The development of the IoT environment, the rise in massive data sets, and the expansion of mainframe migration as a service are all factors propelling the growth of the worldwide mainframe migration market. During the projection period, it is also anticipated that mainframe cost difficulties and a lack of personnel with the necessary skills would significantly impact the market's expansion. Additionally, it is anticipated that ongoing mainframe migration and the incorporation of blockchain in the mainframe will be advantageous for the global mainframe migration market during the anticipated time frame. These elements work together to create prospects for market expansion.
On the global mainframe migration market, COVID-19 had a marginal impact. This results from firms making fewer investments in new technologies to save money and avoid escalating costs. Temporarily shut down-industries added more obstacles to the market's expansion. However, a greater emphasis on enhancing security solutions allowed the market to survive the chaos caused by viral transmission.
High-performance computing demand is expected to grow and drive the industry
High-Performance Computing (HPC) is now widely used across various industries. These many industry verticals and vital applications require the fastest processor, the biggest storage systems, and the lowest latency. These days, many consumer, industrial, and financial analytics applications leverage this technology. The growth has significantly influenced the adoption of high-performance systems like mainframes in big data sets and the demand for high processing power. For instance, the banking sector has seen an increase in internet transactions in recent years. According to a study, digital payments are predicted to total 726 billion by 2020, necessitating systems with the capacity to handle such a massive volume of transactions. As a result, the need for high-performance computing systems has increased along with the number of transactions and fraudulent activities, which has a negative impact on the expansion of the mainframe migration market.
Professional shortages with mainframe migration expertise are limiting market expansion
The sector's fundamental issue is the lack of qualified professionals, brought on by the retirement of seasoned mainframe migration workers and other circumstances. A 2016 IBM Systems Magazine study of 1,400 IT professionals revealed that 85% agreed there was a mainframe migration skills shortage. Within five years, almost 18% of the mainframe workforce intended to retire. Furthermore, a different survey confirmed that younger generations are not interested in working with outdated equipment models, such as mainframe migration. More than 84,000 open roles are anticipated in the mainframe business by 2020, according to predictions. Since mainframe migration technology is in great demand, it requires various extremely specialized abilities. The talent pool in the current environment is sparse, inhibiting its uses and the market's expansion.
Based on type, the mainframe migration market is segmented into Z systems, GS series and others. The Z systems category dominated the market in 2022 due to the widespread adoption of IBM's mainframe offering by end users. For instance, the use of IBM Z mainframes for business-critical applications by about 44 of the top 50 banks, healthcare institutions, government agencies, and insurers, as well as all of the top 10 insurers, contributes to the segment's development. However, due to increased investments and the creation of innovative solutions by domestic companies in developing nations, the GS series and other sectors are anticipated to experience the fastest growth rate throughout the projection period.
By Industry Vertical
Based on industry vertical, the mainframe migration market is segmented into BFSI, IT & telecom, government & public sector, retail, travel & transportation, manufacturing and others. The BFSI category dominated the market in 2022 due to the banking industry's widespread use of mainframe technology to handle the rise in workloads associated with financial transactions throughout its borders. However, the retail sector is anticipated to expand at the fastest rate due to the continuous trend of the retail industry's digitalization and the rise in demand for distinctive in-store experiences, both of which increase the need for mainframe solutions.
North America is projected to hold the largest share of the mainframe migration market over the forecast period due to the high need for mainframe migration solutions across many industry verticals, including banking, insurance, government organizations, and other Fortune 500 companies in the area. The region's businesses are using cloud-based solutions extensively, boosting income growth. On the other hand, the Asia Pacific mainframe migration market is anticipated to grow significantly because of the increase in IT spending by governmental and financial institutions in developing nations like China, Japan, India, Singapore, and South Korea. In addition, it has been thought that the market is opportunistic for the well-established telecommunications sector.
LIST OF KEY COMPANIES PROFILED:
- Bmc Software, Inc
- Ca Technologies (Broadcom)
- Compuware Corporation
- Dell Emc (Dell Technologies)
- Fujitsu Limited
- Hewlett Packard Enterprise (Hpe)
- Hcl Technologies Limited
- International Business Machines Corporation (Ibm)
- Nec Corporation
|Market Size in 2022||USD 23.1 Billion|
|Market Forecast in 2030||USD 70.2 Billion|
|Compound Annual Growth Rate||17.20%|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Type, By Industry Vertical and By Geography|
|By Industry Vertical||