Market Overview

  • According to MRFR, the AMS market was valued at USD 18.7 billion in 2023, growing to USD 22.6 billion in 2024, with a projected reach of USD 105.3 billion by 2032, representing a CAGR of 21.2% .

  • Another source (ResearchAndMarkets via GSW) estimates the 2024 market size at USD 54.3 billion, expected to rise to USD 149.7 billion by 2030, at a CAGR of 18.4% .

  • Discrepancies stem from varying definitions and scope, but all sources underscore rapid expansion.

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Market Segmentation

As per MRFR and corroborating reports:

  • By Service Type:

    • Application Portfolio Assessment

    • Application Modernization

    • Application Security (including Web and Mobile)

    • Application Maintenance & Managed Services

    • Cloud Application Migration

    • Others (DevOps/CICD, consulting)

  • By Deployment Type:

    • On‑premise

    • Cloud‑based/Hosted

  • By Organization Size:

    • Large Enterprises (dominant share)

    • SMEs (fastest growing) 

  • By Vertical:

    • BFSI (largest share)

    • Telecom & IT

    • Retail & eCommerce

    • Healthcare & Life Sciences

    • Manufacturing

    • Government & Defense

    • Others 

  • By Region:

    • North America (largest)

    • Asia-Pacific (fastest growing)

    • Europe

    • Latin America

    • Middle East & Africa 

Key Players

Leading global players include: Accenture, Atos, Capgemini, Cognizant, DXC Technology, IBM, HCL Technologies, Infosys, Oracle, SAP, AWS, Google, Dell, OpenText, Micro Focus .

Industry News & Recent Developments

  • Accenture and Proximus in July 2024 launched a partnership to deploy Accenture’s cloud‑agnostic Video Solution platform, enhancing video content management and viewer experience .

  • Infosys in July 2024 partnered with European security firm Sector Alarm to modernize its ERP systems via Microsoft Dynamics 365 F&O migration .

  • Schroders, a UK asset manager, outsourced core IT functions—including AMS—to UST, leveraging its operations in India to improve cost efficiency and agility .

  • In financial services SaaS space, heightened focus on supply‑chain cybersecurity and flexible deployment models underscores rising demand for AMS with strong resilience and compliance capabilities .

Market Dynamics

Drivers

  • Cloud migration & remote work: Surge in demand for cloud-based AMS and multi-cloud management solutions 

  • AI, automation & analytics: Providers increasingly offer predictive service optimization using AI/ML and RPA tools .

  • Operational efficiency & cost control: Enterprises outsource aging application maintenance to reduce IT spend and focus on innovation 

Restraints

  • High initial implementation costs, especially for SMEs, due to licensing and integration expenses.

  • Security, privacy, and legacy integration hurdles, particularly in regulated sectors or complex IT environments .

  • Market fragmentation & competition, leading to pricing pressure and demand for continuous innovation.

Regional Analysis

  • North America: Largest market share, driven by mature digital infrastructure, strong regulation (e.g., data privacy), and high AMS adoption in large enterprises .

  • Asia-Pacific: Highest growth rate forecast, propelled by cloud adoption in SMEs, outsourcing demand, and digital transformation initiatives in countries like India and China .

  • Europe: Steady expansion underpinned by regulatory compliance needs and rising digital transformation across sectors .

  • Latin America / MEA: Growing but smaller markets, with increasing appetite for AMS in governments, telecom, and retail sectors .

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Future Outlook

  • Market projected to expand from USD 22.6 B–54.3 B in 2024 to ~USD 105–150 B by 2030–32, representing CAGR estimates between 18–21% .

  • Accelerators include greater adoption of AI-powered AMS, cloud-native architectures, DevOps/CI-CD workflows, microservices modernization, and hybrid/multi-cloud orchestration .

  • Opportunities lie in SME-targeted cloud offerings, vertical-specific managed services, advanced analytics use cases, and regulatory-driven security pilots

About Market Research Future:

Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis regarding diverse markets and consumers worldwide. Market Research Future has the distinguished objective of providing the optimal quality research and granular research to clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help answer your most important questions.

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