Mainframe Market Synopsis

Mainframe Market Size Was Valued at USD 3.6 Billion in 2023, and is Projected to Reach USD 5.2 Billion by 2032, Growing at a CAGR of 5.4% From 2024-2032.

A mainframe is a kind of computer system used by organizations for important tasks like data processing, transaction processing, and ERP. Mainframes are recognized for their dependable performance, ability to handle large amounts of data, and strong security measures. For many years, they have served as a fundamental aspect of computing systems, especially in sectors such as banking, finance, government, and telecommunications. Mainframes are capable of running multiple operating systems and accommodating thousands of users at the same time, which allows them to efficiently manage large workloads.

• Various factors such as economic conditions, technological advances, regulatory policies, and consumer preferences shape the dynamic ecosystem of the global market. Lately, there has been a significant shift towards digital transformation in various sectors, leading to growth in industries like IT, online retail, and digital services. The rise in cloud computing, artificial intelligence, and Internet of Things (IoT) technologies has driven this change, revolutionizing both business practices and customer interactions.
• For instance, there has been notable growth in the e-commerce industry, as online retail leaders such as Amazon, Alibaba, and eBay have obtained a large portion of global consumer expenditures. Factors such as convenience, accessibility, and a wider variety of online products and services have driven this growth. Furthermore, the transition to online shopping was sped up by the COVID-19 pandemic, with lockdowns and social distancing rules forcing consumers to increasingly turn to digital platforms for their shopping requirements.
• The developing economies in areas such as Asia-Pacific, Latin America, and Africa are undergoing quick economic growth and urbanization, opening up possibilities for companies to enhance their activities and target expanding consumer markets. Businesses are placing more emphasis on localization tactics to meet the distinct requirements and desires of various customer groups in these areas.
• At the same time, both businesses and consumers are giving more importance to sustainability and environmental issues, leading to an increased desire for eco-friendly products, renewable energy options, and corporate sustainability efforts. Businesses are increasingly incorporating environmental, social, and governance (ESG) principles into their strategies to meet changing societal expectations and manage risks related to climate change and resource depletion.

Mainframe Market Trend Analysis

Surging Demand for High-Performance Computing

• In recent years, there has been a significant increase in the worldwide need for high-performance computing systems, especially mainframes, due to a combination of different factors. The exponential increase in data in the digital age is a major factor that requires stronger computational capabilities for efficient processing and analysis of large and complex datasets. Mainframe systems have become a suitable solution for managing these data-heavy tasks, allowing both researchers and businesses to uncover valuable insights from the growing amount of information available.
• The increasing use of artificial intelligence (AI) and machine learning (ML) technologies has driven the need for mainframes even more. AI and ML algorithms depend greatly on significant computational power for the training and optimization of models, highlighting the essential role of mainframe systems in speeding up these complex processes. This dependence on powerful computing technology is present in a range of industries, from finance to healthcare. Mainframes are crucial in banking operations, supporting key systems such as ATM and point-of-sale (POS) terminals, guaranteeing smooth transaction processing, and upholding data accuracy.
• Mainframes play a crucial role in the healthcare industry by overseeing patient information, easing billing tasks, and backing up essential healthcare functions. Moreover, mainframes are used in scientific and engineering fields to simulate intricate systems like climate models, fluid dynamics, and molecular structures. Mainframes' versatility and importance in various industries are highlighted by their capability to manage such demanding computational tasks.

The Rise of Mainframe Modernization in Evolving Business Landscapes

• In today's constantly changing environment, it is essential for businesses to adapt their practices in order to ensure continued financial success, as older methods may not be sustainable in the long run. In order to remain competitive, companies are more and more adopting tactics like digital transformation, improving customer experience, innovating, and monitoring processes. Out of all these approaches, digital customer experience is especially crucial in advancing business development. Nevertheless, this development requires dealing with obsolete mainframe applications, leading to the necessity for modernizing mainframes.
• Mainframe modernization involves updating and adjusting old mainframe systems to align with current business requirements. Old mainframes present various difficulties, such as cost impacts from inefficiencies, legacy applications bogged down by hidden code, and performance issues due to overloaded systems. As a result, businesses are looking towards modernization projects to address these challenges and tap into fresh possibilities for expansion and productivity.
• A crucial element of updating mainframes includes transferring to cloud-based or multi-cloud settings and moving to more economical platforms. This shift allows companies to take advantage of the scalability, flexibility, and cost-effectiveness of cloud infrastructure, ultimately improving operational speed and gaining a competitive advantage. Moreover, modernization efforts present a range of other important benefits, such as enhanced safety, simplified compatibility with contemporary technologies, and increased versatility to meet changing business needs. With businesses increasingly acknowledging the strategic significance of updating their mainframe systems, the market for solutions for modernizing mainframes is expected to experience significant growth and advancement

Mainframe Market Segment Analysis:

Mainframe Market Segmented based on Offering, Application, Organization Size, and End Use.

By Offering, the hardware segment dominates the global mainframe market.

• The primary reason for hardware's dominance is the critical role it plays in mainframe architecture. Mainframe hardware is known for its robustness, scalability, and reliability, making it the backbone of mission-critical applications in industries such as finance, healthcare, and government. Organizations heavily invest in mainframe hardware to ensure high availability and data integrity, which are paramount for their operations.
• Mainframe hardware vendors have continually innovated to meet evolving market demands. They offer advanced features such as high-speed processors, massive storage capacities, and encryption capabilities to address security concerns. Additionally, mainframe hardware providers offer comprehensive support and maintenance services, further solidifying their dominance in the market.
• In recent years, there has been a notable shift towards software and services in the mainframe market. This shift is driven by factors such as digital transformation initiatives, the adoption of cloud computing, and the emergence of new technologies like artificial intelligence and machine learning.

By Organization Size, large enterprises traditionally dominate in terms of both market share and influence.

• These organizations, characterized by their extensive operations, diverse IT infrastructure, and complex business processes, have long relied on mainframe technology to power critical applications and manage vast amounts of data. As a result, they constitute the primary customer base for mainframe vendors and service providers.
• key reasons for the dominance of large enterprises in the mainframe market is the scale and scope of their operations. Mainframes excel in handling massive workloads and transaction volumes, making them indispensable for industries such as banking, insurance, telecommunications, and retail, where large enterprises operate. These organizations require robust computing platforms that can deliver high performance, reliability, and security, all of which are inherent strengths of mainframe systems.
• Large enterprises often have legacy applications and systems that have been developed and refined over decades. Mainframes provide a stable and trusted environment for running these mission-critical applications, ensuring continuity of business operations without disruption. The substantial investments made by large enterprises in mainframe hardware, software, and services further solidify their dominant position in the market.

Mainframe Market Regional Insights:

North America currently holds the leading position in the global mainframe market.

• Financial institutions and retail giants in North America have long been staunch users of mainframes. These sectors process massive amounts of sensitive data, and mainframes offer unparalleled security, reliability, and scalability to handle these critical tasks. With the ever-increasing volume of online transactions and the growing complexity of financial instruments, the demand for mainframe power in North America shows no signs of abating.
• Many established North American corporations have been running their operations on mainframes for decades. This entrenched infrastructure creates a powerful inertia – migrating away from a well-understood and reliable system to completely new technologies can be a daunting and expensive proposition.  Instead, many businesses in North America are opting for modernization efforts, extending the life of their existing mainframe systems by integrating them with newer technologies.
• The Asia Pacific region is experiencing rapid digitalization, with countries like China spearheading the movement. This digital transformation necessitates robust data security and reliable transaction processing, areas where mainframes excel. As a result, the demand for mainframes in Asia Pacific is expected to rise steadily.
• The Asia Pacific region is experiencing rapid digitalization, with countries like China spearheading the movement. This digital transformation necessitates robust data security and reliable transaction processing, areas where mainframes excel. As a result, the demand for mainframes in Asia Pacific is expected to rise steadily.

Active Key Players in the Mainframe Market

• BMC Software, Inc. (United States)
• Broadcom (United States)
• Cognizant (United States)
• CSI International (United States)
• Dell Inc. (United States)
• DXC Technology Company (United States)
• Hewlett Packard Enterprise Development LP (United States)
• Hitachi Vantara LLC (United States)
• IBM Corporation (United States)
• Infinidat (United States)
• Kyndryl Inc (United States)
• Rocket Software, Inc. (United States)
• Software Diversified Services (United States)
• Software Engineering of America, Inc. (United States)
• UNICOM Systems, Inc. (United States)
• Unisys (United States)
• Accenture (Ireland)
• Atos SE (France)
• LZ labs (United Kingdom)
• Software AG (Germany)
• CPT Global (Australia)
• Fujitsu (Japan)
• HCL Technologies Limited (India)
• Infosys Limited (India)
• ISI Australia (Australia)
• Kinetic IT (Australia)
• Mainframe Cloud Pty Ltd (Australia)
• NEC Corporation (Japan)
• TATA Consultancy Services Limited (India)
• Wipro (India), other Active Players

Key Industry Developments in the Mainframe Market:

• In March 2023, Broadcom was honored with the 'impact innovation award' by Computer Measurement Group, recognizing their exceptional contributions to driving IT improvements. The award specifically highlighted their project, Precision MSE, which has led to significant transformations and remarkable outcomes within their organization. Management at Broadcom expressed that this recognition not only validates their ongoing efforts in developing the Precision MSE platform but also underscores their commitment to modernizing the mainframe experience for their valued customers. This achievement has bolstered Broadcom's reputation amongst both competitors and clients.
• In January 2024, IBM announced that it signed a definitive agreement to acquire application modernization capabilities from Advanced. This acquisition brought a combination of talent, tools, and knowledge to enhance IBM Consulting’s mainframe application and data modernization services. The acquisition further enabled IBM to support clients’ mainframe application modernization journeys, marking another significant step forward in IBM’s hybrid cloud and AI strategy.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. MAINFRAME MARKET BY OFFERING (2017-2032)
   1. Mainframe MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. Hardware
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. SERVICES
   5. SOFTWARE
7. MAINFRAME MARKET BY APPLICATION (2017-2032)
   1. Mainframe MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. TRANSACTION
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. ERP
   5. CENSUS INDUSTRY
   6. CONSUMER STATICS
8. MAINFRAME MARKET BY ORGANIZATION SIZE (2017-2032)
   1. Mainframe MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. LARGE ENTERPRISES
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. SMALL AND MEDIUM-SIZED ENTERPRISES
9. MAINFRAME MARKET BY END USE (2017-2032)
   1. Mainframe MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. BFSI
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. IT AND TELECOM
   5. HEALTHCARE
   6. GOVERNMENT AND PUBLIC SECTOR
   7. RETAIL
   8. TRAVEL AND TRANSPORTATION
   9. MANUFACTURING
   10. OTHERS
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Benchmarking
       2. Mainframe Market Share By Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. BMC SOFTWARE, INC. (UNITED STATES)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves And Recent Developments
       10. SWOT Analysis
    3. BROADCOM (UNITED STATES)
    4. COGNIZANT (UNITED STATES)
    5. CSI INTERNATIONAL (UNITED STATES)
    6. DELL INC. (UNITED STATES)
    7. DXC TECHNOLOGY COMPANY (UNITED STATES)
    8. HEWLETT PACKARD ENTERPRISE DEVELOPMENT LP (UNITED STATES)
    9. HITACHI VANTARA LLC (UNITED STATES)
    10. IBM CORPORATION (UNITED STATES)
    11. INFINIDAT (UNITED STATES)
    12. KYNDRYL INC (UNITED STATES)
    13. ROCKET SOFTWARE, INC. (UNITED STATES)
    14. SOFTWARE DIVERSIFIED SERVICES (UNITED STATES)
    15. SOFTWARE ENGINEERING OF AMERICA, INC. (UNITED STATES)
    16. UNICOM SYSTEMS, INC. (UNITED STATES)
    17. UNISYS (UNITED STATES)
    18. ACCENTURE (IRELAND)
    19. ATOS SE (FRANCE)
    20. LZ LABS (UNITED KINGDOM)
    21. SOFTWARE AG (GERMANY)
    22. CPT GLOBAL (AUSTRALIA)
    23. FUJITSU (JAPAN)
    24. HCL TECHNOLOGIES LIMITED (INDIA)
    25. INFOSYS LIMITED (INDIA)
    26. ISI AUSTRALIA (AUSTRALIA)
    27. KINETIC IT (AUSTRALIA)
    28. MAINFRAME CLOUD PTY LTD (AUSTRALIA)
    29. NEC CORPORATION (JAPAN)
    30. TATA CONSULTANCY SERVICES LIMITED (INDIA)
    31. WIPRO (INDIA)
11. GLOBAL MAINFRAME MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Offering
       4. Historic And Forecasted Market Size By Application
       5. Historic And Forecasted Market Size By Organization Size
       6. Historic And Forecasted Market Size By End Use
       7. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies