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North America Application Modernization Services Market Size, Share & Industry Analysis Report By Enterprise Size, By Deployment (Public Cloud, Hybrid Cloud and Private Cloud), By Industry Vertical (BFSI, Retail & E-commerce, IT & Telecommunication, Manuf

Publisher Knowledge Based Value (KBV) Research
Published Jan 22, 2026
Length 204 Pages
SKU # KBV20880523

Description

The North America Application Modernization Services Market is expected to reach $11.02 billion by 2027 and would witness market growth of 15.7% CAGR during the forecast period (2025-2032).

The US market dominated the North America Application Modernization Services Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $18,245 million by 2032. The Canada market is experiencing a CAGR of 17.2% during (2025 - 2032). Additionally, The Mexico market would exhibit a CAGR of 17.2% during (2025 - 2032). The US and Canada led the North America Application Modernization Services Market by Country with a market share of 79.9% and 10.9% in 2024.

Application modernization services in North America have evolved significantly because the region was an early adopter of enterprise IT systems, especially legacy mainframe and client-server applications across industries such as government, healthcare, banking, manufacturing, and defense. Modernization began with infrastructure refreshes, system virtualization, and extending system lifespans to boost operational resilience and security in agencies like those at the federal level. As cloud computing matured, modernization strategies shifted to architectural transformation, cloud migration, and adoption of microservices, containers, and hybrid platforms. By the mid-2010s, the focus moved to cloud-native development, DevOps, and continuous delivery, helping businesses gain flexibility, scalability, reduced technical debt, and compliance with government cloud requirements.

Today, North American modernization emphasizes hybrid and multicloud strategies, integrating AI, automation, and security-first practices to maintain robust, future-ready IT ecosystems. Leading providers such as Microsoft, IBM, AWS, and Google Cloud take assessment-driven, incremental approaches to modernization, avoiding disruption to mission-critical workloads. They leverage DevSecOps, CI/CD pipelines, and ecosystem partnerships. The competitive, mature market is defined by expertise in hybrid clouds, adherence to established standards, AI tool utilization, and industry specialization. Now, modernization is seen as a long-term strategic driver of innovation, operational efficiency, and digital transformation goals.

Enterprise Size Outlook

Based on Enterprise Size, the market is segmented into Large Enterprise and SMEs. With a compound annual growth rate (CAGR) of 16.7% over the projection period, the Large Enterprise Market, dominate the Mexico Application Modernization Services Market by Enterprise Size in 2024 and would be a prominent market until 2032. The SMEs market is expected to witness a CAGR of 17.8% during (2025 - 2032).

Industry Vertical Outlook

Based on Industry Vertical, the market is segmented into BFSI, Retail & E-commerce, IT & Telecommunication, Manufacturing, Healthcare & Life Sciences, Energy & Utilities, and Other Industry Vertical. Among various US Application Modernization Services Market by Industry Vertical; The BFSI market achieved a market size of USD $1428.1 Million in 2024 and is expected to grow at a CAGR of 14.2 % during the forecast period. The Healthcare & Life Sciences market is predicted to experience a CAGR of 16.1% throughout the forecast period from (2025 - 2032).

Country Outlook

The United States has the biggest and most developed market for application modernization services in North America. This is because of the widespread use of cloud computing, digital transformation projects, and large investments by businesses and governments in modern IT infrastructure. Some of the main reasons for modernization are the problems with old systems, the high cost of maintaining them, the pressure from regulations, and the need for better digital customer experiences. Federal programs like the Technology Modernization Fund and policies like Cloud Smart are speeding up these efforts. A strong shift toward hybrid and multi-cloud strategies, microservices architectures, containerization, and AI-driven automation for code analysis and refactoring is happening in the market. The financial services, healthcare, retail, telecommunications, and government sectors are the most important. Modernization efforts are making these sectors more scalable, resilient, compliant, and able to serve citizens. In the competitive landscape, global cloud providers, system integrators, and IT consultancies offer end-to-end modernization services. They often set themselves apart by having industry knowledge, security features, and partnerships with other cloud ecosystems.

List of Key Companies Profiled
  • Oracle Corporation
  • IBM Corporation
  • Microsoft Corporation
  • HCL Technologies Ltd. (HCL Enterprises)
  • Accenture PLC
  • Atos SE
  • Capgemini SE
  • Tata Consultancy Services Ltd.
  • NTT Data Corporation
  • Infosys Limited
North America Application Modernization Services Market Report Segmentation

By Enterprise Size
  • Large Enterprise
  • SMEs
By Deployment
  • Public Cloud
  • Hybrid Cloud
  • Private Cloud
By Industry Vertical
  • BFSI
  • Retail & E-commerce
  • IT & Telecommunication
  • Manufacturing
  • Healthcare & Life Sciences
  • Energy & Utilities
  • Other Industry Vertical
By Service Type
  • Cloud Application Migration
  • Application Re-Platforming
  • Application Integration
  • Post-Modernization Services
  • Application Portfolio Assessment
  • UI Modernization
By Country
  • US
  • Canada
  • Mexico
  • Rest of North America

Table of Contents

204 Pages
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 North America Application Modernization Services Market, by Enterprise Size
1.4.2 North America Application Modernization Services Market, by Deployment
1.4.3 North America Application Modernization Services Market, by Industry Vertical
1.4.4 North America Application Modernization Services Market, by Service Type
1.4.5 North America Application Modernization Services Market, by Country
1.5 Methodology for the research
Chapter 2. Market at a Glance
2.1 Key Highlights
Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario 
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges
Chapter 4. Market Trends – North America Application Modernization Services Market
Chapter 5. State of Competition – North America Application Modernization Services Market
Chapter 6. Market Consolidation – North America Application Modernization Services Market
Chapter 7. Key Customer Criteria – North America Application Modernization Services Market
Chapter 8. Product Life Cycle – Application Modernization Services Market
Chapter 9. Value Chain Analysis of Application Modernization Services Market
Chapter 10. Competition Analysis - Global
10.1 KBV Cardinal Matrix
10.2 Recent Industry Wide Strategic Developments
10.2.1 Partnerships, Collaborations and Agreements
10.2.2 Product Launches and Product Expansions
10.2.3 Acquisition and Mergers
10.3 Market Share Analysis, 2024
10.4 Top Winning Strategies
10.4.1 Key Leading Strategies: Percentage Distribution (2021-2025)
10.4.2 Key Strategic Move: (Partnerships, Collaborations & Agreements : 2022, Feb – 2025, Apr) Leading Players
10.5 Porter Five Forces Analysis
Chapter 11. North America Application Modernization Services Market by Enterprise Size
11.1 North America Large Enterprise Market by Region
11.2 North America SMEs Market by Region
Chapter 12. North America Application Modernization Services Market by Deployment
12.1 North America Public Cloud Market by Country
12.2 North America Hybrid Cloud Market by Country
12.3 North America Private Cloud Market by Country
Chapter 13. North America Application Modernization Services Market by Industry Vertical
13.1 North America BFSI Market by Country
13.2 North America Retail & E-commerce Market by Country
13.3 North America IT & Telecommunication Market by Country
13.4 North America Manufacturing Market by Country
13.5 North America Healthcare & Life Sciences Market by Country
13.6 North America Energy & Utilities Market by Country
13.7 North America Other Industry Vertical Market by Country
Chapter 14. North America Application Modernization Services Market by Service Type
14.1 North America Cloud Application Migration Market by Country
14.2 North America Application Re-Platforming Market by Country
14.3 North America Application Integration Market by Country
14.4 North America Post-Modernization Services Market by Country
14.5 North America Application Portfolio Assessment Market by Country
14.6 North America UI Modernization Market by Country
Chapter 15. North America Application Modernization Services Market by Country
15.1 US Application Modernization Services Market
15.1.1 US Application Modernization Services Market by Enterprise Size
15.1.2 US Application Modernization Services Market by Deployment
15.1.3 US Application Modernization Services Market by Industry Vertical
15.1.4 US Application Modernization Services Market by Service Type
15.2 Canada Application Modernization Services Market
15.2.1 Canada Application Modernization Services Market by Enterprise Size
15.2.2 Canada Application Modernization Services Market by Deployment
15.2.3 Canada Application Modernization Services Market by Industry Vertical
15.2.4 Canada Application Modernization Services Market by Service Type
15.3 Mexico Application Modernization Services Market
15.3.1 Mexico Application Modernization Services Market by Enterprise Size
15.3.2 Mexico Application Modernization Services Market by Deployment
15.3.3 Mexico Application Modernization Services Market by Industry Vertical
15.3.4 Mexico Application Modernization Services Market by Service Type
15.4 Rest of North America Application Modernization Services Market
15.4.1 Rest of North America Application Modernization Services Market by Enterprise Size
15.4.2 Rest of North America Application Modernization Services Market by Deployment
15.4.3 Rest of North America Application Modernization Services Market by Industry Vertical
15.4.4 Rest of North America Application Modernization Services Market by Service Type
Chapter 16. Company Profiles
16.1 Oracle Corporation
16.1.1 Company Overview
16.1.2 Financial Analysis
16.1.3 Segmental and Regional Analysis
16.1.4 Research & Development Expense
16.1.5 Recent strategies and developments:
16.1.5.1 Partnerships, Collaborations, and Agreements:
16.1.6 SWOT Analysis
16.2 IBM Corporation
16.2.1 Company Overview
16.2.2 Financial Analysis
16.2.3 Regional & Segmental Analysis
16.2.4 Research & Development Expenses
16.2.5 Recent strategies and developments:
16.2.5.1 Product Launches and Product Expansions:
16.2.6 SWOT Analysis
16.3 Microsoft Corporation
16.3.1 Company Overview
16.3.2 Financial Analysis
16.3.3 Segmental and Regional Analysis
16.3.4 Research & Development Expenses
16.3.5 Recent strategies and developments:
16.3.5.1 Partnerships, Collaborations, and Agreements:
16.3.6 SWOT Analysis
16.4 HCL Technologies Ltd. (HCL Enterprises)
16.4.1 Company Overview
16.4.2 Financial Analysis
16.4.3 Segmental and Regional Analysis
16.4.4 Research & Development Expenses
16.4.5 Recent strategies and developments:
16.4.5.1 Partnerships, Collaborations, and Agreements:
16.4.5.2 Product Launches and Product Expansions:
16.4.5.3 Acquisition and Mergers:
16.4.6 SWOT Analysis
16.5 Accenture PLC
16.5.1 Company Overview
16.5.2 Financial Analysis
16.5.3 Segmental Analysis
16.5.4 Recent strategies and developments:
16.5.4.1 Partnerships, Collaborations, and Agreements:
16.5.4.2 Acquisition and Mergers:
16.5.5 SWOT Analysis
16.6 Atos SE
16.6.1 Company Overview
16.6.2 Financial Analysis
16.6.3 Segmental Analysis
16.6.4 Recent strategies and developments:
16.6.4.1 Partnerships, Collaborations, and Agreements:
16.6.5 SWOT Analysis
16.7 Capgemini SE
16.7.1 Company Overview
16.7.2 Financial Analysis
16.7.3 Regional Analysis
16.7.4 Recent strategies and developments:
16.7.4.1 Product Launches and Product Expansions:
16.7.5 SWOT Analysis
16.8.1 Company Overview
16.8.2 Financial Analysis
16.8.3 Segmental and Regional Analysis
16.8.4 Research & Development Expenses
16.8.5 Recent strategies and developments:
16.8.5.1 Partnerships, Collaborations, and Agreements:
16.8.5.2 Product Launches and Product Expansions:
16.8.6 SWOT Analysis
16.9 NTT Data Corporation
16.9.1 Company Overview
16.9.2 Financial Analysis
16.9.3 Recent strategies and developments:
16.9.3.1 Partnerships, Collaborations, and Agreements:
16.10. Infosys Limited
16.10.1 Company Overview
16.10.2 Financial Analysis
16.10.3 Segmental and Regional Analysis
16.10.4 Research & Development Expense
16.10.5 Recent strategies and developments:
16.10.5.1 Partnerships, Collaborations, and Agreements:
16.10.6 SWOT Analysis

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