Gartner Research

Forecast Analysis: Application Services, Worldwide

Published: 09 July 2019

ID: G00418133

Analyst(s): Susan Tan , Twiggy Lo , Susanne Matson , Neil Barton


The $319 billion application services market is forecast to grow at a five-year CAGR of 5.5% in U.S. dollars or 6.0% in constant currency through 2023, driven by opportunities for digital business requirements, application modernization and intelligent automation.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

Forecast Model Summary

Influencing Factors and Assumptions

  • Digital Business Requirements
    • Forecast Assumption: By 2023, application services spending driven by digital requirements will account for 65% of the overall application services market, up from 30% in 2018.
    • Forecast Assumption: Through 2023, intelligent automation will reduce routine application services tasks by 60%.
    • Forecast Assumption: By 2023, 40% of application modernization work will be contracted under a multiyear AMS deal.

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