Mainframe Modernization Market Size, Share, Trends, Industry Analysis Report By Offering (Software, Service), By Deployment Mode, By Organization Size, By Industry Vertical, By Region – Market Forecast, 2025–2034
Description
The mainframe modernization market size is expected to reach USD 18.64 billion by 2034, according to a new study by Polaris Market Research. The report “Mainframe Modernization Market Share, Size, Trends, Industry Analysis Report By Offering (Software, Service), By Deployment Mode, By Organization Size, By Industry Vertical, By Region; Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.
Mainframe modernization refers to the process of updating and transforming legacy mainframe systems to align with contemporary technological standards, improving efficiency, scalability, and integration with modern applications. Mainframes, known for their reliability and processing power, have been the backbone of critical industries such as banking, healthcare, and government for decades. However, their aging architecture, high maintenance costs, and lack of flexibility have led organizations to modernize them using cloud integration, DevOps practices, microservices, and automation.
Modernization involves various approaches, such as rehosting, refactoring, or replatforming. Artificial intelligence and machine learning can also be integrated to automate mainframe operations, reducing manual intervention. The benefits of mainframe modernization include cost reduction, improved agility, and enhanced security. It also helps businesses stay competitive by enabling real-time data processing, better customer experiences, and smoother digital transformation.
Mainframe Modernization Market Report Highlights
In terms of offering, the services segment accounted for a major revenue share in 2024 due to increasing demand for consulting, integration, and managed services to transform legacy systems.
Based on deployment mode, the cloud-based modernization segment held the largest revenue share in 2024 as enterprises increasingly prioritized scalability, cost efficiency, and agility in their IT transformation strategies.
In terms of organization size, the large enterprises segment dominated the revenue share in 2024 due to their extensive reliance on traditional systems and the rising need to integrate advanced technologies such as cloud computing, artificial intelligence, and automation.
Based on industry vertical, the BFSI segment accounted for a major revenue share in 2024 due to its heavy dependence on mainframes for high-volume transaction processing, regulatory compliance, and data security.
The North America mainframe modernization market accounted for the largest revenue share in 2024. This dominance is attributed to the rising need to integrate traditional mainframe systems with cloud-based technologies to improve operational efficiency and reduce costs.
The industry in Asia Pacific is projected to grow at the fastest pace in the coming years, owing to digital banking growth, government-led digitalization initiatives, and the expansion of fintech and e-commerce.
A few global key players in the mainframe modernization market include Atos, AWS, BMC Software, Capgemini, DXC Technology, HCL Tech, IBM, Infosys, Kyndryl, Rocket Software, TATA Consultancy Services Limited, and Wipro.
Polaris Market Research has segmented the mainframe modernization market report on the basis of offering, deployment mode, organization size, industry vertical, and region:
By Offering Outlook (Revenue, USD Billion, 2020–2034)
Software
Services
Application Modernization
Infrastructure Modernization
Data Modernization
Cloud Migration Services
Consulting & Assessment Services
By Deployment Mode Outlook (Revenue, USD Billion, 2020–2034)
Cloud-based Modernization
Hybrid Modernization
On-premises Modernization
By Organization Size Outlook (Revenue, USD Billion, 2020–2034)
Large Enterprises
Small & Medium Enterprises (SMEs)
By Industry Vertical Outlook (Revenue, USD Billion, 2020–2034)
BFSI
Healthcare
Retail & E-commerce
Government & Public Sector
Manufacturing
Telecom & IT
Others
By Regional Outlook (Revenue, USD Billion, 2020–2034)
North America
U.S.
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Vietnam
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America
Mainframe modernization refers to the process of updating and transforming legacy mainframe systems to align with contemporary technological standards, improving efficiency, scalability, and integration with modern applications. Mainframes, known for their reliability and processing power, have been the backbone of critical industries such as banking, healthcare, and government for decades. However, their aging architecture, high maintenance costs, and lack of flexibility have led organizations to modernize them using cloud integration, DevOps practices, microservices, and automation.
Modernization involves various approaches, such as rehosting, refactoring, or replatforming. Artificial intelligence and machine learning can also be integrated to automate mainframe operations, reducing manual intervention. The benefits of mainframe modernization include cost reduction, improved agility, and enhanced security. It also helps businesses stay competitive by enabling real-time data processing, better customer experiences, and smoother digital transformation.
Mainframe Modernization Market Report Highlights
In terms of offering, the services segment accounted for a major revenue share in 2024 due to increasing demand for consulting, integration, and managed services to transform legacy systems.
Based on deployment mode, the cloud-based modernization segment held the largest revenue share in 2024 as enterprises increasingly prioritized scalability, cost efficiency, and agility in their IT transformation strategies.
In terms of organization size, the large enterprises segment dominated the revenue share in 2024 due to their extensive reliance on traditional systems and the rising need to integrate advanced technologies such as cloud computing, artificial intelligence, and automation.
Based on industry vertical, the BFSI segment accounted for a major revenue share in 2024 due to its heavy dependence on mainframes for high-volume transaction processing, regulatory compliance, and data security.
The North America mainframe modernization market accounted for the largest revenue share in 2024. This dominance is attributed to the rising need to integrate traditional mainframe systems with cloud-based technologies to improve operational efficiency and reduce costs.
The industry in Asia Pacific is projected to grow at the fastest pace in the coming years, owing to digital banking growth, government-led digitalization initiatives, and the expansion of fintech and e-commerce.
A few global key players in the mainframe modernization market include Atos, AWS, BMC Software, Capgemini, DXC Technology, HCL Tech, IBM, Infosys, Kyndryl, Rocket Software, TATA Consultancy Services Limited, and Wipro.
Polaris Market Research has segmented the mainframe modernization market report on the basis of offering, deployment mode, organization size, industry vertical, and region:
By Offering Outlook (Revenue, USD Billion, 2020–2034)
Software
Services
Application Modernization
Infrastructure Modernization
Data Modernization
Cloud Migration Services
Consulting & Assessment Services
By Deployment Mode Outlook (Revenue, USD Billion, 2020–2034)
Cloud-based Modernization
Hybrid Modernization
On-premises Modernization
By Organization Size Outlook (Revenue, USD Billion, 2020–2034)
Large Enterprises
Small & Medium Enterprises (SMEs)
By Industry Vertical Outlook (Revenue, USD Billion, 2020–2034)
BFSI
Healthcare
Retail & E-commerce
Government & Public Sector
Manufacturing
Telecom & IT
Others
By Regional Outlook (Revenue, USD Billion, 2020–2034)
North America
U.S.
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Vietnam
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America
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