Mainframe Modernization Market worth $13.34 billion by 2030| MarketsandMarkets™

DELRAY BEACH, Fla., Aug. 21, 2025 /PRNewswire/ -- According to MarketsandMarkets™, the Mainframe Modernization Market is expected to reach USD 13.34 billion by 2030 from USD 8.39 billion in 2025, at a CAGR of 9.7%, during 2025–2030.

Browse 150 market data Tables and 50 Figures spread through 300 Pages and in-depth TOC on "Mainframe Modernization Market - Global Forecast to 2030"

Scope of the Report

• Market Size Available for Years: 2019–2030
• 2025 Market Size: USD 8.39 billion
• 2030 Projected Market Size: USD 13.34 billion
• CAGR (2025–2030): 9.7%
• Segments covered: By offering, organization size, vertical, and region
• Region Highlight:  North America is projected to record the largest market during the forecast period

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The rapid rise of mainframe modernization is reshaping how enterprises address aging core systems, stricter regulatory demands, and shrinking legacy expertise. Large enterprises lead the transition, adopting advanced services and automation-driven software for scalable, compliant digital operations, while SMEs increasingly benefit from more accessible modernization platforms. These shifts create significant opportunities and drive the Mainframe Modernization Market.

As organizations transition to AI-driven and cloud-native architectures, they must navigate a myriad of challenges, including intricate code migrations, escalating cybersecurity threats, regulatory compliance, and ongoing talent shortages. Achieving successful modernization requires a pragmatic approach that combines phased, data-centric strategies with an emphasis on upskilling talent. Partnering with reputable technology providers is essential to achieve the right balance of agility, resilience, and compliance in a continuously evolving digital environment.

Large enterprises segment is expected to hold a higher market share during the forecast period

Large enterprises are expected to command the maximum market share, reflecting their deeper legacy technology investments and the mission-critical nature of their systems across sectors such as banking, insurance, and government. In recent years, these organizations have aggressively accelerated modernization to address the escalating risks and costs of maintaining legacy environments as well as to align with digital transformation, compliance, and data governance imperatives. Recent data indicates that large enterprises accounted for 75% of mainframe modernization spending in 2023, and this dominance is poised to continue as they execute phased migration and hybrid integration strategies to sustain operational uptime and regulatory adherence.

These organizations are also leading to the adoption of application modernization, API enablement, and cloud-native integration, often through partnerships with global service providers, which prove essential for maintaining real-time analytics and service resilience. The complexity and volume of legacy code, alongside the need for continuous transformation, position large enterprises at the forefront of the market. Their modernization initiatives can cost hundreds of millions of dollars, significantly exceeding the scale of the SME segment.

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Software offering segment is expected to hold the highest growth rate during the forecast period

Software solutions, including application modernization platforms, automated code conversion, DevOps tools, testing suites, and AI-driven modernization engines, are set to outpace other offerings in growth due to transformative shifts in organizational approach and execution of mainframe modernization. With the rise of generative AI and automation, enterprises are demanding software that automates refactoring legacy COBOL or PL/I code and provides real-time integration with public cloud, microservices, and open APIs. Innovative platforms offer automated code discovery, business logic extraction, and risk scoring, which drastically reduce manual effort and project duration from traditional multi-year timelines down to months for select workloads.

A clear indicator is the rapid adoption of AWS mainframe modernization software, which integrates tools for COBOL-to-Java refactoring and migration orchestration and has seen deployments at large US banks and European insurers processing upwards of 15 million transactions per day. Likewise, IBM's watsonx-powered mainframe tools have been credited with completing complex cross-region modernization projects involving millions of lines of code, underpinning new API ecosystems. Industry news highlights that service providers' revenues from software modernization platforms are growing nearly twice as fast as services tied to manual consulting, reflecting a strategic pivot toward automation and platform-led transformation.

North America is projected to record the largest market during the forecast period

North America's Mainframe Modernization Market is projected to remain the world's largest, underpinned by its concentration of Fortune 500 enterprises, advanced IT infrastructure, and early adoption of digital transformation and regulatory standards. Core industries such as banking, insurance, healthcare, and government rely on mainframes for mission-critical transactions and data processing, and their modernization efforts lead in both scale and pace. Key drivers include complex compliance requirements, the rapid rise in cloud adoption, and the shortage of skilled mainframe professionals, leading firms to outsource modernization to top-tier vendors and leverage automation and hybrid cloud architectures.

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The US and Canadian organizations collectively operate some of the highest MIPS mainframes globally, with banking giants and national agencies managing workloads that process billions of records weekly. North American service providers and software vendors are at the forefront of innovation, integrating AI, DevOps, and hybrid cloud to deliver seamless modernization journeys. JPMorgan Chase's high-profile AI-enabled mainframe migration and Canadian public sector cloud transitions highlight this regional leadership. The market's significance is further amplified by the continuous launch of dedicated mainframe modernization centers, robust government and enterprise investment, and a region-wide focus on scalable, secure, and API-driven modernization. This convergence of legacy scale, digital urgency, and technology leadership ensures North America's dominant market position through the coming years.

Top Key Companies in Mainframe Modernization Market:

The report profiles key players such as IBM (US), TCS (India), Capgemini (France), Atos (France), AWS (US), Micro Focus (UK), BMC Software (US), Infosys (India), Wipro (India), and HCL Tech (India).

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