According to a recent report published by Allied Market Research, titled, “Europe Application Modernization Services Market by Service, Deployment Mode, Enterprise Size and Industry Vertical : Europe Opportunity Analysis and Industry Forecast, 2020-2027,” the Europe application modernization services market size was valued at $2.14 billion in 2019, and is projected to reach $6.60 billion by 2027, growing at a CAGR of 15.1% from 2020 to 2027.
Application modernization service addresses the migration of legacy to new applications or platforms, including the integration of new functionalities to businesses. Modernization options include re-platforming, re-hosting, recoding, re-architecting, re-engineering, interoperability, replacement, and retirement, as well as changes to the application architecture. Application modernization is not only about change of code, tools, and features but also the way of transferring information into new environments faster, cost-effectively, and without losing data quality & integrity.
During the COVID-19 pandemic, the companies are putting more focus on business continuity strategies, thus adopting advanced technological infrastructure and remote working model. This is encouraging multiple companies to update their legacy applications to enable faster, streamlined, and seamless business operations. Furthermore, shift from on-premise to cloud is driving the growth of the Europe application modernization services market. Application modernization services facilitate advantages such as reduced risk of application failure, increase in application flexibility, minimal maintenance costs, rapid business growth, and enhance other functions.
According to service segment, the application re-platforming services holds majority of the Europe application modernization services market share in 2019 due to the factors such as its capabilities to enable quicker application delivery and time-to-market along with scalability, faster networking speeds, flexibility, and reduced total cost of ownership (TCO).
By deployment mode, the hybrid cloud segment is expected to witness highest growth rate in Europe application modernization services market during the forecast period, owing to the need for scalability, control of critical operations, less investment cost. In addition, enterprises can choose the key advantages from public and private cloud mode to create optimal hybrid mix suitable for their organization. Thus, the hybrid cloud deployment is gaining increasing traction in Europe application modernization services industry.
As per industry vertical, the Europe application modernization services market size was dominated by BFSI segment in 2019. Factors such as major investments made by the banking and financial sector for cloud services in Europe region and significant need to update the legacy systems in the organizations of BFSI industry are the major drivers for the Europe application modernization services market growth. In addition, the need of financial companies to mitigate risks is further propelling the market demand in this region. The adoption of application modernization services has increased in BFSI sector to save the overall costs in core banking processes, document management system, and more.
The outbreak of COVID-19 is anticipated to have a trivial impact on the growth of the application modernization services market. The application modernization services market is projected to prosper in the upcoming years after the recovery from the COVID-19 pandemic. Various organizations across Europe have initiated work-from-home culture for their employees, which is further creating the demand for cloud-based technologies & Big Data analytics to manage critical information of organizations and ensure business continuity, thus creating lucrative opportunity for the market growth.
Key Findings Of The Study
- By service, the services segment is expected to witness the highest CAGR during the forecast period.
- On the basis of deployment mode, the public cloud segment accounted for the highest market share in 2019.
- Depending on enterprise size, the large enterprises segment is dominated the market in 2019.
- As per industry vertical segment, the healthcare segment is anticipated to grow at the highest CAGR in Europe application modernization services market during the forecast period.
- Country wise, rest of Europe segment accounted for the highest revenue in 2019; however, Austria is anticipated to exhibit highest growth during the forecast period.
The Europe application modernization services market analysis includes some of the key market players such as Accenture, Aspire Systems, Atos, Bell Integrator, Blu Age, Capgemini, DXC Technology Company, HCL Technologies Limited, IBM Corporation, and Micro Focus.