• 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.

In this report, the Application Modernization Services Market has been segmented by Service, Cloud Deployment Mode, Organization Size, End use Industry, and Geography.

Application Modernization Services Market, Segmentation by Service

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

Application Portfolio Assessment

Application Portfolio Assessment is a crucial service for organizations aiming to optimize their existing applications. This service helps businesses evaluate the performance, efficiency, and cost-effectiveness of their software portfolio. It is estimated that around 30% of businesses utilize portfolio assessments to streamline their application strategies and align them with business objectives.

Cloud Application Migration

Cloud Application Migration refers to the process of transferring applications from on-premise servers to cloud-based platforms. This service is gaining significant traction, with approximately 45% of organizations already migrating their applications to the cloud for scalability and cost efficiency. It allows businesses to achieve enhanced flexibility, faster innovation, and improved security in their IT environments.

Application Re-platforming

Application Re-platforming involves modifying an existing application to make it compatible with a new platform without changing its core architecture. This service is highly beneficial, as it allows businesses to upgrade their applications to more efficient platforms with minimal disruption. Around 25% of companies are investing in re-platforming to modernize their legacy applications.

Others

The Others category includes various additional services such as application re-engineering, upgrades, and enhancements. These services cater to niche requirements of organizations seeking to improve specific features or functionalities of their applications. This segment holds around 10% of the market share, driven by the increasing need for specialized solutions in application modernization.

Application Modernization Services Market, Segmentation by Cloud Deployment Mode

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

Private Cloud

Private Cloud deployment mode offers organizations dedicated resources within a secure, on-premise or third-party hosted environment. It allows businesses to maintain greater control over their data and applications, ensuring enhanced security and compliance. Around 40% of organizations prefer private cloud solutions for sensitive workloads that require high levels of security and customization.

Public Cloud

Public Cloud deployment mode allows businesses to leverage shared computing resources provided by third-party vendors. It offers greater scalability, flexibility, and cost-efficiency, making it attractive for many organizations. Approximately 60% of companies use public cloud solutions to meet their growing data storage and computing needs without heavy upfront investment.

Application Modernization Services Market, Segmentation by Organization Size

The Application Modernization Services Market has been segmented by Organization Size into Small & Medium Enterprises and Large Enterprises

Small & Medium Enterprises

Small & Medium Enterprises (SMEs) typically seek cost-effective application modernization services to optimize their business operations. With limited resources, SMEs often prefer scalable, cloud-based solutions that can provide flexibility and reduce infrastructure costs. Around 50% of SMEs are adopting application modernization strategies to improve operational efficiency and enhance customer experiences.

Large Enterprises

Large Enterprises have more complex requirements and often focus on comprehensive application modernization services to support large-scale operations and maintain competitiveness. They tend to invest in advanced technologies and hybrid cloud solutions to ensure business continuity and agility. Approximately 70% of large enterprises are embracing application modernization to enhance their digital transformation and streamline business processes.

Application Modernization Services Market, Segmentation by End use Industry

The Application Modernization Services Market has been segmented by End use Industry into Healthcare and IT

Healthcare

The Healthcare industry is rapidly adopting application modernization services to enhance operational efficiency, improve patient care, and meet regulatory requirements. With the increasing need for secure data management and seamless interoperability, healthcare organizations are turning to modernized applications to streamline their processes. Around 40% of healthcare providers are leveraging modernized IT infrastructure to improve service delivery and reduce operational costs.

IT

The IT industry is a key driver of the application modernization services market, as organizations seek to enhance the scalability, security, and performance of their applications. IT companies are embracing modernization strategies to remain competitive in the rapidly evolving tech landscape. Approximately 60% of IT firms are investing in modernized applications to support innovation, boost productivity, and deliver faster services to clients.

Application Modernization Services Market, Segmentation by Geography

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

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

North America

North America holds a significant share of the Application Modernization Services Market, driven by the high adoption of advanced technologies and the strong presence of key industry players. The region is expected to continue its leadership due to the growing demand for cloud-based solutions and digital transformation across various sectors, including healthcare, finance, and IT.

Europe

Europe is also witnessing substantial growth in the Application Modernization Services Market, fueled by initiatives such as the European Union's digital transformation strategy. Organizations in the region are modernizing their applications to comply with data protection regulations and enhance customer experiences. The market in Europe is estimated to grow at a steady pace, with a strong focus on security and compliance.

Asia Pacific

Asia Pacific is one of the fastest-growing regions in the Application Modernization Services Market, driven by rapid industrialization, the rise of digital businesses, and increased IT spending. The growing demand for cloud computing, along with the expansion of e-commerce and mobile applications, is contributing to the market's expansion in this region.

Middle East and Africa

The Middle East and Africa region is experiencing growth in the Application Modernization Services Market due to increasing investments in digital technologies and modernization efforts by enterprises seeking to improve operational efficiency. Governments in the region are focusing on smart city projects and digital infrastructure, which further boosts the demand for modernized applications.

Latin America

Latin America is witnessing a gradual shift towards modernizing legacy applications, as organizations in the region look to improve agility, scalability, and security. The Application Modernization Services Market is expanding due to the rise of cloud adoption and the growing need for businesses to remain competitive in an increasingly digital economy.