Application Modernization Services Market Outlook:
Application Modernization Services Market size was over USD 22.48 billion in 2025 and is anticipated to cross USD 94.98 billion by 2035, witnessing more than 15.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of application modernization services is assessed at USD 25.62 billion.
The growth of the application modernization services market is driven by the increased demand for flexibility and scale that cloud computing provides, as well as the advantages of combining modern technologies with software systems.
Advanced technologies such as cloud computing, microservices, and containerization are used to develop modern applications. In order to facilitate innovation and adaptability in a competitive market, this allows organizations to quickly come up with new features and make use of them.
Additionally, many countries across the globe are promoting the integration of cloud computing. Over the next five years, public cloud spending in Australia is projected to increase by 83 percent. The volume of cloud services in the country is expected to reach 14.9 billion US dollars by 2026.
The growth of the application modernization services market is being driven by an increase in demand for improved software functionality as a result of the changing business environment.
Changes in the business context, where businesses are constantly looking to improve their operational procedures so that they can respond to evolving consumer demands, technical improvements, and increasing competition on the market, lead to a rise in demand for improved software functionality.
