United Kingdom Industry Vertical Modernization Services Market Size, Share, and COVID-19 Impact Analysis, By Type (Industry Vertical Portfolio Assessment, Cloud Industry Vertical Migration, Industry Vertical Replatforming, Industry Vertical Integration, and Industry Vertical Retirements), By Industry Vertical (BFSI, IT & Telecom, Retail & E-commerce, Healthcare, and Others), and United Kingdom Industry Vertical Modernization Services Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Industry Vertical Modernization Services Market Insights Forecasts to 2035

• The United Kingdom Industry Vertical Modernization Services Market Size Was Estimated at USD 76.54 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 15.01% from 2025 to 2035
• The United Kingdom Industry Vertical Modernization Services Market Size is Expected to Reach USD 356.38 Million by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Industry Vertical Modernization Services Market Size is anticipated to reach USD 356.38 Million by 2035, Growing at a CAGR of 15.01% from 2025 to 2035. The increasing acceptance of cloud, AI, and IoT technologies, as well as the demand for improvements to legacy systems and digital transformation across industries.  In a technological environment that is changing rapidly, businesses want to be more efficient, flexible, and competitive.

Market Overview

The United Kingdom industry vertical modernization services market refers to the industry that provides modernization solutions for antiquated technologies and systems in a range of industries.  To improve operational efficiency, scalability, and digital capabilities, these services involve modernizing outdated infrastructure and incorporating cloud computing, artificial intelligence, the Internet of Things, and automation.  Businesses in industries like manufacturing, healthcare, finance, and retail receive assistance by the market to remain competitive, compliant, and sensitive to changing market and technological needs. The increasing demand for digital transformation across sectors like manufacturing, healthcare, and finance.  Modernization services are required as a consequence of the move to cloud-based infrastructure, intelligent automation, and data-driven decision-making. Growth prospects across several industry verticals have been boosted by government support for innovation and sustainability as well as the requirement to upgrade outdated systems for increased effectiveness, security, and customer experience. Cloud-native apps, IoT integration, and AI-driven automation for real-time data insights.  Digital twins, low-code platforms, and advanced cybersecurity techniques are also revolutionizing old systems, allowing for more rapid more intelligent, and more scalable modernization across a range of industry verticals to improve agility and efficiency.

Report Coverage

This research report categorizes the market for the United Kingdom industry vertical modernization services market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom industry vertical modernization services market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom industry vertical modernization services market.

Driving Factors

The increasing demand for digital transformation across an array of industries, such as manufacturing, retail, healthcare, and finance. In order to improve operational efficiency, scalability, and customer experience, organizations are putting more and more emphasis on replacing antiquated legacy systems with contemporary, flexible, and cloud-based infrastructures. Businesses are being forced to update their IT systems in order to stay competitive due to the rapid uptake of new technologies including artificial intelligence, machine learning, and the Internet of Things. The need for modernization services is further driven by data security regulations, regulatory compliance, and the need to reduce costs and attain sustainability.

Restraining Factors

The updating the expensive and difficult old systems. Risks of downtime, system integration, and data migration present difficulties for many firms. Organizational opposition to change and a lack of technical expertise can also impede modernization initiatives.

Market Segmentation

The United Kingdom industry vertical modernization services market share is classified into type and industry vertical.

• The cloud industry vertical migration segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period

The United Kingdom industry vertical modernization services market is segmented by type into industry vertical portfolio assessment, cloud industry vertical migration, industry vertical replatforming, industry vertical integration, and industry vertical retirements. Among these, the cloud industry vertical migration segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth can be attributed to growing need for remote accessibility, cost effectiveness, and scalable infrastructure. Across the UK, businesses swiftly adopt cloud solutions to modernize outdated technologies, improve data security, and facilitate digital transformation across an assortment of industrial verticals.

• The BFSI segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom industry vertical modernization services market is segmented by industry vertical into BFSI, IT & telecom, retail & e-commerce, healthcare, and others. Among these, the BFSI segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth is driven by increasing satisfaction with services, regulatory compliance, and demand for digital banking.  Financial institutions can maintain their competitiveness and satisfy changing customer demands by upgrading outdated systems with safe, scalable technologies.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom industry vertical modernization services market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Atos SE
• SAP SE
• Siemens AG
• Accenture
• TCS (Tata Consultancy Services)
• Cognizant
• IBM Corporation
• Infosys
• Others.

Recent Developments:

• In November 2024, Kyndryl joined Microsoft to introduce comprehensive application modernization and generative AI capabilities for mainframe systems migrating to Azure, helping enterprises modernize core apps and data through AI infusion.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at UK, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom industry vertical modernization services market based on the below-mentioned segments:

United Kingdom Industry Vertical Modernization Services Market, By Type

• Industry Vertical Portfolio Assessment
• Cloud Industry Vertical Migration
• Industry Vertical Replatforming
• Industry Vertical Integration
• Industry Vertical Retirements

United Kingdom Industry Vertical Modernization Services Market, By Industry Vertical

• BFSI
• IT & Telecom
• Retail & E-commerce
• Healthcare
• Others