The North America Mainframe Modernization Market would witness market growth of 9.2% CAGR during the forecast period (2025-2032).
The US market dominated the North America Mainframe Modernization Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $3,396.1 million by 2032. The Canada market is experiencing a CAGR of 11% during (2025 - 2032). Additionally, The Mexico market would exhibit a CAGR of 10.4% during (2025 - 2032). The US and Canada led the North America Mainframe Modernization Market by Country with a market share of 69.2% and 15.4% in 2024.
As companies in banking, insurance, government, and healthcare try to modernize legacy systems that are decades old to meet the needs of the digital age, the North American mainframe modernization market is going through a big change. Modernization has changed from small upgrades to full-scale changes by refactoring, re-architecting, and moving workloads to hybrid or cloud environments. Companies are using hybrid cloud strategies, automation, and AI-driven tools like IBM's Watsonx Code Assistant and AWS Mainframe Modernization services to speed up modernization while lowering operational risks and reliance on outdated skills. This is because they need to be flexible, scalable, and cost-effective.
IBM's hybrid-cloud ecosystem is the most powerful in the market, but cloud hyperscalers like AWS and Microsoft are becoming more important, and consulting firms like Deloitte, Accenture, and Infosys are also very involved. Key strategies include using AI to automate tasks, forming strategic partnerships, and modernizing in stages to focus on workloads that will have the biggest impact for the best return on investment. The North American mainframe modernization market is moving away from maintenance-driven operations and toward infrastructure that is ready for the future and led by innovation. This is happening as government programs like the Technology Modernization Fund (TMF) and digital transformation across industries speed up.
Based on Organization Size, the market is segmented into Large Enterprises and SMEs. With a compound annual growth rate (CAGR) of 8.2% over the projection period, the Large Enterprises Market, dominate the US 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 8.8% during (2025 - 2032).
Based on Component Type, the market is segmented into Services and Software. The Services market segment dominated the Canada Mainframe Modernization Market by Component Type is expected to grow at a CAGR of 10.7 % during the forecast period thereby continuing its dominance until 2032. Also, The Software market is anticipated to grow as a CAGR of 11.4 % during the forecast period during (2025 - 2032).
Free Valuable Insights: The Mainframe Modernization Market is Predicted to reach USD 15.91 Billion by 2032, at a CAGR of 9.5%
The U.S. mainframe modernization market is driven by the need to change old systems that are used for important operations in banking, insurance, government, healthcare, and retail into flexible, cloud-based systems. Some of the most important factors are the large number of mainframes already in use, rising operating costs, a workforce that is retiring with mainframe-specific skills, and growing demands for agility, analytics, and compliance with regulations. Companies are moving away from "rip and replace" methods and toward hybrid strategies that combine mainframes with cloud environments, update interfaces, reorganize workloads, and use DevOps and AI-driven automation. Services like mainframe-as-a-service are becoming more popular because they help businesses save money on staff and equipment. There is a lot of competition, with global IT services companies, cloud hyperscalers, and specialized vendors all offering end-to-end modernization solutions that take compliance, scalability, and minimal disruption into account.
By Organization Size
By Component Type
By Vertical
By Country
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 