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The Mainframes market size is anticipated to experience substantial growth, projected at a Compound Annual Growth Rate (CAGR) of 6.32% from 2023 to 2028, with an estimated market size to increase by USD 1.16 billion. This market is structured in a fragmented manner, exhibiting a Year-over-Year (YoY) growth of 5.32% in 2023-2024. In the regional breakdown, this analysis includes North America, APAC, Europe, South America, and Middle East and Africa, with North America contributing significantly, standing at 36%. Key countries propelling this market include the US, China, South Korea, Taiwan, and Japan.
Mainframes are considered high-performance computers that have large amounts of memory and data processors that carry out billions of simple calculations and transactions in real-time. A mainframe is critical to commercial databases, transaction servers, and data processing applications that require high resiliency, security, and agility.The growth of the market depends on several factors, including the increasing investments in data centers, the upgradation and modernization of mainframes in data centers, and the growth in data generation.
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Increasing investments in data centers is the key factor driving the market growth. The demand for data centers is rising across the globe, mainly due to the significant growth of data traffic from enterprises and individual customers. The generation of huge data has forced several companies to build data centers of their own or collocated data center to serve their customers in a better way. In addition, the increasing use of cloud computing is driving the demand for data centers.
Moreover, the launch of new data centers, along with investments for future facilities, will make the demand for mainframes. Mainframes allow data center operations to run efficiently. Hence, growing investment in data centers is expected to increase the need for mainframes, which is expected to drive the growth of the global mainframes market during the forecast period.
Rising mergers and acquisitions are the primary trends shaping market growth. Market players are opting for acquisitions with market participants, including mainframe providers, for product development and geographical development. It also enables players to analyze new opportunity areas for products and services and generate revenue through sales of their products to data center operators.
For example, in April 2023, BMC announced the acquisition of the mainframe data management company Model9. The acquisition will improve the acquiring company's Automated Mainframe Intelligence (AMI) portfolio. Therefore, increasing acquisitions between vendors are expected to lead to many product-level innovations, which are expected to drive the growth of the market during the forecast period.
Focus on the consolidation of data centers is a challenge that affects market growth. Consolidation of data centers is a process where an organization decreases the size of one facility or merges several facilities in order to minimize its total operational costs. Consolidation of data centers is a reason for businesses to do so. The consolidation of the data center through acquisitions is helping enterprises to grow their market shares in different regions.
Moreover, data center consolidation helps in electricity cost savings of up to 30%-50%. Therefore, various government agencies are focusing on closing data centers across the world. Therefore, these factors are expected to impede the demand for mainframes from data center facilities and hinder market growth during the forecast period.
The market share growth by the hardware segment will be significant during the forecast period. The hardware segment of the global mainframes market includes main storage, one or more central processors, timers, and channels. Increasing adoption of mainframes in data centers, along with the rising demand for high processing power devices by end-user industries, is anticipated to drive the growth of the hardware segment of the market in focus.
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The hardware segment showed a gradual increase in the market share of USD 1.21 billion in 2018. Furthermore, considering the intense competition in developing mainframes, manufacturers are developing technologically advanced devices that will combine edge and quantum computing and robotics that can be synchronized with other devices. Hence, such factors are expected to drive the growth of the hardware segment, which in turn is anticipated to drive the growth of the market in focus during the forecast period.
Nearly every millisecond, BFSI organizations and other companies are sharing information on networks using IT infrastructure that ensures optimum data availability, security, connectivity as well and data integrity. For BFSI sector organizations, maintaining their own private data center requires very robust and reliable tools. Going forward, as BFSI companies focus more on expanding their vast data center infrastructure, for instance, in January 2022, JP Morgan Chase spent USD 2 billion on new data centers. Hence, increasing investment in the data center by BFSI companies is anticipated to boost the need for mainframes in data center servers, which is anticipated to propel the growth of the BFSI segment of the market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growing demand for data centers and servers is one of the primary reasons for the rising demand for mainframes in the North American region. Furthermore, the demand for data centers in North America is rising primarily due to the exponential growth of data traffic from enterprises and individual consumers.
In addition, the generation of large amounts of data has prompted organizations to construct more data centers to process, manage, and store the growing data volumes. This will drive the demand for mainframes in data center server hardware. There is a growing investment in data center infrastructure. Hence, such factors are expected to increase the demand for mainframes in the region during the forecast period.
The Mainframes Market analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Mainframes Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The mainframes market analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2022.
Mainframes Market Scope |
|
Report Coverage |
Details |
Page number |
196 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.32% |
Market Growth 2024-2028 |
USD 1.16 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.32 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, BMC Software Inc., Broadcom Inc., Capgemini Service SAS, Dell Technologies Inc., DXC Technology Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hexaware Technologies Ltd., Hitachi Ltd., Infosys Ltd., International Business Machines Corp., LzLabs GmbH, Microsoft Corp., Mphasis Ltd., Oracle Corp., Peraton Corp., Tata Consultancy Services Ltd., Unisys Corp., and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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