Global Application Management Services Market Size, Share & Industry Trends Analysis Report By Organization Size, By Industry Vertical, By Deployment Type, By Services Type, By Regional Outlook, Strategy, Challenges and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Application Management Services Market
Market Report Description
The Global Application Management Services Market size is expected to reach $57.1 billion by 2027, rising at a market growth of 18.3% CAGR during the forecast period.
Applications have become an essential part of how people interact, interpret content, and work. Apps can run on mobile and desktop, operating systems, as well as in the cloud, on appliances, and on other devices. They're also crucial to how big sectors manage their internal and consumer service operations, such as the financial services industry.
Due to the capabilities and complexity of the application development, they become more challenging in terms of security and bugs which have the capability to cause significant damage. In addition, it can become even more worse if the organization’s own IT team is swamped with work and can't swiftly resolve it. In the worst situation, this might jeopardize the entire concerned organization. While in some scenario, it could eat up important IT resources and drain operating budgets.
Application management services allow an organization to hire a third-party service provider to watch after the application of the organization. This latest and advanced solution enables enterprises to focus more on providing key services to customers while the application is being maintained by managed application service provider.
Through integrated systems, application Management Services expedite the development of numerous industries across the world. Problems may be fixed more rapidly with DevOps, which improves cooperation and knowledge sharing across the Service Desk, Application Operations, and Application Development.
Recurring issues are easily resolved, and unrequired escalation can be eliminated. As a result, Application Development may focus solely on the development of enterprises of all sizes. Due to these factors, application management services would observe a significant demand in the future.
COVID-19 Impact Analysis
The upsurge of COVID-19 resulted in a major disruption to the economic and healthcare infrastructure across the world. The pandemic devastated a lot of businesses and occupations irrespective of their sizes. Some lost their livelihood while some lost their lives. COVID-19 also affected the growth of the application management services market. The COVID-19 pandemic resulted in a slew of data breaches and cyber-attacks aimed at both small-scale as well as large-scale organizations.
Many new businesses were apprehensive about upgrading or implementing digital infrastructure, which hampered the growth of the application management services market during the pandemic period. To offer their customers a better sense of security, key industry companies began developing stronger encryption techniques and algorithms.
Market Growth Factors:
Rising demand for advanced technology integration in current commercial applications
In the last few decades, the modern business sector has undergone significant changes, starting with the way services are offered to customers by physical services evolving into digital means. The development of cloud technology and the widespread availability of mobile phones and personal computers, has resulted in a surge in the use of social media platforms that were beyond the imagination few years ago. These changes are forcing modern businesses to keep up with emerging technology and innovations in order to compete with other industry players and their service offerings.
Increasing the efficiency of business operations of the companies
With every passing day, modern corporate operating models are becoming more complex, with more factors to consider, more data to manage, and more demands to meet. Application management services solutions relieve commercial organizations of the stress of dedicating vital and expensive IT resources, allowing them to focus more on the development and business end of an organization's activities. Application management services can help development teams improve their capabilities while eliminating the need to hire additional competent individuals for the specific tasks.
Marketing Restraining Factor:
Requirement of high capital to deploy these services
Application management services comprise a vast range of numerous application development services for the client. Application management services, including overall monitoring and control over applications, are primarily intended to simultaneously focus on the well-being and development of the application as well as save time and cost for the enterprise. However, the cost that occurs in hiring and deploying these services on the application is very high.
Organization Size Outlook
Based on Organization Size, the Application management services market is bifurcated into SME and Large Enterprise. In 2020, the large enterprise segment led the application management services market with the largest revenue share. This is attributed to the capability of the large enterprises to fulfill the increasing demand of their customers for accuracy and precision as well as on-demand customer support on their applications. Moreover, large enterprises comprise comparatively bigger spending capability which allows them to hire best-in-class managed application services providers.
Industry Vertical Outlook
Based on the Industry Vertical, the Application management services market is divided into BFSI, Telecom and IT, Government, Retail and e-commerce, Healthcare and Lifesciences, Manufacturing, and Others. In 2020, the telecom and IT segment dominated the application management services market with the largest revenue share. The growth of this segment is attributed to the increased flexibility along with expanded bandwidth intending to strengthen customer support services and enhanced user feedback along with better customer experience. Moreover, constantly developing technologies across the information technology sector is also increasing the growth of this segment.
Deployment Type Outlook
Based on the deployment type, the Application management services market is bifurcated into On-premise and cloud. The On-premise segment obtained the largest revenue share of the application management services market in 2020. On-premise are deployed locally on business devices and server of the client. It offers the organization a complete control over the managed services while it doesn’t completely rely on the internet connectivity.
Services Type Outlook
Based on Services, the Application management services market is segregated into Application Portfolio Assessment, Application Security, Web Application Security, Mobile Application Security, Application Modernization, Cloud Application Migration, and Others. The application portfolio assessment segment procured the maximum revenue share of the overall application management services market in 2020. In addition, the segment would showcase a similar kind of trend even during the forecasting period. The growth of this market is attributed to the increasing adoption of advanced software functionalities in corporate applications intending to improve business efficiency.
|Market size value in 2020||USD 17.5 Billion|
|Market size forecast in 2027||USD 57.1 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 18.3% from 2021 to 2027|
|Number of Pages||335|
|Number of Tables||493|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Organization Size, Deployment Type, Services Type, Industry Vertical, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on the Regions, The application services market is analyzed across North America, Europe, APAC, and LAMEA. In 2020, North America emerged as the leading region of the application management services market and would continue to remain in the same position over the forecasting period. The growth of the regional market is based on the several factors such as the existence of well-known application management service providers, and strict data security requirements and compliance.
Free Valuable Insights: Global Application Management Services Market size to reach USD 57.1 Billion by 2027
KBV Cardinal Matrix - Application Management Services Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Accenture PLC and International Business Machines Corporation are the forerunners in the Application Management Services Market. Companies such as Fujitsu Limited, DXC Technology Company and HCL Technologies Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Accenture PLC, Fujitsu Limited, IBM Corporation, DXC Technology Company, HCL Technologies Ltd. (HCL Enterprises), Wipro Limited, Atos Group, Capgemini SE, Cognizant Technology Solutions Corporation, and Tech Mahindra Limited.
Recent Strategies Deployed in Application Management Services Market
» Partnerships, Collaborations and Agreements:
- Nov-2021: DXC Technology partnered with Micro Focus, a leading software provider. Through this partnership, the company aimed to offer mainframe modernization along with migration strategies for the modernization of mainframe estates.
- Apr-2021: Wipro partnered with Citrix Systems, an American multinational cloud computing, and virtualization technology company and Hewlett Packard Enterprise, an American multinational enterprise information technology company. The partnership would offer businesses a robust solution that will expedite remote working and modernize workspaces. This solution would deliver a uniform experience for enterprises by providing an impeccable framework. In addition, Wipro would combine its virtuadeskTM Desktop as a Service platform and Wipro's Digital Workspace solution with a variety of Citrix and HPE services. Citrix Virtual Apps & DesktopTM Services with a zero-trust security posture will be used in conjunction with HPE's purpose-built Virtual Desktop Infrastructure (VDI) to manage workloads and create secure, high-performance virtual computing environments.
- Apr-2021: Tech Mahindra teamed up with ServiceNow, an American software company. Following the collaboration, the two companies launched ServiceNow Business Unit to accelerate digital transformation for customers. Together, the companies would create value and build parameters for their joint customers via rapid prototyping and development of the cutting-edge low code, no code apps across 5G, IoT (Internet of things), AI/ML (Artificial Intelligence/Machine Learning) and Customer Experience.
- Mar-2021: HCL extended its partnership with Qualys, a leading provider of cloud-based IT, security, and compliance solutions. Following this extended partnership, HCL would integrate its CyberSecurity Fusion Center into Qualys's VMDR intending to allow HCL's customers to access Qualys VMDR. In addition, this integration would offer an all-in-one, cloud-based app with the ability to automate the complete vulnerability management cycle. Moreover, VMDR is powered by Qualys cloud agent which offers in-built security to facilitate customers in bringing advancement in their digital transformation as well as assure that they fulfill compliance mandates.
- Feb-2021: Accenture extended its partnership with VMware, an American cloud computing and virtualization technology company. Following this partnership, the companies would roll out a business group to facilitate enterprises to adopt a cloud-first technology, migrate to the cloud, quickly make modern applications, and leverage the cloud as a substructure for new business models and innovation to realize greater value eventually.
- Feb-2021: IBM partnered with Palantir Technologies, a vendor of the software. Through this partnership, IBM's hybrid cloud data platform would be integrated with Palantir's cutting-edge operations platform for designing applications. In addition, this partnership would facilitate the understanding of building and deploying applications with built-in AI intending to facilitate the access, analysis, and implementation of action on the significant data stored across hybrid cloud environments depriving the requirement for advanced technical knowledge.
- Jan-2021: Atos extended its partnership with IBM. an American multinational technology corporation based in New York. Through this extended partnership, the companies aimed to assist organizations to optimize their businesses along with expediting their digital transformation. In addition, the extended partnership is intending to develop combined offerings on vertical decarbonized solution and service delivery assets, powered by IBM. Moreover, this extended partnership would add a milestone in Atos's vision of offering robust business applications to its customers with the help of the global leader IBM to introduce a new level of innovation.
- Dec-2020: Tech Mahindra extended its partnership with SAP SE, a German multinational software corporation. Through this partnership, the companies aimed to offer Intelligent Enterprise for customers across the globe. In addition, companies would utilize specific abilities to offer on-premise and cloud-based end-to-end solutions on the Business Technology Platform of SAP. Moreover, this partnership would offer benefits to customers through improved solution delivery, increased implementation services, enhanced pricing schemes, and increased global access in support of SAP applications.
» Product Launches and Product Expansions:
- Mar-2021: HCL Technologies launched ASM 2.0, a next-generation application management framework. This launch is aimed to assist organizations to obtain enhanced agility, improved resilience, and better stakeholder experiences with optimized cost. Moreover, it would allow organizations to get a balanced view of the budget for transformational and business-as-usual programs.
- Mar-2021: IBM Security launched improvements services designed to facilitate the management of their cloud security strategy, policies, and controls over hybrid cloud environment. In addition, the launch would embed cloud-native, IBM, third-party technologies, and IBM's excellence with the purpose to offer a unified security approach over their cloud ecosystems.
- Nov-2020: Atos released its Atos Onecloud, a distinct initiative to encourage its clients to migrate on the cloud. The new product would allow the customer to leverage the business capabilities of the cloud by optimizing business processes and modernizing applications to make them more data-driven, mobile, agile, and customer-centric.
- May-2020: Fujitsu unveiled its Fujitsu Storage ETERNUS DSP, a high-volume data management solution for enterprises. The new product would allow enterprises to control rapidly increasing data volumes by deploying a highly automated, intelligent, agile, and scalable storage-as-a-service approach with covers the data center and other relevant locations along with prevailing and legacy infrastructure that enterprises are struggling with.
» Acquisitions and Mergers:
- Dec-2021: Atos took over AppCentrica, a technology, and management consulting company based in Canada. Through this acquisition, the company aimed to improve its capabilities in strategic domains across Canada. Moreover, the company would continue to focus on its vision of expediting collaborations with its customers with the purpose to deliver decarbonized and secure digital solutions as a part of its business transformation programs.
- Dec-2021: Atos completed its acquisition of Cloudreach, a leader in multi-cloud services. With this partnership, the company aimed to integrate its hybrid and multi-cloud platform along with its leadership in hybrid cloud, application modernization, SAP HANA, edge computing, and digital workplace, into Cloudreach's expertise in transforming and building digital solutions for customers, consulting, utilizing cloud-based applications, machine learning, and data and analytics
- Oct-2021: Tech Mahindra acquired Beris Consulting, an IT consultancy service provider. Through this acquisition, the company aimed to attain transformational growth across the IT and application space for the automotive industry, resultant in EV, sharing, and mobility.
- Jun-2021: IBM acquired Turbonomic, an Application Resource Management and Network Performance Management software provider in Boston. This acquisition would be an addition to IBM's previous acquisition of Instana and would also complement the release of IBM Cloud Pak for Watson AIOps, designed to automate IT Operations leveraging AI. In addition, Turbonic ARM would increase its support for services and infrastructure for IBM cloud and would offer ideas and automation for a broader range of organization applications, PaaS services, and software.
- Apr-2021: Cognizant took over Servian, an enterprise transformation consultancy based in Australia. This acquisition would strengthen the integrated, end-to-end digital transformation abilities of Cognizant across Australia and New Zealand intending to assist its clients to migrate on the cloud, innovate digital products and services, achieve value from data, unlock operational excellence, and modernize organization application.
- Feb-2021: Cognizant acquired Linium, a cloud transformation consultancy group. Through this acquisition, the company aimed to expand its enterprise service management offerings with the addition of Linium's specialized ServiceNow focus. Moreover, the acquisition would strengthen the Congizant's long-honored ServiceNow alliance
- Jan-2021: HCL took over DWS Group, a leader in Australian IT, business, and management consulting. Through this acquisition, the company aimed to strengthen its position in digital initiatives across New Zealand and Australia along with enhancing its portfolios across major markets,
- Dec-2020: Wipro took over Encore Theme Technologies, an IT company. Through this acquisition, the company aimed to establish its dominance in the market across the world implementing Finastra solutions.
Scope of the Study
Market Segments Covered in the Report:
By Organization Size
- Small & Medium Enterprises and
- Large Enterprises
By Industry Vertical
- Telecom & IT
- Retail & eCommerce
- Government & Defense
- Manufacturing and
By Deployment Type
- On-premise and
By Services Type
- Application Portfolio Assessment
- Application Security
- Application Modernization
- Web & Mobile
- Cloud Application Migration and
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Accenture PLC
- Fujitsu Limited
- IBM Corporation
- DXC Technology Company
- HCL Technologies Ltd. (HCL Enterprises)
- Wipro Limited
- Atos Group
- Capgemini SE
- Cognizant Technology Solutions Corporation
- Tech Mahindra Limited
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What would be the size of the application management services market by 2027?
The application management services market size is projected to reach USD 57.1 billion by 2027.
What are the key driving factors and challenges in the application management services market?
Increasing the efficiency of business operations of the companies are driving the market in coming years, however, requirement of high capital to deploy these services have limited the growth of the market.
Who are the leading players in the application management services market?
Accenture PLC, Fujitsu Limited, IBM Corporation, DXC Technology Company, HCL Technologies Ltd. (HCL Enterprises), Wipro Limited, Atos Group, Capgemini SE, Cognizant Technology Solutions Corporation, and Tech Mahindra Limited.
Which segment dominated the application management services market in 2020?
The Small & Medium Enterprises in the Global Application Management Services Market by Organization Size would dominate the market by 2027; thereby, achieving a market value of $30.9 billion by 2027.
Which segment shows the high growth rate of the application management services market over the forecast period?
The Cloud market has high growth rate of 19.5% during (2021 - 2027). Cloud are installed on the server or any cloud platform of the service provider and accessed through web browser.
Which region acquired maximum revenue share in 2020?
The North America market region acquired maximum revenue share in 2020 in Global Application Management Services Market, thereby, achieving a market value of $20,434 million by 2027.