Application Modernization Services Market Size & Share 2023 to 2032
Market Size by Type (Application Portfolio Assessment, Cloud Application Migration, Re-Platforming, Application Integration, UI Modernization, Post-Modernization), by Deployment, Organization Size, Application & Forecast.
Report ID: GMI5578
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Published Date: April 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Application Modernization Services Market Size
Application Modernization Services Market size was valued at USD 19.8 billion in 2022 and is projected to witness over 10% CAGR from 2023 to 2032.
Application Modernization Services Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The market growth is as many businesses are spending heavily on their IT budgets to maintain their outdated technology. Organizations are looking to switch from mainframe-based systems to distributed environments for reasons of cost savings. In order to compete and provide better services to their customers, many organizations must update their rigid legacy programs to more adaptive web infrastructures. The needs of other organizations for the integration of their legacy applications necessitate the use of web service technologies and service-oriented architectures. Organizations need to ensure that their software can be modified and upgraded as per requirements along with technology development.
The absence of sufficient skills and proper knowledge are some of the key barriers to modernizing apps. There are several reasons for this, some of which include the fact that the original programmers are no longer employed by the company or working on the same project, the lack of or outdatedness of technical documentation, the inaccessibility of external resources or libraries, and the extensive rewriting of the source code. The presence of various older programs, the emergence of open standards for software development, the expansion of Kubernetes, and containerization are all opportunities.
Application Modernization Services Market Analysis
Application modernization services market size from the application integration segment accounted for USD 3.5 billion in 2022. Application integration services allow the sharing of business data and processes among various applications in an organization. It allows seamlessly connecting a variety of cloud and on-premise apps to transform data required for business workflows. Companies that offer these services are expanding their market foothold through new investments. For instance, in October 2022, SaaS application integration firm Unito Inc. that it is looking to expand its market traction after a $20 million funding which brings its total amount raised to $32.9 million. The increasing integration of cloud technologies will shape segment growth.
Application modernization services market size from the SME segment will record over 10% CAGR through 2032. Large investments are needed to set up on-premises data storage infrastructure, which may be difficult for SME with tight budgets. For accuracy, efficacy, transparency, and productivity, SME prefer to use application modernization services to address these issues. A natural outcome of the rising demands for business agility, security, and scalability is the emergence of modernizing old applications and digital transformation within SME.
The application modernization services market from the IT & ITes segment is poised to exceed USD 10 billion by 2032. The majority of IT organizations are aware of the need of securing apps and underlying data and have already started app migrations, rapid DevOps processes, and adoption of software-as-a-service (SaaS) applications that are hosted in the cloud. The move to the cloud for apps has renewed interest in IT modernization, and businesses are looking to use the techniques, methods, and expertise in all of their application portfolio projects.
North America application modernization services market size is expected to surpass USD 25 billion by 2032. In 2022, the region had the biggest share of more than 50% of the global market. Cloud-based platforms are expected to grow because of increased digitalization and robust technological advancement. Increasing government investment in AI and IoT-based services is also helping to improve the application. The existence of major competitors and their revenue generation account for the biggest market share.
Application Modernization Services Market Share
Some of the leading companies involved in the application modernization services market are:
Companies are partnering with other related firms to expand their market position. For instance, in April 2023, Infosys and LexisNexis started working together to provide information services across content, enterprise, and product applications. These services will provide content modernization, application modernization, life cycle upgrades, application maintenance and support, and application development and validation.
This application modernization services market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Type
Market, By Deployment
Market, By Organization Size
Market, By Application
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →