Middle East & Africa Mainframe Modernization Services Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Middle East & Africa mainframe modernization services market size is expected to reach US$ 4,259.66 million by 2031 from US$ 2,023.55 million in 2023. The market is estimated to record a CAGR of 9.8% from 2023 to 2031.

Executive Summary and Middle East & Africa Mainframe Modernization Services Market Analysis:

Digital transformation is a key goal in the Middle East as governments of various countries in the region recognize the need to adapt to digital technologies for economic diversification and sustainability. Many Gulf Cooperation Council (GCC) states are implementing ambitious economic diversification initiatives to reduce their dependence on oil and gas. Governments of various countries, such as Bahrain, Saudi Arabia, and the UAE, in the Middle East and Africa are playing a key role in fueling digital transformation through initiatives and investments, as well as the extensive use of advanced technology.

The region is also experiencing enormous growth in the healthcare sector. Saudi Arabia accounts for approximately 60% of the total healthcare expenditure of GCC countries. According to the US Department of Commerce's International Trade Administration, Saudi Arabia spent US$ 50.4 billion in investments in healthcare and social development in 2023 nearly 17.0% of its 2023 budget. Such investments in various sectors across the country are expected to drive the development of digital infrastructure in the industry, which is expected to fuel the demand for mainframe modernization services from 2023 to 2031. In addition, the Saudi Arabian government plans to invest around US$ 65 billion in building a well-developed healthcare infrastructure by 2030.

Middle East & Africa Mainframe Modernization Services Market: Strategic Insights

Middle East & Africa Mainframe Modernization Services Market Segmentation Analysis:

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

• Based on services, the Middle East & Africa 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 Middle East & Africa 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 Middle East & Africa 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.

Middle East & Africa Mainframe Modernization Services Market Players Density: Understanding Its Impact on Business Dynamics

The Middle East & Africa 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.

Middle East & Africa Mainframe Modernization Services Market Outlook

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..

Middle East & Africa Mainframe Modernization Services Market Country Insights

Based on country, the Middle East & Africa mainframe modernization services market comprises the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa. The UAE held the largest share in 2023.

Investments by the UAE public sector help support the demand for ICT products and services in sectors such as healthcare, space, aviation, defense, transport, retail, financial services, and hospitality to boost the economy. As per the International Trade Administration, the UAE is one of the biggest data center hubs in the Middle East and Africa, and more are planned in the coming years. Additional investments of up to US$ 1 billion are expected by 2026. The UAE data center market is projected to grow at an average rate of ~3.43% from 2022 and 2027. Such a rise in digitalization and diversification of revenue generation for the economy is expected to drive the mainframe modernization services market growth in the coming years.

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.

Middle East & Africa 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