The market size of the global application modernization services is projected to rise from USD 12.1 billion in 2020 to USD 32.1 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 15.0 % over the forecast period. Cloud computing, large-scale migration of workloads to cloud-based and Service Focused Framework (SOA), increased emphasis on upgrading and modernising legacy systems and increased demand for modern infrastructure to ensure business continuity are key factors driving the growth of the application modernization market.
The Effect of COVID on the demand for modernisation of applications. The recent COVID-19 outbreak has contributed to the large-scale activation of remote work facilities and online access to data for their employees; companies have managed to keep productivity declines to a minimum. Businesses have provided their clients in different sectors with all the necessary infrastructure and security resources, as well as their own employees to ensure continuity of business during this period.
Driver: Because of changing market environment needs enhanced device functionalities. Changing market rules and using cases require different functionalities to effectively assist business processes. Businesses need to develop their business processes constantly or regularly due to increasing consumer demands, rising technical developments and intensified competition. Many companies, in dynamic market environments, need business resilience to thrive and grow. This is accomplished by implementing state-of-the-art technologies and designing and delivering state-of-the-art software technology, thus increasing demand for the services sector for application modernisation.
Restriction: High costs and uncertainties affecting the infrastructure for application modernisation. The cost of modernising the application depends largely on functionalities, and the functionality organisations seek to modernise the application. Although modernising specific applications, companies need to ensure that compatibility issues with other legacy applications do not overshadow the benefits that modernised applications offer.
The effect of the COVID-19 pandemic does not appear to be robust, and corporate technology investment is expected to be cut. In the IT service market, turmoil is expected to occur in 2020, leading to delays in project start-ups due to delayed customer payments and normal business growth initiatives.
The Effect of COVID on the demand for modernisation of applications. The recent COVID-19 outbreak has contributed to the large-scale activation of remote work facilities and online access to data for their employees; companies have managed to keep productivity declines to a minimum. Businesses have provided their clients in different sectors with all the necessary infrastructure and security resources, as well as their own employees to ensure continuity of business during this period.
Driver: Because of changing market environment needs enhanced device functionalities. Changing market rules and using cases require different functionalities to effectively assist business processes. Businesses need to develop their business processes constantly or regularly due to increasing consumer demands, rising technical developments and intensified competition. Many companies, in dynamic market environments, need business resilience to thrive and grow. This is accomplished by implementing state-of-the-art technologies and designing and delivering state-of-the-art software technology, thus increasing demand for the services sector for application modernisation.
Restriction: High costs and uncertainties affecting the infrastructure for application modernisation. The cost of modernising the application depends largely on functionalities, and the functionality organisations seek to modernise the application. Although modernising specific applications, companies need to ensure that compatibility issues with other legacy applications do not overshadow the benefits that modernised applications offer.
The effect of the COVID-19 pandemic does not appear to be robust, and corporate technology investment is expected to be cut. In the IT service market, turmoil is expected to occur in 2020, leading to delays in project start-ups due to delayed customer payments and normal business growth initiatives.
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