The size of the global application modernization services market is expected to increase at a compound annual growth rate (CAGR) of 14.6%, from USD 22.67 billion in 2025 to USD 51.45 billion by 2031. The market is expanding because businesses are finding it more and more difficult to adjust to a business climate that is changing quickly. In the past, companies relied on expensive, inflexible, and poorly built systems that were also difficult to modify. There were delays in operations as a result of these old systems’ inability to integrate new technologies like cloud computing and artificial intelligence. But as time has gone on, the market’s attention has turned to alternative solutions that assist businesses in changing the way some of their apps operate, integrating them with the existing IT infrastructure, reducing expenses, and improving speed.
Download PDF Brochure@ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=149625724
“Based on application type, cloud-hosted applications will hold the largest market size.”
Cloud-hosted applications are expected to hold the largest market share in the application modernization services market during the forecast period, as cloud computing provides scalability, flexibility, and cost efficiency. Cloud helps businesses in modernizing their existing applications without making huge investments in new hardware. It enables transformation through modern technology stacks, such as AI and analytics, to improve application performance and build new, intelligent applications. Furthermore, the need for cloud-based infrastructure has grown in tandem with the increasing remote work culture and digitalization, allowing data and applications to be accessed from any device. Cloud provides multiple additional advantages over an on-premises deployment model, including security, backup, and disaster recovery.
“By service type, the cloud application migration segment is expected to register the highest growth rate during the forecast period.”
In the modernization services market for cloud applications, migration is projected to grow at the fastest pace during the forecast period, owing to its essential contribution to transforming IT structures and enhancing operational efficiencies. Companies are moving away from traditional on-premise systems to the cloud to capitalize on the scalability, flexibility, and cost-effective solutions that come with cloud-based solutions. Factors such as growing data volumes, the rising need for robust infrastructure, and the need for flexible deployments are responsible for driving the shift from on-premise or legacy systems to cloud-based environments. Additionally, the end of support for legacy systems, such as SAP Business Suite and ECC6, is further prompting enterprises to accelerate their cloud migration initiatives in order to avoid disruptions and remain competitive in the market. Furthermore, the widespread adoption of hybrid and multi-cloud strategies is fueling the growth of cloud application migration services. It can be argued that, as companies continually seek ways to optimize workloads and integrate modern technologies into their systems, the importance of cloud application services is likely to grow in the landscape of application modernization services.
“By vertical, the telecom segment is expected to hold the largest market share.”
The telecom segment is expected to account for the largest share of the application modernization services market, and its share is projected to remain high during the forecast period, driven by the sector’s ongoing digitalization and adoption of 5G networks. Digital Technologies have gradually become imperative for every telecom provider, and yet, with so many changes, the conquest of legacy systems occurs naturally. Application modernization services help telecom operators extend the life of their current applications, adopt new technologies, and increase the overall efficiency of their operations. It is imperative to adopt an IT infrastructure that is strong and flexible in order to enhance and support technological advancements such as 5G, cloud computing, and the IoT, among other things. Furthermore, due to the rapidly increasing demand for high-speed connectivity and advanced communication solutions, telecom vendors are investing heavily in modernizing their IT landscapes, optimizing network performance, and streamlining operations. In addition, telecom service providers are also focusing on these services as a means of enhancing customer satisfaction, improving the network, and competing effectively in the market, thus consolidating their position within the industry. Owing to these factors, the telecom sector is expected to witness the highest growth during the forecasted period.
Request Sample Pages@ https://www.marketsandmarkets.com/requestsampleNew.asp?id=149625724
Unique Features in the Application Modernization Services Market
Modernization vendors increasingly emphasize safe, incremental replacement of monoliths rather than “rip-and-replace.” Using strangler patterns and façade layers, teams peel away functionality module-by-module, reducing risk and enabling continuous delivery of value during the transition.
A core differentiator is re-architecting applications to run as cloud-native assets — containerized microservices and serverless functions — which unlocks elasticity, pay-for-use economics, and faster release cycles compared with lifted-and-shifted VMs.
Modern platforms are designed around well-documented, versioned APIs so business capabilities become composable building blocks. This enables faster integrations, easier B2B/B2C exposures, and reuse across internal and external ecosystems.
The market now relies heavily on automation — static analysis, code transformation tools, dependency mapping, and automated tests — to accelerate refactors and reduce manual effort. Tooling shortens modernization timelines and increases repeatability and predictability.
Major Highlights of the Application Modernization Services Market
The Application Modernization Services Market is witnessing strong growth due to the accelerated adoption of cloud computing. Enterprises are migrating legacy workloads to public and hybrid cloud environments to achieve scalability, cost-efficiency, and business agility. This demand surge is supported by hyperscalers like AWS, Microsoft Azure, and Google Cloud partnering with modernization service providers.
Organizations are increasingly decomposing monolithic systems into microservices and adopting container orchestration platforms such as Kubernetes and Docker. This trend enhances agility, enables faster deployment, and allows independent scaling of business-critical components, fueling modernization investments.
The market is experiencing a transformation through AI- and ML-driven automation tools that accelerate code analysis, refactoring, and migration. Intelligent platforms help identify technical debt, generate modernization blueprints, and reduce manual errors—resulting in faster, more predictable modernization cycles.
DevOps practices, continuous integration/continuous delivery (CI/CD), and agile methodologies have become the foundation of successful modernization. Service providers are helping enterprises embed these practices to ensure ongoing innovation, faster releases, and operational stability post-modernization.
Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=149625724
Top Companies in the Application Modernization Services Market
Various globally established players, such as Oracle (US), IBM (US), Microsoft (US), AWS (US), HCL Technologies (India), Accenture (Ireland), ATOS (France), Capgemini (France), Cognizant (US), and TCS (India), are dominating the application modernization services market. To increase their market share in the application modernization services market, these competitors have used various growth methods, including partnerships, agreements, collaborations, product releases, product enhancements, and acquisitions.
IBM
IBM (International Business Machines Corporation) is a worldwide technology and consulting firm that provides solutions to its customers’ business problems. The company has four primary operational segments: Software Development, Consulting, Infrastructure, and Financing. The first of these segments refers to the company’s hardware and software, including cloud systems and AI systems with analytical, artificial intelligence, automated control, blockchain, and information assurance technologies. The second area of the company’s operations, i.e., consulting, includes business transformation engagements, technology consulting, and application services. This segment provides IT resources, including storage systems, servers, and even mainframes, as a means to enhance the existing IT environments of clients. This segment helps enhance the company’s IT resources by providing financial solutions, such as leasing and lending, to facilitate the acquisition of new IT resources.
In the application modernization services market, IBM provides a range of services through its IBM Garage platform. The platform is designed to accommodate creative approaches tailored to the specific needs of customers. It assists organizations in the process of renewing their existing and legacy applications to achieve a quicker digital evolution of the company, create a better experience for developers, and ease the process of migrating applications to the cloud.
In the company’s application modernization services portfolio for potential clients, a preliminary app readiness assessment is followed by application refactoring, repackaging, and re-platforming, utilizing containerization and DevOps pipelines. It also extends the scope of services and includes assistance in moving relevant applications to the cloud, or, following the banking crisis, app decommissioning processes. The company offers these services through the tools within its IBM Garage system.
To evaluate application portfolios, IBM relies on the Cloud Transformation Advisor tool, which helps organizations identify the most suitable modernization approach. This tool falls under the umbrella of IBM Cloud Pak for Applications, a solution that specializes in containerization software. When it comes to cloud migrations, the platforms and cloud services are provided by the IBM Cloud Migration Factory, and the applications are hosted on the IBM WebSphere Liberty platform for refactoring purposes. Other tools, such as IBM Cloud Pak for Integration, offer features like application and data integration, among others.
Accenture
Accenture is a global management consulting, technology services, and outsourcing company that was previously called Andersen Consulting. The company adds value through its strategy, which focuses on competing effectively with other firms, including strategic alliances, continuous R&D investment, and maintaining a regular training schedule for employees. The company’s operations are far-reaching, covering the entire globe, and therefore provide healthy competition to big names like Deloitte, Atos, NTT Data, IBM, and Capgemini in the provision of diverse products and services.
Accenture offers services to a wide range of industries, including aerospace and defense, chemicals, healthcare and life sciences, software and its platforms, automotive, communication and media, banking, consumer products and services, retail, and the public sector. The company’s segments include Communications, Media & Technology, Financial Services, Health & Public Services, Products, and Resources.
Regarding application modernization services, Accenture offers a comprehensive solution for effective IT management. These services include service design and technical architecture consultancy, application discovery, recognition, and planning, as well as agile and DevSecOps transformation. Accenture utilizes the most advanced technologies and processes in application reengineering to repatriate applications from expensive, ongoing operational costs.
Media Contact
Company Name: MarketsandMarkets™ Research Private Ltd.
Contact Person: Mr. Rohan Salgarkar
Email: Send Email
Phone: 18886006441
Address:1615 South Congress Ave. Suite 103, Delray Beach, FL 33445
City: Florida
State: Florida
Country: United States
Website: https://www.marketsandmarkets.com/Market-Reports/application-modernization-services-market-149625724.html