Gartner Research

Forecast Analysis: Application Services, Worldwide

Published: 09 July 2019

ID: G00418133

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

Summary

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.

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.