North America Mainframe Modernization Services Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Services (Application Modernization, Cloud Migration, and Data Modernization), Enterprise Siz

The North America mainframe modernization services market is projected to grow significantly, reaching approximately US$ 29,655.76 million by 2031, up from US$ 12,972.47 million in 2023. This growth represents a compound annual growth rate (CAGR) of 10.9% from 2023 to 2031.

Executive Summary and Market Analysis

The mainframe modernization services market in North America is divided into three primary regions: the United States, Canada, and Mexico. North America is recognized as an early adopter of advanced technologies, supported by a robust IT infrastructure. According to the International Trade Administration, the United States alone accounts for about one-third of the global information technology (IT) market, which is valued at US$ 5 trillion, making it the largest IT market worldwide. This sector not only supports approximately 12.1 million jobs but also contributes around US$ 1.9 trillion to the U.S. value-added GDP. Furthermore, CompTIA reports that there are over 557,000 software and IT service companies operating in the U.S. In Canada, the information and communications technology (ICT) industry consists of more than 43,200 businesses, predominantly small enterprises, with around 35,500 employing fewer than ten people. The presence of numerous small and large companies in the IT sector is driving the demand for mainframe modernization services across the region.

In addition to the general IT growth, there is a notable increase in digitization within the healthcare sector. According to Canada Health Infoway, Canadians are increasingly adopting digital health services, with a survey indicating that 94% of Canadians expressed interest in accessing such services. This growing trend in digital healthcare is expected to further elevate the demand for mainframe modernization services among healthcare providers, enabling them to manage IT operations more effectively.

Strategic Insights

Market Segmentation Analysis

The North America mainframe modernization services market can be segmented based on services offered, enterprise size, and end-use industries.

1. Services: The market is categorized into application modernization, cloud migration, and data modernization. In 2023, the application modernization segment held the largest market share, reflecting the critical need for businesses to update their legacy systems.
2. Enterprise Size: The market is divided into large enterprises and small to medium-sized enterprises (SMEs). Large enterprises dominated the market share in 2023, as they often have more complex IT infrastructures that require modernization.
3. End-Use Industry: The market is segmented into various industries, including IT and telecom, banking, financial services, and insurance (BFSI), healthcare, manufacturing, retail, education, and others. The IT and telecom sector held the largest share in 2023, driven by the rapid pace of technological advancement and the need for modernization in these sectors.

Market Outlook

Digital technologies are reshaping various sectors, including communications, business, healthcare, education, and finance. The COVID-19 pandemic has accelerated the adoption of digital technologies, enhancing productivity and enabling many companies to adapt to remote work environments. Cisco predicts that by 2024, approximately 75% of startups in Canada will adopt a digital-first strategy, with over 50% of SMEs restructuring their operations to embrace digital solutions. This shift towards digitalization is increasing the demand for robust IT infrastructures, thereby propelling the mainframe modernization services market. The ongoing evolution of digital technologies, coupled with rising customer expectations and disruptive market forces, is compelling organizations to prioritize digital transformation. This transformation necessitates the modernization and integration of existing applications and data into a diverse technology landscape, including both cloud and mainframe systems.

Country Insights

The North America mainframe modernization services market is primarily composed of the U.S., Canada, and Mexico, with the U.S. holding the largest market share in 2023. The U.S. is experiencing a significant shift from onsite to remote work, with a Pew Research Center survey indicating that 35% of employees have jobs that can be performed remotely. Additionally, 59% of hybrid workers reported working from home three or more days a week. This trend towards remote work is driving companies to enhance their IT infrastructure, which is expected to further stimulate the demand for mainframe modernization services in the U.S.

Company Profiles

Key players in the North America mainframe modernization services market include Accenture Plc, Capgemini SE, Infosys Ltd, Fujitsu Ltd, Cognizant Technology Solutions Corp, Microsoft Corp, Mphasis Ltd, Innova Solutions, DXC Technology Co, Amazon Web Services Inc, International Business Machines Corp, HCL Technologies Ltd, Atos SE, Tata Consultancy Services Ltd, Oracle Corp, EPAM Systems Inc, Ensono, LLC, Hexaware Technologies Ltd, Software AG, and Kyndryl Holdings Inc, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their offerings and increase their market presence. Show more