The global mainframe market was valued at US$ 4,059.99 million in 2024 and is projected to reach US$ 7,241.13 million by 2033, reflecting a Compound Annual Growth Rate (CAGR) of 6.64% during the forecast period from 2025 to 2033.
Mainframes are powerful, large-scale computing devices renowned for their reliability, speed, and security in managing substantial transaction volumes. Their popularity is on the rise, driven by globalization, digitalization, and an increasing demand for continuous data processing. As organizations seek to enhance their operational efficiency and responsiveness, mainframes have emerged as a critical component in their IT infrastructure.
Recent innovations in containerization, combined with DevOps tools and hybrid cloud extensions, have significantly increased the flexibility of the mainframe market. These advancements allow businesses to integrate mainframe systems more seamlessly with modern technologies, fostering greater agility and adaptability. As a result, there is a growing demand for mainframe solutions that can support complex workloads while ensuring secure and efficient processing capabilities.
Mainframe Market Key Takeaways
- By Type, the system segment of the mainframe market commands a significant share, controlling over 49% of the total revenue.
- In terms of application, transaction applications account for 42% of the market’s revenue.
- When examining end users, the Banking, Financial Services, and Insurance (BFSI) sector holds a notable share of approximately 34.75% of the mainframe market.
Regional Analysis
North America: The Largest Region in the Global Mainframe Market
North America stands as the largest region in the global mainframe market, driven by its innovative culture, access to substantial funding, and the presence of several technology giants. In 2023, the region generated revenues amounting to US$1,665.23 million, reinforcing its dominant position in the market.
- Key Industries Driving Mainframe Reliance: The continued dominance of North America in the mainframe market can be attributed to core industries such as finance, healthcare, and retail. These sectors rely heavily on the effective computing capabilities of mainframe machines, particularly in the United States, where operational efficiency and data processing are critical.
- Investment in Upgrades and Research: The leadership of North America in the mainframe market is further supported by ongoing investments in mainframe upgrades and robust research and development (R&D) services. This commitment to innovation ensures that organizations can maintain their competitive edge and adapt to the evolving technological landscape, solidifying the region’s status as a powerhouse in the mainframe industry.
Strong Growth in the Asia-Pacific Region
The Asia-Pacific region is anticipated to exhibit a CAGR of 8.0% over the forecast period. This growth is largely driven by the expanding financial industry, particularly due to the increased mobile and credit card transactions in China and India.
- Increased Investment in Mainframe Technology: As business volumes continue to rise, financial institutions are investing in mainframe technology to safeguard their transactions. This investment is crucial for ensuring the security and reliability of financial operations, particularly as transaction volumes increase in this dynamic market.
- Integration with Cloud Technologies and Mobile Methods: With more businesses adopting cloud technologies and mobile methods, there is a growing need for mainframe systems to establish better connections with these platforms. This integration is vital for enhancing operational efficiency and ensuring that organizations can leverage the benefits of both mainframe and modern technologies seamlessly.
- Demand for Secure System Platforms in Telecom: As the telecom sector develops more rapidly in the Asia-Pacific region, companies are increasingly seeking highly secure system platforms. The need for robust security measures is paramount as organizations look to protect sensitive data and maintain the integrity of their operations in an evolving digital landscape.
Top Trends Escalating the Mainframe Market
Bridging Legacy Systems with Hybrid Cloud Implementations: Hybrid cloud implementations are effectively bridging legacy mainframe systems with agile, modern, decentralized cloud-native design approaches. This integration allows organizations to leverage the strengths of both environments, facilitating smoother transitions and enhancing overall operational capabilities.
Expanded Application of Artificial Intelligence: There is an expanded application of artificial intelligence algorithms aimed at improving predictive analytics, optimization, and operational efficiency gains. By harnessing AI, businesses can gain deeper insights into their operations, enabling more informed decision-making and enhancing performance across various functions.
Accelerated DevOps Adoption: The accelerated adoption of DevOps practices is creating continuous integration pipelines tailored for complex mainframe modernization strategies worldwide. This shift fosters collaboration between development and operations teams, streamlining the software development process and enabling faster delivery of updates and enhancements.
Rising Need for Transaction Processing and Real-Time Analytics: A rising need for large-scale transaction processing and real-time analytics is becoming evident across global critical industry infrastructures. As organizations seek to improve their responsiveness and agility, the ability to process transactions efficiently while gaining immediate insights is essential for maintaining a competitive edge.
Growing Modernization Initiatives: There are growing modernization initiatives aimed at integrating mainframes with emerging technologies to develop highly robust, future-proof enterprise solutions. This trend reflects the commitment of organizations to adapt to changing market demands and technological advancements, ensuring their systems remain relevant and effective.
Demand for Secure, Scalable Infrastructure: The demand for secure, scalable infrastructure is increasing as organizations strive to safeguard mission-critical workloads from rising cyber threats and compliance pressures. Ensuring that systems are secure and capable of scaling to meet future demands is crucial for maintaining operational integrity and protecting sensitive data.
Mainframe Market Segmentation
By Product Type
The system segment accounted for over 49% of the revenue generated by the mainframe market. In the first half of 2023, 900 new Z Systems were delivered to hospitals and banks, reflecting IBM’s commitment to meeting the steady demand for secure and high-performance computing solutions. This continued investment underscores the critical role that mainframes play in sectors that require reliability and speed.
To adapt to the evolving technological landscape, companies are increasingly integrating hybrid cloud support into their mainframe systems. This innovative approach allows organizations to operate essential applications alongside cloud-based software, enhancing flexibility and scalability. By combining the robustness of mainframe technology with the agility of cloud solutions, businesses can optimize their operations and meet the growing demands of their customers more effectively.
By Application
The banking, retail, and airline industries are heavily reliant on the mainframe market for their transaction applications, primarily due to the remarkable reliability and speed that mainframes offer. Currently, transaction applications account for 42% of the revenue generated by the mainframe market, highlighting their significance in operational efficiency and customer satisfaction.
As businesses increasingly strive to achieve near-real-time transaction validation, the architecture of mainframes, combined with their ultra-low latency, makes them the ideal solution. The ability to process transactions swiftly and accurately is critical in these sectors, where even minor delays can lead to significant disruptions and financial losses.
By End Users
The Banking, Financial Services, and Insurance (BFSI) sector commands a significant share of the mainframe market, holding close to 34.75%. This dominance can be attributed to the sector’s need to manage vast amounts of data while adhering to stringent compliance requirements, which drive institutions to rely on mainframe technology.
Within the BFSI sector, the tolerance for unsecured environments is incredibly low, making data resilience a top priority. Mainframes play a crucial role in this regard, as they automate backup operations and facilitate secure, encrypted transaction pathways. These features are essential for maintaining the integrity and security of financial data.
Recent Developments in the Mainframe Market
- IBM Launches z17 Mainframe Platform: In April 2025, IBM introduced the latest version of its dominant mainframe platform, the z17, during its virtual IBM Z Day. This new iteration features comprehensive AI integration, specifically designed to bring AI workloads closer to enterprise data, enhancing operational efficiency and capabilities.
- Mechanical Orchard Unveils Imogen: In April 2025, Mechanical Orchard, a pioneer in applied AI, announced the launch of Imogen, an end-to-end mainframe modernization platform. This launch marks the company’s first partnership with Thoughtworks, a global technology consultancy, aiming to drive innovation in mainframe modernization solutions.
- Kyndryl Expands Partnership with Google Cloud: In March 2025, Kyndryl, the world’s largest IT infrastructure services provider, announced an expanded partnership with Google Cloud. This collaboration focuses on leveraging generative AI to streamline and accelerate the modernization of mainframe applications and data. As part of this partnership, Kyndryl has been certified as a specialized partner for Google Cloud’s AI and Gemini models, reinforcing its commitment to advanced technological solutions.
- Launch of Izzi Software: In January 2025, a group of enterprise software veterans launched Izzi Software, and announced ColeSoft as its first acquisition in the mainframe industry. This strategic move aims to enhance Izzi Software’s offerings and strengthen its position in the market.
Top Players in Global Mainframe Market
- IBM
- FUJITSU Ltd.
- Broadcom
- Cognizant
- Unisys Corporation
- DXC Technology Company
- Eviden SAS
- NTT Data
- Infosys Limited
- BMC Software
- Wipro
- NEC Corporation
- Other Prominent Players
Market Segmentation Overview:
By Product Type
- Systems
- Z systems
- GS Series
- Clear Path Dorado Systems
- Others
- Software
- Cloud
- On-premises
- Services
By Application
- Transaction
- ERP
- Census
- Consumer Statics
- Application Development
- Operations Management
- Testing and Quality
- Compliance & Data Protection
- Accounting
- Payroll Computations
By End User
- BFSI
- IT and Telecom
- Healthcare
- Government and Public Sector
- Retail
- Travel and Transportation
- Manufacturing
- E-businesses
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
Source: https://www.astuteanalytica.com/industry-report/mainframe-market
