The global mainframe market was valued at USD 2.7 billion in 2024, and is projected to grow to USD 4.7 billion by 2033, exhibiting a steady CAGR of 6.11% during the forecast period from 2025 to 2033. Key drivers behind this growth include ongoing investments in modernizing legacy systems and advancements in cloud computing and artificial intelligence integration, fueling the demand for more scalable, secure, and flexible mainframe solutions.
Study Assumption Years:
- Base Year: 2024
- Historical Year: 2019-2024
- Forecast Year: 2025-2033
Mainframe Market Key Takeaways:
- Market Size (2024): USD 2.7 Billion, Forecast Value (2033): USD 4.7 Billion
- Growth Rate (2025-2033): 6.11% CAGR
- Technological advancements in hybrid cloud solutions and mainframe modernization are boosting demand.
- Key industries using mainframes include BFSI, IT and telecom, and government sectors.
- North America currently dominates the mainframe market, driven by legacy system updates and growing cloud integration.
- Increased focus on mainframe skills development to address workforce shortages.
- Z systems represent the largest segment, noted for high performance and security.
What Are the Key Growth Drivers for the Mainframe Market?
Technological Advancements in Hybrid Cloud Integration
One of the growing trendsetters in the mainframe market will soon be the increasing use of hybrid cloud infrastructures, particularly as it continues to take advantage of organizations integrating their mainframes as secure backend systems while delivering scalability afforded by cloud services. "The model requires powerful secure systems for seamless data management and continuity of business operations. The Kyndryl Mainframe Modernization Center of Excellence in Malaysia, launched in partnership with AWS, is another example of a strategic move toward hybrid cloud applications that will enhance the market's growth trajectory," stated Woodward.
Modernization of Legacy Systems
Organizations invest considerably in the modernization of their legacy mainframe systems, improving their performance, security, and scalability, while ensuring compatibility with the newly emerging technologies such as artificial intelligence (AI) and cloud computing. Fujitsu's "PROGRESSION" service, to be launched in the year 2024, is a case in point for companies switching from outdated systems to mainstream more dynamic and future-proof solutions. This will thus drive a demand for updating the mainframe infrastructure for businesses to be competitive and agile to the waves of technology.
Addressing the Skills Gap
There is still a shortage of skilled professionals to manage and operate mainframe systems; however, training programs and initiatives, such as the one established by IBM-the Mainframe Skills Council, are taking care of that. Together with these training programs, the IT professionals are to be equipped with necessary skill sets to support and take care of critical systems in the organization. As the use of mainframe services increases, the aforementioned initiatives would prove to help the availability of skilled personnel as a support to sustained growth within the market.
Market Segmentation:
Breakup by Type:
- Z Systems: Known for high performance, reliability, and security, these systems are popular in industries such as finance and government.
- GS Series: A more recent entry that offers flexible and scalable solutions for various sectors.
- Others: Includes additional specialized mainframe systems offering varied functionalities.
Breakup by Industry Vertical:
- BFSI (Banking, Financial Services, and Insurance): The largest segment, driven by the need for secure, high-volume transaction processing and real-time data management.
- IT and Telecom: Mainframes are used for managing large-scale infrastructure and data-intensive operations.
- Government and Public Sector: Used for managing citizen data, critical services, and security functions.
- Retail: Retailers leverage mainframes for managing large amounts of transactional and customer data.
- Travel and Transportation: Mainframes support complex logistics and customer-facing systems in this industry.
- Manufacturing: Used for managing large inventories, production lines, and supply chains.
- Others: Includes other niche sectors using mainframe solutions.
Breakup by Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
What Are the Regional Insights for the Mainframe Market?
North America is by far the most important region in the mainframe market today, thanks to its large-scale presence of legacy systems and continued modernization that enables integration with newer technologies, such as AI or cloud computing. Coupled with the region's strategic focus on digital transformation of enterprise, such a demand will increase pressure on businesses to adapt even more scalable, secure, and reliable mainframe systems.
What Are the Recent Developments and News in the Mainframe Market?
The mainframe market grows with all developments that aim to bridge the gap between the past legacy systems and more modern technologies. Chief innovations in this area have included Fujitsu's progressive automation service, which allows for seamless migration of legacy systems onto the new mainframe infrastructure. In addition, the launch of IBM's Mainframe Skills Council underscores the need for attention to the rising demand for well-trained individuals working with mainframe systems. These and further expected investments into hybrid cloud solutions are sure to shape the emerging future of shape the future trajectory of the market.
Who Are the Key Players in the Mainframe Market?
Atos SE, BMC Software Inc, Broadcom Inc., Dell Technologies Inc., DXC Technology Company, Fujitsu Limited, HCL Technologies Limited (HCL Enterprise), Hewlett Packard Enterprise Company, Infosys Limited, International Business Machines Corporation, NEC Corporation (AT&T Inc.), Wipro Limited, etc.
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