The global mainframe market is growing at a moderate CAGR of 3.3% during the forecast period from 2024 to 2032. Mainframe computers, created in the early 1940’s were designed for managing high volumes of data processing and business transactions. At present, for more than 40 years, mainframes have incessantly developed to meet the numerous challenges related to data processing. Mainframes assure the reliability, availability, and scalability of processes. They have the capability to run billion of transactions with almost 100% accuracy and zero downtime. This makes mainframe systems reliable and dependable. Therefore, has been able to sustain its space in the IT infrastructure across various end users despite the advancement of novel technologies such as cloud computing. They also possess self-checking and self-recovery features that enable these systems to auto-run errors and decide on the next course of action without human intervention in the process. It offers the highest level of scalability with its capability to add memory, storage, and processors without impacting the quantity and accuracy of the data.

Many of top banks run mainframes that were deployed in 70s and 80s. Despite of being old technology and being considered obsolete, mainframe stakeholders are able to keep its value functional through innovation-led advancements. IBM the market leader and other key players have played a major role in enhancing the architecture to meet new IT demands that needs to be operated on cloud, mobile devices, and for e-commerce and online businesses. Now mainframes are capable of handling business churned through mobile apps, online banking, and remote platforms. This has sustained the market for mainframes in application segments such as banking, insurance, healthcare, airline, and many manufacturing industries. 

Adverse of Impact of Pandemic Lowered Revenues Significantly:

The pandemic impacted the mainframe market adversely. The revenues of mainframe evidenced an increment of over 60% in the sales of key market players’ financial data in 2019, however, the sales showed a significant drop during the pandemic (2020). The pandemic has introduced the need to manage businesses remotely in a cost-effective way. This led the new businesses to finalize on cloud to meet their dynamic needs. Mainframe hence is expected to show a very minor increment in sales especially in mature countries such as North America. The key sales revenues are from “mainframe as service” than from hardware device. The migration process in mature markets is expected to result in a very minor growth in the mainframe market. However, situations are different in growing economies that are still portraying sizable growth opportunities. 

IBM Remains To Be the Market Leader

Based on the product segment, the mainframe market is categorized as Z systems, GS Series, and Others. The Z systems contributed the highest to the market revenues in 2023 and are also expected to retain its position during the forecast period. This is due to the significant adoption of IBM mainframe solutions across various verticals such as banking, healthcare, and so on. Over 44 of top 50 banks and all of the top 10 insurers use Z systems, similar is the case with other business application areas. The above trends are, therefore, driving the market revenues.

Application of Mainframe in BFSI Remains Indispensable

Based on the end-user vertical the market is segmented as BFSI, Healthcare, defense and government, retail, public utilities and others. The BFSI led the market in revenue generation in 2020 due to increased demand to deal with real-time transactions, need for reliable systems to deal with complex calculations, and requirement for efficient storage platforms. Other end users that include telecom, manufacturing industries, airlines and so on remained as the second largest market in 2023, due to vastness of application across various segments, especially in emerging economies.

North America’s Existing Mainframe Base Continues to Generate Revenues

In terms of geography, the market is segmented as North America, Europe, Asia Pacific, RoW. North America accounts for the largest revenues summing up to $1100 Mn in 2020. North America holds the largest pool of existing customer base, which are in need of software and services that can allow their mainframe architecture to integrate with cloud infrastructure.  Europe remains the second largest market in 2020. Stringent regulation with respect to data privacy and security is the biggest driver for the mainframe market in Europe.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Mainframe market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Mainframe market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Mainframe market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Mainframe market?
• Which is the largest regional market for Mainframe market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Mainframe market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Mainframe market worldwide?