Europe Mainframe Modernization Services Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Europe mainframe modernization services market size is expected to reach US$ 25,691.86 million by 2031 from US$ 9,540.45 million in 2023. The market is estimated to record a CAGR of 13.2% from 2023 to 2031.

Executive Summary and Europe Mainframe Modernization Services Market Analysis:

The Europe IT management as a service market is segmented into Germany, France, Russia, the UK, Italy, and the Rest of Europe. Europe is witnessing increasing digitalization across various industries, including BFSI. Almost every well-known banking institution in Europe has a digital transformation strategy. Offering digital services and goods 24/7, as improving customer experience is the main goal of most digitalization plans for banks. The EU has set two main goals for the digitalization of businesses by 2030: more than 90% of SMEs could achieve at least a basic level of digital intensity, and 75% of EU companies should use cloud computing services. Large data analysis should be carried out using artificial intelligence by 2030. According to the EU, in 2023, more than 70% of all EU companies reached a basic level of digital intensity. The proportion of SMEs was 69%, whereas large companies stood at 98%. Many European organizations, particularly in banking, insurance, and government sectors, still heavily rely on mainframe infrastructure that has been in place for decades. This reliance, coupled with the increasing need to adapt to modern business requirements, increases the need to mainframe modernization services across industries, which is expected to drive the mainframe modernization services market from 2023 to 2031.

Europe Mainframe Modernization Services Market: Strategic Insights

Europe Mainframe Modernization Services Market Segmentation Analysis:

Key segments that contributed to the derivation of the Europe mainframe modernization services market analysis are services, enterprise size, and end-use industry.

• Based on services, the Europe mainframe modernization services market is segmented into application modernization, cloud migration, and data modernization. The application modernization segment held the largest share of the market in 2023.

• Based on enterprise size, the Europe mainframe modernization services market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger share of the market in 2023.

• Based on end-use industry, the Europe mainframe modernization services market is segmented into IT and telecom, BFSI, healthcare, manufacturing, retail, education, and others. The IT and telecom segment held the largest share of the market in 2023.

Europe Mainframe Modernization Services Market Players Density: Understanding Its Impact on Business Dynamics

The Europe Mainframe Modernization Services Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Europe Mainframe Modernization Services Market Outlook

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 others are 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.

Europe Mainframe Modernization Services Market Country Insights

Based on country, the Europe mainframe modernization services market comprises the UK, Germany, France, Italy, Russia, and the Rest of Europe. The UK held the largest share in 2023.

As companies increasingly depend on technology to streamline their operations, optimize service delivery, and improve customer experiences, the demand for mainframe modernization services has surged. The integration of technologies such as cloud computing and hybrid cloud environments led to an increase in the number of interconnected systems, applications, and devices. Efficiently and effectively managing this complex network of IT resources has become critical for businesses, which has fueled demand for mainframe modernization services..

Europe Mainframe Modernization Services Market Company Profiles

Some of the key players operating in the market include 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. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Europe Mainframe Modernization Services Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners' conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis, and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise