Mainframe Modernization Market Size is valued at US$ 7.6 Bn in 2024 and is predicted to reach US$ 22.0 Bn by the year 2034 at an 11.8% CAGR during the forecast period for 2025-2034.
Mainframe modernization is the process of updating legacy mainframe systems by integrating modern technologies, cloud platforms, and agile methodologies, enhancing performance, scalability, and flexibility while reducing costs, ensuring business continuity, and aligning with current digital transformation goals. Technical debt reduction is a major driver in the mainframe modernization market. Legacy mainframes often run decades-old codebases, filled with redundant, tightly coupled, and poorly documented programs that are expensive to maintain. Over time, this technical debt limits agility, complicates integration with modern systems, and creates risks of downtime.
Modernization allows enterprises to refactor or replatform applications into modular, cloud-native architectures, eliminating obsolete code and dependencies. By decreasing technical debt, organizations improve maintainability, reduce long-term IT costs, and enhance operational resilience. This shift also frees up resources to concentrate on innovation rather than patching legacy systems, accelerating digital transformation initiatives.
Mainframe modernization market is driving due to the rising need for unified logging, tracing, and predictive operations. Legacy mainframes often operate in silos, making it difficult to gain real-time visibility into application performance, transaction flows, and infrastructure health. Modern enterprises demand seamless observability across hybrid and multi-cloud ecosystems to permits proactive problem detection and optimized service delivery. Unified logging and tracing allow IT teams to correlate events, quickly identify root causes, and decrease downtime, while predictive operations powered by AI/ML help forecast potential failures before they disrupt business. This push toward comprehensive observability strongly fuels modernization initiatives.
Some of the Key Players in the Mainframe Modernization Market:
· IBM
· TCS
· Capgemini
· Atos
· AWS
· Micro Focus
· BMC Software
· Infosys
· Wipro
· HCL Tech
· DXC Technology
· Kyndryl
· Rocket Software
· Fujitsu
· Cognizant
· Tech Mahindra
· Broadcom
· TmaxSoft
· Palm Digitalz
· TSRI
· Mechanical Orchard
· Virtualz Computing
· CloudFrame
· Heirloom
· Others
The mainframe modernization market is segmented by offering, organization size, verticals and by region. By offering, the market is segmented into software, and modernization services. By organization size, the market is segmented into large enterprises, and small & medium enterprises. By vertical, the market is segmented into BFIS, it & its, healthcare, media & entertainment, retail & commerce, education, manufacturing, government, telecom, and other verticals.
In 2024, the software segment held the major market share due to the growing need for enterprises to integrate legacy mainframe applications with modern software ecosystems. Organizations are moving towards microservices, APIs, and cloud-native architectures to allow agility, scalability, and compatibility with digital platforms. This shift is fueled by the shortage of COBOL/legacy programming expertise, increasing operational expenses, and the need for faster development cycles. Modernization software tools enable automated code analysis, refactoring, and rehosting, decreasing problems while accelerating digital transformation initiatives.
The mainframe modernization market is dominated by healthcare due to rising need for secure, scalable, and interoperable systems to manage vast volumes of patient data, electronic health records (EHR), and regulatory compliance requirements. Legacy mainframes struggle with integration across digital health platforms, telemedicine, and AI-powered diagnostics. Modernization enables healthcare providers to improve data accessibility, enhance patient outcomes, and ensure HIPAA and GDPR compliance while lowering costs. Additionally, cloud-native solutions support advanced analytics, real-time monitoring, and innovation in patient-centric care models.
North America dominates the market for mainframe modernization due to region’s growing shortage of skilled COBOL and mainframe professionals as the existing workforce nears retirement. Enterprises face restrictions maintaining legacy systems, which impacts agility, costs, and risk management. To address this, firms are accelerating modernization by migrating workloads to cloud-native platforms, adopting APIs, and leveraging DevOps practices. This shift not only mitigates the skills gap but also expands scalability, innovation, and compliance across highly regulated sectors such as banking and healthcare.
Moreover, Europe's mainframe modernization market is also fueled due to the increasing requirement to address the aging talent pool and skill shortages around COBOL and legacy technologies. With many experienced professionals nearing retirement, enterprises face rising risks in maintaining mission-critical systems. Modernization initiatives, such as rehosting and replatforming to cloud-native architectures, allow long-term resilience while decreasing operational dependency on scarce expertise. This shift also aligns with Europe’s strong digital transformation and cloud adoption mandates, expanding agility, compliance, and innovation capabilities.
| Report Attribute | Specifications |
| Market Size Value In 2024 | USD 7.6 Bn |
| Revenue Forecast In 2034 | USD 22.0 Bn |
| Growth Rate CAGR | CAGR of 11.8% from 2025 to 2034 |
| Quantitative Units | Representation of revenue in US$ Bn and CAGR from 2025 to 2034 |
| Historic Year | 2021 to 2024 |
| Forecast Year | 2025-2034 |
| Report Coverage | The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
| Segments Covered | By Offering, By Vertical, By Organization Size and By Region |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; Germany; The UK; France; Italy; Spain; Rest of Europe; China; Japan; India; South Korea; Southeast Asia; Rest of Asia Pacific; Brazil; Argentina; Mexico; Rest of Latin America; GCC Countries; South Africa; Rest of the Middle East and Africa |
| Competitive Landscape | IBM, TCS, Capgemini, Atos, AWS, Micro Focus, BMC Software, Infosys, Wipro, HCL Tech, DXC Technology, Kyndryl, Rocket Software, Fujitsu, Cognizant, Tech Mahindra, Broadcom, TmaxSoft, Palm Digitalz, TSRI, Mechanical Orchard, Virtualz Computing, CloudFrame, and Heirloom |
| Customization Scope | Free customization report with the procurement of the report, Modifications to the regional and segment scope. Geographic competitive landscape. |
| Pricing and Available Payment Methods | Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Mainframe Modernization Market Snapshot
Chapter 4. Global Mainframe Modernization Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Porter's Five Forces Analysis
4.7. Incremental Opportunity Analysis (US$ MN), 2025-2034
4.8. Competitive Landscape & Market Share Analysis, By Key Player (2024)
4.9. Use/impact of AI on Mainframe Modernization Market Industry Trends
4.10. Global Mainframe Modernization Market Penetration & Growth Prospect Mapping (US$ Mn), 2024-2034
Chapter 5. Mainframe Modernization Market Segmentation 1: By Offering, Estimates & Trend Analysis
5.1. Market Share by Offering, 2024 & 2034
5.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Offering:
5.2.1. Software
5.2.2. Services
Chapter 6. Mainframe Modernization Market Segmentation 2: By Organization Size, Estimates & Trend Analysis
6.1. Market Share by Organization Size, 2024 & 2034
6.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Organization Size:
6.2.1. Large Enterprises
6.2.2. SMEs
Chapter 7. Mainframe Modernization Market Segmentation 3: By Vertical, Estimates & Trend Analysis
7.1. Market Share by Vertical, 2024 & 2034
7.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Vertical:
7.2.1. BFSI
7.2.2. Telecom
7.2.3. IT & ITES
7.2.4. Retail & Ecommerce
7.2.5. Media & Entertainment
7.2.6. Education
7.2.7. Manufacturing
7.2.8. Government
7.2.9. Others
Chapter 8. Mainframe Modernization Market Segmentation 4: Regional Estimates & Trend Analysis
8.1. Global Mainframe Modernization Market, Regional Snapshot 2024 & 2034
8.2. North America
8.2.1. North America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
8.2.1.1. US
8.2.1.2. Canada
8.2.2. North America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Offering, 2021-2034
8.2.3. North America High-Altitude Oxygen Simulation Market Revenue (US$ Million) Estimates and Forecasts by Organization Size, 2021-2034
8.2.4. North America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Vertical, 2021-2034
8.3. Europe
8.3.1. Europe Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
8.3.1.1. Germany
8.3.1.2. U.K.
8.3.1.3. France
8.3.1.4. Italy
8.3.1.5. Spain
8.3.1.6. Rest of Europe
8.3.2. Europe Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Offering, 2021-2034
8.3.3. Europe Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Organization Size, 2021-2034
8.3.4. Europe Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Vertical, 2021-2034
8.4. Asia Pacific
8.4.1. Asia Pacific Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
8.4.1.1. India
8.4.1.2. China
8.4.1.3. Japan
8.4.1.4. Australia
8.4.1.5. South Korea
8.4.1.6. Hong Kong
8.4.1.7. Southeast Asia
8.4.1.8. Rest of Asia Pacific
8.4.2. Asia Pacific Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Offering, 2021-2034
8.4.3. Asia Pacific Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Organization Size, 2021-2034
8.4.4. Asia Pacific Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Vertical, 2021-2034
8.5. Latin America
8.5.1. Latin America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
8.5.1.1. Brazil
8.5.1.2. Mexico
8.5.1.3. Rest of Latin America
8.5.2. Latin America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Offering, 2021-2034
8.5.3. Latin America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Organization Size, 2021-2034
8.5.4. Latin America Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Vertical, 2021-2034
8.6. Middle East & Africa
8.6.1. Middle East & Africa Wind Turbine Rotor Blade Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
8.6.1.1. GCC Countries
8.6.1.2. Israel
8.6.1.3. South Africa
8.6.1.4. Rest of Middle East and Africa
8.6.2. Middle East & Africa Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Offering, 2021-2034
8.6.3. Middle East & Africa Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Organization Size, 2021-2034
8.6.4. Middle East & Africa Mainframe Modernization Market Revenue (US$ Million) Estimates and Forecasts by Vertical, 2021-2034
Chapter 9. Competitive Landscape
9.1. Major Mergers and Acquisitions/Strategic Alliances
9.2. Company Profiles
9.2.1. IBM (US)
9.2.1.1. Business Overview
9.2.1.2. Key Product /Service Overview
9.2.1.3. Financial Performance
9.2.1.4. Geographical Presence
9.2.1.5. Recent Developments with Business Strategy
9.2.2. TCS (India)
9.2.3. Capgemini (France)
9.2.4. Atos (France)
9.2.5. AWS (US)
9.2.6. Micro Focus (UK)
9.2.7. BMC Software (US)
9.2.8. Infosys (India)
9.2.9. Wipro (India)
9.2.10. HCL Tech (India)
9.2.11. DXC Technology (US)
9.2.12. Kyndryl (US)
9.2.13. Rocket Software (US)
9.2.14. Fujitsu (Japan)
9.2.15. Cognizant (US)
9.2.16. Tech Mahindra (India)
9.2.17. Broadcom (US)
9.2.18. TmaxSoft (US)
9.2.19. PalmDigitalz (India)
9.2.20. TSRI (US)
9.2.21. Mechanical Orchard (US)
9.2.22. Virtualz Computing (US)
9.2.23. CloudFrame (US)
9.2.24. Heirloom (US)
Mainframe Modernization Market by Offering
· Software
· Modernization Services
Mainframe Modernization Market by Organization Size
· Large Enterprises
· Small & Medium Enterprises
Mainframe Modernization Market by Verticals
· BFIS
· IT & ITs
· Healthcare
· Media & Entertainment
· Retail & Commerce
· Education
· Manufacturing
· Government
· Telecom
· Other Verticals
Mainframe Modernization Market by Region
North America-
· The US
· Canada
Europe-
· Germany
· The UK
· France
· Italy
· Spain
· Rest of Europe
Asia-Pacific-
· China
· Japan
· India
· South Korea
· Southeast Asia
· Rest of Asia Pacific
Latin America-
· Brazil
· Argentina
· Mexico
· Rest of Latin America
Middle East & Africa-
· GCC Countries
· South Africa
· Rest of the Middle East and Africa