Application Management Services Global Market Report 2024

The application management services market size has grown rapidly in recent years. It will grow from $31.62 billion in 2023 to $36.9 billion in 2024 at a compound annual growth rate (CAGR) of 16.7%. Historical growth can be attributed to various factors including the modernization of legacy systems, efforts to optimize costs, concentration on core competencies, increasing demands for scalability, and the improvement of performance and reliability.

The application management services market size is expected to see rapid growth in the next few years. It will grow to $73.6 billion in 2028 at a compound annual growth rate (CAGR) of 18.8%. Forecasted growth is fueled by user experience focus, cybersecurity integration, and adoption of DevOps and agile practices. Key trends include rapid technological changes, outcome-based models, cloud-native application management, application modernization services, and automation with intelligent operations.

The burgeoning demand for mobile apps is anticipated to significantly drive the expansion of the application management services market. Mobile apps, specifically designed for utilization on handheld devices such as smartphones and tablets, form a critical segment of software applications. Application management services play a pivotal role in overseeing and regulating access to both internally developed and commercially available mobile apps employed within business environments. For instance, as per 'Business of Apps,' a UK-based B2B media and information platform, the year 2021 marked a milestone with app downloads surpassing 100 billion for the first time, with projections indicating a staggering increase to 200 billion by 2025. This escalating demand for mobile apps stands as a prime catalyst fueling the growth of the application management services market.

The escalating landscape of cyber threats is poised to drive notable growth within the application management services market. These threats encompass a broad array of malicious activities aimed at compromising computer systems, networks, and sensitive data within the digital realm. Providers of application management services play a pivotal role in implementing and maintaining robust security measures, ensuring the fortification of systems, and compliance with industry regulations. For instance, as per CompTIA, a US-based vendor-neutral IT certifications provider, phishing attacks surged by a striking 48% in the initial six months of 2022, resulting in 11,395 reported incidents. These incidents incurred a cumulative financial impact of $12.3 million on businesses, underscoring the urgent need for stringent cybersecurity measures. Consequently, the proliferation of cyber threats serves as a significant driver fueling the growth of the application management services market.

Collaborative initiatives and strategic partnerships have emerged as a prominent trend within the application management services market. Major industry players are actively engaging in partnerships and collaborations to fortify their positions within the market landscape. For instance, in May 2021, CapTech Consulting, a US-based IT services and consulting company, forged a partnership with Workday, a software development company, to provide Workday Application Management Services. This collaboration facilitates the integration of advanced technologies, harnessing data insights, and implementing change management strategies. Leveraging the capabilities of Workday Financial Management and Workday Human Capital Management, the Workday AMS empowers Captech to deliver ongoing functional, technical, and administrative support to clients within their production environments, particularly in Human Capital Management (HCM).

Prominent players within the application management services market are dedicatedly pioneering innovative solutions, notably focusing on the development of comprehensive application management (CAM). This holistic approach entails overseeing the complete lifecycle of an application, spanning from its initial conception and development to deployment, ongoing maintenance, and eventual retirement. For example, in October 2023, Envista Holdings Corporation, a US-based enterprise consulting firm specializing in supply chain solutions, unveiled 'The Microsoft Application Management Services.' This offering is designed to provide clients with a comprehensive suite of application management services, encompassing ongoing monitoring, health assessments, and 24/7 service desk support. By leveraging this application management service, clients can sidestep the challenges of independently managing upgrades, ensuring seamless operations.

In September 2023, Recast Software, a prominent US-based provider of endpoint management services, completed the acquisition of Liquit for an undisclosed sum. This strategic acquisition equips Recast Software with an extensive application delivery platform, significantly bolstering the company's foothold in both endpoint and application management sectors. By integrating Liquit's expertise into its offerings, Recast Software aims to broaden its product range, extend its geographic reach, enhance customer service, and drive innovation within its operations. Liquit, a Netherlands-based company renowned for its specialization in application management services, further solidifies Recast Software's capabilities in this domain.

Major companies operating in the application management services market report are Accenture PLC, International Business Machines Corporation, Fujitsu Limited, Tata Consultancy Services Limited, Capgemini SE, NTT DATA Corporation, Larsen & Toubro Infotech Limited, Cognizant Technology Solutions Corporation, Infosys Limited, DXC Technology Company, Atos SE, Wipro Limited, Tech Mahindra Limited, EPAM Systems Inc., TietoEVRY Corporation, Unisys Corporation, Virtusa Corporation, Hexaware Technologies Limited, Perficient Inc., Persistent Systems Limited, Sonata Software Limited, Zensar Technologies Limited, Hinduja Global Solutions Limited, Mphasis Limited, NIIT Technologies Limited, Datamatics Global Services Limited, HCL Technologies Limited, Happiest Minds Technologies Limited, Mindtree Limited, Consultants to Government and Industry Incorporated, YASH Technologies Inc., Mindfire Solutions LLC, Birlasoft Limited, Microland Limited, Mastek Limited, Ness Digital Engineering Limited, Trigent Software Inc.

North America was the largest region in the application management services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the application management services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the application management services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Application management services encompass a range of service types crucial in the realm of enterprise application management. These services include application portfolio assessment, application security, application modernization, web and mobile solutions, cloud application migration, among others. Application portfolio assessment involves employing analytics to scan and evaluate applications comprehensively. These services cater to diverse deployment types, encompassing on-premise and cloud-based solutions. They are utilized by organizations across various scales, including small and medium-sized enterprises along with large enterprises, spanning across multiple industry verticals such as telecom & IT, BFSI, healthcare, retail & eCommerce, government & defense, manufacturing, and other sectors.

The application management services market research report is one of a series of new reports that provides application management services market statistics, including application management services industry global market size, regional shares, competitors with an application management services market share, detailed application management services market segments, market trends and opportunities, and any further data you may need to thrive in the application management services industry. This application management services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The application management services market consists of revenues earned by entities by providing custom management systems, software, and business intelligence. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.