DUBLIN--(BUSINESS WIRE)--The "Application Modernization Services Market by Service (Application Portfolio Assessment, Cloud Application Migration, Application Replatforming), Cloud Deployment Mode, Organization Size, Vertical, and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The market is expected to grow from USD 11,412 million in 2020 to USD 24,803 million by 2025, at a CAGR of 16.8% during the forecast period.
Increasing need to adopt cloud sevrices, for their scalability and flexibility, demand for modernizing legacy systems and applications, rise in remote work scenario, and better customer experience by applications is expected to drive demand for application modernization services. Every business user owns a website to serve, communicate, and interact with its end-users. In the world of the digital era, enterprises are catering to a global audience, physically dispersed over the globe. The website is one of the basic communication channels for customers to engage with enterprises. 24*7 availability of the website is therefore important for enterprises to meet the increasing demand for tech-savvy customers. Application modernization services market seems to be lucrative in the coming years with ubiquity in internet usage and scalability provided by cloud native applications.
Cloud Application Modernization segment to grow at a higher CAGR during the forecast period
Cloud application migration services are used for porting applications from the current environment to cloud environments. It is a standard practice for organizations to choose cloud application migration to migrate legacy systems and modernize them. With the flexibility provided by these services, more organizations are choosing cloud migration services, hence, it is expected to grow fastest during the coming 5 years.
SMEs segment to grow at the highest CAGR during the forecast period
SMEs are expected to adopt application modernization services to enhance agility and reduce TCO to a significant extent. This is expected to boost the development of application modernization in the SMEs segment. SMEs face a greater resource crunch than large enterprises and require better methods to solve complexities and increase the cost optimization of their business processes. The adoption of application modernization services has been increasing in SMEs across the globe, and this is expected to drive the growth of the overall application modernization services market.
Asia Pacific (APAC) region to record the highest market share in the application modernization services market in 2020
APAC is an emerging region for the application modernization services market. Australia, China, Japan, and India are the major countries contributing to the growth of the application modernization services market in APAC. Due to the rise in internet traffic, adoption of cloud services, IT services start-up ecosystem, enterprises in this region are becoming more competitive, and are focusing on offering better customer experience services to industries. Thus, the untapped potential of the APAC region is attracting investments by major companies. Most organizations are focusing on expanding their business operations in countries across the APAC region, which is expected to increase demand for application modernization services.
Market Dynamics
Drivers
- need for Improved Software Functionalities Due to Changing Business Landscape
- Demand for Flexibility and Scalability Provided by Cloud Computing Scalability
- Benefits of Integrating Modern Technologies with Software Systems
Restraints
- High Costs and Complexities Involved in Application Modernization
Opportunities
- Existence of Large Number of Legacy Applications
- Evolution of Open Standards for Software Development
- Post-Pandemic Demand for Modern Infrastructure to Ensure Business Continuity
Challenges
- Reduction in Technology Spending Due to COVID-19
- Lack of it Skills Among Employees
Company Profiles
- IBM
- Accenture
- Atos
- HCL Technologies
- Capgemini
- Cognizant
- TCS
- Bell Integrator
- Oracle
- Innova Solutions
- Aspire Systems
- Blu Age
- EPAM Systems
- NTT Data
- Dell Technologies
- DXC Technology
- Infosys
- LTI
- Wipro
- Microfocus
- Fujitsu
- Softura
- Hexaware
- Virtusa
-
Mongo DB
For more information about this report visit https://www.researchandmarkets.com/r/pxyjak
