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

The North America mainframe modernization services market size is expected to reach US$ 29,655.76 million by 2031 from US$ 12,972.47 million in 2023. The market is estimated to record a CAGR of 10.9% from 2023 to 2031.

Executive Summary and North America Mainframe Modernization Services Market Analysis:

The mainframe modernization services market in North America is segmented into the US, Canada, and Mexico. North America is the early adopter of technologies and has a good IT infrastructure. According to the International Trade Administration, the US accounts for one-third of the US$ 5 trillion worldwide information technology (IT) market, making it the world's largest. In addition, the sector supports 12.1 million employment and contributes ~US$ 1.9 trillion to the US value-added GDP. Furthermore, according to CompTIA, there are over 557,000 software and IT service companies in the US. As per the International Trade Administration, the ICT industry in Canada comprises more than 43,200 businesses. Of these, the major number of companies operate in the computer services and software sectors. The industry is primarily made up of small businesses, with ~35,500 employing fewer than ten people. There are nearly 100 significant companies, including subsidiaries of international multinational corporations, that employ more than 500 people. Having such a big IT industry in the region is raising the need for mainframe modernization services.

Moreover, the region is also witnessing a rise in digitization in the healthcare sector. According to the Canada Health Infoway, Canadians are embracing digital health services, and it is also estimated that the demand for digital healthcare services will increase in the coming year. According to an online survey conducted in November 2022 with 12,445 Canadians, 94% of Canadians were interested in accessing digital health services. Thus, growing digitization in the healthcare sector is projected to raise the need for mainframe modernization services market among healthcare providers to conduct all IT-related operations efficiently.

North America Mainframe Modernization Services Market: Strategic Insights

North America Mainframe Modernization Services Market Segmentation Analysis:

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

• 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 the largest share of the market in 2023.

• Based on enterprise size, the North America 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 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 the largest share of the market in 2023.

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

The North America 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.

North America Mainframe Modernization Services Market Outlook

Digital technologies are transforming communications, business, health, education, finance, etc. The COVID-19 pandemic increased the adoption of digital technologies and enhanced productivity. Digitization saved many companies during the pandemic by adapting to remote work cultures and online operations. According to Cisco, by 2024, around 75% of start-ups in Canada will have a digital-first strategy. Moreover, over 50% of SMEs reorganized their company structure in Canada. Such rising adoptions of digital technologies have increased the demand for robust IT infrastructure and are driving the mainframe modernization services market. The rapid evolution of new digital technologies, combined with increasing customer demands and ongoing disruptive market forces, is driving companies to prioritize digital transformation. Digital transformation places significant demands on existing applications and data, requiring modernization and integration into a heterogeneous technology landscape, including cloud and mainframe.

North America Mainframe Modernization Services Market Country Insights

Based on country, the North America mainframe modernization services market comprises the US, Canada, and Mexico. The US held the largest share in 2023.

The US is witnessing a tremendous transition from onsite to remote work. According to the Pew Research Center survey, a third of employees (35%) have jobs that can be done remotely. 6 out of 10 hybrid workers (59%) reported working three or more days from home in a week, compared to 41% who reported working from home two days per week. As remote work provides the flexibility of work without hampering productivity, it is a desirable perk across organizations that can help retain top talent. Thus, the rising demand for remote working is projected to propel the need to incorporate new IT infrastructure among the companies, which, in turn, is expected to drive the mainframe modernization services market in the US..

North America 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.

North America 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