The market is expected to reach KRW 450.5 billion by 2026, registering an average annual growth rate of 4.7% over the next five years. As enterprises accelerate their transformation to the cloud and extend their digital-first strategy, the market will grow as they recognize application modernization as a fundamental task of digital transformation beyond a means of verifying the cloud efficiency.
In this report, the application modernization services market is divided into a professional service that implements application modernization and a managed market that operates a modernized application environment, and is defined as a partial market included in the market IDC IT services.
According to the report, investments in 2023 are expected to continue to increase as the digital transformation of businesses accelerates despite mounting pressures from a general economic slowdown. As a result, it is analyzed that the demand will continue to increase as application modernization is pushed forward as a way to achieve digitization of businesses through digitization at the application level beyond the infrastructure level. Therefore, in 2023, the country’s application modernization services market is expected to grow by 5.8% year-on-year, increasing the growth rate despite slowing overall IT services market growth.
In the long term, securing public services such as creating business value in a cloud-based computing environment is expected to drive the growth of the application modernization services market. In this movement, application modernization emerges as a way to more easily solve problems such as the rapid development of applications adapted to the rapidly changing needs of digital businesses, the expansion of links between various applications and the problems of management of rapidly growing enterprise applications. Among them, as a method of modernization, moves such as converting to microservices architecture, implementing container technology and cloud-native environment, and introducing DevOps culture should be further highlighted.
According to the report, Korea is still slow to upgrade compared to the global market. Domestic enterprises tend to be hesitant to modernize due to the low return on investment and low cost required when moving from non-standardized IT architectures to microservices, as the rate of customization is high when introducing applications and systems. In terms of modernization modality, the replacement method, which completely replaces legacy applications with cloud-native applications while upgrading outdated systems via cloud-based modernization, shows a strong preference.
Re-platforming seems to come right after refactoring, which disproves the burden on domestic companies in terms of cost and business continuity for refactoring through architecture. On the other hand, companies around the world have shown a strong preference for using modernized developer tools such as the replatform and the devops toolchain, and from 2023 the replatform will decrease and the preference for refactoring will increase with the use of modernized development tools. .
“In the domestic market, application modernization is being promoted as a way to achieve enterprise digitization through application-level digitization beyond infrastructure,” said Kim Gyeong-min, Director of Korea IDC, which will be the main driver.
editor@itworld.co.kr
