The global application transformation market is expected to witness a growth rate of over 12% during the forecast period. With the evolution of time, the disruption in the traditional working methods of enterprises has increased to a significant level. Business transformation became a core process for the development and survival in the competitive market and cloud computing is being used as a platform to shift their business. Application Transformation delivers services to transform applications and enables IT enterprises for digitalization and leveraging new market opportunities. The competition within and outside the industry and the ever-changing legal, political, and regulatory environment is making application transformation necessary to be adopted by the organizations.

The application transformation will benefit the enterprises by increasing sales with less investment, to discover more adaptive and agile models based on custom parameters. The application transformation will enable an organization to acquire, retain, and assist a large number of the customer base in a more cost-effective way. Factors that are anticipated to drive the global application transformation market includes the constant need to keep the application updated with new technologies and enhance the Return on Investment (ROI).

Segmental Outlook  

The application transformation market is segmented on the basis of service and verticals. Based on the application, the market is segmented into application integration, cloud application migration, application re-platforming, application portfolio assessment, and others. Application integration is expected to contribute a significant share in the market. Further, on the basis of verticals, the global application transformation market is segmented into BFSI, IT & telecom, retail, government, healthcare, and others. Application transformation is expected to have a significant adoption in the BFSI industry.

Application Integration Segment to Have Significant Share in the Market

The application integration segment is expected to contribute significantly to the application of transformation market growth during the forecast period. Application integration refers to the sharing of data and processes among the different applications within the same enterprise. The integration of application in an enterprise benefits the enterprise as it improves overall business efficiency, enhances the scalability, and reduce the overall IT expenses. The growth of the segment is attributed to the increasing investment by various government and private organizations into application transformation to optimize their IT landscapes, gain business agility, and easily access data from devices and social channels.

Application Transformation Market Share by Verticals, 2018 (%)

Retail Segment is Projected to Have Significant Growth in the Market

Application Transformation has been used by a number of end-user industries, including BFSI, healthcare, Retail & manufacturing, and others. Application transformation is significantly affecting the retail industry as retailers are now moving their business over the cloud to bring efficiencies as well as to optimize their operating costs. Advanced technologies such as cloud computing, big data analytics, digital stores, and social networks are being adopted by retailers to enhance their effectiveness and visibility in the market. Cloud will also enable retailers to capture the real-time status of consignments, digitized documents from suppliers, carriers, logistics providers, brokers and many more making it easier to do business.

Regional Outlook 

Moreover, the market is geographically segmented into North America (the US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific) and Rest of the World (RoW). North America is expected to hold a significant share in the market owing to the strong presence of major market players in the region, especially in the US. The region is an early adopter of technologies. Further, the increasing adoption of application transformation in various verticals including healthcare, retail, BFSI, and other industries tends to drive the regional growth of the market.

Application Transformation Market Growth, by Region 2019-2025

Market Players Outlook

Some of the major players that contribute to the growth of the market include IBM Corp., Oracle Corp., SAP SE, Asysco B.V., Bell Integrato Inc., Accenture PLC, Unisys Corp., Cognizant Technology Solutions Corp., and others. These market players are adopting various market approaches including product launch and approvals, merger and acquisition, partnerships and collaborations, and others for gaining a strong position in the market.

Recent Developments 

• In May 2019, IBM Corp. launched new services in order to advance enterprise transformations with SAP S/4HANA which will provide a smarter and faster way to digital transformations.
• In December 2018, HCL Technologies Ltd. signed a five-year contract with Aegon the provides services including life insurance, pensions, and asset management. This will help Aegon to accelerate innovation by establishing and managing a new multi-vendor ecosystem. HCL will also enable to implement an agile delivery model to reduce Aegon’s time to market and introduce greater efficiencies through improved application lifecycle management and automation.
• In November 2018, Gap Inc. established a partnership with Microsoft Corp. to accelerate its digital transformation with Microsoft’s Cloud. This will provide Gap Inc. the ability to deliver innovative and personalized capabilities to the customers with the speed that will be supported by Microsoft’s team.

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global application transformation market. Based on the availability of data, information related to products and services, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.