Outlook application modernization  market      

  The application modernization market size is projected to grow from USD 22.91 billion in 2025 to USD 27.46 billion in 2026, highlighting the rapid pace of adoption across industries. Over the forecast period from 2026 to 2031, the market is expected to expand significantly, reaching USD 67.91 billion by 2031 at a robust compound annual growth rate (CAGR) of 19.86%.  

Legacy applications, often built decades ago using outdated programming languages and architectures, present limitations in scalability, integration, and security. As businesses increasingly rely on digital platforms to deliver services and customer experiences, modernization has become a strategic priority. Enterprises are replacing monolithic systems with modular, scalable solutions that support cloud computing, automation, artificial intelligence, and real-time analytics.  

Key Trends Driving the Application Modernization Market 

Cloud-Native and Microservices Adoption 
Organizations are increasingly modernizing applications using cloud-native architectures and microservices. Instead of relying on large monolithic systems, they break applications into smaller services that can be updated and scaled independently. This improves flexibility, reduces downtime, and speeds up software releases. Tools like containers and Kubernetes also help ensure smooth deployment across cloud environments. 

Cost Savings and Better Efficiency 
Application modernization helps reduce IT costs and improve operational efficiency. Legacy systems are expensive to maintain and often use outdated infrastructure. Moving applications to the cloud lowers maintenance expenses and improves resource usage. This allows organizations to invest more in innovation, including AI, analytics, and digital transformation. 

Improved Security and Compliance 
Modern applications provide stronger security features compared to legacy systems. They include encryption, monitoring, and threat detection to protect sensitive data. Microservices also improve system reliability by isolating issues and preventing widespread failures. This helps organizations meet regulatory requirements and maintain secure operations. 

Growth of Platform Engineering and Automation 
Platform engineering and automation are making modernization faster and easier. Companies use internal platforms with ready-to-use tools and automated workflows to simplify development and deployment. Automation also helps analyze legacy systems and speed up migration. These improvements increase developer productivity and support faster innovation. 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/applicatoin-modernization-market?utm_source=globbook  

Market Segmentation Analysis 

Key Players of the Market 

Conclusion 

Application modernization is becoming a fundamental component of enterprise digital transformation strategies. As organizations seek to improve agility, reduce costs, enhance security, and support innovation, modernization initiatives will continue to accelerate. The rapid adoption of cloud-native technologies, automation, and microservices is transforming enterprise IT environments. 

With strong growth projections, increasing enterprise investments, and expanding cloud adoption, the application modernization market share is expected to experience sustained expansion through 2031. Modernization will remain essential for organizations seeking to remain competitive in an increasingly digital and technology-driven global economy. to remain competitive in an increasingly digital and technology-driven global economy.