The market for mainframe modernization services was valued at approximately US$ 33.55 billion in 2023 and is projected to grow to around US$ 86.14 billion by 2031, reflecting a compound annual growth rate (CAGR) of 12.5% during the period from 2023 to 2031.
This mainframe modernization services market is divided into five key regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2023, North America led the market, followed by Europe and the Asia Pacific region. The North American segment includes the United States, Canada, and Mexico, with the region being an early adopter of technological advancements and possessing a robust IT infrastructure. According to the International Trade Administration, the United States represents about one-third of the global US$ 5 trillion information technology (IT) market, making it the largest in the world. Additionally, this sector supports approximately 12.1 million jobs and contributes around US$ 1.9 trillion to the US GDP. Furthermore, CompTIA reports that there are over 557,000 software and IT service firms in the United States. In Canada, the ICT sector comprises more than 43,200 companies, predominantly in the computer services and software domains. Most of these are small enterprises, with around 35,500 employing fewer than ten individuals, while nearly 100 larger firms, including subsidiaries of multinational corporations, employ over 500 people. The substantial IT industry in this region is driving the demand for mainframe modernization services.
The Asia Pacific region includes rapidly developing economies such as India, China, Thailand, Vietnam, Singapore, Taiwan, and New Zealand. These nations are witnessing a steady rise in the adoption of advanced technologies. To remain competitive in the long run, digital capabilities are being continuously enhanced across the region. Various governments are implementing strategic initiatives aimed at digitalization. For instance, in February 2023, the Chinese government unveiled a comprehensive plan for the development of a digital China, which aims to promote the integration of digital technologies across economic, political, cultural, social, and environmental sectors. The plan outlines the establishment of a nationwide system by 2025 to achieve the Digital China objectives, with aspirations for China to become a leading global economy in terms of digitalization by 2035. This growing embrace of digital technologies is anticipated to significantly propel the mainframe modernization services market in the region.
When categorized by enterprise size, the global mainframe modernization services market is divided into small and medium-sized enterprises (SMEs) and large enterprises. The large enterprises segment was the dominant force in 2023, primarily due to the increasing adoption of these services by organizations in the banking, insurance, and financial services sectors. For example, Infosys has been instrumental in supporting major life insurance companies in North America with their legacy mainframe applications. Through mainframe modernization services, Infosys has facilitated the digital transformation of these insurance firms, helping to lower maintenance costs and streamline existing system functionalities. Numerous leading organizations are now utilizing data migration services to address complex data challenges. Infosys has also provided a hybrid system for a multinational corporation based in Europe, implementing a migration program that enabled bi-directional higher throughput to ensure efficient data flow processing. This integration of critical business workflows across AS/400 and SAP applications has optimized data processing and flow, showcasing the effectiveness of Infosys's solutions.
Key players in the mainframe modernization services market include Accenture, Capgemini, Cognizant, Amazon Web Services, Inc., Infosys Limited, Fujitsu, HCL Technologies Limited, Wipro Digital, IBM, Ensono, Tata Consultancy Services Limited, Atos SE, Hexaware Technologies Limited, Microsoft, DXC Technology Company, EPAM Systems, Inc., Innova Solutions, Oracle, Mphasis, and Software AG, all of whom are profiled in this market analysis.
The overall size of the mainframe modernization services market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data regarding the market size. This approach also aids in providing an overview and forecast of the market across all segments. Additionally, numerous primary interviews have been carried out with industry stakeholders to validate the findings and obtain analytical insights. This process includes discussions with industry experts 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 mainframe modernization services sector.