GVR Report cover Data Center Virtualization Market Size, Share & Trends Report

Data Center Virtualization Market Size, Share & Trends Analysis Report By Component (Software, Service), By Organization Size (SMEs, Large Enterprises), By End Use Industry, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68039-988-8
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global data center virtualization market size was valued at USD 6.3 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.0% from 2022 to 2030. The increasing need to reduce the operational cost of enterprises and improve business agility and surged need for centralized and unified management of data centers are major factors behind the market growth. In addition, factors such as the increasing demand to reduce data center complexities, surged adoption of private cloud, increasing expenditure on data center technology, and the rapid growth in data center traffic are expected to contribute to the market growth in the near future.

U.S. data center virtualization market size, by component, 2020 - 2030 (USD Billion)

The COVID-19 pandemic had a positive impact on the market. Increased corporate awareness regarding the benefits of cloud services, increased pressure to provide more secure and robust IT environments, and the establishment of local data centers throughout the regions have all contributed to the data center industry growth. In addition, data centers are now maintaining program availability and data security as more businesses and educational institutions already moved online.

The pandemic gave an enormous boost to digital transformation and internet services worldwide, with a major part of companies and industries having started collaborating and working from home. The need for data centers has increased as a result of this since technologies that operate remotely are required to keep businesses operating during the pandemic. Following the pandemic, a new business environment has emerged, boosting cloud services and digitization as businesses modernize their digital infrastructure to support better working practices.

Component Insights

The software segment accounted for the largest revenue share of over 70.0% in 2021 and is expected to continue to dominate the market over the forecast period. Increased adoption of virtualization software such as server virtualization, network virtualization, and storage virtualization in data centers is contributing to market growth. In terms of component, the market is segmented into software and service.

The service segment is expected to exhibit the highest growth rate of 16.8% during the forecast period. The service segment is again bifurcated into optimization services, advisory & implementation services, technical support services, and managed services. These services provide organizations with an understanding of the transformation roadmap. In addition, these services offer rounding-out abilities that enable businesses to run a whole data center operation and associated cloud services as an only unified entity.

Organization Size Insights

The large enterprises segment held the largest revenue share of over 70.0% in 2021. There is an increasing need for data center virtualization software and services in large enterprises as these enterprises have thousands or millions of customers and high volumes of data that could need several servers to store.

The small and medium-sized enterprises segment is expected to register the highest growth rate of 16.5% during the forecast period. The adoption of data center virtualization has significantly increased among SMEs owing to its benefits such as flexible and continuous access to desktops, improved security & compliance, and reduced IT management costs.

End-use Industry Insights

The IT and telecommunication segment held the largest revenue share of over 60.0% in 2021 and is expected to maintain its position over the forecast period. The surged demand for scalability, quick roll-outs, lesser time to market, and upgrades resulted in the movement towards virtualization in IT and telecom data centers. Based on the end-use industry, the global market is segmented into BFSI, IT & telecommunication, manufacturing & automotive, government, healthcare, education, retail & SCM, media & entertainment, and others.

Global data center virtualization market share, by end-use industry, 2021 (%)

The BFSI and healthcare segments are expected to witness rapid growth in the coming years. The demand for data center virtualization is increasing in the healthcare sector as it can improve the quality, cost, and delivery of patient care by modernizing healthcare data centers to address new business models and caregiver demands. Furthermore, a virtual healthcare data center addresses increasing business demands through a service-oriented, agile IT model. In addition, data centers played an important role in the evolution of digitization in the banking, financial services, and insurance sector. The BFSI industry across the world is setting up data center servers for catering to the growing trend of digital transformation. In addition, contactless and online payments are gaining popularity in developing countries.

Regional Insights

North America dominated the market with a revenue share of over 40.0% in 2021 and is anticipated to retain its position over the forecast period. Early adoption of data center virtualization software and services in this region is the major factor behind the market growth. Additionally, the vast presence of major market players such as Microsoft (US), VMware (US), Citrix Systems (US), and Cisco Systems Inc (US) is boosting the adoption of data center virtualization. This region is also witnessing very high cloud adoption, and providers of cloud services are improving and expanding their infrastructure by implementing virtualization software and services.

Data Center Virtualization Market Trends by Region

Asia Pacific is expected to expand at the highest CAGR of 17.3% during the forecast period. The market for data center virtualization in this region is positively driven by the growth of the end-use industries, a rise in investments in cloud technologies, rapid digitization, and an increase in the number of data centers.

Key Companies & Market Share Insights

The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are undertaking strategies such as partnerships, collaborations, and product launches to survive the highly competitive environment and expand their business footprints.

For instance, in April 2019, VMware, Inc. presented VMware Cloud on Dell EMC, which can provide a more secure, scalable, and simple infrastructure delivered as-a-service to consumers’ on-premises data centers and edge locations. In addition, in September 2021, Citrix Systems, Inc. and Nutanix announced a partnership. They can deliver on-demand, elastic, and secure access to desktops, apps, and data in any location, from any device, at any scale through hybrid multi-cloud deployments of Citrix Virtual Apps and Desktops services and Citrix DaaS and Nutanix hyper-converged infrastructure (HCI). Some prominent players in the global data center virtualization market include:

  • VMware, Inc.

  • Microsoft Corporation

  • Citrix Systems, Inc.

  • Cisco Systems, Inc.

  • Fujitsu

  • Radiant Communications Corp.

  • Hewlett Packard Enterprise Development LP

  • AT&T

  • Huawei Technologies Co., Ltd.

  • HCL Technologies Limited

  • IBM

Data Center Virtualization Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 7.05 billion

Revenue forecast in 2030

USD 23.14 billion

Growth Rate

CAGR of 16.0% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, organization size, end-use industry, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Rest of Europe; China; India; Japan; Australia; Rest of Asia Pacific; Brazil; Mexico; Rest of Latin America; UAE; Saudi Arabia; South Africa; Rest of Middle East & Africa

Key companies profiled

VMware, Inc.; Microsoft Corporation; Citrix Systems, Inc.; Cisco Systems, Inc.; Fujitsu; Radiant Communications Corp.; Hewlett Packard Enterprise Development LP; AT&T; Huawei Technologies Co., Ltd; HCL Technologies Limited; IBM

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Data Center Virtualization Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global data center virtualization market report based on component, organization size, end-use industry, and region:

Global Data Center Virtualization Market Segmentation

  • Component Outlook (Revenue, USD Million, 2017 - 2030)

    • Software

    • Service

  • Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

    • Small & Medium-sized Enterprises (SMEs)

    • Large Enterprises

  • End-use Industry Outlook (Revenue, USD Million, 2017 - 2030)

    • BFSI

    • IT & Telecommunication

    • Manufacturing & Automotive

    • Government

    • Healthcare

    • Education

    • Retail & SCM

    • Media & Entertainment

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Italy

      • France

      • Rest of Europe

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

      • Rest of Asia Pacific
    • Latin America

      • Brazil

      • Mexico

      • Rest of Latin America

    • Middle East & Africa

      • UAE

      • Saudi Arabia

      • South Africa

      • Rest of MEA

Frequently Asked Questions About This Report

gvr icn

GET A FREE SAMPLE

gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

gvr icn

NEED A CUSTOM REPORT?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

esomar icon

ESOMAR certified & member

D&B icon

Leading SME award by D&B

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.

great place to work icon