The mainframe modernization market size has grown rapidly in recent years. 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 growth in the historic period can be attributed to rising cost of mainframe operations, shortage of cobol and mainframe talent, need for faster product innovation, pressure to integrate with digital channels, increased regulatory compliance requirements.
The mainframe modernization market size is expected to see rapid growth in the next few years. It will grow to $36.18 billion in 2030 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to growth of hybrid cloud mainframe strategies, adoption of automated modernization tools, increased use of containers and middleware integration, demand for real-time analytics on core data, expansion of managed modernization services. Major trends in the forecast period include mainframe to cloud migration programs, api enablement for core systems, automated code refactoring and conversion, hybrid mainframe integration architectures, modern devops for cobol workloads.
The increasing adoption of cloud based solutions is expected to drive the growth of the mainframe modernization market going forward. Cloud based solutions are computing resources such as infrastructure, platforms, and software delivered over the internet on demand and managed by third party providers. The shift toward cloud based solutions is due to expanding multi cloud strategies that improve resilience and reduce vendor lock in. Mainframe modernization supports this driver by refactoring and application programming interface enabling legacy workloads to connect with cloud native services and operate in hybrid or multi cloud environments. For instance, in March 2024, according to Flexera, a US based computer software company, multi cloud usage experienced a small increase, rising from 87 percent last year to 89 percent this year. Therefore, the increasing adoption of cloud based solutions is boosting the mainframe modernization market.
Key companies operating in the mainframe modernization market are emphasizing innovative product releases such as artificial intelligence enabled modernization services to accelerate migrations and reduce risk. Artificial intelligence enabled modernization services use generative to agentic artificial intelligence to automate analysis, code conversion, testing, and cutover planning across legacy mainframe systems. For instance, in June 2025, Kyndryl Inc., a US based provider of information technology infrastructure services, introduced Mainframe Modernization Services utilizing Amazon Web Services agentic artificial intelligence capabilities AWS Transform for Mainframe. It speeds up application and data migration away from the mainframe, automates modernization activities to reduce effort and errors, and offers advisory and implementation support to minimize cloud transition risks.
In January 2024, International Business Machines Corporation, a US based global information technology and consulting company, acquired Advanced Computer Software Group Limited for an undisclosed amount. Through this acquisition, IBM seeks to strengthen its mainframe application and data modernization capabilities by merging talent, tools, and expertise to accelerate clients hybrid cloud transformation journeys and broaden IBM Consulting’s modernization services. Advanced Computer Software Group Limited is a UK based company that provides application modernization, cloud services, and industry specific software.
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.
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. The countries covered in the mainframe modernization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Tariffs have created both challenges and opportunities for the mainframe modernization market by increasing the cost of importing enterprise servers, storage subsystems, networking equipment, and modernization lab infrastructure used for migration and integration testing. These cost increases can slow modernization timelines for large enterprises in North America and Europe that rely on Asia-Pacific hardware supply chains for critical infrastructure upgrades. Hardware-heavy segments such as on-prem mainframe connectivity appliances, hybrid integration gateways, and high-availability testing environments are most affected due to higher capital costs and longer procurement cycles. However, tariffs are also accelerating adoption of cloud migration, software-based integration, and automation tools that reduce dependence on physical infrastructure. Service providers are enhancing modernization accelerators, improving security and compliance capabilities, and offering managed transformation programs to help customers modernize core systems while controlling costs and operational risk.
The mainframe modernization market research report is one of a series of new reports that provides mainframe modernization market statistics, including mainframe modernization industry global market size, regional shares, competitors with a mainframe modernization market share, detailed mainframe modernization market segments, market trends and opportunities, and any further data you may need to thrive in the mainframe modernization industry. This mainframe modernization 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.
Mainframe modernization is the process of updating and transforming legacy mainframe systems to more modern, agile, and cost effective technologies. It involves migrating applications, data, and workloads from traditional mainframes to cloud based, distributed, or hybrid environments while preserving critical business functions. This modernization enhances scalability, performance, security, and integration with contemporary digital platforms.
The primary components of mainframe modernization are software, services, and hardware. Software refers to the tools and platforms used to modernize, transform, or integrate mainframe applications and data into modern cloud or hybrid environments. These are deployed on premises, cloud based, or hybrid, and are utilized by small and medium enterprises and large enterprises across applications such as core banking, risk and compliance, payments, customer management, and fraud detection, serving key end users including banking, financial services and insurance, healthcare, retail, government, manufacturing, information technology and telecommunications and others.
The mainframe modernization market consists of revenues earned by entities by providing services such as rehosting, replatforming, refactoring, code transformation, testing and quality assurance, migration and assessment, consulting and advisory, maintenance and support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
This product will be delivered within 1-3 business days.
The mainframe modernization market size is expected to see rapid growth in the next few years. It will grow to $36.18 billion in 2030 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to growth of hybrid cloud mainframe strategies, adoption of automated modernization tools, increased use of containers and middleware integration, demand for real-time analytics on core data, expansion of managed modernization services. Major trends in the forecast period include mainframe to cloud migration programs, api enablement for core systems, automated code refactoring and conversion, hybrid mainframe integration architectures, modern devops for cobol workloads.
The increasing adoption of cloud based solutions is expected to drive the growth of the mainframe modernization market going forward. Cloud based solutions are computing resources such as infrastructure, platforms, and software delivered over the internet on demand and managed by third party providers. The shift toward cloud based solutions is due to expanding multi cloud strategies that improve resilience and reduce vendor lock in. Mainframe modernization supports this driver by refactoring and application programming interface enabling legacy workloads to connect with cloud native services and operate in hybrid or multi cloud environments. For instance, in March 2024, according to Flexera, a US based computer software company, multi cloud usage experienced a small increase, rising from 87 percent last year to 89 percent this year. Therefore, the increasing adoption of cloud based solutions is boosting the mainframe modernization market.
Key companies operating in the mainframe modernization market are emphasizing innovative product releases such as artificial intelligence enabled modernization services to accelerate migrations and reduce risk. Artificial intelligence enabled modernization services use generative to agentic artificial intelligence to automate analysis, code conversion, testing, and cutover planning across legacy mainframe systems. For instance, in June 2025, Kyndryl Inc., a US based provider of information technology infrastructure services, introduced Mainframe Modernization Services utilizing Amazon Web Services agentic artificial intelligence capabilities AWS Transform for Mainframe. It speeds up application and data migration away from the mainframe, automates modernization activities to reduce effort and errors, and offers advisory and implementation support to minimize cloud transition risks.
In January 2024, International Business Machines Corporation, a US based global information technology and consulting company, acquired Advanced Computer Software Group Limited for an undisclosed amount. Through this acquisition, IBM seeks to strengthen its mainframe application and data modernization capabilities by merging talent, tools, and expertise to accelerate clients hybrid cloud transformation journeys and broaden IBM Consulting’s modernization services. Advanced Computer Software Group Limited is a UK based company that provides application modernization, cloud services, and industry specific software.
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.
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. The countries covered in the mainframe modernization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Tariffs have created both challenges and opportunities for the mainframe modernization market by increasing the cost of importing enterprise servers, storage subsystems, networking equipment, and modernization lab infrastructure used for migration and integration testing. These cost increases can slow modernization timelines for large enterprises in North America and Europe that rely on Asia-Pacific hardware supply chains for critical infrastructure upgrades. Hardware-heavy segments such as on-prem mainframe connectivity appliances, hybrid integration gateways, and high-availability testing environments are most affected due to higher capital costs and longer procurement cycles. However, tariffs are also accelerating adoption of cloud migration, software-based integration, and automation tools that reduce dependence on physical infrastructure. Service providers are enhancing modernization accelerators, improving security and compliance capabilities, and offering managed transformation programs to help customers modernize core systems while controlling costs and operational risk.
The mainframe modernization market research report is one of a series of new reports that provides mainframe modernization market statistics, including mainframe modernization industry global market size, regional shares, competitors with a mainframe modernization market share, detailed mainframe modernization market segments, market trends and opportunities, and any further data you may need to thrive in the mainframe modernization industry. This mainframe modernization 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.
Mainframe modernization is the process of updating and transforming legacy mainframe systems to more modern, agile, and cost effective technologies. It involves migrating applications, data, and workloads from traditional mainframes to cloud based, distributed, or hybrid environments while preserving critical business functions. This modernization enhances scalability, performance, security, and integration with contemporary digital platforms.
The primary components of mainframe modernization are software, services, and hardware. Software refers to the tools and platforms used to modernize, transform, or integrate mainframe applications and data into modern cloud or hybrid environments. These are deployed on premises, cloud based, or hybrid, and are utilized by small and medium enterprises and large enterprises across applications such as core banking, risk and compliance, payments, customer management, and fraud detection, serving key end users including banking, financial services and insurance, healthcare, retail, government, manufacturing, information technology and telecommunications and others.
The mainframe modernization market consists of revenues earned by entities by providing services such as rehosting, replatforming, refactoring, code transformation, testing and quality assurance, migration and assessment, consulting and advisory, maintenance and support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
This product will be delivered within 1-3 business days.
Table of Contents
1. Executive Summary
2. Mainframe Modernization Market Characteristics
3. Mainframe Modernization Market Supply Chain Analysis
4. Global Mainframe Modernization Market Trends and Strategies
5. Mainframe Modernization Market Analysis of End Use Industries
7. Global Mainframe Modernization Strategic Analysis Framework, Current Market Size, Market Comparisons and Growth Rate Analysis
8. Global Mainframe Modernization Total Addressable Market (TAM) Analysis for the Market
9. Mainframe Modernization Market Segmentation
10. Mainframe Modernization Market, Industry Metrics by Country
11. Mainframe Modernization Market Regional and Country Analysis
12. Asia-Pacific Mainframe Modernization Market
13. China Mainframe Modernization Market
14. India Mainframe Modernization Market
15. Japan Mainframe Modernization Market
16. Australia Mainframe Modernization Market
17. Indonesia Mainframe Modernization Market
18. South Korea Mainframe Modernization Market
19. Taiwan Mainframe Modernization Market
20. South East Asia Mainframe Modernization Market
21. Western Europe Mainframe Modernization Market
22. UK Mainframe Modernization Market
23. Germany Mainframe Modernization Market
24. France Mainframe Modernization Market
25. Italy Mainframe Modernization Market
26. Spain Mainframe Modernization Market
27. Eastern Europe Mainframe Modernization Market
28. Russia Mainframe Modernization Market
29. North America Mainframe Modernization Market
30. USA Mainframe Modernization Market
31. Canada Mainframe Modernization Market
32. South America Mainframe Modernization Market
33. Brazil Mainframe Modernization Market
34. Middle East Mainframe Modernization Market
35. Africa Mainframe Modernization Market
37. Mainframe Modernization Market Competitive Landscape and Company Profiles
38. Mainframe Modernization Market Other Major and Innovative Companies
41. Mainframe Modernization Market High Potential Countries, Segments and Strategies
42. Appendix
Executive Summary
Mainframe Modernization Market Global Report 2026 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses mainframe modernization market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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- Understand customers based on end user analysis.
- Benchmark performance against key competitors based on market share, innovation, and brand strength.
- Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
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Description
Where is the largest and fastest growing market for mainframe modernization? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The mainframe modernization market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
- The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
- The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
- The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
- The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
- The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
- Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.
Report Scope
Markets Covered:
1) By Component: Software; Services; Hardware2) 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 Platforms2) 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
Companies Mentioned: 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
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: Word, PDF or Interactive Report + Excel Dashboard
Added Benefits:
- Bi-Annual Data Update
- Customisation
- Expert Consultant Support
Companies Mentioned
The companies featured in this Mainframe Modernization market report include:- 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
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | February 2026 |
| Forecast Period | 2026 - 2030 |
| Estimated Market Value ( USD | $ 20.85 Billion |
| Forecasted Market Value ( USD | $ 36.18 Billion |
| Compound Annual Growth Rate | 14.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 21 |
