An application management service is a type of framework that outsources management by way of a customized, well-defined set of policies, processes, procedures, templates, and standards. Application management services are provided by a number of different organisations to companies that need such services.
The organizations that agree to provide this service typically have an expertise in the IT sector or in similar applications for companies in the same line of business.
Application management specialists are vital in helping overcome challenges by improving the performance of applications and achieving better business results. The application management services market is estimated to be worth just under USD 90 billion by end 2022.
The application outsourcing management and system integration management segment have a similar revenue share in the application management services market with the former edging slightly ahead. The application outsourcing management segment is anticipated to have a value of almost USD 20.5 billion by the end of the forecast period. North America is critical in the application outsourcing management segment.
The CAGR in the system integration management segment is much lower in comparison and it is poised to lose market share for the foreseeable future. Along with North America, companies would do well to target Europe in the system integration management segment of the application management services market.
Applications need to be constantly updated to ensure that they have all the latest functions and capabilities post which testing is imperative. The application modernization has a revenue share of approx. a sixth of the services type segment in the application management services market at the end of 2017 and should gain substantial share going forward.
The application modernization is predicted to record an exponential growth rate in excess of 10% from 2017 to 2022, making it very lucrative indeed.
Application testing has a smaller revenue share but is equally if not more important than application modernization to ensure that any and every bug is nipped in the bud. Companies involved in application testing would do well to target North America and Europe as both regions are the largest in the application testing management segment by a considerable margin.
It is not a question of if but when cloud application services become commonplace in both the developed and developing world. Improving Internet connectivity and the plummeting prices of smartphones are largely responsible for the shift towards cloud computing. The cloud application segment has a revenue share approaching a fifth of the application management services market by service type segment.
The North America cloud application segment is expected to push past a value of USD 5 billion by end 2022, ensuring its pre-eminence in the application management services market. However, a higher CAGR is projected in both APEJ and Japan with the latter on track to outpace the former by the end of the forecast period.
Future Market Insights has profiled a few of the companies involved in the application management services market. These include Accenture PLC, IBM Corporation, NTT DATA Corporation, Capgemini SE, HCL Technologies, CA Technology Inc, Infosys Limited, Wipro Limited, Hexaware Technologies Limited, and KPIT Technologies Limited.
The application management services market is likely to secure a CAGR of 8.6% through 2032.
The application management services market is likely to record a value of USD Million/ 90 Billion in 2022.
The application management services market size is estimated to cross USD Million/ 205.37 Billion by 2032.
North America is likely to lead the application management services market.
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Application Management Services Market
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