Cloud-Native Solutions Dominate North American AD&M Landscape
North America continues to lead the way, compared to the global market data, in the Application Development and Modernization (AD&M) market, showcasing a market size of USD 74.1 billion. This dominance is attributed to a combination of factors, including robust digital transformation initiatives, a mature IT infrastructure, and a competitive market landscape.
“The application development and modernization market size continues to grow into the billions, is evident when we understand the global application initiatives,” states Paul Nashawaty, Practice Lead at the Futurum Group. “This dominance is fueled by a combination of factors, including robust digital transformation initiatives, a mature IT infrastructure, and a highly competitive market landscape. As Futurum Research highlights, the growth in AI and modernization across the past, present, and future is undeniable, further solidifying North America’s position as a global leader in AD&M.”
Organizations across North America are rapidly embracing digital transformation to enhance operational efficiency, improve customer experiences, and gain a competitive edge. This transformative shift necessitates the modernization of existing applications and the development of new ones that align with emerging technologies such as cloud computing, artificial intelligence, and machine learning. From a global perspective, the AD&M market continues to grow exponentially as seen in Figure 1.
Figure 1: H1 2024 Application Development and Modernization Market 2023–2028 (in US$ Billion)
North America is a dynamic region for business. The region’s stringent regulatory landscape, particularly in sectors such as financial services, insurance, and healthcare, along with overarching data privacy laws, add additional layers of complexity. Cloud adoption and cybersecurity concerns have created a fertile breeding ground for Application Development and Modernization services. The competitive market, with numerous startups and established companies vying for dominance, is a hotbed of innovation. The region’s relatively stable economy provides a solid foundation for organizations to invest in IT modernization.
“North America’s regulatory landscape, particularly in sectors like healthcare, finance, and insurance, is a key catalyst for the region’s robust demand for compliant applications. Coupled with the increasing adherence to data privacy like GDPR and CCPA, this regulatory environment has created an expanding ground for AD&M services,” Nashawaty states. “The widespread adoption of cloud-based infrastructure and a heightened focus on cybersecurity further enhance the appeal of AD&M solutions. The region’s competitive market, characterized by numerous players vying for market share, fosters innovation and a commitment to delivering high-quality AD&M offerings. Finally, North America’s relatively stable economic climate provides a favorable backdrop for organizations to invest in IT modernization projects.”
Futurum clients can read more in the report “State of the Market 2024– Application Development & Modernization Market” on the Futurum Intelligence Platform Application Development and Modernization IQ.
About Futurum Intelligence for Market Leaders
Futurum Intelligence’s Enterprise Application IQ service provides actionable insight from analysts, reports, and interactive visualization datasets, helping leaders drive their organizations through transformation and business growth. For access to the full report or to learn more about Futurum Intelligence link to https://app.futurumgroup.com. To learn more about Futurum and our coverage area, or to connect with an analyst, link to www.futurumgroup.com.
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