Application Management Services Market Analysis | 2023-28

Market Insights

The application management services market was estimated at USD 16.2 billion in 2022 and is likely to grow at a CAGR of 21.2% during 2023-2028 to reach USD 51.7 billion in 2028.

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Market Dynamics

Introduction

Application management services are groups of services used by businesses to manage their existing application portfolio. These services begin with an assessment of the application portfolio, after which the necessary actions are summarized: whether the applications need to be migrated, re-platformed, or integrated with new systems. In addition, application security measures are implemented. These services can also be delegated to a managed service provider with experience managing enterprise application portfolios.

Market Drivers

The market is driven by a host of factors, some of which are noted below:

• Increase in the use of BOYD (bring your own device) in businesses.
• High demand for mobile apps, and robust mobile app management services.
• The increase in the use of cloud computing and companies seeking to derive value from cloud, analytics, social computing, and cognitive computing technologies.
• High investments in application security offset by IT application budgets.
• Technological advancements, the presence of a large number of legacy applications, and untapped potential.

The market is expected to grow following the COVID-19 pandemic. This is due to the rapid spread of the coronavirus throughout the world, which forced many businesses to switch to remote working and work-from-home modes during the COVID-19 lockdowns. As a result, organizations have turned to application management services and applications to help them remotely manage their software and cloud applications.

Furthermore, the growing importance of application management services and solutions in the digitization process of many small and medium-sized businesses is propelling the market during the pandemic.

Segments Analysis

By Service Type

"The application portfolio assessment segment accounted for the largest market share."

The market has been classified into application portfolio assessment, application security, web application security, mobile application security, application modernization, cloud application migration, and others. Under these, the application portfolio assessment segment held a significant market share in 2022 and is expected to remain dominant during the forecast period. An increase in smartphone penetration globally is a key factor driving the segment's growth.

By End-Use Type

"The BFSI segment accounted for the largest market share."

The market has been classified into BFSI, telecom and it, government, retail and e-commerce, healthcare and life sciences, manufacturing, & others. Under these, the BFSI segment accounted for the highest market share in 2022 and is expected to remain the largest market for application management services during the forecast period.

Banking services such as core banking, corporate, retail, investment banking, private banking, and cards are included in the BFSI vertical, as are financial services such as payment gateways, stock broking, mutual funds, and insurance services covering both life and general insurance policies. Because it deals with crucial financial data, the risk level in the BFSI sector is usually high.

This industry is speeding up its digital transformation strategy by deploying new technology and modernizing current applications. Changes in banking laws and an omnichannel strategy to improve customer service drive the BFSI vertical's application management services. The BFSI vertical mainly faces regulatory compliance difficulties, and challenges to attract new customers and increase customer profitability. To address this challenge, enterprises are emphasizing application management solutions and services.

In the approaching years, the healthcare industry may show an increasing proclivity towards application monitoring and administration, which will be closely followed by the public sector. The growing demand for public-sector application services is being driven by a scarcity of competitive IT employees, an expanding area of operations, and an ongoing need to keep up with the changing technological landscape.

Regional Insights

"North America accounted for the largest market share."

The North American market held the highest market share in 2022 and is projected to grow at the fastest CAGR in the coming years. The presence of well-known application management service providers, stringent data security regulations and compliance, and ongoing projects will drive the North American market. As a mature market for technology solutions and their implementation, North America is likely to lead in terms of application services demand.

The region's proliferation of developing technologies, including cloud, social media, analytics, and digitalization, is also to blame for the vast industrial size. Furthermore, the growth of the outsourcing industry, as well as the significant demand to reduce IT expenditures, are forcing businesses to explore alternative strategies to minimize spending.

Due to rising demand from developing countries like as China and India, the Asia-Pacific region is expected to grow the fastest throughout the projection period. The presence of a high number of significant vendors in the region is also beneficial to the region's growth. In terms of growth rate, the Middle Eastern and African region is predicted to trail the Asia Pacific region, growing at a CAGR of 5.8% in the next years.

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Key Players

Some of the key players operating in the application management services market are:

• Accenture (Republic of Ireland),
• Atos (France),
• Capgemini (France),
• Cognizant (US),
• Fujitsu (Japan),
• DXC (US),
• HCL (India),
• IBM (US),
• Wipro (India),
• Tech Mahindra (India)

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s application management services market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our application management services market report from the industry stakeholders, we have tried to further accentuate our research scope to the application management services market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors

Market Segmentation

This report studies the market, covering a period of 12 years of trends and forecasts. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The application management services market is segmented into the following categories:

By Service Type

• Application Portfolio Assessment
• Application Security
• Web Application Security
• Mobile Application Security
• Application Modernization
• Cloud Application Migration
• Others

By Organization Size Type

• SME
• Large Enterprise

By End-Use Type

• BFSI
• Telecom and IT
• Government
• Retail and eCommerce
• Healthcare and Life Sciences
• Manufacturing
• Others

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].