Enjoy complimentary customisation on priority with our Enterprise License!
The application management services market size is forecast to increase by USD 74.1 billion at a CAGR of 28.81% between 2023 and 2028. The Application Management Services (AMS) market is experiencing significant growth due to the increasing IT requirements for managing complex applications and systems. One of the key drivers is the widespread adoption of personal devices in the workplace, leading to an increase in the need for managing and maintaining various applications. Another trend is the shift towards Microservices and Minimal Personalisation, requiring Java developers to focus on building and managing smaller, modular applications. Legacy applications and systems continue to pose challenges, with their licensing costs and longer implementation processes hindering market growth. However, the demand for AMS is expected to remain strong as organizations seek to optimize their application portfolios and ensure seamless user experiences across mobile applications and other digital channels.
The market for mobile applications is experiencing significant growth due to the increasing adoption rate of smartphone devices and the integration of Internet of Things (IoT) services. Cloud computing has become a preferred choice for organizations of all sizes due to its cost-effectiveness and scalability, leading to the widespread adoption of cloud-based solutions. Next-generation technologies such as microservices, Java developers' favorite Spring Boot and Spring Cloud, and Azure Spring Cloud, are driving the market's growth. However, the complexity of modern applications, security issues, opposition to change, and integration difficulties pose challenges. Organizations face adherence to regulations and minimal personalization as significant barriers to implementing new IT requirements.
Nerdio Advisor, a leading application management services provider, offers feature recommendations and deployment services to help organizations overcome these challenges. Performance and licensing are crucial factors in selecting application management services, with organizations prioritizing solutions that can address growing application complexity and ensure security. Legacy systems continue to pose challenges, but cloud-based solutions and next-generation technologies are providing effective solutions. The market is expected to grow further as organizations continue to invest in application management services to optimize performance, enhance security, and streamline IT operations.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The discrete AMS segment is estimated to witness significant growth during the forecast period. Discrete application management services play a crucial role in ensuring that an organization's IT initiatives align with its business strategy. Java developers and legacy systems continue to be a significant focus area in this market, with a growing emphasis on licensing models that promote flexibility and cost savings. The adoption of Microservices architecture and Minimal Personalisation are key trends, enabling the development of mobile applications that offer user-friendly experiences. The need to optimize IT spending and streamline business processes is driving the growth of the market. Social media is also influencing the market, with companies prioritizing user-friendly, collaborative, and flexible software solutions to meet evolving business needs. Effective application management services help reduce risks and problems, enhance customer satisfaction, and contribute to overall business success.
Get a glance at the market share of various segments Request Free Sample
The discrete AMS segment accounted for USD 8.10 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The market in North America is witnessing significant growth due to the increasing IT requirements of large corporations, SMEs, and government organizations across various industry verticals, including BFSI, telecom, public sector, and oil and gas. These organizations are implementing application management services offerings such as IT outsourcing, consulting, system integration, IT support, and cloud computing to streamline their operations and focus on their core business functions. Java developers and legacy systems continue to be a crucial part of the application management services landscape. companies are offering licensing models that cater to both on-premises and cloud-based deployments, enabling organizations to choose the best fit for their IT infrastructure.
Furthermore, the adoption of Microservices architecture and Minimal Personalisation is gaining traction, allowing for greater flexibility and scalability in application development and deployment. Competition in the market is intensifying, leading companies to upgrade their offerings to maintain market share. The US is the largest market for application management services, with significant growth also observed in Canada and Mexico, driven by the adoption of new technologies such as virtualization, cloud computing, and SaaS-hosted services.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Demand-led growth is the key driver of the market. In the current business environment, the growing application complexity and the need to enhance customer interaction are driving enterprises to invest significantly in Information Technology (IT) spending. Integrated platforms, including Enterprise resource planning (ERP), Customer relationship management (CRM), Business intelligence (BI), and analytics, are becoming essential tools for organizations to gain valuable insights from structured and unstructured data. However, the integration of these systems can present challenges. Hazelcast Cloud Enterprise, an application management services (AMS) provider, offers solutions to address these integration difficulties. Intel and IoT services are also increasingly being adopted, adding to the complexity of application management.
AMS enables organizations to manage their applications effectively, ensuring optimal performance and reducing downtime. By providing expert assistance in application deployment, monitoring, and maintenance, AMS plays a critical role in helping businesses make informed decisions and stay competitive in the market.
Widespread adoption of personal devices in workplace is the upcoming trend in the market. The market is experiencing significant growth due to the increasing complexity of applications and the adoption of Bring Your Own Device (BYOD) policies in organizations. This trend is driven by the need to improve connectivity and productivity, as employees use their mobile devices to access corporate networks and applications. However, this also introduces new challenges, particularly in the area of integration and security. To address these challenges, organizations are turning to Application Management Services, which offer integrated platforms for managing hardware, software, and services. Hazelcast Cloud Enterprise, for instance, provides a unified solution for managing applications and services across multiple environments.
Intel, a leading technology company, is also investing in IoT services to help organizations manage the complexities of connected devices. Despite these advancements, integration difficulties persist, making it essential for organizations to implement effective Application Management Services. These services not only help minimize the complexity of IT departments but also ensure the security of corporate information. It is crucial for organizations to establish strict security policies and guidelines to mitigate the risks associated with using mobile devices for work. By investing in Application Management Services, organizations can effectively manage their IT infrastructure, reduce costs, and enhance productivity.
A longer implementation process is a key challenge affecting the market growth. The market is experiencing significant growth due to the increasing complexities in application development and deployment. This complexity necessitates the need for specialized services to ensure seamless integration and maintenance of applications. However, the implementation of application management services comes with its challenges. The high Information Technology spending required for these services and the intricacies of integration can pose difficulties for organizations, particularly for Small and Medium-sized Enterprises (SMEs) with limited financial resources. One solution to mitigate these challenges is the adoption of integrated platforms, such as Hazelcast Cloud Enterprise, which offers streamlined application management services. Intel's IoT services, for instance, can benefit from such platforms by simplifying the integration of IoT applications into existing systems.
Despite these advantages, the risks associated with implementation failures and the substantial investment required can deter some organizations from adopting application management services. Therefore, a thorough analysis of the time, effort, and financial resources needed for implementation is crucial to minimize potential revenue losses for SMEs.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc: The company offers application management service across hybrid and multi cloud environments which automates the movement of workloads among private and public clouds, and monitor the performance and cost as part of the process.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing adoption of cloud computing and digitization in businesses. With the growing application complexity and enterprise resource planning, organizations are seeking cloud-based solutions to streamline their IT requirements. Cloud migration and consulting services have become essential for businesses to modernize their legacy applications and systems. The market is driven by the need for continuous delivery, integration, and deployment of enterprise applications. The adoption of DevOps practices and microservices architecture has become increasingly popular, leading to the demand for feature recommendation and minimal personalization. Cloud computing adoption has led to the emergence of integrated platforms, such as Azure Spring Cloud and Hazelcast Cloud Enterprise, which offer ease of integration and monitoring.
However, integration difficulties and security issues remain challenges for businesses, requiring technology services providers to offer consulting services and next-generation technology solutions. The business structure is undergoing a transformation due to urbanization, mobility, and the use of smartphone devices. IT spending on application management services is expected to increase as organizations seek to adhere to regulations and ensure optimal performance of their enterprise applications. Java developers and IoT services are also playing a crucial role in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.81% |
Market growth 2024-2028 |
USD 74.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.99 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Germany, UK, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Capgemini Service SAS, Cognizant Technology Solutions Corp., Deloitte Touche Tohmatsu Ltd., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hexaware Technologies Ltd., Infosys Ltd., International Business Machines Corp., Mercer LLC, Meteorite Informatics Pte. Ltd., Mindtree Ltd., Mphasis Ltd., Resolute Technology Solutions Inc., Rimini Street Inc., ScienceSoft USA Corp., Tata Consultancy Services Ltd., Unisys Corp., and Wipro Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.