The global application transformation market size was valued at $9,214 million in 2019 and is projected to reach $25,370 million by 2027, registering a CAGR of 13.2% from 2020 to 2027.
Application transformation is the process to modernize dated applications to meet modern demands. It ensures that the applications in an organization meet updated governance and compliance requirements. The products and services associated with the application transformation are mainly aimed at helping the IT departments to tackle rise in use of social media and mobile computing in the enterprise. It mainly helps business-critical applications to stay aligned and relevant with modern user expectations
Factors such as the emergence of cloud technology and increase in consumption of Big Data; high cost associated with the maintenance of legacy applications; and technological development and advancement in application transformation primarily drives the growth of the global application transformation market. In addition, ongoing trend of legacy modernization fuels the demand for application transformation. However, difficulty in application transformation due to complexities in the legacy systems is expected to hamper the market growth to some extent. On the other hand, rise in adoption of advanced technologies such as 5G, AI, ML, and IoT is expected to provide lucrative opportunities for the market growth during the forecast period. Also, emerging need for digital transformation is anticipated to be opportunistic for the market growth during the forecast period.
Number of organizations across the globe are moving their operations from traditional IT architecture to cloud-based platforms due to the COVID-19 pandemic. In addition, there is an emerging need for infrastructure to be reconfigured to meet the organization’s needs which has led to the surge in demand for older applications to be modernized to operate in a cloud environment which drives the adoption of application transformation among the end users
The application transformation market is segmented on the basis of service type, enterprise size, industry vertical, and region. On the service type, it is categorized into cloud application migration, application integration, application replatforming, application portfolio assessment, UI/UX modernizations, and others. As per the enterprise size, it is bifurcated into large enterprises and small & medium enterprises. On the basis of industry vertical, it is categorized into BFSI, IT & telecom, government, healthcare, retail, manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The company profiles of Application transformation Market players included in this report are Accenture, Atos, Cognizant, Fujitsu, HCL Technologies Ltd., Hexaware, IBM Corporation, Micro Focus International PLC, Microsoft Inc., and TCS.
Impact of COVID-19 on Application Transformation Market:
The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. Increasing number of organizations across the globe are moving their operations from traditional IT architecture to cloud-based platforms Due to the pandemic,. In addition, there is an emerging need for infrastructure to be reconfigured to meet the organization’s needs. This has led to the surge in demand for older applications to be modernized to operate in a cloud environment. This factor primarily drives the growth of the application transformation market.
In addition, the market players have introduced innovative application transformation products during the pandemic to ensure better application transformation services. This factor drives the market growth. For instance, in June 2020, TIBCO Software, is one of the leading providers of application integration services launched by TIBCO Responsive Application Mesh, a blueprint and capabilities for modern application architecture. It guides customers toward architecture modernization.
Top impacting factors
The global application transformation market growth is mainly driven by factors such as emergence of cloud technology and increase in consumption of Big Data; high cost associated with the maintenance of legacy applications; and technological development & advancement in application transformation. In addition, ongoing trend of legacy modernization fuels the demand for application transformation. However, difficulty in application transformation due to complexities in the legacy systems is anticipated to hamper the market growth to some extent. On the other hand, rise in adoption of advanced technologies such as 5G, AI, ML, and IoT are expected to provide lucrative opportunities for the market growth during the forecast period. Also, the emerging need for digital transformation is anticipated to be opportunistic for the market growth during the forecast period.
Technological development & advancement in application transformation
Rise in demand for accelerating business transformation across the industry verticals has driven innovative product developments and launches by key vendors. Such developments offer a smarter and faster way to application transformations in the organization. For instance, in November 2019, Accenture, one of the leading market players launched myNav, a cloud platform to help organizations simulate and design different cloud solutions and identify the ones which is best fit for their business requirements. In addition, the platform recommends the application transformation approach for its clients to accelerate their innovation in the cloud.
In addition, in May 2020, IBM launched a wide range of advanced artificial intelligence (AI)-powered services and capabilities to help chief information officers (CIOs) to automate different aspects of IT development, operations, and infrastructure. This launch includes accelerator for application modernization with AI; and IBM Watson AIOps that leverages AI to reliably operate enterprise applications. Such developments and advancements significantly drive the growth of the global application transformation market.
Ongoing trend of legacy modernization
Legacy Modernization is the process of transforming Legacy Systems in the organization to reduce IT environment costs & complexity, enable collaboration across platforms, increase data consistency, and improve process flexibility. In the organization, traditional application models and systems are not capable enough to meet the modern business expectations owing to limited adaptability to change, poor delivery speed, and inefficient processes. Hence, there is rise in trend of legacy modernization among the businesses that enable the enterprises to align company’s objectives with its business goals to serve customers efficiently, scale products & services, and improve customer experience. In addition, legacy modernization has led to the accelerated digital transformation initiatives, automated deployments that increased productivity, and enhanced developer experience. Application transformation is the major contributor for legacy modernization; hence, this trend fuels the growth of the application transformation market.
KEY BENEFITS FOR STAKEHOLDERS
|
Report Metric |
Details |
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Report Name |
Application Transformation Market |
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Market size value in 2019 |
USD 9,214 Million |
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Revenue forecast in 2027 |
USD 25,370 Million |
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Growth Rate |
13.2% |
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Base year considered |
2019 |
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Forecast Period |
2020-2027 |
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By Type |
Cloud Application Migration, Application Integration, Application Replatforming, Application Portfolio Assessment, UI/UX modernizations |
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By Enterprise |
Large Enterprises, Small & Medium Enterprises |
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Report Coverage |
Revenue & volume forecast, company share, competitive landscape, growth factors, and trends |
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Segments Covered |
By Type, Enterprise, and Region |
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Geographic Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
Ans. Due to the COVID-19 pandemic, The global application transformation market size was valued at $9,214 million in 2019 and is projected to reach $25,370 million by 2027, registering a CAGR of 13.2% from 2020 to 2027.
Ans. Some of the Major companies are Accenture Atos, Cognizant, Fujitsu, HCL Technologies Ltd., Hexaware, IBM Corporation, Micro Focus International PLC, and Microsoft Inc., TCS
Ans. Yes, the report includes a COVID-19 impact analysis. Also, it is further extended into every individual segment of the report.
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