According to The Insight Partners' research, the North America mainframe modernization services market was valued at US$ 12,972.47 million in 2023 and is expected to reach US$ 29,655.76 million by 2031, registering a CAGR of 10.9% from 2023 to 2031. The rise in adoption of mainframe modernization services in various sectors and digital transformation across the globe are among the critical factors attributed to the North America mainframe modernization services market expansion.
The IT and telecom sector experienced significant growth with the integration of emerging technologies such as the Internet of Things (IoT), automation, machine learning, and artificial intelligence (AI). Technologically advanced companies are prioritizing mainframe modernization services for the efficient operation of the systems. The mainframe modernization services help in migrating the mainframe applications to the cloud applications using API, microservices, and DevOps. Mainframe systems combine high-performance hardware, software tools, and large individual programmed applications that need modernization services for efficient operation.
The rising adoption of advanced technologies in banks, hospitals, government agencies, transportation, defense, and other sectors is expected to accelerate the demand for IT infrastructure transformation and mainframe modernization services. For example, according to the Kyndryl survey conducted in September 2024, among 500 business and IT leaders, 86% of the respondents were engaged in adopting AI to accelerate the mainframe modernization adoption initiatives. In Addition, according to a survey of 1,000 IT decision makers (ITDMs), backend developers, and software architects in the United States (U.S.), the United Kingdom (U.K.), and the English-speaking Asia Pacific region (APAC) by Red Hat, 95% of respondents believe that application modernization is essential for their organization's success. 75% of companies have already completed at least small-scale modernization projects, and 18% have progressed all the way to continuous modernization. Moreover, 92% of enterprises were actively working on at least one app modernization project. Thus, organizations were increasingly turning to mainframe modernization services, thereby propelling the market's growth.
On the contrary, challenges in mainframe modernization hamper the growth of North America mainframe modernization services market.
Based on services, the North America mainframe modernization services market is segmented into application modernization, cloud migration, and data modernization. The application modernization segment held 46.5% share of the North America mainframe modernization services market in 2023, amassing US$ 6,026.71 million. It is projected to garner US$ 13,140.23 million by 2031 to expand at 10.2% CAGR during 2023-2031.
Based on enterprise size, the North America mainframe modernization services market is bifurcated into large enterprises and SMEs. The large enterprises segment held 61.8% share of the North America mainframe modernization services market in 2023, amassing US$ 8,021.55 million. It is projected to garner US$ 19,421.60 million by 2031 to expand at 11.7% CAGR during 2023-2031.
Based on end use industry, the North America mainframe modernization services market is segmented into IT and telecom, BFSI, healthcare, manufacturing, retail, education, and others. The IT and telecom segment held 32.2% share of the North America mainframe modernization services market in 2023, amassing US$ 4,178.92 million. It is projected to garner US$ 9,682.04 million by 2031 to expand at 11.1% CAGR during 2023-2031.
Based on country, the North America mainframe modernization services market is segmented into the US, Canada, and Mexico. The US held 83.9% share of North America mainframe modernization services market in 2023, amassing US$ 10,878.87 million. It is projected to garner US$ 25,830.12 million by 2031 to expand at 11.4% CAGR during 2023-2031.
Key players operating in the mainframe modernization services market are Accenture Plc; Capgemini SE; Infosys Ltd; Fujitsu Ltd; Cognizant Technology Solutions Corp; Microsoft Corp; Mphasis Ltd; Innova Solutions; DXC Technology Co; Amazon Web Services Inc; International Business Machines Corp; HCL Technologies Ltd; Atos SE; Tata Consultancy Services Ltd; Oracle Corp; EPAM Systems Inc; Ensono, LLC; Hexaware Technologies Ltd; Software AG; and Kyndryl Holdings Inc, among others.
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