Global Application Modernization Services Market (2020-2025) by Service, Vertical, End Users, Cloud Deployment, and Geography, Impact of Covid-19, Ansoff Analysis, Infogence Competitive Quadrant

Introduction

Application modernization is a service that is designed to manage the legacy transformation into new applications. It is the refactoring or consolidation of legacy software programming according to the current customer needs. It integrates the development of new and enhanced features and functionalities to the existing business. The primary purpose of the application modernization project is to create new business value from the existing applications. It took place in terms of re-platforming in case of cloud, re-hosting, re-engineering, and many more make sure that the application services are best suited for the business. Application modernization services are majorly adopted by manufacturing, automobile, and oil & gas industries for the smooth execution of their business processes. These services also help to improve the performance of the applications with a new version that is compatible with newly updated operating systems and hardware systems.

Application Modernization Services help organizations to modernize outdated systems and processes. It helps businesses in improving agility and business continuity, increasing competitive advantage, and high efficiency to market with high-performance applications. It can transform the IT framework with cutting-edge technologies that leverage innovations in cloud, mobility, cyber, social, and analytics.

The Global Application Modernization Services Market is estimated to be USD 11.5 Bn in 2020 and is expected to reach USD 24.1 Bn by 2025, growing at a CAGR of 16%.



Certain factors, such as heavy investments made by the companies and lack of skilled resources for legacy technologies, are slowing down the growth of application modernization services technologies. The recent COVID-19 situation has also impacted the growth as most of the new start-ups are adopting the work from home business model to maintain the safety factor. Companies are also reducing their expenses on technologically advanced platforms to maintain their cash flows during the pandemic.

But the online websites should be available 24*7 to engage with the enterprises and their needs to meet the increasing demand for tech-savvy customers. This will fuel the growing need for the adoption of cloud services because of their scalability and flexibility, demand for modernizing legacy systems and applications, and better customer experience by applications. Hence, Application modernization services seem to be lucrative in the coming years with internet usage and scalability provided by cloud applications.

Market Dynamics
Drivers
• Demand for Flexibility and Scalability Provided by Cloud Computing Scalability
• Need for Improved Software Functionalities Due to Changing Business Landscape
• Benefits of Integrating Modern Technologies with Software Systems

Restraints
• Lack of Skilled Employees for Legacy Technologies Among Enterprises
• High Costs and Complexities Involved in Application Modernization Infrastructure

Opportunities
• Existence of A Large Number of Legacy Applications
• Evolution of Open Standards for Software Development
• Post-Pandemic Demand for Modern Infrastructure to Ensure Business Continuity

Segments Covered
Based on Service, the Application Re-platforming segment holds the largest market size during the forecast period. The Application Re-platforming Segment offers faster delivery of applications and time-to-market, flexibility, scalability, faster networking speeds, and reduced the total cost of ownership. Large organizations are highly adopting re-platforming application services to keep pace with the rapid technological advancements and the demands of current markets. This has led to the increasing demand for application migration to the cloud and drive the growth of re-platforming services in the global market.

Based on the Vertical, Media and Entertainment segment is expected to grow at a high CAGR during the forecast period. The viewing experience of the customers is driving the growth of the media & entertainment segment. Companies are changing their business rules and they are providing new functionalities based on customer demand to efficiently aid the business processes. Increasing business competition and growing technological advancements emphasizes the companies to continuously or periodically improve their business processes according to the customer needs and thus driving the growth of the Global Application Modernization Services Market.

Based on End Users, the SME segment holds the largest market share during the forecast period. Small and medium enterprises are adopting the application modernization services to solve their business problems and to reduce the cost of ownership to a great extent. This has been expected to boost the growth and development of application modernization in the SME segment. Small and medium enterprises faced a greater resource crunch than large enterprises. Hence, they require better methods and techniques to solve their business complexities and to increase the cost optimization of their business processes.

Based on Cloud Deployment Type, the Hybrid Cloud segment is expected to grow at the highest CAGR during the forecast period. The hybrid cloud segment uses both public and private clouds and on-premises resources, which led to the growth of this segment. The public cloud segment is also expected to grow during the forecast period as it offers economies of scale and run fully automated, replacing on-premises data center.

Based on Geography, APAC is expected to hold the largest market share in the Global Application Modernization Services Market. The major countries contributing to the growth of the Application Modernization Services Market in APAC are Australia, China, Japan, and India. With the increasing use of the internet, high adoption of cloud services, and the IT services start-up ecosystem, the enterprises in this region are becoming more competitive. They are more focused on offering better customer experience services. North America is another major region in the Global Application Modernization Services Market due to the increasing investment in advanced business applications and hardware by the enterprises to increase their production and business operations efficiency.

The Global Application Modernization Services Market is segmented based on Service, Vertical, End Users, Cloud Deployment, and Geography.

Global Application Modernization Services Market, By Service
• Introduction
• Cloud Application Migration
• Application Re-platforming
• Application Integration
• User Interface Modernization
• Post Modernization
• Application Portfolio Assessment

Global Application Modernization Services Market, By Vertical
• Introduction
• Media and Entertainment
• BFSI
• Healthcare
• IT and Telecom
• Retail and Consumer Goods
• Government and Public Sector

Global Application Modernization Services Market, By End Users
• Introduction
• Small and Medium-Sized Enterprises (SMEs)
• Large Enterprises

Global Application Modernization Services Market, By Cloud Deployment Type
• Introduction
• Private Cloud
• Public Cloud
• Hybrid Cloud

Global Application Modernization Services Market, By Geography
• Introduction
• North America
• South America
• Europe
• Asia Pacific
• The Middle East and Africa

Company Profiles
Some of the companies covered in this report are Accenture PLC, Infosys Limited, HCL Technologies Limited, Syntel, Inc., Fujitsu Ltd., Avanade Inc., IBM Corporation, Asysco, Inc., Atos SA, Bell Integrator Inc., Capgemini SE, Cognizant Technology Solutions Corporation, Macrosoft Inc., Micro Focus International PLC, Oracle Corporation, NTT DATA Corporation, UST Global, Wipro Limited, Dell Technologies, and DXC Technology.

IGR Competitive Quadrant
The report includes IGR Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance Score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Lions: Represents companies with a strong foothold in the market, with the highest market share, large investments in technologies, new products.
Bulls: Companies that are medium in size competing with their USPs, growing companies with proven market share.
Rabbits: Small companies but growing rapidly, constantly improving their offerings in the market
Tortoise: Companies which are slow in growth, having a long legacy, and stable or negative in performance

Why buy this report?
The report offers a comprehensive evaluation of the Global Application Modernization Services Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
The report includes in-depth market analysis using Porter’s 5 force model and the Ansoff Matrix. The impact of Covid-19 on the market is also featured in the report.
The report also contains the competitive analysis using IGR Competitive Quadrant, Infogence’s Proprietary competitive positioning tool.

Report Highlights:
• A complete analysis of the market including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market

1. Report Description

   1.1 Study Objectives

   1.2 Market Definition

   1.3 Currency

   1.4 Years Considered

   1.5 Language

   1.6 Key Shareholders

2. Research Methodology

   2.1 Research Process

   2.2 Data Collection and Validation

          2.2.1 Secondary Research

          2.2.2 Primary Research

   2.3 Market Size Estimation

   2.4 Assumptions of the Study

   2.5 Limitations of the Study

3. Executive Summary

4. Market Overview

   4.1 Introduction

   4.2 Market Dynamics

          4.2.1 Drivers

          4.2.2 Restraints

          4.2.3 Opportunities

          4.2.4 Challenges

   4.3 Trends

5. Market Analysis

   5.1 Porter’s Five Forces Analysis

   5.2 Impact of COVID-19

   5.3 Ansoff Matrix Analysis

   5.4 SWOT Analysis

6. Global Application Modernization Services Market, By Service

   6.1 Introduction

   6.2 Cloud Application Migration

   6.3 Application Re-platforming

   6.4 Application Integration

   6.5 User Interface Modernization

   6.6 Post Modernization

   6.7 Application portfolio assessment

7. Global Application Modernization Services Market, By Vertical

   7.1 Introduction

   7.2 Media and Entertainment

   7.3 BFSI

   7.4 Healthcare

   7.5 IT and Telecom

   7.6 Retail and Consumer Goods

   7.7 Government and Public Sector

8. Global Application Modernization Services Market, By End Users

   8.1 Introduction

   8.2 Small & Medium Enterprises (SMEs)

   8.3 Large Enterprises

9. Global Application Modernization Services Market, By Cloud Deployment Type

   9.1 Introduction

   9.2 Private Cloud

   9.3 Public Cloud

   9.4 Hybrid Cloud

10. Global Application Modernization Services Market, By Geography

   10.1 Introduction

   10.2 North America

          10.2.1 US

          10.2.2 Canada

          10.2.3 Mexico

   10.3 South America

          10.3.1 Brazil

          10.3.2 Argentina

   10.4 Europe

          10.4.1 UK

          10.4.2 France

          10.4.3 Germany

          10.4.4 Italy

          10.4.5 Rest of Europe

   10.5 Asia-Pacific

          10.5.1 China

          10.5.2 Japan

          10.5.3 India

          10.5.4 Australia

          10.5.5 Rest of APAC

   10.6 Middle East and Africa

11. Competitive Landscape

   11.1 IGR Competitive Quadrant

   11.2 Market Share Analysis

   11.3 Competitive Scenario

          11.3.1 Mergers & Acquisitions

          11.3.2 Agreements, Collaborations, & Partnerships

          11.3.3 New Product Launches & Enhancements

          11.3.4 Investments & Fundings

12. Company Profiles

   12.1 Accenture PLC

   12.2 Infosys Limited

   12.3 HCL Technologies Limited

   12.4 Syntel, Inc.

   12.5 Fujitsu Ltd.

   12.6 Avanade Inc.

   12.7 IBM Corporation

   12.8 Asysco, Inc.

   12.9 Atos SA

   12.10 Bell Integrator Inc.

   12.11 Capgemini SE

   12.12 Cognizant Technology Solutions Corporation

   12.13 Macrosoft Inc.

   12.14 Micro Focus International PLC

   12.15 Oracle Corporation

   12.16 NTT DATA Corporation

   12.17 UST Global

   12.18 Wipro Limited

   12.19 Dell Technologies

   12.20 DXC Technology

13. Appendix

   13.1 Questionnaire