Legacy Software Modernization Market is Projected to Increase at a CAGR of 15.9% Through 2025-2029
The Business Research Company
The Business Research Company's Legacy Software Modernization Market is Projected to Increase at a CAGR of 15.9% Through 2025-2029
LONDON, GREATER LONDON, UNITED KINGDOM, December 1, 2025 /EINPresswire.com/ -- "Get 20% Off All Global Market Reports With Code ONLINE20 – Stay Ahead Of Trade Shifts, Macroeconomic Trends, And Industry Disruptors
What Is The Projected Market Size & Growth Rate Of The Legacy Software Modernization Market?
The market size for legacy software modernization has experienced substantial growth in the recent past. The projection shows an increase from $13.02 billion in 2024 to $15.14 billion in 2025, reflecting a compound annual growth rate (CAGR) of 16.2%. This substantial growth in the previous period is a result of the escalating dependence on obsolete systems, the escalating necessity for operational efficacy, the rising costs of maintaining legacy software, the increased adoption of digital transformation strategies, and the escalating demand for software scalability.
The market size of legacy software modernization services is anticipated to expand significantly in the coming years, reaching $27.30 billion in 2029 with a compound annual growth rate (CAGR) of 15.9%. The expected growth in the forecast period can be linked to the rise in investments in cloud technology, an increased focus on cybersecurity modernization, the development of hybrid and multi-cloud environments, escalated demand for cost-effective modernization solutions, and a heightened focus on enhancing user experiences. Key trends for the forecast period consist of the progression in cloud-native technology, breakthroughs in application modernization platforms, research and development efforts in automation frameworks, the evolution of low-code and no-code modernization applications, and technological advancements in tools for migrating from legacy to cloud.
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What Is The Crucial Factor Driving The Global Legacy Software Modernization Market?
The market size of legacy software modernization services is anticipated to expand significantly in the coming years, reaching $27.30 billion in 2029 with a compound annual growth rate (CAGR) of 15.9%. The expected growth in the forecast period can be linked to the rise in investments in cloud technology, an increased focus on cybersecurity modernization, the development of hybrid and multi-cloud environments, escalated demand for cost-effective modernization solutions, and a heightened focus on enhancing user experiences. Key trends for the forecast period consist of the progression in cloud-native technology, breakthroughs in application modernization platforms, research and development efforts in automation frameworks, the evolution of low-code and no-code modernization applications, and technological advancements in tools for migrating from legacy to cloud.
Who Are The Emerging Players In The Legacy Software Modernization Market?
Major players in the Legacy Software Modernization Global Market Report 2025 include:
• Accenture plc
• HCL Technologies Limited
• ValueLabs LLP
• Damco Solutions
• ScienceSoft USA Corporation
• Rishabh Software Pvt. Ltd.
• OpenXcell Technolabs Pvt. Ltd.
• ITRex Group
• Merixstudio Sp. z o.o.
• instinctools GmbH
What Are The Future Trends Of The Legacy Software Modernization Market?
Prominent companies active in the field of legacy software modernization services are directing their efforts towards building AI-based modernization applications. These applications aim to facilitate the easy transfer of outdated systems to cloud-native structures, enhance operational efficiency, increase scalability, and aid digital transformation efforts. These AI-operated apps, using artificial intelligence, can assess, restructure and convert old systems, making the shift to contemporary platforms quicker and more efficient, and enabling smooth integration with cloud and digital technologies. For example, in October 2025, Red Hat, a software company from the US, launched AI-enabled utilities designed to speed up application modernization, especially for businesses handling old codebases. These utilities combine with Red Hat’s Migration Toolkit for Applications (MTA) to offer automated code evaluation, refactoring recommendations, and assistance in shifting applications to cloud-native settings. This allows developers to minimize manual labor, enhance workflow efficiency, and update applications more swiftly while ensuring their compatibility with present-day platforms and architectures.
What Segments Are Covered In The Legacy Software Modernization Market Report?
The legacy software modernization market covered in this report is segmented –
1) By Service Type: Application Modernization, Cloud Migration, Code Refactoring, Re-Platforming, Database Modernization, User Interface Modernization, Other Service Types
2) By Deployment Mode: On-Premises, Cloud-Based, Hybrid
3) By Organization Size: Large Enterprises, Small And Medium Enterprises
4) By Industry Vertical: Banking, Financial Services, And Insurance (BFSI), Healthcare, Government, Manufacturing, Retail, Telecommunications, Transportation And Logistics, Other Industry Verticals
Sub Segment:
1) By Application Modernization: Application Reengineering, Microservices Transformation, Containerization, Legacy Code Replacement, Application Portfolio Rationalization
2) By Cloud Migration: Public Cloud Migration, Private Cloud Migration, Hybrid Cloud Migration, Infrastructure As A Service Migration, Platform As A Service Migration, Software As A Service Migration
3) By Code Refactoring: Language Modernization, Code Optimization, Monolith To Microservices Refactoring, Dependency Modernization, Dead Code Elimination, Test Coverage Improvement
4) By Re-Platforming: Rehosting Lift And Shift, Platform Reengineering, Middleware Modernization, Operating System Upgrade, Runtime Environment Modernization
5) By Database Modernization: Database Migration, Schema Modernization, Database Consolidation, Data Warehouse Modernization, Mainframe Data Offloading
6) By User Interface Modernization: Responsive Web Redesign, Accessibility Remediation, Design System Implementation, Front End Framework Upgrade, Progressive Web Application Enablement, Mobile First Modernization
7) By Other Service Types: Application Programming Interface Modernization, Development And Operations Transformation, Quality Assurance And Testing Modernization, Security Hardening And Compliance Modernization, Legacy System Assessment And Roadmapping, Training And Change Management, Support And Maintenance Modernization, Project Management And Governance
View the full legacy software modernization market report:
https://www.thebusinessresearchcompany.com/report/legacy-software-modernization-global-market-report
Which Region Is Projected To Hold The Largest Market Share In The Global Legacy Software Modernization Market?
In 2024, North America was reported as the dominant region in the Legacy Software Modernization Global Market Report. It is anticipated that Asia-Pacific will witness the most accelerated growth in the coming forecast timeframe. The report provides detailed insight into various regions including North America, Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.
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