Application Modernization Services Market Analysis

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 SMEs 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 SMEs with tight budgets. For accuracy, efficacy, transparency, and productivity, SMEs 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 SMEs.
 

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.