The Latest Application Modernization Industry Statistics Explained
By 2025, the Application Modernization Services market is projected to grow to USD $24.8 billion.
This statistic forecasts that the Application Modernization Services market is expected to experience significant growth by the year 2025, reaching a total value of USD $24.8 billion. This projection suggests that there will be increasing demand for services aimed at modernizing and updating existing computer applications and systems to keep pace with technological advancements and business needs. Such market growth could be driven by factors such as the escalating reliance on digital technologies in various industries, the need to enhance efficiency and agility in software development, and the importance of staying competitive in a rapidly evolving digital landscape. This statistic highlights the potential opportunities for companies offering Application Modernization Services to capitalize on this growing market and cater to the evolving needs of businesses seeking to optimize their software infrastructure.
The BFSI (Banking, Financial Services and Insurance) sector is the leading industry in application modernization with slightly over 30% share of the global market.
The statistic indicates that within the global market for application modernization, the BFSI sector, comprising Banking, Financial Services, and Insurance industries, holds a predominant position by capturing slightly over 30% of the total market share. This suggests that organizations within the BFSI sector are actively investing in updating their software systems and technologies to stay competitive, enhance customer service, and improve operational efficiency. The substantial share also highlights the significance of embracing digital transformation and staying updated with the latest technological advancements within the BFSI sector to meet the evolving needs of customers and remain at the forefront of innovation.
The major drivers of this industry include faster application provisioning, improved manageability, and the need to constantly innovate and stay competitive.
This statistic highlights the key factors that are propelling growth and development within a specific industry. The mention of faster application provisioning emphasizes the importance of streamlining processes and minimizing downtime in order to enhance efficiency. Improved manageability suggests the necessity of optimizing resources and operations to drive productivity and achieve better outcomes. The reference to the constant need to innovate and remain competitive underscores the dynamic nature of the industry, where staying ahead of the curve and adapting to changing market conditions are crucial for success. Overall, these drivers reflect the industry’s focus on embracing advancements in technology, operational practices, and strategic decision-making to sustain growth and profitability.
Approximately 57% of businesses are spending more than a quarter of their IT budget on application modernization.
This statistic indicates that a majority of businesses, specifically around 57%, are allocating a significant portion of their IT budget towards the process of application modernization. More specifically, this expenditure amounts to more than a quarter of their total IT budget. Application modernization refers to the practice of updating or transforming existing software applications to improve performance, functionality, and compatibility with modern technologies. This high level of investment suggests that businesses are recognizing the importance of keeping their IT infrastructure up-to-date and competitive in today’s rapidly evolving digital landscape, prioritizing the enhancement of their applications to meet changing business needs and remain relevant in their industries.
In 2019, 60% of U.S. IT decision-makers said cloud-based models are the most cost-effective way to implement application modernization.
The statistic indicates that in 2019, a majority (60%) of IT decision-makers in the United States believed that cloud-based models were the most cost-effective approach for implementing application modernization. This suggests that a significant portion of IT professionals view cloud-based solutions as the preferred strategy for modernizing their applications due to perceived cost benefits. This insight can inform businesses and organizations about the prevailing opinions in the industry and guide them in making informed decisions regarding their own application modernization strategies.
By 2027, Asia-Pacific is expected to project the highest growth rate in the application modernization services market.
The statistic suggests that by the year 2027, the Asia-Pacific region is anticipated to experience the most significant increase in the application modernization services market compared to other regions around the world. This projection indicates a growing demand for updating and improving software applications in businesses located in countries within the Asia-Pacific region. Factors contributing to this growth could include technological advancements, increasing digital transformation initiatives, and a rapidly evolving business landscape in the region. This statistic highlights the potential opportunities for companies in the application modernization services sector to expand their operations and cater to the growing needs of businesses in Asia-Pacific.
The global market for application modernization services was valued at $11.4 billion in 2020.
The statistic ‘The global market for application modernization services was valued at $11.4 billion in 2020’ represents the total monetary worth of the services related to upgrading and improving software applications offered worldwide during the year 2020. Application modernization services involve the process of updating and enhancing legacy software systems to keep up with technological advancements, improve efficiency, and meet changing business needs. The $11.4 billion valuation indicates the significant demand for these services as organizations across various industries invest in modernizing their applications to stay competitive and adapt to the ever-evolving digital landscape.
Over half of enterprises worldwide (57%) are planning to increase their investment in their application modernization strategy in 2021.
The statistic indicates that a majority of enterprises globally (57%) are intending to allocate more resources towards enhancing their application modernization strategy in 2021. This suggests a growing recognition among businesses of the importance of upgrading and optimizing their applications to remain competitive in today’s rapidly evolving technological landscape. By prioritizing investment in modernizing their applications, companies aim to improve efficiency, agility, and overall performance, which can potentially lead to increased productivity, cost savings, and better user experiences. The statistic highlights a trend towards digital transformation efforts and underscores the strategic significance of application modernization for organizations looking to adapt and thrive in the digital age.
Approximately 70% of millennials believe their organization should have done more to update legacy applications to improve business processes.
The statistic indicates that a majority of millennials feel that their organization should have placed more emphasis on updating outdated applications to enhance business operations. This sentiment suggests that millennials value technological advancement and efficiency in the workplace. The statistic implies that there may be a perceived lack of innovation or willingness to adopt new technologies within organizations, which could potentially hinder productivity and competitiveness. Addressing the concerns raised by this statistic could lead to more effective business processes and a better overall work environment for millennials in the workforce.
Over 85% of decision makers believe that failing to complete their digital transformation initiatives will negatively impact their business in the next 12 months.
The statistic “Over 85% of decision makers believe that failing to complete their digital transformation initiatives will negatively impact their business in the next 12 months” indicates a strong consensus among decision makers about the critical importance of digital transformation for their organizations. These decision makers recognize that not completing their digital transformation initiatives could result in adverse effects on their business operations or performance within a relatively short time frame of 12 months. This statistic highlights the urgency and significance of digital transformation efforts as a strategic imperative for businesses to remain competitive and responsive to evolving market conditions and technological advancements.
By the end of 2022, nearly 90% of new applications will be developed as modular, loosely-coupled designs using modern application development practices.
This statistic suggests that by the end of 2022, the majority of new applications will be created with a modular and loosely-coupled design, following modern application development practices. Modular design involves breaking down an application into smaller, independent components that can be developed, tested, and maintained separately, allowing for easier scalability and flexibility. Loosely-coupled designs refer to these components being interconnected in a way that reduces dependencies, promoting easy integration and updates. Overall, this trend indicates a shift towards more efficient and adaptable development processes in the tech industry, enabling faster innovation and improved maintenance of software applications.
By 2023, 70% of CTOs will be focused on modernizing legacy applications as a way to manage technical debt.
The statistic “By 2023, 70% of CTOs will be focused on modernizing legacy applications as a way to manage technical debt” indicates that a significant majority of Chief Technology Officers (CTOs) in various organizations will prioritize the upgrading and enhancement of outdated software systems to address the accumulation of technical debt within their IT infrastructure. Technical debt refers to the long-term costs and inefficiencies incurred from using outdated technologies or maintaining legacy systems. By focusing on modernizing legacy applications, CTOs aim to improve the efficiency, performance, and security of their technology stack while reducing the risks associated with operating outdated software. This strategic approach can help organizations stay competitive, adapt to technological advancements, and enhance overall operational effectiveness.
Today, 80% to 90% of global IT spending is dedicated to maintaining legacy systems.
The statistic reveals that a significant majority of global IT spending, ranging from 80% to 90%, is allocated towards maintaining existing legacy systems rather than investing in new technologies or innovations. This suggests that organizations are facing challenges in modernizing their IT infrastructure and are constrained by the resources required to upkeep outdated systems. The high percentage devoted to legacy system maintenance highlights a potential imbalance in IT budget allocation, where a majority of financial resources are being directed towards supporting outdated technologies rather than driving digital transformation and enhancing organizational productivity. Addressing this issue may require organizations to prioritize strategic investments in updating and replacing legacy systems to stay competitive in the rapidly evolving technological landscape.
Nearly 40% of businesses have reported their digital transformation efforts being hampered by outdated technology.
The statistic indicates that a significant portion, approximately 40%, of businesses are facing challenges in their digital transformation initiatives due to outdated technology. This suggests that these businesses are struggling to effectively adapt to the demands of the modern digital landscape, potentially hindering their ability to innovate, compete, and meet the evolving needs of their customers. Outdated technology can lead to inefficiencies, increased costs, security vulnerabilities, and difficulties in integrating new digital tools and systems. Addressing this issue by investing in upgrading technology infrastructure, implementing modern solutions, and fostering a culture of continuous innovation is crucial for these businesses to successfully navigate their digital transformation journey and remain competitive in the digital age.
References
0. – https://www.www.isg-one.com
1. – https://www.www.fortunebusinessinsights.com
2. – https://www.www.mckinsey.com
3. – https://www.www.cnbc.com
4. – https://www.www.avanade.com
5. – https://www.www.marketresearchfuture.com
6. – https://www.www.alliedmarketresearch.com
7. – https://www.www.idc.com
8. – https://www.www.accenture.com
9. – https://www.www.globenewswire.com
10. – https://www.www2.deloitte.com
11. – https://www.www.capgemini.com
12. – https://www.www.ibm.com
