45+ Application Modernization Statistics – Essential Facts & Usage Trends

Application modernization is not merely the process of bringing the application to the level of modern technology but something essential for those large enterprises wanting to survive in the emerging digital environment. Interestingly, around 92% of companies said they were in the process of modernizing or actively planning to do so. Such a wave of modernization reflects how essential it is to tackle this demand that is growing day-to-day for quick, easy, and smart solutions.

In addition, application modernization encourages business growth and customer engagement satisfaction with many benefits that can impact business performance. While businesses have made tremendous progress in transforming and integrating traditional systems, they still have to do much to tap into modernization solutions.

Therefore, it is the best time to know everything about app modernization, including 45 application modernization statistics. So, let’s dive into the details:

What is Application Modernization?

Application modernization is a process where legacy software applications are upgraded, adapted, and redeveloped according to new business processes and requirements as well as the latest trends in software development technology. It could also mean re-architecting, re-platforming, re-hosting, re-coding, or even application modernizing with another one that reflects the new standards.

The improvement of the application in performance, flexibility, stability, and usability is desirable. Application modernization becomes pertinent today because refreshing these systems offers a competitive advantage in this digitally changing landscape that is evolving at a faster pace.

Now that we understand the need and the benefits of app modernization, it’s now turn to see some recent application modernization statistics to check what impact it makes:

Key Application Modernization Statistics To Know About

The growing utilization of cloud computing and the adoption of DevOps best practices for better software functionality is motivating the application modernization services market. One more reason for this market to expand further is that the government has been providing more support for application modernization service usage.

1. According to a recent survey, 87% of business executives reported that modernization is required to be done for a company in order to expand and thrive.

2. The application modernization market is estimated to grow from its 2023 value of USD 21.32 billion to USD 74.63 billion, with a compound annual growth rate of 18.7% from 2024 to 2031.

3. The application modernization services market is projected to grow at a compound annual growth rate (CAGR) of 14.8% during the forecast period, from USD 19.82 billion in 2024 to USD 39.62 billion by 2029.

4. The European market for application modernization services was valued at $2.14 billion in 2019 and is projected to rise to $6.60 billion by 2027 at a compound annual growth rate (CAGR) of 15.1% from 2020 to 2027.

5. The application modernization tools’ global market is estimated to grow with a compound annual growth rate of 19.20% during the forecast period of 2023 and 2030 and is expected to value around USD 8951.2 million by Cognitive Market Research.

6. Most recent research analyses coming from Market Research Future reveal that the application modernization services market has the potential to grow $32.7 billion CAGR 16.5% at the end of the year 2032.

7. Application modernization reduces maintenance and running app costs by 50%.

8. Infra savings occur to the company at around 35% when a company adopts the app modernization

9. Overall costs related to hardware, software, and staff come down to 74% post-modernization.

10. Application efficiency is improved by 10%, enhancing operations’ performance.

11. Companies also saw an increase in yearly revenues at a level of 14%.

12. As of March 2024, only 3% of applications worldwide earned money via this route; meanwhile, in the US, 7% of apps were paid apps. To add to this, 24% of US apps made money due to advertisements. Around 31% of applications also featured advertisements in them outside the US.

13. From 3.67 billion smartphone users around the world in 2016 to about 7 billion by the end of 2024, Data Modernization has become a necessity for businesses to fulfill the growing demands.

14. The use of mobile wallets for the POS checkout process will grow at a rate of 46% by 2027.

15. 48% of respondents said complexity in legacy applications was one of the major challenges for organizations.

16. Around 41% of respondents anticipate that they find it difficult to choose the right approach for application modernization.

17. Employee resistance is the reason behind 39% of organizational change initiatives failing, according to McKinsey Company. Users who have a predilection for particular features or interfaces may find it difficult to switch to the updated version.

18. According to a survey, 79% of app modernization projects fail due to financial losses.

19. 42% of companies believe that they have encountered problems with conflicting priorities.

20. Companies are working hard to update their custom applications, and 23% of them expect to complete this within the next six months.

21. With a more measured approach, 28% of companies expect that their modernization activities will take one to two years to complete.

22. 21% of organizations assume it will take over two years to modernize the applications, mainly because the existing applications are too large or overly complicated.

23. The average duration for an app modernization effort is 16 months per project as said by more than half, 58%, of app and architectural leaders, whereas over 27% said they take two years or even longer.

24. With a market size of USD 447.56 billion in 2023 and projected to increase at a compound annual growth rate (CAGR) of 18.6% from 2023 to 2030, Latin America accounts for more than 5% of global sales.

25. The application modernization tools market for the rest of Latin America will rise at a compound annual growth rate (CAGR) of 17.7% through the forecast period. Its market size in the forecast period is USD 72.06 million in 2023.

26. The application re-platforming segment had a 22.9% revenue share in 2023 and will dominate the market through the forecast period.

27. With a 39.7% revenue share in the application modernization services market in 2023, North America took the lead.

28. The application modernization services market in the U.S. holds a global share of 31.1% in 2023.

29. 83% of Business executives emphasize more on customer experience in terms of application modernization.

30. According to Grandviewresearch, the application modernization services market concentration is high on the degree of innovation.

Application Modernization Statistics – Why Businesses are Paying Attention to Legacy Application Modernization?

31. Modernization is mainly fueled by increased security, with 58% of businesses prioritizing it to address outdated vulnerabilities and introduce new-age security measures.

32. Improved Enterprise Application integration with contemporary technology allows easy connectivity with new tools and systems, thereby improving total functionality, according to 46% of the respondents.

33. 54% of businesses claim that increased operational efficiency drives them to update since it enhances the operation procedures and reduces downtime.

34. 49% of businesses are led by cost reduction, upgrading lowers maintenance costs and maximizes the use of resources.

35. The adoption of increasingly sophisticated technology, such as artificial intelligence (AI), drives 35% of businesses to modernize and make use of new capabilities to gain a competitive edge.

36. Increased scalability facilitates growth and more efficiently manages growing workloads, which is significant for 31% of businesses.

37. Through updated systems, improved customer experience—a priority for 27% of respondents—improves service delivery and satisfaction.

38. Improved user experience—highlighted by 24%—increases worker happiness and productivity by offering more effective and user-friendly tools.

39. Around 64% improvement in agility and flexibility makes it easier for businesses to make rapid changes to meet the dynamic requirements of consumers and conditions in the market.

40. 19% of businesses worry about regulatory compliance, making sure that upgraded systems adhere to current legal requirements and industry norms.

Global Application Modernization Services Market – By Region

IBM projects that, by 2030, more than 60% of APAC businesses will have undergone digital transformation initiatives. In this projection period of 2021 to 2026, these factors are expected to expand the market share.

The geographical analysis of North America is divided into countries. These include the US and Canada. The US holds the highest market share in North America in the adoption of application modernization. It aids the enhancement of corporate productivity and the efficiency of workers. American companies are adopting cloud-based services because of their flexibility, scalability, and minimal maintenance expenses.

In the US, cloud technology adoption is reportedly very high. Because of the high accessibility of the nation’s highly established digital infrastructure environment, companies can efficiently upgrade their existing legacy systems and boost profitability. One of the key factors propelling the nation’s market for application modernization services is the urgent requirement for the modernization of numerous old outdated systems.

App Modernization and Workforce Retention Challenges and Opportunities

Cybersecurity and Software Developer Demand: Cybersecurity professionals’ demand will increase as 52% of the companies say that cybersecurity is a main focus area for their app modernization program.

Cloud Modernization: This drove the highly modernized firms to have 54% more apps developed in cloud architecture compared to partially modernized ones. 

Cloud-First Adoption: In 2025, 85% of the organizations will be cloud-first but digital transformation efforts mandate cloud-native technologies.

Lack of Expertise: 38% of the businesses report that the lack of expertise is one of the barriers to modernization, and less than 10% of the staff have experience with cloud migration strategies or modernization.

People shortage and recruitment: Finding the right talent takes 4-6 months, and 86% of employers feel that there is a rising competition for candidates in the tight economy.

Staff Retention: 73% of CIOs fear that headhunters will steal away employees. 

Providing growth opportunities can improve retention, but 43% of companies have budgetary restrictions, 38% do not have time for training, and 32% prefer hiring rather than upskilling.

Future Trends in Application Modernization

To utilize your mobile app to its fullest potential, it is necessary to modernize your app while keeping future mobile app trends in mind. Let’s discuss some future trends and demanding modernization areas to list your case in the top application modernization statistics.

AI and Machine Learning Integration

The application of artificial intelligence and machine learning development in the majority of modernization done on most advanced applications also is emerging. According to the Red Hat Application Modernization Report 2024, 78% of organizations expect AI to facilitate application modernization. AI and Machine Learning may aid decision-making, require fewer workers, and also provide analytics

Edge Computing

Another significant trend is the concept of edge computing, which means data processing at the network edges closer to the source. This approach is trusted by 83% of companies to stay competitive in the future as it minimizes latency, optimizes application performance, and is ideal for real-time solutions.

Hybrid and Multi-Cloud Strategies

Hybrid Cloud and multi-cloud solutions are emerging as organizations seek to fully exploit several cloud platforms. 84% of enterprises have adopted a multi-cloud architecture to modernize applications. This strategy introduces flexibility, resilience, and cloud cost optimization into the technical systems.

API-First Development

The idea of building APIs first has gained much momentum lately, where the core focus is on building APIs that are stable and easy to scale. About 42% of companies used API-driven development approaches to overcome their app modernization challenges. It helps assimilate, enhances cohesion, and optimizes the application modernization process.

Serverless Computing

Serverless computing is emerging as one of the most adopted strategies for current application modernization. Application modernization is strongly associated with improving serverless computing by 51%. It enables developers to create and run applications that do not have to depend on the cloud infrastructure.

Quantum Computing

Still, in its nascent stage, quantum computing is still strong enough to revolutionize application modernization. Quantum Computing has an adoption rate of 29% with other emerging technologies like AI, VR, etc to power modern application solutions. It boasts of providing computational capabilities for the first time that could help solve problems and improve processes.

Tools and Technologies for Application Modernization

The choice of application modernization technologies and tools also plays a major role in shaping the outcome of an application modernization effort. Here is a list of the most important tools and advanced technologies that can be used:

Containers & Kubernetes

Containers and Kubernetes development allow developers to design scalable, reliable apps that can work in various environments.

Cloud Native Computing

This model performs processes in the cloud environment. Cloud-native platform outsources the code of software systems to a cloud services provider, but it does not avoid the use of a server. After that, each time a request arrives, that legacy code is performed.

From Monolith to Application Modernization Microservices

Many benefits force the shift from monolithic applications to more efficient microservices. Since application components are not packaged together, microservices development make architectural upgrades accessible and cheaper.

Best Practices for Successful Application Modernization

A logical and efficient approach is required for the modernization of the application along with adherence to best practices:

Assess and Prioritize Applications

Conduct a comprehensive evaluation of your current applications before moving to a modernization program into production. Determine the business-relevant applications that are most important for operations and allocate them according to aspects such as business relevance, complexity, and cost.

Define Clear Objectives

Establish quantifiable goals for your application modernization efforts. Goals could be performance, security, or cost; regardless of the set goals, they will serve as a guide to your digital transformation project and mark the points it attains.

Select the Right Modernization Strategy

Application modernization can be done through re-hosting, re-platforming, re-architecting, and replacement. Select the right approach towards your business goals and IT infrastructure.

Utilize Cloud Technologies

Cloud migration provides definite benefits that include scalability, cost-effectiveness, and access to modern technology. Identify opportunities to make maximum utilization of the cloud capabilities provided by the shift through the development of cloud-native applications.

Emphasize Experience

Modern applications should also have an excellent, clear, and easy-to-use interface. It is advisable that the end-users should be included in the design and testing phase so that these applications are optimized for their tailored needs and demands.

Introduce Agile Methodologies

The benefit of agile methods implementation further sustains the process of modernization and helps to enhance the interaction among teams. The above-mentioned practices, namely iterative development, continuous integration, and feedback cycles, lead to a better outcome and are thus sustainable software development methodologies.

Ensure Data Security and Compliance

Security and compliance should be some of the most critical considerations during application modernization. Enact strict security features and ensure that the new applications you develop are compliant with current laws and guidelines. 

Plan for Continuous Improvement

Application modernization is not a one-time process. Accept the concept of utilizing improved applications that are constantly updated according to technological advancement and business needs.

Jigar Agrawal

Digital Growth Hacker

Jigar Agrawal is Digital Marketing Manager at eSparkBiz Technologies. He is passionate about anything related to Trending Technologies. Wants to unlock the world of Technology and Social Media where every day there is a chance of new possibility as well as innovation.