“Global Mainframe Market to reach a market value of USD 4.5 Billion by 2031 growing at a CAGR of 7.1%”
The Global Mainframe Market size is expected to reach $4.5 billion by 2031, rising at a market growth of 7.1% CAGR during the forecast period.
Government agencies at various levels rely on mainframes to handle critical functions, including citizen services, social security systems, taxation, and public safety. Mainframes provide the necessary infrastructure to manage large-scale data processing and ensure the security and integrity of sensitive information. For instance, agencies like the U.S. Social Security Administration use mainframes to process vast amounts of data related to social security benefits, ensuring timely and accurate service delivery to citizens. The ability to handle complex data requirements and provide reliable services underpins the significant revenue contribution from this segment. Thus, the government & public sector segment acquired 14% revenue share in the market 2023.
Mainframes are renowned for reliability, high-performance transaction processing, and robust security features. By integrating these capabilities with cloud services' scalability, agility, and cost-effectiveness, organizations can optimize their IT operations and better meet their businesses' dynamic demands.
Additionally, Companies like IBM have developed solutions to integrate AI with mainframe systems, enabling businesses to leverage AI-driven insights for better decision-making and operational efficiency. Thus, digital transformation initiatives are driving the expansion of the market.
However, mainframes require significant upfront investment. This investment includes the cost of the mainframe hardware, as well as the software and infrastructure required to effectively operate and maintain these systems. The price of mainframe hardware can be prohibitively high, running into hundreds or even millions of dollars depending on the configuration and capabilities required. Hence, the high initial costs associated with their acquisition, infrastructure setup, and ongoing maintenance present a significant challenge for many organizations, which may further deter their adoption.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of type, the market is segmented into Z systems, GS series, and others. The GS series segment witnessed 27% revenue share in the market in 2023. Fujitsu's GS series mainframes are recognized for their scalability, flexibility, and high-performance capabilities.
Based on end user, the market is classified into BFSI, IT & telecom, government & public sector, retail & e-commerce, travel & transportation, manufacturing, and others. The BFSI segment garnered 34% revenue share in the market in 2023. Financial institutions, encompassing banks, insurance companies, and investment firms, depend heavily on mainframes for their unparalleled processing power, security, and reliability.
Free Valuable Insights: Global Mainframe Market size to reach USD 4.5 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment procured a remarkable revenue share in the market in 2023. European financial institutions, governed by stringent regulations like the General Data Protection Regulation (GDPR), depend on mainframes for secure and efficient data processing.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 2.6 Billion |
| Market size forecast in 2031 | USD 4.5 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 7.1% from 2024 to 2031 |
| Number of Pages | 208 |
| Number of Tables | 300 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, End User, Region |
| Country scope |
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| Companies Included | IBM Corporation, Broadcom, Inc. (Symantec Corporation), DXC Technology Company, Hewlett Packard Enterprise Company, Atos Group, Dell Technologies, Inc., HCL Technologies Ltd. (HCL Enterprises), BMC Software, Inc. (KKR & Co., Inc.), Fujitsu Limited, Cognizant Technology Solutions Corporation |
By Type
By End User
By Geography
This Market size is expected to reach $4.5 Billion by 2031.
Growing trend towards hybrid cloud environments are driving the Market in coming years, however, Substantially high initial costs restraints the growth of the Market.
IBM Corporation, Broadcom, Inc. (Symantec Corporation), DXC Technology Company, Hewlett Packard Enterprise Company, Atos Group, Dell Technologies, Inc., HCL Technologies Ltd. (HCL Enterprises), BMC Software, Inc. (KKR & Co., Inc.), Fujitsu Limited, Cognizant Technology Solutions Corporation
The expected CAGR of this Market is 7.1% from 2024 to 2031.
The Z Systems segment is leading the Market by Type in 2023, thereby, achieving a market value of $2.7 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $1.6 billion by 2031.
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