Mainframe Modernization Services Market Key Companies and SWOT Analysis by 2031

Historic Data: 2021-2022   |   Base Year: 2023   |   Forecast Period: 2024-2031

Mainframe Modernization Services Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Services (Application Modernization, Cloud Migration, and Data Modernization), Enterprise Size (Large Enterprises and SMEs), End-Use Industry (IT and Telecom, BFSI, Healthcare, Manufacturing, Retail, Education, and Others), and Geography

  • Report Date : Oct 2024
  • Report Code : TIPRE00028613
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • Available Report Formats : pdf-format excel-format
  • No. of Pages : 234
Page Updated: Nov 2024

AI overview of Mainframe Modernization Services Market


The Mainframe Modernization Services Market is poised for significant growth, projected to reach a remarkable US$ 86.14 billion by 2031, up from US$ 33.55 billion in 2023, reflecting a robust CAGR of 16% from 2023 to 2031. This market is driven by the increasing adoption of mainframe modernization services across various sectors, including IT, telecom, and healthcare, as organizations strive for digital transformation and enhanced cloud computing capabilities. Key trends indicate a surge in investments aimed at upgrading IT infrastructure, particularly through the integration of AI and machine learning technologies. As businesses recognize the value of data analytics, the demand for mainframe modernization services is expected to expand, offering substantial opportunities for growth in the coming years.


The mainframe modernization services market size is expected to reach US$ 86.14 billion by 2031 from US$ 33.55 billion in 2023. The market is estimated to record a CAGR of 12.5% from 2023 to 2031. An increase in investment toward the transformation of IT infrastructure and integration with AI and machine learning is likely to remain a key market trend.

Mainframe Modernization Services Market Analysis

Key factors driving the growth of the mainframe modernization services market include the rise in the adoption of mainframe modernization services in various sectors, digital transformation across the globe, and the growing adoption of cloud computing. However, challenges faced by IT companies in mainframe modernization are the key restraints in the market. Nevertheless, the growth of the data analytics industry across the globe is expected to create opportunities for the key players operating in the mainframe modernization services market. Furthermore, an increase in investment toward the transformation of IT infrastructure to provide efficient operation and services to consumers is expected to be the key future trend in the mainframe modernization services market from 2023 to 2031.

Mainframe Modernization Services Market Overview

The technology sector saw significant changes in 2023, with AI dominating headlines throughout the year. While new and emerging technologies grabbed headlines throughout the year, one venerable technology, the mainframe, probably had its busiest year in decades. The mainframe sector, often described as stable and slow-moving, saw significant activity last year. Mainframe modernization, historically a niche market that was dominated by IBM and a few software and service providers, has long been synonymous with incremental, evolutionary progress. However, in recent years, there has been a paradigm shift. The concept of modernization has expanded as companies explore different approaches to deliver robust enterprise-level IT services, from interface and platform updates to data management and language innovation. This trend toward more comprehensive modernization strategies has recently gained momentum. Over the past year, both new and established players have consolidated their presence in this market, indicating the potential of this space for significant returns. The movement among providers represents a decisive and positive change and promotes healthy debate within the industry.

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Mainframe Modernization Services Market: Strategic Insights

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Mainframe Modernization Services Market Drivers and Opportunities

Rise in Adoption of Mainframe Modernization Services in Various Sectors to Favor Market

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 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. According to a survey of 1,000 IT decision makers (ITDMs), backend developers, and software architects in the US, the UK, and other English-speaking countries in 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 growth.

Growing Adoption of Data Analytics

Government agencies use the mainframe systems for activities such as data processing and resource planning. It enables governments to implement best-in-class IT processes and smarter decision-making. In addition, digital transformation places significant demands on existing applications and data, requiring mainframe modernization and integration into an organization's heterogeneous technology landscape, including cloud and mainframe. Data analytics has become a powerful tool for businesses to benefit from valuable insights and make informed decisions due to the massive amount of data generated.

Data analytics is experiencing a revolution in tools, technologies, applications, and adoption. The industry is evolving rapidly, and companies are largely investing in turning data and analytics into competitive advantage. Modernized mainframes also allow for a smoother and faster data flow within various systems, enabling advanced data analytics. Moreover, modernization supports secure data transfer between institutions, aligning with emerging regulatory requirements and open finance. According to most big data experts, the amount of data generated is expected to increase dramatically during the forecast period. For instance, the report from Seagate's Data Age 2025 estimates that the amount of data generated worldwide is expected to reach 175 zettabytes by 2025. The massive increase in the number of people working from home or remote locations, studying, and spending time on the internet is driving data expansion. Such a surge in data generation and growth in data analytics are expected to create opportunities for mainframe modernization services during the forecast period.

Mainframe Modernization Services Market Report Segmentation Analysis

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

  • Based on services, the mainframe modernization services market is segmented into application modernization, cloud migration, and data modernization. The application modernization segment dominated the market in 2023.
  • By enterprise size, the market is bifurcated into SMEs and large enterprises. The large enterprises segment dominated the market in 2023.
  • In terms of end-use industry, the market is segmented into IT and telecom, BFSI, retail, healthcare, government, media and entertainment, manufacturing, education, and others. The IT and telecom segment held the largest market share in 2023.

Mainframe Modernization Services Market Share Analysis by Geography

  • The mainframe modernization services market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
  • North America is witnessing tremendous growth in the market, owing to the presence of various market players who are continuously working on the advancement of mainframe modernization services. In January 2024, Hitachi Vantara, along with Cisco, introduced an innovative suite of hybrid cloud services specifically designed to address ongoing data management challenges faced by various enterprises. This new Hitachi EverFlex with Cisco Powered Hybrid Cloud integrates automation solutions and predictive analytics to provide organizations with advanced infrastructure management, operational effectiveness, and cost efficiency. Thus, such product innovations by the market players in the region are fueling the growth of the mainframe modernization services market in the region.

Mainframe Modernization Services Market Regional Insights

The regional trends and factors influencing the Mainframe Modernization Services Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Mainframe Modernization Services Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Mainframe Modernization Services Market Report Scope

Report Attribute Details
Market size in 2023 US$ 33.55 Billion
Market Size by 2031 US$ 86.14 Billion
Global CAGR (2023 - 2031) 16%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Services
  • Application Modernization
  • Cloud Migration
  • Data Modernization
By End-Use Industry
  • IT and Telecom
  • BFSI
  • Retail
  • Healthcare
  • Government
  • Media and Entertainment
  • Manufacturing
  • Education
By Enterprise Size
  • SMEs
  • Large Enterprises
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Accenture
  • Capgemini
  • Cognizant
  • Amazon Web Services, Inc.
  • Infosys Limited
  • Fujitsu
  • HCL Technologies Limited
  • Wipro Digital
  • IBM
  • Ensono

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

    The 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.


    mainframe-modernization-services-market-cagr

    • Get the Mainframe Modernization Services Market top key players overview

    Mainframe Modernization Services Market News and Recent Developments

    The mainframe modernization services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the mainframe modernization services market are listed below:

    • Accenture Federal Services had been awarded the US Army’s Enterprise Application Modernization and Migration (EAMM) contract with a potential value of US$ 127 million. Accenture Federal Services will use its cloud migration and modernization approach to perform large-scale application assessments, migrations, and modernizations to the cloud.

    (Source: Accenture, Press Release, May 2024)

    • Fujitsu announced the Japan market launch of its successful modernization automation service “Fujitsu PROGRESSION,” building on a proven track of over 50 global use cases in which it migrated legacy systems to the Fujitsu mainframe "GS21 Series." “Fujitsu PROGRESSION” is a service that automatically converts script written in COBOL into Java or C# while preserving the functionality of applications built on mainframes. It delivers modernization services for end-to-end support, from drafting migration plans based on customer systems audits to asset migration through to testing and operation.

    (Source: Fujitsu, Press Release, May 2024)

    Mainframe Modernization Services Market Report Coverage and Deliverables

    The "Mainframe Modernization Services Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

    • Mainframe modernization services market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Mainframe modernization services market trends as well as market dynamics such as drivers, restraints, and key opportunities
    • Detailed PEST and SWOT analysis
    • Mainframe modernization services market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the mainframe modernization services market
    • Detailed company profiles

    Frequently Asked Questions

    1
    What is the incremental growth of the global mainframe modernization services market during the forecast period?
    The incremental growth expected to be recorded for the global mainframe modernization services market during the forecast period is US$ 52.5 billion.
    2
    What will be the market size of the global mainframe modernization services market by 2031?
    The global mainframe modernization services market is expected to reach US$ 86.1 billion by 2031.
    3
    Which are the key players holding the major market share of the global mainframe modernization services market?
    The key players holding majority shares in the global mainframe modernization services market are Microsoft Corp, Accenture Plc, Oracle, Capgemini SE, and Kyndryl Holdings Inc.
    4
    What are the future trends of the global mainframe modernization services market?
    Increase in investment towards the transformation of IT infrastructure and integration with AI and ML which is anticipated to play a significant role in the global playout automation and channel-in-a-box in the coming years.
    5
    What are the driving factors impacting the global mainframe modernization services market?
    The rise in adoption of mainframe modernization services in various sectors, digital transformation across the globe, growing adoption of cloud computing are the major factors that propel the global mainframe modernization services market.
    6
    What is the estimated market size for the global mainframe modernization services market in 2023?
    The global mainframe modernization services market was estimated to be US$ 33.5 billion in 2023 and is expected to grow at a CAGR of 12.5 % during the forecast period 2023 - 2031.
    Ankita Mittal
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    Ankita is a dynamic market research and consulting professional with over 8 years of experience across the technology, media, ICT, and electronics & semiconductor sectors. She has successfully led and delivered 100+ consulting and research assignments for global clients such as Microsoft, Oracle, NEC Corporation, SAP, KPMG, and Expeditors International. Her core competencies include market assessment, data analysis, forecasting, strategy formulation, competitive intelligence, and report writing.

    Ankita is adept at handling complete project cycles—from pre-sales proposal design and client discussions to post-sales delivery of actionable insights. She is skilled in managing cross-functional teams, structuring complex research modules, and aligning solutions with client-specific business goals. Her excellent communication, leadership, and presentation abilities have enabled her to consistently deliver value-driven outcomes in fast-paced and evolving market environments.

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    Our Clients

    The List of Companies - Mainframe Modernization Services Market

    1. Accenture Plc
    2. Capgemini SE
    3. Infosys Ltd
    4. Fujitsu Ltd
    5. Cognizant Technology Solutions Corp
    6. Microsoft Corp 
    7. Mphasis Ltd 
    8. Innova Solutions
    9. DXC Technology Co 
    10. Amazon.com Inc
    11. International Business Machines Corp
    12. HCL Technologies Ltd 
    13. Atos SE
    14. Tata Consultancy Services Ltd 
    15. Oracle Corp 
    16. EPAM Systems Inc 
    17. Ensono, LLC 
    18. Hexaware Technologies Ltd 
    19. Software AG
    20. Kyndryl Holdings Inc
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