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Mainframe Modernization Market Revenue Growth On Track For A 14.8% CAGR Through 2030
The mainframe modernization market has experienced significant expansion recently. It will grow from $18.12 billion in 2025 to $20.85 billion in 2026 at a compound annual growth rate (CAGR) of 15.1%. The increase observed in past periods is largely due to factors like the escalating expenses of mainframe operations, a deficit of COBOL and mainframe professionals, the necessity for more rapid product innovation, the push to integrate with digital channels, and heightened regulatory compliance demands.
The mainframe modernization market is set for significant expansion in the coming years, with projections indicating it will reach $36.18 billion in 2030, exhibiting a compound annual growth rate of 14.8%. This anticipated growth stems from several factors such as the rise of hybrid cloud mainframe strategies, the integration of automated modernization tools, increased utilization of containers and middleware, the escalating demand for real-time analytics on core data, and the broadening availability of managed modernization services. Key developments expected during this forecast period include mainframe to cloud migration programs, API enablement for core systems, automated code refactoring and conversion, hybrid mainframe integration architectures, and the adoption of modern DevOps practices for COBOL workloads.
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Mainframe Modernization Market Growth Backed By Core Demand Fundamentals
The rising integration of cloud-based solutions is expected to foster the expansion of the mainframe modernization market moving forward. Cloud-based solutions encompass computing resources such as infrastructure, platforms, and software, which are made available over the internet on demand and overseen by third-party providers. The shift towards these solutions is influenced by evolving multi-cloud strategies, which enhance system resilience and mitigate vendor lock-in. Mainframe modernization supports this driver by restructuring and application programming interface (API)-enabling existing workloads, allowing them to connect with cloud-native services and function within hybrid or multi-cloud architectures. For instance, in March 2024, Flexera, a US-based computer software company, noted a slight increase in multi-cloud usage, rising from 87% last year to 89% this year. Consequently, the increasing adoption of cloud-based solutions is a key driver for the mainframe modernization market.
Mainframe Modernization Market Segment Performance And Emerging Opportunities
The mainframe modernization market covered in this report is segmented –
1) By Component: Software, Services, Hardware
2) By Deployment Mode: On-Premises, Cloud-Based, Hybrid
3) By Enterprise Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Core Banking, Risk And Compliance, Payments, Customer Management, Fraud Detection, Other Applications
5) By End-User: Banking, Financial Services, and Insurance (BFSI), Healthcare, Retail, Government, Manufacturing, Information Technology And Telecom, Other End-Users
Subsegments:
1) By Software: Application Modernization Tools, Code Refactoring Tools, Automated Code Analysis Platforms, Middleware And Integration Software, Application Programming Interface Management Platforms
2) By Services: Consulting Services, Assessment And Roadmapping Services, Application Modernization Services, Replatforming And Rehosting Services, Cloud Migration Services
3) By Hardware: Enterprise Mainframe Systems, Compute Accelerators, Storage Systems, Input Output Subsystems, Networking Equipment
Mainframe Modernization Market Growth Trends Reshaping The Competitive Landscape
Major companies in the mainframe modernization market are concentrating on innovative product launches, such as artificial intelligence (AI)-enabled modernization services, to accelerate migrations and reduce risk. These artificial intelligence (AI)-enabled modernization services leverage generative-to-agentic artificial intelligence (AI) to automate analysis, code conversion, testing, and cutover planning across legacy mainframe estates. For instance, in June 2025, Kyndryl Inc., a US-based provider of information technology (IT) infrastructure services, introduced Mainframe Modernization Services, which utilize Amazon Web Services (AWS) agentic artificial intelligence (AI) capabilities (AWS Transform for Mainframe). This service accelerates the migration of applications and data off the mainframe, automates modernization tasks to minimize effort and errors, and offers advisory and implementation support to de-risk the cloud transition.
Mainframe Modernization Market Key Players: Which Companies Lead Industry Competition?
Major companies operating in the mainframe modernization market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Accenture plc, International Business Machines Corporation, Oracle Corporation, Tata Consultancy Services Limited, Fujitsu Limited, NTT DATA Corporation, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Kyndryl Holdings Inc., DXC Technology Company, HCL Technologies Limited (HCLTech), Atos SE, Wipro Limited, Tech Mahindra Limited, LTIMindtree Limited, Unisys Corporation
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Mainframe Modernization Market Geographic Analysis: Where Is Demand Rising Fastest?
North America was the largest region in the mainframe modernization market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the mainframe modernization market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
