Data center virtualization: Introduction
Data center virtualization is a technique that employs cloud and virtualization technologies to construct, establish, and manage a data center. This technology enables the virtualization of data center infrastructure, encompassing servers, storage, and networking. Virtualization offers a variety of tools and services to assist the datacenter in performing its numerous tasks.
Data center virtualization Market Size And Growth Analysis
With a CAGR of roughly 10.1% between 2023 and 2030, the global data center virtualization market is expected to grow from its 2022 valuation of $18.1 Billion to reach $29.7 Billion by the end of 2030.
One of the primary forces propelling the expansion of the data center virtualization market is the rising complexity of data centers around the world. Increases in the deployment of data center virtualization due to benefits such as lower costs, improved testing, freedom from vendor lock-in, improved disaster recovery, better pastures, and simpler cloud migration contribute to the market’s expansion. The market is also influenced by the growing popularity of centralized and unified data center management, as well as the rising demand for related technologies. This is because centralized and unified data center management optimizes infrastructure resources and helps reduce operational costs and capital expenditures in data centers. The data center virtualization market benefits from factors such as the growth of end-use industries, rising investment and digitalization rates, and an increasing number of data centers. In addition, from 2021 to 2028, the market will be able to profit from rising private cloud use and investment on data center technologies.
Market Segmentation
Service and software make up the worldwide data center virtualization industry. The software sector, which had over 70% of the global market share in 2022, is expected to maintain its dominance during the period. Network, server, and storage virtualization software use in data centers will drive the segmental growth during the next eight years.
Small and medium organizations and large enterprises make up the worldwide data center virtualization sector. The major enterprises category, which led the global industry in 2022, is expected to lead in the coming years. Due to the rising demand for data center virtualization software & services in large enterprises, which have many end-users and large amounts of data that require many servers for storage, the segment may grow in the coming years.
End-use segments of the global data center virtualization market include education, BFSI, media & entertainment, IT & telecommunication, retail & SCM, manufacturing & automotive, government, healthcare, and others. The IT & communications category, which accounted for over 60% of global market revenue in 2022, is expected to continue its segmental dominance. The requirement for scalability, rapid roll-outs, and upgrades will drive data center virtualization in IT and telecom sectors in the next years, driving segment growth.
Regional Analysis
North America, which generated over two-fifths of global data center virtualization market revenue in 2022, is expected to lead regional market growth over the investigation timeline. Data center virtualization software and services in Canada and the U.S. may boost the regional market throughout 2023-2030. Microsoft Corporation, Cisco Systems, Inc., VMware, Inc., and Citrix Systems also exist.
The Asia-Pacific data center virtualization sector is expected to grow 17.2% in the next years. Cloud technology financing, digitization, and data center growth in Asia-Pacific have driven market growth.
The data center virtualization market profiles key players such as:
- Hewlett Packard Enterprise Development LP
- VMware Inc.
- HCL Technologies Limited
- Microsoft Corporation
- AT&T Corporation
- Cisco Systems Inc.
- Citrix Systems Inc.
- Huawei Technologies Co. Ltd.
- Fujitsu Limited
- Radiant Communications Corp.
- IBM Corporation.
The global data center virtualization market is segmented as follows:
By Component
- Service
- Software
By Organization Size
- Small & Medium Enterprises
- Large Enterprises
By End-Use
- Education
- BFSI
- Media & Entertainment
- IT & Telecommunication
- Retail & SCM
- Manufacturing & Automotive
- Government
- Healthcare
- Others
By Region
- North America
- The U.S.
- Canada
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
