Application Management Services Market Report

Market Insights

"The global application management services market is projected to grow from USD 16.25 billion in 2022 to USD 51.76 billion by 2028 at a CAGR of 21.20% during the forecast period."

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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.

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.

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Segment Analysis

Service Trends

"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 & is expected to remain dominant during the forecast period. An increase in smartphone penetration globally is a key factor driving the segment's growth.

End-Use Trends

"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 5.87% 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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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 the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in This Report?

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. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate 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 1,000 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 10 detailed primary interviews with market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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 sales@stratviewresearch.com