PUBLISHER: The Business Research Company | PRODUCT CODE: 1674295
PUBLISHER: The Business Research Company | PRODUCT CODE: 1674295
Application management services encompass the provision of enterprise application management offered by diverse organizations to cater to companies seeking to outsource their enterprise application management processes. These services are instrumental in delivering continuous support for applications to an external provider specializing in the maintenance and monitoring of these software applications.
Application management services encompass a range of service types crucial in the realm of enterprise application management. These services include application portfolio assessment, application security, application modernization, web and mobile solutions, cloud application migration, among others. Application portfolio assessment involves employing analytics to scan and evaluate applications comprehensively. These services cater to diverse deployment types, encompassing on-premise and cloud-based solutions. They are utilized by organizations across various scales, including small and medium-sized enterprises along with large enterprises, spanning across multiple industry verticals such as telecom & IT, BFSI, healthcare, retail & eCommerce, government & defense, manufacturing, and other sectors.
The application management services market research report is one of a series of new reports from The Business Research Company that provides application management services market statistics, including application management services industry global market size, regional shares, competitors with an application management services market share, detailed application management services market segments, market trends and opportunities, and any further data you may need to thrive in the application management services industry. This application management services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The application management services market size has grown rapidly in recent years. It will grow from $36.12 billion in 2024 to $41.72 billion in 2025 at a compound annual growth rate (CAGR) of 15.5%. The growth in the historic period can be attributed to legacy system modernization, cost optimization, focus on core competencies, scalability demands, enhanced performance and reliability.
The application management services market size is expected to see exponential growth in the next few years. It will grow to $90.61 billion in 2029 at a compound annual growth rate (CAGR) of 21.4%. The growth in the forecast period can be attributed to focus on user experience, cybersecurity integration, DevOps and agile practices. Major trends in the forecast period include rapid technological changes, shift to outcome-based models, rise of cloud-native application management, application modernization services, automation and intelligent operations.
The burgeoning demand for mobile apps is anticipated to significantly drive the expansion of the application management services market. Mobile apps, specifically designed for utilization on handheld devices such as smartphones and tablets, form a critical segment of software applications. Application management services play a pivotal role in overseeing and regulating access to both internally developed and commercially available mobile apps employed within business environments. For instance, as per 'Business of Apps,' a UK-based B2B media and information platform, the year 2021 marked a milestone with app downloads surpassing 100 billion for the first time, with projections indicating a staggering increase to 200 billion by 2025. This escalating demand for mobile apps stands as a prime catalyst fueling the growth of the application management services market.
The escalating landscape of cyber threats is poised to drive notable growth within the application management services market. These threats encompass a broad array of malicious activities aimed at compromising computer systems, networks, and sensitive data within the digital realm. Providers of application management services play a pivotal role in implementing and maintaining robust security measures, ensuring the fortification of systems, and compliance with industry regulations. For instance, as per CompTIA, a US-based vendor-neutral IT certifications provider, phishing attacks surged by a striking 48% in the initial six months of 2022, resulting in 11,395 reported incidents. These incidents incurred a cumulative financial impact of $12.3 million on businesses, underscoring the urgent need for stringent cybersecurity measures. Consequently, the proliferation of cyber threats serves as a significant driver fueling the growth of the application management services market.
Strategic partnerships and collaborations are emerging as a significant trend in the application management services market. Key players in this sector are prioritizing partnerships and collaborations to maintain their market positions. For example, in August 2024, Trianz, a technology and services company based in the US, teamed up with Amazon Web Services Inc., a US-based cloud computing firm, to revolutionize cloud migrations, modernization, management, and optimization. This collaboration aims to enhance cloud migration processes and overall management. By integrating Trianz's innovative Concierto platform with AWS's robust cloud infrastructure and services, they seek to enable rapid, simplified, and cost-effective cloud adoption. The Concierto platform is a hyper-automated, no-code, multilingual SaaS solution that covers the entire cloud journey for organizations. It allows for swift cloud migrations, PaaS modernization, hybrid cloud management, and maximizes cloud potential through comprehensive observability and automated, AI-driven anomaly remediation.
Prominent players within the application management services market are dedicatedly pioneering innovative solutions, notably focusing on the development of comprehensive application management (CAM). This holistic approach entails overseeing the complete lifecycle of an application, spanning from its initial conception and development to deployment, ongoing maintenance, and eventual retirement. For example, in October 2023, Envista Holdings Corporation, a US-based enterprise consulting firm specializing in supply chain solutions, unveiled 'The Microsoft Application Management Services.' This offering is designed to provide clients with a comprehensive suite of application management services, encompassing ongoing monitoring, health assessments, and 24/7 service desk support. By leveraging this application management service, clients can sidestep the challenges of independently managing upgrades, ensuring seamless operations.
In September 2023, Recast Software, a prominent US-based provider of endpoint management services, completed the acquisition of Liquit for an undisclosed sum. This strategic acquisition equips Recast Software with an extensive application delivery platform, significantly bolstering the company's foothold in both endpoint and application management sectors. By integrating Liquit's expertise into its offerings, Recast Software aims to broaden its product range, extend its geographic reach, enhance customer service, and drive innovation within its operations. Liquit, a Netherlands-based company renowned for its specialization in application management services, further solidifies Recast Software's capabilities in this domain.
Major companies operating in the application management services market include Accenture plc, International Business Machines Corporation, Fujitsu Limited, Tata Consultancy Services Limited, Capgemini SE, NTT DATA Corporation, Larsen & Toubro Infotech Limited, Cognizant Technology Solutions Corporation, Infosys Limited, DXC Technology Company, Atos SE, Wipro Limited, Tech Mahindra Limited, EPAM Systems Inc., TietoEVRY Corporation, Unisys Corporation, Virtusa Corporation, Hexaware Technologies Limited, Perficient Inc., Persistent Systems Limited, Sonata Software Limited, Zensar Technologies Limited, Hinduja Global Solutions Limited, Mphasis Limited, NIIT Technologies Limited, Datamatics Global Services Limited, HCL Technologies Limited, Happiest Minds Technologies Limited, Mindtree Limited, Consultants to Government and Industry Incorporated, YASH Technologies Inc., Mindfire Solutions LLC, Birlasoft Limited, Microland Limited, Mastek Limited, Ness Digital Engineering Limited, Trigent Software Inc.
North America was the largest region in the application management services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the application management services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the application management services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The application management services market consists of revenues earned by entities by providing custom management systems, software, and business intelligence. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Application Management Services Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on application management services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for application management services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The application management services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.