Mainframe Market Research Report Information By Systems/Platforms (Mainframes (IBMz, Unisys, GS21, Other), Midrange Systems (IBM Power, Sun Solaris, HP Servers, Other)), By Offering (Hardware, Software, Services), By Organization Size (SMEs, Large Enterprises), By Operating System (z/OS, z/VSE, z/VM, z/TPF, Linux-based OS, Others), By Application (Enterprise Resource Planning (ERP), Transaction Processing, CRM, Supply Chain Management, Others) & Region (North America, Latin America, Europe, MEA, Asia-Pacific & Japan)- Forecast till 2035

Global Mainframe Market Overview

The Mainframe Market was valued at USD 3.21 Billion in 2024. The Mainframe Market industry is projected to grow from USD 3.45 Billion in 2025 to USD 6.89 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.14% during the forecast period (2025-2035).

The increasing digital transformation initiatives across enterprises and regions, increased workload virtualization and growing volume of data are driving the growth of the Mainframe Market.

However, challenges such as high initial investment costs, maintenance complexity, and the shift toward cloud computing pose restraints to market growth. Despite these challenges, opportunities in Mainframe-as-a-Service (MFaaS), AI and blockchain integration, and expansion into emerging markets are expected to drive further adoption. The evolving role of mainframes in hybrid cloud environments and software-defined architectures will continue to enhance their relevance in modern IT infrastructures.

FIGURE 1: MAINFRAME MARKET VALUE (2019-2035) USD BILLION

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Mainframe Market Opportunity

SHIFT TOWARDS MAINFRAME-AS-A-SERVICE (MFAAS)

It is anticipated that there will be growth opportunities for the mainframe market over the coming two decades due to the Mainframe-as-a-Service (MFaaS) model. Businesses continue to advance in their digital transformation processes, seeking more flexible, scalable, and cost-efficient computing solutions to manage enormous amounts of data alongside other critical workloads. As cloud-based MFaaS models allow organizations to pay for access to mainframe computing resources on a subscription basis, many challenges posed by traditional mainframes, such as high capital and maintenance expenditures along with the need for specialized in-house expertise, can be solved. 

This model particularly benefits those businesses that depend on mainframes for core business functions but want to reduce operational complexity and modernize their IT structure. By adopting MFaaS, companies have the ability to relinquish the burden of hardware management, optimize resource spending, and increase computing power as required, providing a feasible solution for banking, healthcare, insurance, retail, and government sectors that prefer heightened security, reliability, and speed when processing information.

A major factor motivating the implementation of MFaaS is the need for greater agility and cost control in IT functions. Enterprises have always spent a lot of money purchasing mainframe hardware and software, requiring ongoing maintenance, upgrades, and support. Now, with MFaaS, organizations can transition from capital expenditures (CapEx) to operational expenditure (OpEx) models, only paying for the computing resources they actually utilize. 

This model enables businesses to manage their IT expenditure in alignment with organizational requirements, ensuring access to advanced mainframe technologies without the intricacies involved in ownership. Also, with the increasing adoption of hybrid cloud, MFaaS is well-suited to work in the cloud, making it easy for enterprises to execute workloads on both mainframes and cloud platforms. This hybrid model increases flexibility and improves business continuity because organizations can more easily move or scale workloads in response to changing demand.

Mainframe Market Segment Insights

Mainframe System by Systems/Platforms Insights

By Systems/Platforms, Mainframe market was segmented into: Mainframes (IBMz, Unisys, GS21, Other Mainframes) and Midrange Systems (IBM Power, Sun Solaris, HP Servers, Other Midrange System). The Mainframes segment dominated the global market in 2024, while the Midrange Systems segment is projected to be the fastest–growing segment during the forecast period. The Mainframes segment held the largest share of the Mainframe Market in 2024, driven by its critical role in handling high-volume, mission-critical workloads across industries such as banking, government, healthcare, and insurance. 

These systems are known for their unmatched reliability, scalability, and security, making them indispensable for enterprises that require consistent uptime and robust data processing capabilities. Key players such as IBMz and Unisys continue to innovate with enhanced processing power, AI integration, and hybrid cloud compatibility, further strengthening the relevance of mainframes in modern IT infrastructure.

Mainframe System by Offering Insights

By Offering, Mainframe market was segmented into: Hardware, Software(Analytics, Application Development, Database Management, IT Automation, Workload Automation, Other Software) and Services(Mainframe-as-a-Service (MFaaS), Mainframe Hosting Services, Mainframe Co-Location Services).The Hardware segment dominated the global market in 2024, while the Software segment is projected to be the fastest–growing segment during the forecast period. 

Modern mainframes are equipped with AI acceleration, quantum-safe encryption, and real-time transaction processing capabilities to support industries such as banking, healthcare, and government. Key features of mainframe hardware include high reliability (99.999% uptime), advanced workload partitioning, and unparalleled scalability. The primary advantage of mainframe hardware is its ability to handle vast transaction volumes with minimal latency, making it indispensable for mission-critical applications. However, the high upfront costs and the need for skilled professionals to manage and maintain these systems pose significant challenges. The key providers of mainframe hardware include IBM, Fujitsu, Unisys, and Hitachi, with IBM leading the market through its IBM Z series.

Mainframe System by Organization Size Insights

By Organization Size, Mainframe market was segmented into SMEs and  Large Enterprises. The Large Enterprises segment dominated the global market in 2024, while the Large Enterprises segment is projected to be the fastest–growing segment during the forecast period. Large enterprises represent the dominant share of the Mainframe Market, accounting for USD 2,254.1 million in 2024, with an expected growth to USD 4,860.4 million by 2035 at a CAGR of 7.19%. Enterprises in banking, insurance, healthcare, telecommunications, and government sectors rely heavily on mainframes for high-volume transaction processing, cybersecurity, and business continuity. 

The primary reason large enterprises continue to invest in mainframes is their unmatched reliability, security, and scalability. Financial institutions, for instance, process millions of transactions daily, requiring a system that ensures zero downtime and robust fraud detection mechanisms. Similarly, government agencies use mainframes to handle massive databases, citizen records, and national security data, benefiting from real-time analytics and enhanced data encryption.

A major trend in this segment is mainframe modernization, where enterprises are integrating AI, machine learning, and DevOps practices into their existing mainframe infrastructure. Many organizations are also moving towards hybrid cloud mainframe environments, which provide the flexibility of cloud computing while retaining the power of mainframes. Leading mainframe providers, including IBM, Fujitsu, Unisys, Atos, and NTT Data, are investing in solutions that seamlessly integrate on-premises mainframes with cloud platforms.

FIGURE 2: MAINFRAME MARKET SHARE BY ORGANIZATION SIZE 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mainframe System by Operating System Insights

By Operating System, Mainframe market was segmented into z/OS, z/VSE, z/VM, z/TPF, Linux-based OS, Others (OS4, VOS, GCOS, OSVI). The z/OS segment dominated the global market in 2024, while the z/VM segment is projected to be the fastest–growing segment during the forecast period. z/OS is favored by enterprises in banking, finance, insurance, healthcare, and government sectors, where high availability, security, and scalability are paramount.  

z/OS is known for its fault tolerance, backward compatibility, and extensive workload management capabilities. It supports advanced security features, such as pervasive encryption, multi-factor authentication (MFA), and workload isolation, making it ideal for mission-critical applications. The tight integration with IBM Z hardware allows seamless operation of cloud-native applications and AI-driven workloads.

Mainframe System by Application Insights

By Application, Mainframe market was segmented into: Enterprise Resource Planning (ERP), Transaction Processing, Customer Relationship Management (CRM), Supply Chain Management (SCM), Consumer Analytics, Census Data Collection, Mission-Critical Applications, Other Application. The Transaction Processing segment dominated the global market in 2024, while the Consumer Analytics segment is projected to be the fastest–growing segment during the forecast period. 

Transaction processing is the largest and most critical application within the Mainframe Market, this application supports financial transactions, credit card processing, stock trading, and real-time payment systems, making it essential for banks, e-commerce platforms, and stock exchanges. The unmatched reliability and security of mainframes make them indispensable for handling billions of transactions daily with zero downtime and high-speed processing. IBM Z mainframes, z/OS, and CICS transaction processing software are widely used in this domain. 

However, competition from cloud-based payment systems poses a challenge. To counter this, organizations are adopting hybrid cloud mainframe models to improve scalability and cost-efficiency. Leading providers in this segment include IBM, FIS, Fiserv, and ACI Worldwide.

Mainframe System Regional Insights

Based on the Region, the global Mainframe is segmented into North America, Latin America, Europe, Middle East & Africa, Asia-Pacific & Japan. The North America dominated the global market in 2024, while the Asia Pacific & Japan is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the North America market are The North American region retains its position as the largest and most sophisticated market for mainframe technology due to extensive usage in banking, finance, healthcare, and government services. 

The region is home to some of the largest technology corporations such as IBM, Broadcom, and Dell Technologies, which enable further development of mainframes through the incorporation of hybrid cloud systems, AI-automated processes, and advanced security measures.  The U.S. holds the most significant share in the North American region due to a high concentration of mainframe usage in the financial services sector for transaction processing, fraud detection, and compliance with strict regulatory guidelines. 

Leading banking and insurance firms such as JPMorgan Chase, Bank of America, and Citigroup still use mainframes for their day-to-day business operations due to their critical nature. Moreover, government users like the IRS, Social Security Administration (SSA), and the Department of Defense (DoD) use mainframes for secure data, census data, and large-scale administrative data processing.

FIGURE 3: MAINFRAME MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the United States, Canada, Brazil, Mexico, Argentina, Colombia, Rest of Latin America (NOLA, SOLA), United Kingdom, Germany, France, Spain, Italy, Russia, Netherlands, Switzerland, Belgium, Denmark, Sweden, Norway, United Arab Emirates, Saudi Arabia, Israel, South Africa, Rest of Europe, Middle East & Africa, China, India, Japan, South Korea, Australia, Singapore, Indonesia, Malaysia, Thailand, Rest of Asia-Pacific & Japan and others.

Global Mainframe Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Mainframe Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are IBM, CA, Allen Systems Group (ASG), BMC, Rocket Software, Precisely, Beta Systems, Software AG, Levi, Ray & Shoup, MacKinney Systems, CSI International, Innovation Data Processing, Compuware, UNICOM Systems, SDS, GSF Software, Relational Architects International, Software Engineering of America, ASPG, CDB Software are among others. The Mainframe Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Mainframe Market include

• IBM
• CA
• Allen Systems Group (ASG)
• BMC
• Rocket Software
• Precisely
• Beta Systems
• Software AG
• Levi, Ray & Shoup
• MacKinney Systems
• CSI International
• Innovation Data Processing
• Compuware
• UNICOM Systems
• SDS
• GSF Software
• Relational Architects International
• Software Engineering of America
• ASPG
• CDB Software

Mainframe Market Segmentation

Mainframe by Systems/Platforms Outlook

• Mainframes
  • IBMz
  • Unisys
  • GS21
  • Other Mainframes
• Midrange Systems
  • IBM Power
  • Sun Solaris
  • HP Servers

Mainframe by Offering Outlook

• Hardware
• Software
  • Analytics
  • Application Development
  • Database Management
  • IT Automation
  • Workload Automation
  • Other Software
• Services
  • Mainframe-as-a-Service (MFaaS)
  • Mainframe Hosting Services
  • Mainframe Co-Location Services

Mainframe by Organization Size Outlook

• SMEs
• Large Enterprises

Mainframe by Operating System Outlook

• z/OS
• z/VSE
• z/VM
• z/TPF
• Linux-based OS
• Others
  • OS4
  • VOS
  • GCOS
  • OSVI

Mainframe by Application Outlook

• Enterprise Resource Planning (ERP)
• Transaction Processing
• Customer Relationship Management (CRM)
• Supply Chain Management (SCM)
• Consumer Analytics
• Census Data Collection
• Mission-Critical Applications
• Other Application

Mainframe Regional Outlook

• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Rest of Latin America (NOLA, SOLA)
• Europe, Middle East & Africa
  • United Kingdom
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Switzerland
  • Belgium
  • Denmark
  • Sweden
  • Norway
  • United Arab Emirates
  • Saudi Arabia
  • Israel
  • South Africa
  • Rest of Europe, Middle East & Africa
• Asia-Pacific & Japan
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Rest of Asia-Pacific & Japan

Report Attribute/Metric	Details
Market Size 2024	USD 3.21 Billion
Market Size 2025	USD 3.45 Billion
Market Size 2035	USD 6.89 Billion
Compound Annual Growth Rate (CAGR)	7.14% (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Systems/Platforms, By Offering, By Organization Size, By Operating System, By Application
Geographies Covered	North America, Latin America, Europe, Middle East & Africa, Asia Pacific & Japan
Countries Covered	The United States, Canada, Brazil, Mexico, Argentina, Colombia, Rest of Latin America (NOLA, SOLA), United Kingdom, Germany, France, Spain, Italy, Russia, Netherlands, Switzerland, Belgium, Denmark, Sweden, Norway, United Arab Emirates, Saudi Arabia, Israel, South Africa, Rest of Europe, Middle East & Africa, China, India, Japan, South Korea, Australia, Singapore, Indonesia, Malaysia, Thailand, Rest of Asia-Pacific & Japan
Key Companies Profiled	IBM, CA, Allen Systems Group (ASG), BMC, Rocket Software, Precisely, Beta Systems, Software AG, Levi, Ray & Shoup, MacKinney Systems, CSI International, Innovation Data Processing, Compuware, UNICOM Systems, SDS, GSF Software, Relational Architects International, Software Engineering of America, ASPG, CDB Software
Key Market Opportunities	Shift towards Mainframe-As-Service (MFAAS). Integration of quantum computing and emergence of 5g and other telecom upgradations
Key Market Dynamics	Increasing digital transformation initiatives across enterprises and regions. Increased workload virtualization