The Latin America, Middle East and Africa Mainframe Modernization Market would witness market growth of 10.9% CAGR during the forecast period (2025-2032).
The Brazil market dominated the LAMEA Mainframe Modernization Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $386.2 million by 2032. The Argentina market is showcasing a CAGR of 11.5% during (2025 - 2032). Additionally, The UAE market would register a CAGR of 9.8% during (2025 - 2032). The Brazil and Saudi Arabia led the LAMEA Mainframe Modernization Market by Country with a market share of 23.8% and 14.2% in 2024.
In the LAMEA region (Latin America, the Middle East, and Africa), the mainframe modernization market is moving from maintaining old systems to strategic modernization. This is happening because of aging infrastructure, rising costs, a lack of skilled workers, and the need for digital transformation. More and more banks, insurance companies, telecom companies, public sector organizations, and utilities are using hybrid-cloud architectures that combine APIs, microservices, and analytics with mainframes to find a balance between reliability and speed. Instead of completely replacing old systems, modernization efforts focus on incremental refactoring, automation, DevOps practices, and modularization. This allows for faster innovation, compliance with regulations, and operational efficiency while making the most of existing mainframe investments.
To deal with problems like regulatory compliance, data sovereignty, cost sensitivity, and a lack of skilled workers in LAMEA, vendors are using strategies that focus on hybrid-cloud ecosystems, automation, modernization tools, and partnerships with local service providers that are based on outcomes. In the competitive landscape, global incumbents like IBM protect their long-standing installed bases, challenger cloud and managed-service providers add to their modernization offerings, and regional players connect global frameworks with local market needs. More and more businesses see mainframes as important parts of modern, digitally-enabled architectures. They want to modernize them to add value to the business, support flexibility, and make new digital services possible.
Based on Organization Size, the market is segmented into Large Enterprises and SMEs. With a compound annual growth rate (CAGR) of 9.2% over the projection period, the Large Enterprises Market, dominate the Brazil Mainframe Modernization Market by Organization Size in 2024 and would be a prominent market until 2032. The SMEs market is expected to witness a CAGR of 9.7% during (2025 - 2032).
Based on Component Type, the market is segmented into Services and Software. With a compound annual growth rate (CAGR) of 9.6% over the projection period, the Services Market, dominate the UAE Mainframe Modernization Market by Component Type in 2024 and would be a prominent market until 2032. The Software market is expected to witness a CAGR of 10.3% during (2025 - 2032).
Free Valuable Insights: The Worldwide Mainframe Modernization Market is Projected to reach USD 15.91 Billion by 2032, at a CAGR of 9.5%
In Brazil, big companies in banking, insurance, telecom, and government still use old mainframe systems to process important transactions. However, these systems are under increasing pressure to support digital-first business models, cloud integration, and analytics. Modernization efforts are focused on changing existing systems instead of completely replacing them. This is because of the need to follow rules, the high cost of maintenance, and the fact that there are fewer and fewer people with legacy skills. More and more businesses are using hybrid architectures that use the cloud and APIs for front-end, analytics, and microservices while keeping their mainframe workloads. Automation, rehosting, refactoring, and managed modernization services are becoming more popular. Global IT service providers and regional Latin American specialists are competing to offer solutions that are cost-effective, localized, and cause the least amount of disruption. The mainframe modernization market in Brazil is shaped by a mix of global and regional vendor offerings, as well as the need for digital transformation and compliance with regulations.
By Organization Size
By Component Type
By Vertical
By Country
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