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The application management services market size is estimated to grow at a CAGR of 20.11% between 2022 and 2027. The application management services market size is forecast to increase by USD 36.43 billion. The growth of the market depends on several factors, including demand lead growth, the advantage of cost reduction due to operational streamlining, and the ability of AMS offerings to enhance cost savings.
This application management services market report extensively covers market segmentation by type (discrete AMS and embedded AMS), end-user (small, medium enterprises, and large enterprises), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The ability of AMS offerings to enhance cost savings is notably driving the market growth, although factors such as a longer implementation process may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The ability of AMS offerings to enhance cost savings is notably driving the market growth. AMS enables businesses to cut expenses while delivering services to the market on time. It also makes it possible to manage project portfolios centrally. Organizations' primary focus on centralizing the IT infrastructure for their project portfolios is to reduce costs. Centralizing their IT infrastructure for project portfolios is one way to accomplish this. Better decision-making, better performance, the avoidance of effort duplication, and lower operating costs are all made possible as a result.
The centralized management of project portfolios made possible by AMS can greatly aid organizations in streamlining operations, enhancing services, and improving overall performance. Large businesses may find it challenging and resource-intensive to manage IT infrastructure across numerous sites as business environments become more diversified. Organizations may need to centralize their IT infrastructure for project portfolios through AMS to save money, streamline operations, and improve performance. Application management services can help businesses stay competitive in the current global business environment by improving decision-making, reducing duplication of effort, and providing better services. Thus, during the forecast period, these factors will drive the growth of the global market.
The rise of hybrid application integration technology is an emerging trend in market growth. Due to the increasing complications and complexities in data integration and collaboration standards, the adoption of hybrid application integration technology is becoming more widespread across a variety of industries. There is a need for more sophisticated integration platforms that can handle changes in enterprise systems because business integration requirements are changing and evolving.
Cloud-based, on-premises, and hybrid integration scenarios can all be managed by hybrid application integration technology, which offers a more adaptable, scalable, and effective solution. Businesses can adopt this technology to streamline processes, boost output, and increase agility while upholding security and compliance. In order to maintain their competitiveness and meet the needs of the rapidly evolving business environment, organizations must give high priority to the adoption of hybrid application integration technology. Hence, during the forecast period, these factors will fuel the global market for application management services.
A longer implementation process is a major challenge impeding market growth. Application management service implementation in organizations necessitates a sizable investment of money, time, and effort. For businesses, especially those facing intense competition, this presents a challenge. Application management services can be expensive, and they sometimes take longer to turn a profit than anticipated. Additionally, mistakes in estimating the amount of time and effort required for implementation can result in failures, which can lead to revenue loss for SMEs (Small and Medium-sized Enterprises).
Owing to such risks, some businesses might decide not to use application management services. This is especially true for SMEs, which might not have the funds to withstand revenue losses. In the end, each business must evaluate the potential advantages and disadvantages of using application management services to decide if it is the best option given their unique requirements and situation. As a result, the longer implementation process may negatively affect the opportunity for application management service providers to generate revenue and restrain the market's expansion during the forecast period.
The 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 Application Management Services Market Customer Landscape
Vendors 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.
Accenture Plc: The company offers application management service across hybrid and multi cloud environments which automates the movement of workloads among private and public clouds, monitor the performance and cost as part of the process.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the discrete AMS segment will be significant during the forecast period. Offerings for discrete application management services make sure that every project follows the organization's business strategy and track how much each project contributes to the overall business portfolio. When these applications are used effectively, customer satisfaction increases, overall business success increases, and risks and issues reduces. The need to cut costs while also improving the changing business processes is one of the key factors fueling the growth of the global discrete AMS segment.
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The discrete AMS segment was valued at USD 6.86 billion in 2017 and continued to grow until 2021. Social media's rise to prominence is a significant market trend. Numerous vendors are expanding their user-friendly, adaptable, and collaborative software offerings in response to the popularity of social media platforms like Facebook and Twitter. Better business outcomes result from these software applications' capacity to communicate more effectively within the enterprise. With most multinational corporations considering social networks as their upcoming marketing platform, social media marketing is thus gaining ground. Social networks and application services are being integrated into the market. Enterprise applications will be able to engage users in real-time conversations that are collaborative and meaningful for both the business and the customer due to this integration. Thus, the discrete application management services segment is expected to continue to grow in the coming years, driven by the increasing demand for software applications and the need for businesses to improve their operations and increase their competitiveness in the market.
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North America is estimated to contribute 38% 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.
Large corporations, SMEs, and government organizations account for the majority of the demand for application management services in North America, which is being fueled by the expansion of a number of industry verticals like the BFSI, telecom, the public sector, and oil and gas. Application management services offerings like IT outsourcing, consulting, system integration, IT support, and cloud computing are being used by businesses operating in a variety of industry verticals.
Vendors are upgrading their offerings in response to the increasing competition among providers of application management services in order to maintain market share. Due to the implementation of new technologies like virtualization, cloud computing, and SaaS-hosted services, the US has the highest adoption of application management services, and it is significantly rising in American nations like Canada and Mexico. The demand for outsourcing vendors in this region is being driven by the availability of vendors offering application management services in English-speaking nations like Canada, Costa Rica, Guatemala, and Mexico. The market in North America is expected to grow owing to the focus of vendors on offering better solutions to their clients and the increased adoption of custom application development services to develop and deploy various types of applications. Hence, all these factors will drive market growth in the region during the forecast period.
In 2020, the outbreak of COVID-19 adversely affected the market in the region. However, since the pandemic's initial effects, the North American market for application management services has begun to show signs of recovery. The market has grown as a result of the increase in demand for cloud-based applications due to the shift toward remote work. Additionally, the market has expanded as a result of the rising demand for digital transformation and the development of e-commerce. Business adoption of cloud-based solutions and the growing need for digital transformation is anticipated to further fuel market expansion after the pandemic. Such factors are anticipated to drive the regional market during the forecast period.
The application management services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global application management services market as a part of the global IT consulting and other services market within the global IT services market. The parent global IT services market covers companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Application Management Services Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.11% |
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Market growth 2023-2027 |
USD 36.43 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
19.64 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 38% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Capgemini Service SAS, Cognizant Technology Solutions Corp., Deloitte Touche Tohmatsu Ltd., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hexaware Technologies Ltd., Infosys Ltd., International Business Machines Corp., Mercer LLC, Meteorite Informatics Pte. Ltd., Mphasis Ltd., Resolute Technology Solutions Inc., Rimini Street Inc., ScienceSoft USA Corp., Tata Consultancy Services Ltd., Unisys Corp., Wipro Ltd., and Mindtree Ltd. |
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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, and Market condition analysis for the forecast period. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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