Billion by 2035.

    Key Market Trends & Highlights

    US Application Modernization Services Key Trends and Highlights

    • The market is projected to grow at a compound annual growth rate (CAGR) of 16.62% from 2025 to 2035.
    • By 2035, the market is expected to reach a valuation of 19 USD Billion, indicating a robust demand for modernization services.
    • In 2024, the market is valued at 3.5 USD Billion, reflecting the current investment in application modernization.
    • Growing adoption of cloud computing due to the need for enhanced scalability is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.5 (USD Billion)
    2035 Market Size 19 (USD Billion)
    CAGR (2025-2035) 16.62%

    Major Players

    Capgemini, SAP, Unisys, Cognizant, Infosys, Wipro, Oracle, Atos, DXC Technology, IBM, Microsoft, Deloitte, TCS, Accenture, Hewlett Packard Enterprise

    US Application Modernization Services Market Trends

    The US Application Modernization Services Market is experiencing significant trends driven by the need for businesses to adopt faster, more efficient technological solutions. One of the key market drivers is the increasing demand for cloud integration. Many organizations are migrating their legacy applications to cloud-based platforms to enhance scalability and accessibility. This is particularly vital for firms in the US, where digital transformation is essential for maintaining competitive advantage. Additionally, regulatory compliance and the need for improved cybersecurity measures are pushing businesses to modernize their applications to effectively manage data and protect sensitive information.

    Opportunities to be explored in this market include the growing popularity of artificial intelligence and machine learning in application development and modernization. Firms are seeking to incorporate AI-driven capabilities into their applications to optimize processes and enhance the user experience. The rise of low-code and no-code platforms also presents a chance for organizations to modernize applications more rapidly, making it easier for non-technical personnel to participate in development efforts. In recent times, there has been a notable trend towards agile development methodologies, which prioritize iterative progress and collaboration among cross-functional teams.

    This shift is especially relevant in the US, where businesses are aiming to respond more quickly to changes in consumer preferences and market demands. Furthermore, with the increasing focus on remote work and digital collaboration, there is a growing emphasis on modernizing applications to support a distributed workforce. Overall, the US Application Modernization Services Market is witnessing dynamic changes as organizations adapt to an evolving technological landscape.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    US Application Modernization Services Market Drivers

    Market Segment Insights

    Application Modernization Services Market Vertical Insights

    The US Application Modernization Services Market is experiencing significant expansion, particularly within the vertical segment, which encompasses diverse sectors such as Healthcare, IT, Telecommunications, Energy and Utilities, Manufacturing, and Consumer Goods and Retail. This segmentation reflects the unique needs and priorities of each vertical, driving the growth of tailored modernization services that enhance operational efficiency, improve customer experience, and reduce costs.

    The Healthcare sector is increasingly adopting application modernization solutions to ensure compliance with regulatory requirements and to leverage technologies such as cloud computing and data analytics for better patient care.In IT, modernization is crucial for integrating legacy systems and enabling seamless digital transformation, which is essential for gaining competitive advantage. The Telecommunications vertical benefits from application modernization through enhanced service delivery capabilities, allowing companies to offer superior connectivity and customer support. Energy and Utilities are focusing on modernization initiatives to optimize asset management and improve the reliability of service delivery, particularly in the context of smart grid technology.

    Manufacturing firms are leveraging modernized applications to streamline production processes and supply chains, while Consumer Goods and Retail companies are adopting these services to create omnichannel experiences, enhance inventory management, and respond swiftly to changing consumer preferences. Each sector demonstrates a distinct approach to application modernization, highlighting the importance of vertical-specific strategies and solutions in navigating today's digital landscape.

    Furthermore, ongoing trends such as the rise of remote work, the increasing demand for automation, and the growing emphasis on data-driven decision-making are propelling the need for application modernization across these verticals, contributing to a dynamic and evolving US Application Modernization Services Market.

    Market growth in these areas is fueled by rising investments in technology, necessitating organizations to modernize their applications to stay relevant and responsive. As digital transformation continues to reshape business operations, the vertical segment within the US Application Modernization Services Market will play a pivotal role in driving innovation and efficiency across various industries.

    Application Modernization Services Market Deployment Type Insights

    The Deployment Type segment within the US Application Modernization Services Market is evolving with significant trends and opportunities. The adoption of Hybrid cloud models has gained traction due to their flexibility and efficiency, allowing organizations to balance workloads between on-premises and cloud environments. This approach meets the diverse needs of businesses while addressing security concerns. Conversely, Private cloud solutions are preferred by organizations with strict compliance requirements, providing enhanced control over sensitive data.

    Public cloud offerings are also popular, enabling rapid scaling and cost-effectiveness, which appeals to startups and established enterprises alike. As the shift towards digital transformation continues, the US Application Modernization Services Market data illustrates a strong inclination towards these deployment types, driven by factors such as increased agility, innovation, and the necessity for organizations to modernize legacy systems. The adjusting business landscape within the US demands scalable and adaptable IT solutions, underscoring the importance of these Deployment Type models in enhancing operational efficiency and fostering competitive advantage.

    As organizations navigate challenges and pursue growth, these deployment strategies will play a crucial role in redefining their IT frameworks.

    Application Modernization Services Market Application Insights

    The US Application Modernization Services Market is witnessing considerable growth driven by the need for organizations to enhance operational efficiency and reduce costs through technology upgrades. Within this segment, Application portfolio assignment plays a vital role by enabling businesses to optimize and prioritize their application assets, ensuring that resources are allocated to the most impactful applications. UI modernization is essential for improving user experience and engagement, providing a significant competitive advantage in today’s digital landscape.

    Cloud application mitigation addresses the growing need for businesses to transition their legacy applications to the cloud, thus enhancing scalability and flexibility. Application integration facilitates seamless connectivity between disparate systems and applications, promoting data coherence and enhancing decision-making processes. Lastly, application re-platforming is important for modernizing applications without a complete overhaul, allowing for incremental improvements that align with business goals. The combination of these elements ensures that organizations in the US can effectively adapt to the evolving technological landscape, ultimately driving the US Application Modernization Services Market forward.

    As companies increasingly prioritize innovation and digital transformation, these service areas become critical in enhancing overall efficiency and supporting growth initiatives.

    Get more detailed insights about US Application Modernization Services Market Research Report - Forecast till 2035

    Regional Insights

    Key Players and Competitive Insights

    The US Application Modernization Services Market is characterized by a rapidly evolving landscape shaped by the increasing demand for businesses to remain competitive in a digital-first economy. Companies across various sectors are compelled to modernize their legacy applications to enhance operational efficiency, improve customer experiences, and enable greater agility. As organizations strive to leverage emerging technologies like cloud computing, artificial intelligence, and DevOps, they are actively seeking partners that can guide them through the complex transformation journey. The competitive insights reveal a market where innovation, solution flexibility, and strong domain expertise are critical differentiators among service providers.

    While the market is dominated by a mix of established players and emerging startups, the push for modernization is fostering collaborations and strategic alliances to deliver comprehensive solutions tailored to specific industry needs.

    Capgemini has established a robust presence within the US Application Modernization Services Market, leveraging its deep industry knowledge and technological expertise to deliver transformative services. The company's strengths lie in its ability to integrate legacy systems with modern cloud solutions, ensuring seamless transitions that empower businesses to harness the full potential of their IT investments. Capgemini's focus on end-to-end modernization services, coupled with its proven methodologies and frameworks, positions it favorably against competitors. The company has also built strategic partnerships and alliances, enhancing its service portfolio while driving innovation.

    With a strong commitment to facilitating digital transformation for clients across various industries in the US, Capgemini is well-equipped to address the diverse challenges faced by organizations aiming to modernize their applications.SAP operates as a formidable player within the US Application Modernization Services Market, recognized for its comprehensive suite of enterprise solutions that cater to various business needs. The company offers key products that include cloud-based applications, analytics tools, and integrated processes that are pivotal for organizations seeking modernization.

    SAP's strong market presence in the US is bolstered by its emphasis on delivering real-time insights and streamlined operations, making it a go-to choice for firms looking to enhance their application infrastructure. The company has successfully engaged in numerous mergers and acquisitions to expand its capabilities and accelerate innovation, broadening its reach in modernization services. SAP's strengths lie in its robust ecosystem, providing clients the tools they need to not only modernize their applications but also innovate and drive growth in a competitive market landscape.

    Key Companies in the US Application Modernization Services Market market include

    Industry Developments

    Recent news developments in the US Application Modernization Services Market include significant partnerships and investments among key players. Capgemini announced a strategic collaboration with Microsoft in July 2023 to enhance cloud solutions for enterprise clients, suggesting an increased focus on hybrid cloud strategies. Additionally, Cognizant acquired a cloud services firm in June 2023 to bolster its cloud-first initiative, reflecting the ongoing trend of cloud services integration. Market valuation growth is notably driven by the heightened demand for digital transformation, with companies like IBM and Accenture expanding their service offerings to include advanced analytics and artificial intelligence in application modernization services.

    Just in August 2023, Wipro unveiled its new suite of modernization services aimed at optimizing legacy applications while ensuring better compliance with regulatory frameworks. The ongoing pressures for regulatory compliance and business agility have made modernization paramount, influencing the strategies of major players like Oracle and Deloitte, as they evolve to meet changing client needs. In the last couple of years, the rollout of government-backed digital initiatives has further accelerated modernization efforts across various sectors in the US, solidifying application modernization as a crucial component of business continuity and growth.

    Market Segmentation

    Outlook

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

    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 2018 2.91(USD Billion)
    MARKET SIZE 2024 3.5(USD Billion)
    MARKET SIZE 2035 19.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 16.624% (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 Billion
    KEY COMPANIES PROFILED Capgemini, SAP, Unisys, Cognizant, Infosys, Wipro, Oracle, Atos, DXC Technology, IBM, Microsoft, Deloitte, TCS, Accenture, Hewlett Packard Enterprise
    SEGMENTS COVERED Vertical, Deployment Type, Application
    KEY MARKET OPPORTUNITIES Cloud migration services growth, Legacy system upgrades, Enhanced security solutions demand, AI integration trends, Business process automation expansion
    KEY MARKET DYNAMICS Cloud adoption acceleration, Legacy system integration, Increased demand for agility, Cost reduction initiatives, Regulatory compliance pressures
    COUNTRIES COVERED US

    Market Highlights

    Author
    Garvit Vyas
    Analyst

    Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

    Leave a Comment

    FAQs

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

    The US Application Modernization Services Market is expected to be valued at 3.5 billion USD in 2024.

    What is the projected market value for the US Application Modernization Services Market by 2035?

    By 2035, the US Application Modernization Services Market is projected to reach a value of 19.0 billion USD.

    What is the expected CAGR for the US Application Modernization Services Market from 2025 to 2035?

    The expected CAGR for the US Application Modernization Services Market from 2025 to 2035 is 16.624 percent.

    Which vertical is projected to dominate the US Application Modernization Services Market in 2035?

    The IT vertical is projected to dominate the US Application Modernization Services Market with an expected value of 5.37 billion USD in 2035.

    What market value is the Healthcare sector expected to reach in the US Application Modernization Services Market by 2035?

    The Healthcare sector is expected to reach a market value of 4.13 billion USD in the US Application Modernization Services Market by 2035.

    What is the anticipated market size for the Telecommunications vertical in 2024?

    The Telecommunications vertical is anticipated to have a market size of 0.622 billion USD in 2024.

    Who are the major players in the US Application Modernization Services Market?

    Major players in the US Application Modernization Services Market include Capgemini, SAP, Unisys, Cognizant, and Infosys among others.

    What opportunities are driving growth in the US Application Modernization Services Market?

    Key opportunities driving growth in the market include technological advancements, increasing demand for cloud solutions, and the need for digital transformation.

    What is the estimated market size for the Energy and Utilities vertical in 2035?

    The Energy and Utilities vertical is estimated to reach a market size of 2.891 billion USD in 2035.

    How does the market size for the Manufacturing vertical compare in 2024 and 2035?

    The Manufacturing vertical is valued at 0.622 billion USD in 2024 and is expected to grow to 3.304 billion USD by 2035.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. US Application Modernization Services Market, BY Vertical (USD Billion)
    45. Healthcare
    46. IT
    47. Telecommunications
    48. Energy and utilities
    49. Manufacturing
    50. Consumer goods and retail
    51. US Application Modernization Services Market, BY Deployment Type (USD Billion)
    52. Hybrid cloud
    53. Private cloud
    54. Public cloud
    55. US Application Modernization Services Market, BY Application (USD Billion)
    56. Post modernization
    57. Application portfolio assignment
    58. UI modernization
    59. Cloud application mitigation
    60. Application integration
    61. Application re-platforming
    62. Competitive Landscape
    63. Overview
    64. Competitive Analysis
    65. Market share Analysis
    66. Major Growth Strategy in the Application Modernization Services Market
    67. Competitive Benchmarking
    68. Leading Players in Terms of Number of Developments in the Application Modernization Services Market
    69. Key developments and growth strategies
    70. New Product Launch/Service Deployment
    71. Merger & Acquisitions
    72. Joint Ventures
    73. Major Players Financial Matrix
    74. Sales and Operating Income
    75. Major Players R&D Expenditure. 2023
    76. Company Profiles
    77. Capgemini
    78. Financial Overview
    79. Products Offered
    80. Key Developments
    81. SWOT Analysis
    82. Key Strategies
    83. SAP
    84. Financial Overview
    85. Products Offered
    86. Key Developments
    87. SWOT Analysis
    88. Key Strategies
    89. Unisys
    90. Financial Overview
    91. Products Offered
    92. Key Developments
    93. SWOT Analysis
    94. Key Strategies
    95. Cognizant
    96. Financial Overview
    97. Products Offered
    98. Key Developments
    99. SWOT Analysis
    100. Key Strategies
    101. Infosys
    102. Financial Overview
    103. Products Offered
    104. Key Developments
    105. SWOT Analysis
    106. Key Strategies
    107. Wipro
    108. Financial Overview
    109. Products Offered
    110. Key Developments
    111. SWOT Analysis
    112. Key Strategies
    113. Oracle
    114. Financial Overview
    115. Products Offered
    116. Key Developments
    117. SWOT Analysis
    118. Key Strategies
    119. Atos
    120. Financial Overview
    121. Products Offered
    122. Key Developments
    123. SWOT Analysis
    124. Key Strategies
    125. DXC Technology
    126. Financial Overview
    127. Products Offered
    128. Key Developments
    129. SWOT Analysis
    130. Key Strategies
    131. IBM
    132. Financial Overview
    133. Products Offered
    134. Key Developments
    135. SWOT Analysis
    136. Key Strategies
    137. Microsoft
    138. Financial Overview
    139. Products Offered
    140. Key Developments
    141. SWOT Analysis
    142. Key Strategies
    143. Deloitte
    144. Financial Overview
    145. Products Offered
    146. Key Developments
    147. SWOT Analysis
    148. Key Strategies
    149. TCS
    150. Financial Overview
    151. Products Offered
    152. Key Developments
    153. SWOT Analysis
    154. Key Strategies
    155. Accenture
    156. Financial Overview
    157. Products Offered
    158. Key Developments
    159. SWOT Analysis
    160. Key Strategies
    161. Hewlett Packard Enterprise
    162. Financial Overview
    163. Products Offered
    164. Key Developments
    165. SWOT Analysis
    166. Key Strategies
    167. References
    168. Related Reports
    169. US Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY VERTICAL, 2019-2035 (USD Billions)
    170. US Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT TYPE, 2019-2035 (USD Billions)
    171. US Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    172. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    173. ACQUISITION/PARTNERSHIP
    174. MARKET SYNOPSIS
    175. US APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY VERTICAL
    176. US APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY DEPLOYMENT TYPE
    177. US APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY APPLICATION
    178. KEY BUYING CRITERIA OF APPLICATION MODERNIZATION SERVICES MARKET
    179. RESEARCH PROCESS OF MRFR
    180. DRO ANALYSIS OF APPLICATION MODERNIZATION SERVICES MARKET
    181. DRIVERS IMPACT ANALYSIS: APPLICATION MODERNIZATION SERVICES MARKET
    182. RESTRAINTS IMPACT ANALYSIS: APPLICATION MODERNIZATION SERVICES MARKET
    183. SUPPLY / VALUE CHAIN: APPLICATION MODERNIZATION SERVICES MARKET
    184. APPLICATION MODERNIZATION SERVICES MARKET, BY VERTICAL, 2025 (% SHARE)
    185. APPLICATION MODERNIZATION SERVICES MARKET, BY VERTICAL, 2019 TO 2035 (USD Billions)
    186. APPLICATION MODERNIZATION SERVICES MARKET, BY DEPLOYMENT TYPE, 2025 (% SHARE)
    187. APPLICATION MODERNIZATION SERVICES MARKET, BY DEPLOYMENT TYPE, 2019 TO 2035 (USD Billions)
    188. APPLICATION MODERNIZATION SERVICES MARKET, BY APPLICATION, 2025 (% SHARE)
    189. APPLICATION MODERNIZATION SERVICES MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    190. BENCHMARKING OF MAJOR COMPETITORS

    US Application Modernization Services Market Segmentation

     

     

     

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

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

     

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

      • Hybrid cloud
      • Private cloud
      • Public cloud

     

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

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

     

     

     

     

     

     

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