Global Application Modernization Services Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• January 2023, Capgemini launched Capgemini Invent, the digital innovation, design, and transformation brand of the Capgemini Group. This initiative offers CxOs the ability to anticipate and shape their companies' futures. A team of over 10,000 strategists, data scientists, product and experience designers, brand experts, and developers work across roughly 40 studios and more than 60 offices worldwide to create innovative digital services, products, experiences, and business models for sustainable growth.
• July 2022, Atos launched Scalor, the Atos Accelerator, an open innovation program for startups and SMEs. Atos added five new startups to the program, focusing on quantum technology and digital security. These startups contribute innovative solutions to Atos' portfolio, adding value for the company's clients. In return, Atos promotes the startups' business and international expansion by facilitating faster access to its clientele and partner network.
• September 2022, Innova Solutions unveiled a new vertical business strategy comprising several strategic business units (SBUs): Healthcare, Insurance, and Life Sciences (HIL); Communications & Media; Retail, Manufacturing, and Transport (RMT); Banking and Financial Services (BFS); and Hi-Tech. This strategy aims to provide a broader range of industry-specific offerings to assist companies in their digital transformation journeys. Innova will collaborate with strategic partners to expand existing tech ecosystems and create new products.
• February 2021, Oracle introduced the latest enhancements to Oracle Cloud Customer Experience (CX), designed to help businesses provide dynamic and personalized customer experiences. The upgrades to Oracle Sales, Oracle Care, and Oracle Marketing enable businesses to shorten sales cycles, respond to customer service requests more quickly, and create rewarding loyalty programs that increase customer lifetime value.
• September 2021, Cognizant, responding to increased demand from public sector and health industry companies, established a new delivery center in Leeds, UK, and Northern Ireland. This move reinforces Cognizant's commitment to nurturing young technologists' careers and aligns with the UK's Levelling-Up and North Shoring agenda.

Segmentation by Service categorizes modernization offerings into various service types, including legacy assessment, application migration, redevelopment, integration, and ongoing support and maintenance. Each service addresses specific aspects of the modernization journey, enabling organizations to assess, plan, execute, and sustain modernization initiatives effectively.

Cloud Deployment Mode segmentation distinguishes between on-premise and cloud-based modernization services, reflecting the varying preferences and requirements of organizations when modernizing their applications. Cloud-based modernization services leverage the scalability, flexibility, and cost efficiency benefits of cloud computing, enabling organizations to migrate legacy applications to cloud environments, refactor applications for cloud-native architectures, and leverage cloud services for enhanced agility and innovation. On-premise modernization services, meanwhile, cater to organizations with stringent security, compliance, or data residency requirements, offering solutions tailored to their specific infrastructure preferences and constraints.

Geographical segmentation divides the market into regions such as North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa, reflecting the varying adoption rates, market maturity, and regulatory landscapes across different parts of the world. Each region presents unique opportunities and challenges for application modernization services, influenced by factors such as technological maturity, digitalization efforts, economic development, and industry verticals. North America and Europe represent mature markets with high levels of digital transformation maturity and demand for modernization services across industries. In contrast, regions like Asia Pacific and Latin America offer significant growth opportunities driven by increasing digitalization efforts, rising demand for cloud services, and government-led initiatives to promote technology adoption and innovation.

Global Application Modernization Services Segment Analysis

In this report, the Global Application Modernization Services Market has been segmented by Service, Cloud Deployment Mode and Geography.

Global Application Modernization Services Market, Segmentation by Service

The Global Application Modernization Services Market has been segmented by Service into Application Portfolio Assessment, Cloud Application Migration, Application Re-platforming, and Others.

One key segment is the Application Portfolio Assessment, which involves evaluating an organization's existing application landscape to identify outdated or redundant applications, assess their alignment with business objectives, and prioritize candidates for modernization. This service provides organizations with a roadmap for rationalizing their application portfolios, optimizing resource allocation, and minimizing technical debt.

Another critical segment is Cloud Application Migration, which focuses on migrating legacy applications from on-premise or legacy environments to cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP). Cloud migration services encompass planning, execution, and optimization phases, ensuring seamless transition to cloud environments while maximizing scalability, agility, and cost efficiency benefits. By leveraging cloud-native services and architectures, organizations can modernize their applications, improve agility, and accelerate time-to-market for new initiatives.

Application Re-platforming is another service segment, involving the migration of legacy applications to modern platforms or frameworks without altering their core functionality. This approach enables organizations to leverage the benefits of modern technologies, such as containerization, microservices, or serverless computing, while preserving existing investments in application logic and business processes. Re-platforming services offer a balance between modernization and risk mitigation, allowing organizations to realize immediate benefits while minimizing disruption to operations.

Global Application Modernization Services Market, Segmentation by Cloud Deployment Mode

The Global Application Modernization Services Market has been segmented by Cloud Deployment Mode into Private Cloud, and Public Cloud.

Private Cloud deployment involves hosting modernized applications within dedicated, secure infrastructure environments managed by the organization or a trusted third-party provider. This deployment mode offers greater control, customization, and security over application data and infrastructure resources. Organizations can tailor private cloud environments to meet specific compliance requirements, data residency regulations, and security standards, making it an ideal choice for industries with stringent regulatory or security considerations, such as finance, healthcare, and government. Private cloud deployment also provides enhanced performance and reliability, as resources are dedicated to a single organization, minimizing the risk of resource contention or performance degradation.

In contrast, Public Cloud deployment involves leveraging shared infrastructure resources and services provided by third-party cloud service providers, such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP). Public cloud offers scalability, flexibility, and cost efficiency benefits, enabling organizations to rapidly provision and scale infrastructure resources based on demand. This deployment mode eliminates the need for upfront investments in hardware, software licenses, and maintenance, allowing organizations to focus on innovation and business growth. Public cloud deployment is particularly well-suited for organizations seeking agility, scalability, and global reach, enabling them to leverage a wide range of cloud services, including compute, storage, networking, and application services, to support modernized applications and workloads.

The choice between Private Cloud and Public Cloud deployment depends on factors such as security requirements, compliance mandates, performance considerations, and strategic objectives. While Private Cloud deployment offers greater control and security, Public Cloud deployment offers scalability, flexibility, and cost efficiency benefits. Many organizations opt for a hybrid approach, leveraging both private and public cloud environments to balance control, scalability, and agility based on their specific needs and use cases.

Global Application Modernization Services Market, Segmentation by Geography

In this report, the Global Application Modernization Services Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Application Modernization Services Market Share (%), by Geographical Region, 2024

North America, as a technologically advanced region, represents a mature market for application modernization services. With a strong presence of leading technology companies, financial institutions, and enterprises across diverse sectors, the demand for modernization services is high. North American organizations prioritize digital transformation initiatives, leveraging modernization services to revamp legacy applications, improve operational efficiency, and enhance competitiveness in the digital age.

Europe follows suit with a robust market for application modernization services, driven by stringent regulatory requirements, digitalization efforts, and industry-specific challenges. The region's diverse business landscape, including finance, healthcare, manufacturing, and government, presents varied opportunities for modernization service providers to address specific sectoral needs and compliance standards.

In the Asia Pacific region, rapid economic growth and increasing digitalization efforts fuel demand for application modernization services. Countries like China, India, and Japan lead in technology adoption, offering significant growth opportunities for modernization service providers across industries such as banking, e-commerce, healthcare, and telecommunications.

The Middle East and Africa region witness growing investments in digital infrastructure and technology-driven initiatives, driving demand for application modernization services to support digital transformation agendas. Sectors such as finance, healthcare, and government drive market growth in this region.

Latin America presents emerging opportunities for market expansion in the application modernization services segment. With increasing internet penetration and government-led initiatives to promote digital inclusion, the region offers a fertile ground for modernization service providers to address the evolving needs of businesses across various industries.