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    GCC Application Modernization Services Market

    ID: MRFR/ICT/57087-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    GCC Application Modernization Services Market Research Report By Vertical (Healthcare, IT, Telecommunications, Energy and utilities, Manufacturing, Consumer goods and retail), By Deployment Type (Hybrid cloud, Private cloud, Public cloud) and By Application (Post modernization, Application portfolio assignment, UI modernization, Cloud application mitigation, Application integration, Application re-platforming)- Forecast to 2035

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    GCC Application Modernization Services Market Infographic
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    GCC Application Modernization Services Market Summary

    The GCC Application Modernization Services market is poised for substantial growth, projected to reach 1506 USD Million by 2035 from a base of 228 USD Million in 2024.

    Key Market Trends & Highlights

    GCC Application Modernization Services Key Trends and Highlights

    • The market is expected to grow from 228 USD Million in 2024 to 1506 USD Million by 2035.
    • A compound annual growth rate (CAGR) of 18.72 percent is anticipated for the period from 2025 to 2035.
    • The increasing demand for cloud-based solutions is likely to drive the market expansion significantly.
    • Growing adoption of digital transformation initiatives due to the need for operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 228 (USD Million)
    2035 Market Size 1506 (USD Million)
    CAGR (2025-2035) 18.72%

    Major Players

    Cognizant, SAP, Hewlett Packard Enterprise, Capgemini, Fujitsu, Accenture, Wipro, Infosys, Atos, Tata Consultancy Services, Microsoft, Oracle, IBM

    GCC Application Modernization Services Market Trends

    The GCC Application Modernization Services Market is experiencing significant growth driven by several key market drivers. The regional emphasis on digital transformation is evident as governments and private sectors in the GCC nations aim to enhance productivity and operational efficiencies. The Vision 2030 initiatives in countries like Saudi Arabia and the UAE's National Innovation Strategy underline a strategic push towards modernization and innovation, accelerating the demand for application modernization services. 

    Moreover, the ongoing shift towards cloud computing and the increased adoption of hybrid IT infrastructure are transformative trends reshaping the market landscape in the GCC. Organizations in the region are exploring opportunities to leverage emerging technologies such as artificial intelligence, machine learning, and the Internet of Things. These technologies can be integrated into existing applications to improve functionality and drive business value. The increasing desire for enhanced user experiences and streamlined processes fosters investment in modernized applications that can better meet consumer demands. 

    Additionally, the regulatory frameworks being established in GCC countries encourage digital upgrades within organizations, paving the way for the adoption of modernization services. Recent trends also indicate a shift towards agile development methodologies and DevOps practices as companies recognize the need for faster deployment and iterative improvements in their applications.

    The rise of remote work and digital collaboration tools has further accelerated the urgency for organizations to modernize their legacy systems, ensuring higher resilience and scalability during evolving market conditions. As GCC countries continue to focus on economic diversification and technological advancement, the application modernization services market is expected to expand, reflecting the region's commitment to creating a robust digital economy.

    Market Segment Insights

    GCC Application Modernization Services Market Segment Insights

    GCC Application Modernization Services Market Segment Insights

    Application Modernization Services Market Vertical Insights

    Application Modernization Services Market Vertical Insights

    The GCC Application Modernization Services Market showcases robust opportunities within the Vertical segment, encompassing diverse industries such as Healthcare, IT, Telecommunications, Energy and Utilities, Manufacturing, and Consumer Goods and Retail. Each industry in the GCC region is experiencing significant transformation driven by advancements in digital technologies and changing client expectations. For example, the Healthcare sector, which is rapidly adopting e-health services and telemedicine solutions, sees application modernization as pivotal for improving patient care and streamlining operations, especially in the wake of recent global health challenges.

    Concurrently, the IT domain continues to grow substantially as organizations seek to enhance operational effectiveness and offer innovative services through modernized platforms. In the Telecommunications industry, ongoing investment in network capabilities and the integration of IoT (Internet of Things) technologies are key drivers requiring companies to modernize their applications for improved connectivity and customer engagement. The Energy and Utilities sector is increasingly focused on sustainability and efficiency; thus, modernizing applications facilitates better resource management and supports the integration of renewable energy sources.

    In Manufacturing, the push towards Industry 4.0 is driving demand for smarter applications that can facilitate automation and data analytics for operational excellence. Lastly, the Consumer Goods and Retail segment is realizing considerable benefits from application modernization, as companies seek to enhance user experiences and streamline supply chain processes amid shifting consumer behaviors.

    Overall, the Vertical segment within the GCC Application Modernization Services Market represents a fertile ground for growth, underpinned by critical technological advances and evolving market dynamics across these key industries.As a result, businesses are poised to harness the benefits of modernized applications to drive competitive advantage and operational efficiency.

    Application Modernization Services Market Deployment Type Insights

    Application Modernization Services Market Deployment Type Insights

    The GCC Application Modernization Services Market is increasingly shaped by the Deployment Type segment, which includes Hybrid cloud, Private cloud, and Public cloud options. As organizations across the GCC region progressively seek to enhance operational efficiency and business agility, the demand for these deployment models is on the rise. Hybrid cloud solutions are particularly significant, as they offer flexibility in orchestrating workloads between on-premises and cloud environments, providing organizations with tailored strategies that fit diverse needs.Furthermore, Private cloud services cater to businesses that require heightened security and compliance, especially in sectors heavily regulated within the GCC. 

    On the other hand, Public cloud options are gaining traction among small and medium-sized enterprises seeking cost-effective solutions to scale their operations without the burden of managing their infrastructure. The growing digital transformation initiatives across the GCC, supported by government-led strategies aimed at diversifying economies and enhancing technological capabilities, are expected to drive further adoption of these deployment models.The market trends also highlight that organizations are increasingly looking for seamless integration and interoperability between various cloud environments, fueling innovations in Application Modernization Services.

    Application Modernization Services Market Application Insights

    Application Modernization Services Market Application Insights

    The GCC Application Modernization Services Market has showcased robust trends driven by technological advancement and business transformation needs, particularly within the Application segment. Organizations in the GCC are shifting focus towards Post modernization strategies, which play a critical role in enhancing performance and extending the lifecycle of existing applications. Application portfolio assignment is gaining traction as businesses aim to optimize resource allocation and improve service delivery, ensuring better alignment with organizational goals.UI modernization stands out as a vital component, providing enhanced user experiences that are crucial for retaining a competitive edge in the rapidly evolving digital landscape. 

    Cloud application mitigation is increasingly important as companies move to cloud infrastructures, emphasizing the need for seamless and secure integrations. Furthermore, Application integration remains a fundamental aspect to ensure interoperability among diverse platforms, enhancing efficiency. Similarly, Application re-platforming is significant for businesses to adapt their legacy systems to modern environments, promoting agility and responsiveness.This segment overall reflects a dynamic landscape shaped by innovation, increasing demand for efficiency, and the necessity for organizations to remain relevant in a tech-driven market.

    Get more detailed insights about GCC Application Modernization Services Market Research Report- Forecast to 2035

    Key Players and Competitive Insights

    The GCC Application Modernization Services Market has emerged as a pivotal segment within the technology landscape, driven by the increasing need for organizations to adapt to rapidly changing digital environments. In this region, a variety of factors are influencing the competitive dynamics, including the push for cloud adoption, the need for enhanced security measures, and the evolution of consumer expectations around user experience. Companies are increasingly focusing on updating legacy applications to leverage the benefits of new technologies such as artificial intelligence and machine learning, while also seeking to improve operational efficiency. 

    This has led to a competitive arena filled with both established players and newcomers vying for market share, each offering distinct value propositions and capabilities tailored to the unique regional demands of the Gulf Cooperation Council.Cognizant holds a significant position within the GCC Application Modernization Services Market, leveraging its robust technological expertise and extensive industry experience. The company’s strong focus on digital transformation positions perfectly to assist organizations in the GCC region with their modernization efforts.

    By providing tailored solutions that encompass cloud services, application re-engineering, and data analytics, Cognizant has successfully established itself as a trusted partner for businesses looking to innovate while optimizing costs. 

    Its strategic collaborations with local enterprises and its understanding of the GCC's regulatory landscape further strengthen its market presence, enabling Cognizant to offer relevant solutions that resonate with clients striving for agility and competitive advantage.SAP is another key player in the GCC Application Modernization Services Market, where it offers a comprehensive suite of products and services aimed at empowering organizations to embrace digital transformation. SAP's market presence is marked by its strong emphasis on enterprise resource planning and data management solutions that help businesses streamline operations and gain actionable insights.

    Its key offerings, including SAP S/4HANA, serve as conducive environments for application modernization, allowing organizations to transition legacy systems effectively. 

    SAP has formed strategic alliances and partnerships within the region, further enhancing its reach and capabilities. Additionally, its focus on innovation through mergers and acquisitions allows it to integrate new technologies and solutions that cater specifically to the needs of GCC businesses, providing them with robust tools to navigate the complex digital landscape.

    Key Companies in the GCC Application Modernization Services Market market include

    Industry Developments

    The GCC Application Modernization Services Market has witnessed significant developments recently, particularly with heightened demand for cloud adoption and digital transformation among enterprises. Companies like Accenture and Fujitsu have expanded their service offerings, focusing on enhancing customer experiences through innovative application solutions. In terms of mergers and acquisitions, Tata Consultancy Services announced a strategic acquisition in January 2023 aimed at bolstering its application modernization capabilities, while SAP has been actively collaborating with various regional players to enhance its market position. 

    Moreover, significant growth in market valuation has been noted, driven by increased investments in technology by governments, particularly in the United Arab Emirates and Saudi Arabia, which are prioritizing digital initiatives as part of their national visions. This growth trajectory is further supported by initiatives from IBM and Oracle, who are leveraging artificial intelligence and analytics to modernize applications across multiple sectors. 

    Additionally, regulatory frameworks by the governments encouraging digital transformation have boosted the market landscape, leading to optimistic projections for the coming years. As a result, major players like Cognizant and Infosys are also expanding operations within the GCC region to capitalize on the evolving market dynamics.

    Market Segmentation

    Application Modernization Services Market Vertical Outlook

    • Healthcare
    • IT
    • Telecommunications
    • Energy and utilities
    • Manufacturing
    • Consumer goods and retail

    Application Modernization Services Market Application Outlook

    • Post modernization
    • Application portfolio assignment
    • UI modernization
    • Cloud application mitigation
    • Application integration
    • Application re-platforming

    Application Modernization Services Market Deployment Type Outlook

    • Hybrid cloud
    • Private cloud
    • Public cloud

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 195.71(USD Million)
    MARKET SIZE 2024 228.0(USD Million)
    MARKET SIZE 2035 1506.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 18.723% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Cognizant, SAP, Hewlett Packard Enterprise, Capgemini, Fujitsu, Accenture, Wipro, Infosys, Nokia, Mavenir, Atos, Tata Consultancy Services, Microsoft, Oracle, IBM
    SEGMENTS COVERED Vertical, Deployment Type, Application
    KEY MARKET OPPORTUNITIES Cloud migration acceleration, Legacy system upgrades, Increased demand for agile solutions, Emphasis on cybersecurity compliance, Integration of AI technologies
    KEY MARKET DYNAMICS cloud migration adoption, legacy system integration, regulatory compliance requirements, demand for scalability, cost optimization initiatives
    COUNTRIES COVERED GCC

    FAQs

    What is the expected market size of the GCC Application Modernization Services Market in 2024?

    The GCC Application Modernization Services Market is expected to be valued at 228.0 million USD in 2024.

    What is the projected market size for the GCC Application Modernization Services Market by 2035?

    By 2035, the market is anticipated to reach a value of 1506.0 million USD.

    What is the expected compound annual growth rate (CAGR) for the GCC Application Modernization Services Market from 2025 to 2035?

    The expected CAGR for the GCC Application Modernization Services Market is 18.723% from 2025 to 2035.

    Which vertical is projected to have the largest market share in the GCC Application Modernization Services Market in 2035?

    The IT vertical is projected to have the largest market share, valued at 400.0 million USD in 2035.

    What is the anticipated value of the Healthcare segment in the GCC Application Modernization Services Market by 2035?

    The Healthcare segment is expected to reach a valuation of 215.0 million USD by 2035.

    Who are the key players in the GCC Application Modernization Services Market?

    Major players in the market include Cognizant, SAP, Hewlett Packard Enterprise, Capgemini, and Accenture.

    What is the projected market size for the Telecommunications sector in the GCC Application Modernization Services Market in 2035?

    The Telecommunications sector is expected to achieve a market size of 300.0 million USD by 2035.

    What challenges and opportunities might impact the GCC Application Modernization Services Market in the coming years?

    The market may face challenges such as technological changes, but opportunities for growth exist through digital transformation across various sectors.

    What is the expected market size for the Energy and Utilities segment in 2035?

    The Energy and Utilities segment is anticipated to have a market size of 250.0 million USD by 2035.

    How much is the Manufacturing vertical expected to grow in the GCC Application Modernization Services Market by 2035?

    The Manufacturing vertical is expected to grow to a market value of 341.0 million USD by 2035.

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