The Global Application Management Services Market size is expected to reach $57.1 billion by 2027, rising at a market growth of 18.3% CAGR during the forecast period.
Applications have become an essential part of how people interact, interpret content, and work. Apps can run on mobile and desktop, operating systems, as well as in the cloud, on appliances, and on other devices. They're also crucial to how big sectors manage their internal and consumer service operations, such as the financial services industry.
Due to the capabilities and complexity of the application development, they become more challenging in terms of security and bugs which have the capability to cause significant damage. In addition, it can become even more worse if the organization’s own IT team is swamped with work and can't swiftly resolve it. In the worst situation, this might jeopardize the entire concerned organization. While in some scenario, it could eat up important IT resources and drain operating budgets.
Application management services allow an organization to hire a third-party service provider to watch after the application of the organization. This latest and advanced solution enables enterprises to focus more on providing key services to customers while the application is being maintained by managed application service provider.
Through integrated systems, application Management Services expedite the development of numerous industries across the world. Problems may be fixed more rapidly with DevOps, which improves cooperation and knowledge sharing across the Service Desk, Application Operations, and Application Development.
Recurring issues are easily resolved, and unrequired escalation can be eliminated. As a result, Application Development may focus solely on the development of enterprises of all sizes. Due to these factors, application management services would observe a significant demand in the future.
The upsurge of COVID-19 resulted in a major disruption to the economic and healthcare infrastructure across the world. The pandemic devastated a lot of businesses and occupations irrespective of their sizes. Some lost their livelihood while some lost their lives. COVID-19 also affected the growth of the application management services market. The COVID-19 pandemic resulted in a slew of data breaches and cyber-attacks aimed at both small-scale as well as large-scale organizations.
Many new businesses were apprehensive about upgrading or implementing digital infrastructure, which hampered the growth of the application management services market during the pandemic period. To offer their customers a better sense of security, key industry companies began developing stronger encryption techniques and algorithms.
In the last few decades, the modern business sector has undergone significant changes, starting with the way services are offered to customers by physical services evolving into digital means. The development of cloud technology and the widespread availability of mobile phones and personal computers, has resulted in a surge in the use of social media platforms that were beyond the imagination few years ago. These changes are forcing modern businesses to keep up with emerging technology and innovations in order to compete with other industry players and their service offerings.
With every passing day, modern corporate operating models are becoming more complex, with more factors to consider, more data to manage, and more demands to meet. Application management services solutions relieve commercial organizations of the stress of dedicating vital and expensive IT resources, allowing them to focus more on the development and business end of an organization's activities. Application management services can help development teams improve their capabilities while eliminating the need to hire additional competent individuals for the specific tasks.
Application management services comprise a vast range of numerous application development services for the client. Application management services, including overall monitoring and control over applications, are primarily intended to simultaneously focus on the well-being and development of the application as well as save time and cost for the enterprise. However, the cost that occurs in hiring and deploying these services on the application is very high.
Based on Organization Size, the Application management services market is bifurcated into SME and Large Enterprise. In 2020, the large enterprise segment led the application management services market with the largest revenue share. This is attributed to the capability of the large enterprises to fulfill the increasing demand of their customers for accuracy and precision as well as on-demand customer support on their applications. Moreover, large enterprises comprise comparatively bigger spending capability which allows them to hire best-in-class managed application services providers.
Based on the Industry Vertical, the Application management services market is divided into BFSI, Telecom and IT, Government, Retail and e-commerce, Healthcare and Lifesciences, Manufacturing, and Others. In 2020, the telecom and IT segment dominated the application management services market with the largest revenue share. The growth of this segment is attributed to the increased flexibility along with expanded bandwidth intending to strengthen customer support services and enhanced user feedback along with better customer experience. Moreover, constantly developing technologies across the information technology sector is also increasing the growth of this segment.
Based on the deployment type, the Application management services market is bifurcated into On-premise and cloud. The On-premise segment obtained the largest revenue share of the application management services market in 2020. On-premise are deployed locally on business devices and server of the client. It offers the organization a complete control over the managed services while it doesn’t completely rely on the internet connectivity.
Based on Services, the Application management services market is segregated into Application Portfolio Assessment, Application Security, Web Application Security, Mobile Application Security, Application Modernization, Cloud Application Migration, and Others. The application portfolio assessment segment procured the maximum revenue share of the overall application management services market in 2020. In addition, the segment would showcase a similar kind of trend even during the forecasting period. The growth of this market is attributed to the increasing adoption of advanced software functionalities in corporate applications intending to improve business efficiency.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 17.5 Billion |
| Market size forecast in 2027 | USD 57.1 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 18.3% from 2021 to 2027 |
| Number of Pages | 335 |
| Number of Tables | 493 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Organization Size, Deployment Type, Services Type, Industry Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on the Regions, The application services market is analyzed across North America, Europe, APAC, and LAMEA. In 2020, North America emerged as the leading region of the application management services market and would continue to remain in the same position over the forecasting period. The growth of the regional market is based on the several factors such as the existence of well-known application management service providers, and strict data security requirements and compliance.
Free Valuable Insights: Global Application Management Services Market size to reach USD 57.1 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Accenture PLC and International Business Machines Corporation are the forerunners in the Application Management Services Market. Companies such as Fujitsu Limited, DXC Technology Company and HCL Technologies Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Accenture PLC, Fujitsu Limited, IBM Corporation, DXC Technology Company, HCL Technologies Ltd. (HCL Enterprises), Wipro Limited, Atos Group, Capgemini SE, Cognizant Technology Solutions Corporation, and Tech Mahindra Limited.
By Organization Size
By Industry Vertical
By Deployment Type
By Services Type
By Geography
The application management services market size is projected to reach USD 57.1 billion by 2027.
Increasing the efficiency of business operations of the companies are driving the market in coming years, however, requirement of high capital to deploy these services have limited the growth of the market.
Accenture PLC, Fujitsu Limited, IBM Corporation, DXC Technology Company, HCL Technologies Ltd. (HCL Enterprises), Wipro Limited, Atos Group, Capgemini SE, Cognizant Technology Solutions Corporation, and Tech Mahindra Limited.
The Small & Medium Enterprises in the Global Application Management Services Market by Organization Size would dominate the market by 2027; thereby, achieving a market value of $30.9 billion by 2027.
The Cloud market has high growth rate of 19.5% during (2021 - 2027). Cloud are installed on the server or any cloud platform of the service provider and accessed through web browser.
The North America market region acquired maximum revenue share in 2020 in Global Application Management Services Market, thereby, achieving a market value of $20,434 million by 2027.
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