Legacy Modernization Market Size
| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 24.82 Billion |
| Market Size (2030) | USD 65.79 Billion |
| CAGR (2025 - 2030) | 21.54% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Legacy Modernization Market Analysis
The Legacy Modernization Market size is estimated at USD 24.82 billion in 2025, and is expected to reach USD 65.79 billion by 2030, at a CAGR of 21.54% during the forecast period (2025-2030).
- Organizations are modernizing their legacy systems to renew aging software applications. This effort is vital to ensure these technologies meet current industry standards and adapt to the dynamic needs of businesses.
- Organizations can streamline processes, automate previously manual tasks, and eliminate operational restriction by modernizing systems. The outcome is a notable enhancement in response times, reduced errors, and overall operational efficiency. Furthermore, the modular design of these modernized systems allows employees to redirect their focus toward higher-value activities, leading to heightened productivity and job satisfaction.
- While legacy systems often struggle to adapt to evolving business needs, modernized systems boast modularity, flexibility, scalability, and seamless integration with emerging technologies. This adaptability empowers businesses to swiftly respond to market trends, accelerate innovation, and maintain a competitive edge.
- Changing business landscapes drive the demand for enhanced software functionalities in the legacy modernization market. In a bid to remain competitive in the current digital age, businesses are discovering that their legacy systems, frequently rooted in outdated technology, struggle to meet contemporary demands. This awakening has hastened the move towards legacy modernization, emphasizing the need to upgrade software functionalities in tune with evolving trends and market dynamics.
- Outdated software, vulnerabilities, and diminished support render legacy systems susceptible to security threats. On the other hand, modernized systems are fortified with the security measures, protocols, and best practices. This proactive approach shields organizations from cyberattacks and data breaches and ensures compliance with regulations. Organizations can protect sensitive data, uphold customer trust, and avoid expensive legal repercussions by addressing these security challenges.
- Modernizing legacy systems, often characterized by their complexity and intricate ties to critical business processes, demands meticulous planning and risk management. A key step in this process is visualizing the system's essential functional domains, understanding their intricacies and interdependencies, and identifying potential failure points. Such foresight is vital for minimizing disruptions and ensuring a seamless transition.
- As remote work becomes the norm, many companies turn to cloud platforms, driving a heightened demand for migrating legacy systems to the cloud. Consequently, legacy modernization, particularly the transition of data, applications, and infrastructure to cloud environments, has emerged as a priority.
Legacy Modernization Market Trends
BFSI End-user Industry Segment is Expected to Hold Significant Market Share
- As technological advancements reshape the financial landscape and customer expectations evolve, banks are compelled to modernize their antiquated systems to remain competitive and secure. Overhauling legacy banking apps, often intricately woven into a bank's infrastructure, poses challenges due to their complexity and the potential disruption to vital services.
- Technology is pivotal in banking, ensuring efficient and secure customer service. By revamping these systems, banks can streamline operations, automate processes, and reduce manual interventions, leading to heightened efficiency and cost savings. Today's advanced systems facilitate real-time transaction processing, accelerating banking operations.
- Outdated banking platforms, such as specialized onboarding and round-the-clock customer service for end-user issues, often increase costs. By modernizing these apps, banks can significantly cut costs, relying on newer, dependable technologies that demand less frequent and intensive maintenance.
- As more consumers embrace online banking, they increasingly demand 24/7 access to financial services. In turn, BFSI institutions are being driven to upgrade their legacy systems, enabling features like mobile banking, rapid online loan approvals, immediate payments, and real-time fund transfers. Eurostat data indicates that from 2010 to 2023, online banking penetration in the EU climbed steadily, hitting 64 percent in 2023 - a four-percentage point increased from the prior year. Norway, Denmark, and the Netherlands led European nations, each boasting online banking penetration rates surpassing 95 percent in 2023.
- Customers expect seamless, real-time, personalized digital experiences in banking, insurance, and financial services. Legacy systems are often not equipped to support such experiences. Modernization allows BFSI organizations to offer mobile banking, online insurance claims processing, real-time trading, and other digital-first services that meet customer demands for convenience and speed.
Asia Pacific Expected to Witness Significant Growth in the Market
- Organizations across the Asia Pacific are embracing digital transformation to maintain their competitive edge in a swiftly changing technological environment. This shift frequently entails updating legacy IT systems to harmonize with advanced technologies such as cloud computing, AI, big data, and the Internet of Things (IoT).
- In the Asia Pacific, cloud computing leads the modernization of legacy systems. Cloud platforms offer advantages such as scalability, flexibility, and cost efficiency, enabling businesses to shed their outdated on-premises systems. However, as companies make this shift to the cloud, it's imperative for them to update their legacy applications and infrastructure. This ensures a seamless integration with cloud services and boosts performance in multi-cloud and hybrid settings. Data from Japan's Ministry of Internal Affairs and Communications reveals that over half of Japanese companies have fully adopted cloud services, while an additional 27.1 percent have done so in select offices or departments.
- In the BFSI sector, rising consumer demand for efficient and user friendly digital services prompts companies to update their legacy systems. Customers across the Asia Pacific anticipate services like mobile banking, digital payments, online insurance claims, and real-time transactions capabilities that legacy systems often struggle to deliver. In response, financial institutions are channeling investments into mobile-first platforms, digital wallets, open banking, and AI-enhanced customer service solutions, all necessitating updates to legacy systems to align with customer demands.
- As the financial services sector in the Asia Pacific rapidly embraces digital banking, contactless payments, and mobile wallets, there's an escalating need to modernize core banking systems and IT infrastructure. Data from CNNIC highlights the surge in online payment adoption in China, with usage doubling over the past decade. By June 2024, approximately 88.31 percent of internet users in China had used online payment services.
- Key players in the Asia Pacific technology and IT services industry are forming partnerships that are significantly propelling the Legacy Modernization Market. Through these collaborations, businesses across the region are modernizing outdated IT infrastructures, migrating legacy systems to cloud-native environments, and embracing more flexible, scalable technologies.
- In June 2024, Kyndryl, the globe's leading IT infrastructure services provider, unveiled its inaugural Mainframe Modernization Center of Excellence (CoE) in Malaysia in collaboration with Amazon Web Services (AWS). This CoE will merge Kyndryl's deep expertise in mission-critical mainframe systems with AWS's prowess in aiding enterprises in modernizing and transitioning their legacy mainframe applications to a cloud-native setting.
Legacy Modernization Industry Overview
The legacy modernization market is fragmented, with global and local or regional players operating across various segments. This fragmentation is driven by the demand for the legacy modernization market across a wide range of end-user verticals, allowing both large and small companies to coexist and thrive in the market.
Leading companies in the legacy modernization market include IBM Corporation, Atos Group (Eviden SAS), Capgemini, Cognizant, and Fujitsu. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
In the emerging legacy modernization market, vendors are channeling significant investments into research and development (R&D). Their goal is to enhance the efficiency and practicality of legacy modernization market harvesting technologies. As the market is still in its infancy, this emphasis on innovation is vital for vendors aiming to secure a competitive advantage.
Legacy Modernization Market Leaders
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IBM Corporation
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Atos Group (Eviden SAS)
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Capgemini
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Cognizant
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Fujitsu
- *Disclaimer: Major Players sorted in no particular order
Legacy Modernization Market News
- September 2024: Sembix, a pioneering company focused on AI-powered solutions, has launched two innovative offerings, Sembix Studio and the Modernization Workflow Pack. By leveraging advanced AI and cloud technologies, Sembix transforms legacy systems into modern frameworks, such as COBOL, RPG, legacy Java, and .NET. These transformations occur at a fraction of the time, cost, and risk typically associated with such endeavors. The solutions provide organizations with a cost-effective way to upgrade outdated systems into modern, scalable, and secure applications. This modernization supports sustained growth and innovation and significantly reduces maintenance and development costs.
- March 2024: Accenture Federal Services has teamed up with Microsoft to unveil a pioneering, comprehensive Cloud Modernization and Migration Factory on Microsoft Azure Government. This initiative aims to uphold the rigorous security benchmarks essential for entities in the national security realm, notably the Special Access Program community. This all-encompassing service is designed to assist federal agencies and their ecosystem partners, regardless of their current location.
Legacy Modernization Industry Segmentation
Organizations are undertaking legacy modernization to revitalize outdated software applications and systems. This essential process aligns these technologies with today's industry standards and businesses' evolving needs.
The study tracks the revenue accrued through the sale of the legacy modernization software and services by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
Legacy modernization market is segmented by component (software, services), by deployment type (on-premises, cloud), by end-user industry (BFSI, manufacturing, healthcare, IT and telecommunication, retail, other industry vertical), by geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.
| By Component | Software |
| Services | |
| By Deployment Type | On-premises |
| Cloud | |
| By End-User Industry | BFSI |
| Manufacturing | |
| Healthcare | |
| IT and Telecommunication | |
| Retail | |
| Other Industry Vertical | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Legacy Modernization Market Research FAQs
How big is the Legacy Modernization Market?
The Legacy Modernization Market size is expected to reach USD 24.82 billion in 2025 and grow at a CAGR of 21.54% to reach USD 65.79 billion by 2030.
What is the current Legacy Modernization Market size?
In 2025, the Legacy Modernization Market size is expected to reach USD 24.82 billion.
Who are the key players in Legacy Modernization Market?
IBM Corporation, Atos Group (Eviden SAS), Capgemini, Cognizant and Fujitsu are the major companies operating in the Legacy Modernization Market.
Which is the fastest growing region in Legacy Modernization Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Legacy Modernization Market?
In 2025, the North America accounts for the largest market share in Legacy Modernization Market.
What years does this Legacy Modernization Market cover, and what was the market size in 2024?
In 2024, the Legacy Modernization Market size was estimated at USD 19.47 billion. The report covers the Legacy Modernization Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Legacy Modernization Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Legacy Modernization Industry Report
Statistics for the 2025 Legacy Modernization market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Legacy Modernization analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
