The US Mainframe Modernization Market was valued at $3174.15 Million in 2025 and projected to reach to $4641.25 Million by 2030, representing a compound annual growth rate of 7.9%. The US mainframe modernization market is positioned for sustained growth as organizations across critical sectors recognize modernization as essential for competitive advantage.
| Market Size in | USD 26.32 MN |
| Market Forecast in | |
| CAGR | |
| Forecast Period | |
| Units Considered | Value (USD MN) |
US banks and financial institutions drive mainframe modernization spending, with legacy systems processing trillions in daily transactions requiring urgent cloud migration and API-first architectures.
US healthcare providers are prioritizing mainframe modernization to improve interoperability, meet HIPAA compliance requirements, and enable real-time patient data access across distributed systems.
Federal agencies and state governments are investing heavily in mainframe transformation to reduce operational costs, enhance cybersecurity posture, and improve citizen-facing digital services.
The shortage of COBOL developers in the US is accelerating adoption of automated modernization tools, AI-powered code transformation, and managed services to bridge the skills gap.
| Report Metric | Details |
|---|---|
| Base Year | 2025 |
| Fastest Growing Segment | IAAS (Service Model) |
| Forecast Period | 2025–2030 |
| Growth Rate | CAGR of 9.7% from 2025 to 2030 |
| Largest Segment | PUBLIC CLOUD (Deployment Model) |
| Market Size Base Year (Billions) | ~USD 8.4 (2025) |
| Revenue Forecast (Billions) | ~USD 13.34 (2030) |
| Segments Covered | Offering, Services Type, Organization Size, Vertical, Modernization Service, Service Type, Application Type, Service Model, Deployment Model |
9 segment dimensions are covered across the global market.
| Segment | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | CAGR (%) |
|---|---|---|---|---|---|---|---|
| BFSI | 1181.74 | 1288.84 | 1393.3 | 1493.36 | 1587.94 | 1676.88 | 7.2 |
| EDUCATION | 131.73 | 144.87 | 157.92 | 170.69 | 183.04 | 194.93 | 8.2 |
| GOVERNMENT | 253.3 | 281.38 | 309.79 | 338.12 | 366.08 | 393.58 | 9.2 |
| HEALTHCARE | 130.46 | 147.65 | 165.5 | 183.76 | 202.26 | 220.92 | 11.1 |
| IT & ITES | 507.55 | 556.14 | 604.05 | 650.51 | 695.02 | 737.5 | 7.8 |
| MANUFACTURING | 179.66 | 197.8 | 215.87 | 233.58 | 250.75 | 267.34 | 8.3 |
| MEDIA & ENTERTAINMENT | 78.72 | 85.67 | 92.41 | 98.82 | 104.84 | 110.46 | 7 |
| OTHER VERTICALS | 191.08 | 206.16 | 220.41 | 233.58 | 245.51 | 256.2 | 6 |
| RETAIL & E-COMMERCE | 289.48 | 319.68 | 349.93 | 379.77 | 408.89 | 437.21 | 8.6 |
| TELECOM | 230.44 | 254.22 | 277.98 | 301.37 | 324.14 | 346.24 | 8.5 |
| TOTAL | 3174.15 | 3482.4 | 3787.16 | 4083.58 | 4368.47 | 4641.25 | 7.9 |
| Company | HQ | Ownership | Strongest segments |
|---|---|---|---|
| IBM | United States | ||
| TCS | India | Public Company | Services,Software and Platforms, |
| CAPGEMINI | France | Public Company | Services,Software, |
| HCLTECH | India | Public Company | Services,Software, |
| ATOS | United States | Public Company | Services,Software and Platforms, |
| MICRO FOCUS (OPENTEXT) | Canada | ||
| BMC SOFTWARE | United States | Private Company | Software,Services,Large Enterprises, |
| INFOSYS | India | Public Company | Services – Application and Infrastructure Modernization,Services – Managed Services and Operations,Software Platforms – BFSI (Finacle, EdgeVerve), |
| WIPRO | India | Public Company | Services,Software, |
| DXC TECHNOLOGY | United States | Public Company | Services,Software, |
| KYNDRYL | United States | Public Company | Services,Software, |
| FUJITSU | Japan | Public Company | Services,Software,Large Enterprises, |
| COGNIZANT | United States | Public Company | Services,Software, |
IBM is a United States-based technology company providing a broad range of hardware, software, and IT services.
TCS is a public company founded in 1968 in India with 584,519 employees, providing IT services and digital transformation solutions.
Capgemini is a public company founded in 1967 in France with 423,405 employees, specializing in consulting, technology services, and digital transformation.
HCLTech is a public company founded in 1976 in India, providing IT services, engineering services, and business process outsourcing solutions.
Atos is a public company founded in 1982 in the United States with 57,624 employees, offering IT services, consulting, and digital transformation services.
Micro Focus (OpenText) is a Canada-based company providing enterprise software and IT management solutions.
BMC Software is a private company founded in 1980 in the United States with 6,700 employees, specializing in IT operations and service management software.
Infosys is a public company founded in 1981 in India with 328,594 employees, providing IT services, consulting, and business process outsourcing.
Wipro is a public company founded in 1945 in India with 240,000 employees, offering IT services, consulting, and business process outsourcing solutions.
DXC Technology is a public company founded in 1959 in the United States with 115,000 employees, providing IT services and enterprise solutions.
Kyndryl is a public company founded in 2020 in the United States with 72,000 employees, providing IT infrastructure services and solutions.
Fujitsu is a public company founded in 1935 in Japan with 99,203 employees, providing IT services, hardware, and digital transformation solutions.
Cognizant is a public company founded in 1988 in the United States with 357,600 employees, offering IT services, consulting, and digital transformation solutions.
The US mainframe modernization market is valued at $3,174.15 million in 2025 and is expected to reach $4,641.25 million by 2030.
The US mainframe modernization market is projected to grow at a compound annual growth rate (CAGR) of 7.9% from 2025 to 2030.
Financial services, healthcare, government, and insurance sectors are the primary drivers of mainframe modernization investments in the US.
Key challenges include talent shortages in mainframe expertise, high migration costs, business continuity risks, and the complexity of integrating legacy systems with modern cloud platforms.
US enterprises are pursuing hybrid approaches including cloud migration, containerization, API-driven architectures, and incremental workload replatforming while maintaining core mainframe capabilities.
The research study involved four major activities in estimating the mainframe modernization market size. Secondary research was done to collect important information about the market and peer markets. The next step was to validate these findings and assumptions and size them with the help of primary research with industry experts across the value chain. Both top-down and bottom-up approaches were used to estimate the market size. The market breakdown and data triangulation were adopted to estimate the market sizes of segments and sub-segments.
The market size of the companies offering mainframe modernization solutions to various end users was determined based on the secondary data available through paid and unpaid sources, analyzing the product portfolios of major companies in the ecosystem, and rating the companies based on their performance and quality. In the secondary research process, various sources were referred to identify and collect information for the study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles from recognized associations and government publishing sources.
Secondary research was mainly used to obtain critical information about industry insights, the market’s monetary chain, the overall pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from market-oriented and technology-oriented perspectives.
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report, such as Chief Experience Officers (CXOs), Vice Presidents (VPs), directors from business development, marketing, and product development/innovation teams, and related key executives from mainframe modernization solutions vendors, system integrators, professional and managed service providers, industry associations, independent consultants, and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, data on revenue collected from platforms and services, market breakups, market size estimations, market forecasts, and data triangulation. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Finance Officers (CFOs), Chief Strategy Officers (CSOs), and the installation team of end users who use mainframe modernization solutions, were interviewed to understand buyers’ perspectives on suppliers, products, service providers, and their current use of mainframe modernization solutions which is expected to affect the overall mainframe modernization market growth.
Notes: Tier 1 companies have revenues over USD 1 billion, Tier 2 companies range between USD 500 million
and 1 billion in overall revenues, and Tier 3 companies have revenues less than USD 500 million.
Other designations include sales managers, marketing managers, and product managers.
Source: Industry Experts
To know about the assumptions considered for the study, download the pdf brochure
The top-down and bottom-up approaches were used to estimate and validate the total size of the mainframe modernization market. These methods were also used extensively to estimate the size of various subsegments in the market.

After determining the overall market size from the above estimation process, the mainframe modernization market was split into several segments and sub-segments. Data triangulation and market breakdown procedures were used, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments. The data was triangulated by studying various factors and trends from the demand and supply sides. The mainframe modernization market size was validated using top-down and bottom-up approaches.
According to Cognizant, mainframe modernization is the process of migrating or improving an enterprise’s existing legacy mainframe footprint in the areas of interface, code, cost, performance and maintainability. In some instances, mainframe modernization can encompass the complete migration of code and functionality to a platform that is based on newer technology and/or hosted in the cloud.
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