(MENAFN- GlobeNewsWire - Nasdaq) The legacy software modernization market presents opportunities driven by the need for operational efficiency, digital transformation, and cloud adoption. Growth is fueled by innovations in cloud-native technologies, AI-driven tools, and increasing cybersecurity focus, especially in North America and Asia-Pacific.Dublin, Jan. 14, 2026 (GLOBE NEWSWIRE) -- The "Legacy Software Modernization Global Market Report 2025" has been added to ResearchAndMarkets's offering.
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The legacy software modernization market is experiencing rapid growth, projected to expand from $13.02 billion in 2024 to $15.14 billion in 2025 at a CAGR of 16.2%. This surge is driven by reliance on outdated systems, the increasing need for operational efficiency, rising maintenance costs, and a growing demand for scalable software. The market size is expected to reach $27.3 billion in 2029, growing at a CAGR of 15.9%, as organizations invest in cloud technologies, cybersecurity modernization, and seek cost-efficient solutions.
A growing trend towards cloud-based platforms is enhancing the market's trajectory. These platforms offer scalable, cost-efficient solutions that transform outdated systems into modern architectures, thereby optimizing performance and business agility. For example, AAG IT reports increased cloud adoption among small and medium-sized businesses, with an estimated 63% of SMB workloads anticipated in public clouds by 2023.
Prominent companies are leveraging AI-driven applications to facilitate seamless migration to cloud-native architectures, improving operational efficiency and scalability. Red Hat exemplified this in October 2025 with the launch of AI-powered tools integrated with their Migration Toolkit for Applications (MTA), aimed at accelerating legacy codebase modernization.
The market is also characterized by strategic acquisitions, such as Rocket Software's acquisition of OpenText's Application Modernization and Connectivity (AMC) business for $2.275 billion in May 2024, bolstering its legacy modernization capabilities.
Key players in the market include Accenture plc, HCL Technologies Limited, ValueLabs LLP, and others. North America leads the market, while Asia-Pacific is poised for the fastest growth. Countries such as the USA, UK, China, and India play pivotal roles in this expansion.
Despite robust growth, the market faces challenges due to global trade tensions and tariffs which affect IT hardware and software sectors. Companies are responding by investing in domestic manufacturing and diversifying their supply chains.
This evolution in the legacy software modernization market reflects broader trends in digital transformation, with enterprises increasingly prioritizing efficient, secure, and scalable IT infrastructures to remain competitive in a dynamic global economy. The market report offers comprehensive insights, covering industry statistics, regional shares, and detailed market segments to aid stakeholders.
Report Scope:
Markets Covered:
Service Type: Application Modernization, Cloud Migration, Code Refactoring, Re-Platforming, Database Modernization, User Interface Modernization, Other Service Types Deployment Mode: On-Premises, Cloud-Based, Hybrid Organization Size: Large Enterprises, Small and Medium Enterprises Industry Vertical: BFSI, Healthcare, Government, Manufacturing, Retail, Telecommunications, Transportation and Logistics, Other Verticals
Subsegments:
Application Reengineering Cloud Migration Code Refactoring methods Re-Platforming strategies Database User Interface modernization techniques
Key Companies Mentioned: Accenture plc, HCL Technologies, ValueLabs, Damco Solutions, ScienceSoft USA, among others.
Key Attributes:
CONTACT:
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