According to a new report, published by KBV research, 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 systems have long underpinned mission-critical functions in sectors such as banking, insurance, government, telecommunications, and large enterprises. Originally designed for throughput, reliability, and mid-to-large scale transaction processing, these systems evolved over decades with layers of business logic, customized workflows, and tightly coupled architecture. Over time, however, they have become legacy burdens: rigid, expensive to maintain, and often resistant to integration with modern architectures.
The Large Enterprises segment is experiencing a CAGR of 9.4 % during the forecast period. Large enterprises have been at the forefront of adopting mainframe modernization solutions due to their complex IT infrastructures and extensive legacy systems. These organizations typically operate across multiple regions and industries, managing massive volumes of data and critical business applications that require high reliability and scalability. The need to improve operational efficiency, enhance agility, and integrate advanced technologies such as artificial intelligence and cloud computing has driven large enterprises to modernize their existing mainframes.
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 services segment plays a crucial role in the mainframe modernization market, driven by the increasing demand for consulting, integration, migration, and support solutions. Organizations rely heavily on specialized service providers to assess their legacy environments, design modernization roadmaps, and execute transitions with minimal disruption to ongoing operations.
The BFSI segment is growing at a CAGR of 8.4 % during the forecast period. The BFSI segment has been one of the primary adopters of mainframe modernization solutions, owing to its reliance on secure, high-performance computing environments to handle vast transaction volumes and sensitive financial data. Financial institutions are increasingly modernizing their legacy systems to enhance customer experience, meet regulatory requirements, and enable real-time data analytics. The shift toward digital banking, mobile payments, and fintech integrations has further driven banks and insurance firms to upgrade their mainframe systems to ensure scalability, agility, and cybersecurity.
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. The Asia Pacific region is anticipated to grow at a CAGR of 10.1% during (2025 - 2032). Additionally, The Europe region would witness a CAGR of 8.9% during (2025 - 2032).
By Organization Size
By Component Type
By Vertical
By Geography
Unique Offerings
