The global Mainframe market size reached USD 2.7 Billion in 2024 and is expected to grow to USD 4.7 Billion by 2033. The market is projected to expand at a CAGR of 6.11% during the forecast period 2025-2033. Growth is driven by increasing investments in digital transformation and innovation of IT infrastructure, with a rising emphasis on evolving enterprise IT strategies to meet dynamic market needs. 

Study Assumption Years

  • Base Year: 2024

  • Historical Years: 2019-2024

  • Forecast Period: 2025-2033

Mainframe Market Key Takeaways

  • The global mainframe market size was USD 2.7 Billion in 2024.

  • The market is expected to grow at a CAGR of 6.11% from 2025 to 2033.

  • The forecast period for market growth is 2025-2033.

  • Major growth drivers include elevated investments in updating core systems for digital transformation.

  • Flexible and multipurpose mainframe versions that dynamically reconfigure resources such as CPUs and memory support market expansion.

  • North America leads the market, driven by upgrades in legacy systems that enhance performance and security.

  • The shortage of skilled mainframe professionals is a challenge but also an opportunity through targeted training initiatives.

  • BFSI is the dominant industry vertical, owing to its need for reliable and scalable transaction processing systems.

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Market Growth Factors

One of the primary growth drivers of the mainframe market is the continued reliance of BFSI and government sectors on high-volume, mission-critical transaction processing. Mainframes offer unmatched reliability, scalability, and near-zero downtime, which are essential for core banking systems, payment processing, tax administration, and national databases. As digital payments, real-time settlements, and regulatory reporting volumes increase globally, enterprises require platforms that can handle millions of secure transactions simultaneously. Additionally, strict compliance requirements and data sovereignty laws further reinforce the adoption of mainframes, as these systems provide advanced security, auditability, and long-term stability that distributed architectures often struggle to match at scale.

The modernization of legacy IT infrastructure is significantly accelerating mainframe market growth. Enterprises are no longer replacing mainframes but integrating them with hybrid cloud environments, AI-driven analytics, and modern DevOps tools. New-generation mainframes support APIs, containerization, and machine learning workloads, allowing organizations to extend the value of existing applications while improving agility. This approach reduces migration risk, lowers long-term costs, and preserves decades of mission-critical data and logic. Industries such as IT and telecom, retail, and manufacturing increasingly prefer this evolutionary modernization strategy, driving sustained investment in advanced mainframe systems and software upgrades.

Escalating cyber threats, data breaches, and system outages are pushing enterprises toward highly secure and resilient computing platforms, strengthening demand for mainframes. These systems are designed with hardware-level encryption, secure boot processes, and robust access controls, making them ideal for sensitive workloads. As digital transformation expands across travel, transportation, and public-sector services, operational continuity becomes a strategic priority. Mainframes deliver exceptional fault tolerance and disaster recovery capabilities, ensuring uninterrupted services even under extreme conditions. This focus on cybersecurity and resilience, combined with increasing data volumes, continues to position mainframes as a critical backbone for large-scale enterprises worldwide.

Market Segmentation

By Type

  • Z Systems: Currently hold the largest mainframe market share. Known for high performance, dependability, and security, they are extensively used in finance and government sectors handling large volumes of transactions and sensitive data.

  • GS Series: Included in market analysis but without further data provided.

  • Others: Included in market analysis but without further data provided.

 By Industry Vertical

  • BFSI: Holds the largest mainframe market size, driven by consumer preference for secure, high-volume transaction processing and real-time data management. Mainframes offer unmatched reliability and scalability crucial for complex financial operations.

  • IT and Telecom: Included but no specific data provided.

  • Government and Public Sector: Included but no specific data provided.

  • Retail: Included but no specific data provided.

  • Travel and Transportation: Included but no specific data provided.

  • Manufacturing: Included but no specific data provided.

  • Others: Included but no specific data provided.

By Region

  • North America: Dominates the mainframe market due to legacy system advancements, with enterprises upgrading existing systems. The region is driven by banking and government sectors, emphasizing reliability, security, and compliance.

  • Asia-Pacific: Includes countries such as China, Japan, India, South Korea, Australia, Indonesia, and others.

  • Europe: Includes Germany, France, United Kingdom, Italy, Spain, Russia, and others.

  • Latin America: Includes Brazil, Mexico, and others.

  • Middle East and Africa: Included but without specific data.

Regional Insights

North America currently holds the largest share of the global mainframe market, driven mainly by the banking and government sectors, which rely heavily on mainframes for secure data processing and large-scale transaction management. This dominance is underpinned by continuous investments to maintain and enhance mainframe infrastructure focused on performance, security, and compliance requirements.

Recent Developments & News

In June 2024, Kyndryl established its first Mainframe Modernization Center of Excellence (CoE) in Malaysia in collaboration with Amazon Web Services (AWS), supporting widespread adoption of hybrid cloud mainframe solutions. In May 2024, Fujitsu launched "Fujitsu PROGRESSION," an automation service for modernizing legacy systems based on over 50 global use cases migrating to its GS21 Series mainframe. In March 2024, IBM introduced the Mainframe Skills Council at the SHARE conference to foster a skilled and sustainable mainframe workforce internationally.

Key Players

  • Atos SE

  • BMC Software Inc

  • Broadcom Inc.

  • Dell Technologies Inc.

  • DXC Technology Company

  • Fujitsu Limited

  • HCL Technologies Limited (HCL Enterprise)

  • Hewlett Packard Enterprise Company

  • Infosys Limited

  • International Business Machines Corporation

  • NEC Corporation (AT&T Inc.)

  • Wipro Limited

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