“Global Mainframe Modernization Market to reach a market value of USD 15.91 Billion by 2032 growing at a CAGR of 9.5%”
The Global Mainframe Modernization Market size is expected to reach $15.91 billion by 2032, rising at a market growth of 9.5% CAGR during the forecast period.
Mainframe modernization has developed into transformation initiatives that blend traditional strengths with modern digital architectures. Mainframes are prompting enterprises to seek agility through modernization, which initially was designed for high-volume transaction processing and reliability. Financial institutions, governments, and large enterprises are key factors driving these trends, integrating modernization to improve service delivery, support digital initiatives, and reduce costs. The advent of AI-based code analysis, cloud integration tools, and DevSecOps practices has further surged modernization, transforming it from a one-time migration to an adaptive process that aligns with developing regulatory and business requirements.
The mainframe modernization market is driven by elements such as automation, strategic collaboration, and hybrid deployment models, and strategic partnerships among technology providers, cloud providers, and system integrators. Machine learning and AI now supports modernization toolchains that automate refactoring, reducing risk, legacy code, and improving testing accuracy. Key market players pursue domain-specific accelerators, phased migration, and managed modernization services to assure long-term transformation and continuity. The competition is becoming intense, ranging from tech giants to startups offering automation-driven solutions. The market growth largely depends on security integration, technological innovation, and the capability to deliver predictable, low-risk modernization outcomes. As public agencies and enterprises strive to balance legacy stewardship with digital transformation, mainframe modernization has become a crucial part of enterprise agility and future-readiness.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In October, 2025, IBM Corporation unveiled new software and infrastructure enhancements aimed at helping enterprises scale AI in production. Among them, it will bring WatsonX Assistant for Z, which enables AI agents specific to IBM Z systems, integrating modernization and intelligent operations in mainframe environments. Moreover, In May, 2025, Tata Consultancy Services Ltd. unveiled the GenAI and Agentic AI-powered TCS MasterCraft, a platform designed to accelerate legacy system modernization. By automating business logic mining and code transformation, it aims to reduce modernization costs by over 70% and achieve results twice as fast as traditional methods.
Based on the Analysis presented in the KBV Cardinal matrix; Amazon Web Services, Inc. is the forerunner in the Mainframe Modernization Market. In September, 2025, Amazon Web Services, Inc. unveiled a cloud-native service enabling the conversion of legacy Assembler programs and macros into COBOL code and copybooks. This solution addresses the scarcity of Assembler expertise, reduces technical debt, and accelerates mainframe modernization by facilitating seamless integration into modern cloud environments. Companies such as Accenture PLC, IBM Corporation, and Tata Consultancy Services Ltd. are some of the key innovators in Mainframe Modernization Market.
The COVID-19 pandemic impacted the mainframe modernization market because companies put off or canceled modernization projects at first because they didn't have enough money, weren't sure how to run their businesses, and were focused on keeping their critical operations running and allowing employees to work from home. Delays in project timelines were caused by problems with global supply chains and limited mobility. Limited access to skilled IT workers also pushed back implementation schedules and raised costs. Businesses in important areas like banking, retail, and manufacturing cut back on IT spending, which slowed market growth. This was because businesses put short-term survival ahead of long-term digital transformation. Still, the pandemic showed how old systems aren't always the best, which led to a renewed interest in modernization after the pandemic to make IT infrastructure more flexible, scalable, and resilient. Thus, the COVID-19 pandemic had a negative impact on the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Free Valuable Insights: Global Mainframe Modernization Market size to reach USD 15.91 Billion by 2032
Based on Organization Size, the market is segmented into Large Enterprises and SMEs. The SMEs segment attained 33% revenue share in the mainframe modernization market in 2024. Small and medium-sized enterprises (SMEs) are increasingly embracing mainframe modernization as part of their broader digital evolution. While these businesses often have smaller IT infrastructures compared to large corporations, they recognize the value of upgrading legacy systems to improve business agility, customer experience, and competitiveness. Modernization initiatives among SMEs are often driven by the need to streamline operations, reduce maintenance costs, and leverage cloud-based platforms for scalability and innovation.
Based on Component Type, the market is segmented into Services and Software. The software segment recorded 37% revenue share in the mainframe modernization market in 2024. The software segment forms an integral part of the mainframe modernization landscape, offering advanced tools and platforms that enable automation, integration, and seamless transformation of legacy systems. These software solutions assist in modernizing applications, managing data migration, and ensuring compatibility with cloud-native architectures. Vendors are continuously innovating to develop low-code and AI-driven modernization software that simplifies the transformation process and enhances system agility.
Region-wise, the Mainframe Modernization Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 33% revenue share in the Mainframe Modernization Market in 2024. The mainframe modernization market is anticipated to grow at a significant rate in North America and Europe. This is due to high modernization spending in insurance, financial services, and government, looking for cost reduction, regulatory compliance, and cloud-hybrid architectures, and a large volume of ongoing transformation projects. Moreover, the European mainframe modernization market is predicted to experience prominent growth in the upcoming years. The regional market is regulatory sensitive, where modernization programs balance compliance and risk with agility-many companies prefer on-platform modernization and hybrid approaches to safeguard crucial workloads while adopting AI and cloud capabilities.
In the Asia Pacific and LAMEA, the mainframe modernization market is expected to experience substantial growth. The Asia Pacific -led by nations such as Japan, China, India, and Southeast Asia is driven by increasing cloud adoption, rapid digitalization, and large legacy modernization initiatives. Further, the demand for refactoring, replatforming, and modernization services is surging, thereby offering positive opportunities to the market. Moreover, the LAMEA mainframe modernization market is anticipated to expand. This expansion is supported by growing public sector digitalization, increased spending in banking/telecom IT, and global providers collaborating with regional providers.
The Mainframe Modernization Market is very competitive because there is a growing need for IT infrastructures that can grow, adapt, and save money. To stay ahead, players focus on new ideas, unique services, and smart partnerships. The market is really focused on providing full modernization solutions, such as moving to the cloud, re-platforming applications, and integrating old systems. The need for faster, more flexible, and more secure mainframe modernization services, along with quick changes in technology and the needs of businesses, are all factors that affect competition.
| Report Attribute | Details |
|---|---|
| Market size value in 2025 | USD 8.41 Billion |
| Market size forecast in 2032 | USD 15.91 Billion |
| Base Year | 2024 |
| Historical Period | 2021 to 2023 |
| Forecast Period | 2025 to 2032 |
| Revenue Growth Rate | CAGR of 9.5% from 2025 to 2032 |
| Number of Pages | 512 |
| Number of Tables | 384 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Organization Size, Component Type, Vertical, Region |
| Country scope |
|
| Companies Included | IBM Corporation, Accenture PLC, HCL Technologies Ltd. (HCL Enterprises), Amazon Web Services, Inc. (Amazon.com, Inc.), Tata Consultancy Services Ltd., Capgemini SE, Infosys Limited, DXC Technology Company, Wipro Limited, and Open Text Corporation |
By Organization Size
By Component Type
By Vertical
By Geography
This Market size is expected to reach USD 15.91 Billion billion by 2032.
The mainframe modernization market is projected to grow at a CAGR of 9.5% between 2025 and 2032.
Pressure to reduce operational cost and technical debt is driving demand for agility, innovation, and integration with modern digital architectures.
IBM Corporation, Accenture PLC, HCL Technologies Ltd. (HCL Enterprises), Amazon Web Services, Inc. (Amazon.com, Inc.), Tata Consultancy Services Ltd., Capgemini SE, Infosys Limited, DXC Technology Company, Wipro Limited, and Open Text Corporation
The Services segment led the maximum revenue in the Global Mainframe Modernization Market by Component Type in 2024, thereby, achieving a market value of $9.8 billion by 2032.
The North America region dominated the Global Mainframe Modernization Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $5.2 billion by 2032.
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 