According to our latest study on "Mainframe Modernization Services Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Services, Enterprise Size, and End Use Industry," the mainframe modernization services market size was valued at US$ US$ 33.55 billion in 2023 and is expected to reach US$ 86.14 billion by 2031; it is estimated to record a CAGR of 12.5% from 2023 to 2031.

The mainframe modernization services market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively. The Europe mainframe modernization services market is segmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. In terms of revenue, UK dominated the mainframe modernization services market share. As companies increasingly depend on technology to streamline their operations, optimize service delivery, and improve customer experiences, the demand for mainframe modernization services has surged. The integration of technologies such as cloud computing and hybrid cloud environments led to an increase in the number of interconnected systems, applications, and devices. Efficiently and effectively managing this complex network of IT resources has become critical for businesses, which has fueled demand for mainframe modernization services. The National Health Service in the UK is currently undertaking funding reform to support the transformation of health and social care through technological developments such as high-speed connectivity, digital skills, and cyber security. To support this, the UK government is making various investments in the digitalization of the healthcare sector. For example, in June 2022, the UK government announced an investment of US$ 182.38 million over the next three years to support social care and enable the digital transformation of healthcare.

Germany already has the necessary digital IT infrastructure and a strong customer base. Although Germany is yet to overtake the UK in overall mobile payments, the projected CAGR of mobile payment adoption is currently 43.8%, compared to 19.5% in the UK from 2023 to 2028, according to the International Trade Administration. This growth will be mainly driven by increasing credit card adoption, which is expected to reach 67.3% in 2028 (vs. 58% in 2023), the highest user penetration of mobile payment options in the EU (24.3%), and strong demand for digital personal financial services. N26, Fidor Bank, SolarisBank, and Auxmoney are among the fintech companies that are active in the country. Many fintech companies offer online banking. For example, in addition to infrastructure services for financial organizations, Solarisbank offers digital banking services. N26, Fidor Bank, Monzo, and Revolut are among the fintech companies that offer digital banking services in Germany. Deutsche Bank offers an extensive online banking offering.

Key Findings of Mainframe modernization services market Study:

The mainframe modernization services market is segmented into services, enterprise size, and end use industry. Based on services, the mainframe modernization services market is segmented into application modernization, cloud migration, and data modernization. By enterprise size, the market is bifurcated into SMEs and large enterprises. The mainframe modernization services market, by end-use industry, is segmented into IT and telecom, BFSI, retail, healthcare, government, media and entertainment, manufacturing, education, and others.

Depending upon the end-use industry, the market is segmented into IT and telecom, BFSI, retail, healthcare, government, media and entertainment, manufacturing, education, and others. The IT & telecom segment held the largest mainframe modernization services market share. This is owing to the rising adoption of data modernization services and cloud platform adoption among enterprises worldwide. The IT and telecom sector are growing swiftly with the rapid adoption of digital transportation technologies. The sector offers several vital services for a wide consumer base and businesses due to increasing internet penetration and growing data consumption across the world. Globally, the data consumption of telecom service providers increased to 3.4 million petabytes in 2022 and is expected to reach 9.7 million petabytes by 2027. Such growing data consumption has created a massive demand for the mainframe modernization services to store and offer data management services.

Data modernization helps achieve higher productivity and improves data migration capabilities. For instance, in 2022, NTT DATA launched a new suite accelerator for the modernization of core banking that helps banks minimize risks and improve productivity and speed. Bank 4x Accelerator Suite is a digital transformation platform to capitalize on innovative growth in banking. Such rising adoption of data modernization techniques by the banking sector across the globe has created massive demand for mainframe modernization services market. Mainframe modernization in healthcare offers control over sensitive data, which can help organizations move faster, collaborate effectively, and maintain compliance. One of the most crucial benefits of healthcare mainframe modernization is cost reduction. According to The Insight Partners' study, around 95% of life science organizations possess abundant amount of operational data, requiring an advanced mainframe to achieve performance objectives. Two out of every three life science organizations in North America of struggle to make use of this data. These challenges are addressed by the use of mainframe data modernization service. It helps ease data accessibility, improve the data quality, and provide insights from the complex data.

Increasing healthcare-related frauds across developed countries have also created a massive demand for mainframe modernization services. According to the United States Department of Justice, healthcare-related fraud in the US costs range from US$ 68 billion to US$ 230 billion annually. These frauds are related to patients' sensitive data leakage, insurance details, and health-related information. Such sensitive data storage requires advanced data modernization techniques. Therefore, mainframe modernization services have gained traction in recent years across the healthcare industry to offer data security and data storage capabilities.

Accenture; Capgemini; Cognizant; Amazon Web Services, Inc.; Infosys Limited; Fujitsu; HCL Technologies Limited; Wipro Digital; IBM; Ensono; Tata Consultancy Services Limited; Atos SE; Hexaware Technologies Limited; Microsoft; DXC Technology Company; EPAM Systems, Inc.; Innova Solutions; Oracle; Mphasis; and Software AG are among the key players profiled in the mainframe modernization services market report. Several other major players were studied and analyzed during the mainframe modernization services market analysis to get a holistic view of the market and its ecosystem. The mainframe modernization services market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current mainframe modernization services market trends and their foreseeable impact during the forecast period.


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