Application Management Services Market

The global market size for application management services reached $17,120 million in 2020 and is projected to reach $94,786 million by 2030, with a CAGR of 19.1% from 2023 to 2030.
The application management services market is expected to grow following the global COVID-19 pandemic. The rapid spread of the coronavirus forced many businesses to adopt remote working and work-from-home arrangements during lockdowns. Consequently, organizations have increasingly turned to application management services and applications to remotely manage their software and cloud applications.

Application management services involve outsourcing management through a customized framework consisting of policies, processes, procedures, templates, and standards. Various organizations offer these services to companies in need. Typically, the service providers specialize in IT or similar applications within the same industry.

Application testing, although it has a smaller revenue share, is equally, if not more, important than application modernization. It ensures the timely detection and resolution of bugs. Companies involved in application testing are expected to target North America and Europe, which are the largest regions in the application testing management segment by a significant margin.

In 2020, the application portfolio assessment segment dominated the global market share for application management services and is expected to maintain its dominance in the coming years. The increasing adoption of advanced software functionalities in business applications to enhance efficiency is driving market growth. Companies are investing in advanced technologies to keep up with changing customer demands.

The application security segment is estimated to be the fastest-growing segment within the market. The prevalence of mobile and cloud-based computing technologies has significantly transformed the business landscape, with most companies relying on software applications for their operations. For example, companies like Amazon heavily rely on online websites and mobile applications to sell their products.

Strong in-app consumer spending, high smartphone penetration, and a substantial number of mobile application downloads contribute to a high market share. The U.S. is expected to emerge as a lucrative market for mobile games applications in terms of in-app payments, paid mobile games, and the rapidly increasing user base of mobile apps in the country.

The report primarily focuses on growth prospects, restraints, and analysis of the application management services market. It includes Porter's five forces analysis to understand the impact of factors such as supplier bargaining power, competitive intensity, the threat of new entrants, the threat of substitutes, and buyer bargaining power on market trends in the application management services industry.

Segment Review
The global application management services industry is segmented based on services, organization size, end use, and region. The services segment includes application portfolio assessment, application security, web application security, mobile application security, application modernization, cloud application migration, and others. Organization size is categorized into SMEs and large enterprises. The end-use segment comprises BFSI, telecom & IT, government, retail & ecommerce, healthcare & lifescience, manufacturing, and others. The market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions.

COVID Impact Analysis
Following the global COVID-19 pandemic, the application management services market is expected to grow. The widespread of the coronavirus compelled many businesses to adopt remote working and work-from-home arrangements during lockdowns. Consequently, organizations turned to application management services and applications to manage their software and cloud applications remotely. Additionally, the increasing importance of application management services in the digitization process of small and medium-sized enterprises has contributed to the market's growth during the pandemic.

Top Impacting Factors:
The market is driven by the growing demand for next-generation technology integration in modern business applications, which helps streamline operations. However, concerns regarding data privacy and the flexible nature of application management services pose challenges to market growth. Evolving consumer trends, the aftermath of the COVID-19 pandemic, and the rising demand to simplify the complexity of remote work are expected to create lucrative opportunities for the market.

Growing Demand for Next-Gen Tech Integration in Modern Business Applications:
The modern business sector has undergone significant transformations, shifting from physical service delivery to digital platforms. The adoption of cloud technology and the widespread use of mobile phones and personal computers have led to increased reliance on social media platforms and other digital tools. To stay competitive, businesses need to embrace new technologies and innovations. Application management services facilitate the adoption of these digital transformations and expansion of application portfolios, driving the growth of the market in recent years, with continued growth expected in the forecast period.

By Services:
Simplifying Modern Business Operations:
Modern business operations have become increasingly complex, with a growing number of variables, data, and demands to manage. Application management services solutions help alleviate the burden on enterprises, allowing them to focus on business development and core activities rather than relying heavily on their IT resources. These services enable development teams to enhance their capabilities without the need to hire additional specialized personnel for specific operations.

According to a survey conducted by Fujitsu, over 42% of respondents who had room for digitalization in their business operations were able to navigate the challenges posed by the global COVID-19 outbreak more efficiently. This highlights the value of application management services in the market, as more enterprises are looking to leverage emerging capabilities and services that offer low burden and cost.

Key Benefits for Stakeholders:
The study provides an in-depth analysis of the growth of the Application Management Services market, including current trends and future projections, to identify promising investment opportunities. The report also offers insights into the key drivers, restraints, and opportunities impacting the market size of application management services, along with an analysis of their impact. The application management services market trends are assessed using Porter's five forces analysis to determine the bargaining power of buyers and suppliers. Additionally, the report provides a quantitative analysis of the market forecast for the period 2020-2030 to assess its potential.

Application Management Services Market Report Highlights
By Services
• Application Portfolio Assessment
• Application Security
• Web Application Security
• Mobile Application Security
• Application Modernization
• Cloud Application Migration
• Others

By Organization Size
• SME
• Large Enterprise

By End Use
• BFSI
• Telecom and IT
• Government
• Retail and ecommerce
• Healthcare and Lifesciences
• Manufacturing
• Others

By Region
• North America  (U.S., Canada)
• Europe   (UK, Germany, France, Rest of Europe)
• Asia-Pacific   (China, India, Japan, Rest of Asia-Pacific)
• LAMEA  (Latin America, Middle East, Africa)

Key Market Players
• Accenture plc
• Amazon Web Services, Inc.
• Dell Inc.
• Google LLC
• HCL Technologies
• Infosys Limited
• International Business Machines Corporation
• Micro Focus
• Oracle Corporation
• SAP SE