In 2018, the global market for application modernization tools was valued at approximately US$ 8.04 billion and is projected to grow to US$ 36.86 billion by 2027, reflecting a compound annual growth rate (CAGR) of 18.7% during the period from 2019 to 2027.
The expansion of the application modernization tools market is significantly influenced by the increasing digitization and a favorable economic environment. Additionally, substantial investments in infrastructure enhancement worldwide, along with the rising adoption of cloud computing technologies, are expected to further propel market growth. Other contributing factors include overall economic development, advancements in technology, and increased IT expenditure, all of which play a crucial role in shaping the application modernization tools landscape.
Regionally, North America dominated the application modernization tools market in 2018 and is anticipated to maintain its leading position throughout the forecast period. The region benefits from a well-established IT infrastructure, a large number of enterprises, and the presence of rapidly growing economies such as the United States and Canada, which are key drivers of market growth. In 2018, Europe and the Asia-Pacific region ranked second and third, respectively, in the global application modernization tools market. Emerging markets in the Middle East, Africa, and South America are also expected to present significant growth opportunities for players in the application modernization tools sector during the forecast period from 2019 to 2027.
The application modernization tools market is categorized based on product type and application. In terms of product type, the market includes segments such as COBOL, ADA, RPG, assembler, PowerBuilder, and others. When considering application, the market is divided into emulation, translation, and business rules extraction. Notably, the business rules extraction segment is projected to witness substantial growth in the coming years. This segment involves a systematic approach for each program within legacy systems, which includes identifying use cases, classifying business logic, recognizing relevant business conditions, categorizing independent rule sets, and converting these into a structured set of business rules. The output from business rules extraction can take various forms, including UML artifacts like class diagrams and use cases, activity diagrams, and standard office documents such as Word and Excel, as well as programmable formats like SQL, DDL, and XML. This process utilizes tools that are compatible with legacy languages to streamline business logic into coherent business processes and rules, facilitating their export to modern platforms.
Key players in the application modernization tools market include Advanced Computer Software Group Limited, Aspire Systems, Asysco, Atos SE, Blu Age, Deloitte Touche Tohmatsu Limited, FreeSoft, Inc., Language Portability Solutions, Micro Focus, Mphasis Limited, Semantic Designs Incorporated, Software Mining, The Software Revolution Inc. (TSRI), and Virtusa Corporation. Numerous established and emerging providers of application modernization tools are active in the market, with larger companies often pursuing strategies of acquisition and collaboration to enhance their capabilities and broaden their geographical reach.
The overall size of the application modernization tools market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This research also includes an overview and forecast of the global application modernization tools market based on various segments across five key regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Furthermore, primary interviews with industry participants and experts are conducted to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the application modernization tools sector.