Data Center Virtualization Market Growth & Trends
The global data center virtualization market size is anticipated to reach USD 23.14 billion by 2030, growing at a CAGR of 16.5% from 2023 to 2030, according to a new report by Grand View Research, Inc. The requirement for unified and centralized management of data centers and the mounting need to reduce operating costs for organizations and enhance business agility are key factors driving the market. Factors such as the rising demand to decrease data center complexity, increasing spending on data center technology, rising demand for enhanced network security, and adoption of optimization services will also contribute to the growth of the market.
Additionally, the COVID-19 pandemic has expanded the penetration of digital transformation. Growing adoption of smart devices, IoT, digital transactions, rising automation scope in manufacturing industries via industry 4.0 technologies, and potential for huge data generation in sectors including education, healthcare, BFSI, IT & telecom, and media & entertainment will accelerate the development of data centers, thereby fueling the market for data center virtualization.
More number of businesses are incorporating DevOps and cloud-native technologies onto the businesses development process, which has resulted in the lines between the modern container-based platforms and traditional virtualization platforms to blur; of which a major part can be attributed to organizations opting for cloud-native technologies in support of legacy applications or ones which is not suited for containerization. Organizations operate on a tightrope because they need to negotiate both worlds without burdening IT operations. This has resulted in more IT teams turning to composable disaggregated infrastructure (CDI). CDI can also provide resources on demand to accommodate different workloads, including applications running in VMs, bare metal, and containers in VMs.
The market players have been involved in various strategic initiatives, including partnerships, acquisitions, and mergers. Such initiatives have helped enhance product capability and have a wider sales channel, among others, which has accelerated the growth of the data center virtualization industry over the forecast period. For instance, in May 2023, Aligned Automation announced a partnership with Denodo Technologies to expand the Aligned Automation data virtualization capabilities, enabling the company to offer robust end-to-end data integration solutions. The partnership will enable businesses to have seamless, integrated access to prior siloed data, offer better ways to view and analyze data across enterprises, and increase effectiveness, maximizer efficiency, and cost optimization.
Data Center Virtualization Market Report Highlights
- The server type segment is estimated to occupy the largest share of the market in 2022. It is projected to continue its dominance over the forecast period. The growth of server virtualization can be attributed to major companies coming up with a server virtualization solution, enabling capabilities, thereby attracting more businesses
- By component, the software segment occupied the largest revenue share of around 79% in 2022. Risen adoption of virtualization software such as network virtualization, storage virtualization, and server virtualization in data centers is contributing to the market's growth
- By service, the optimization services segment is projected to witness the highest CAGR of more than 18% from 2023 to 2030. The growth of the optimization services segment can be attributed to its benefits, which include better data mobility, increased profitability, and enhanced security and compliance
- By organization size, the small and medium-sized enterprises (SMEs) segment is projected to witness the highest CAGR of approx. 17% from 2023 to 2030. Effective campaigns in the data center virtualization industry offering solutions specific to SMEs have also been boosting SMEs' adoption of data center virtualization
- By end-use, the healthcare segment is projected to witness the highest CAGR of around 18% from 2023 to 2030. The growth of the healthcare segment can be attributed to the increasing demand for easy and secure data sharing, and access to high-quality health records, among others
- The key players have a wider sales channel, thereby driving the market's growth. Some major companies operating in the data center virtualization industry include VMware, Inc.; IBM; Fujitsu; Dell Inc.; AT&T; Microsoft; Oracle; and HCL Technologies Limited
Table of Contents
Chapter 1. Methodology and Scope
- 1.1. Methodology Segmentation & Scope
- 1.2. Information procurement
- 1.2.1. Purchased database
- 1.2.2. GVR's internal database
- 1.2.3. Secondary sources & third-party perspectives
- 1.2.4. Primary research
- 1.3. Information analysis
- 1.3.1. Data analysis models
- 1.4. Market formulation & data visualization
- 1.5. Data validation & publishing
Chapter 2. Executive Summary
- 2.1. Data Center Virtualization Market - Market Snapshot, 2018 - 2030
- 2.2. Data Center Virtualization Market - Type Snapshot, 2018 - 2030
- 2.3. Data Center Virtualization Market - Component Snapshot, 2018 - 2030
- 2.4. Data Center Virtualization Market - Service Snapshot, 2018 - 2030
- 2.5. Data Center Virtualization Market - Organization Size Snapshot, 2018 - 2030
- 2.6. Data Center Virtualization Market - End-use Snapshot, 2018 - 2030
- 2.7. Data Center Virtualization Market - Competitive Snapshot
Chapter 3. Data Center Virtualization Market Variables, Trends & Scope
- 3.1. Market Lineage Outlook
- 3.1.1. Parent Market Outlook
- 3.2. Industry Value Chain Analysis
- 3.3. Market Dynamics
- 3.3.1. Market Driver Analysis
- 3.3.2. Market Restraint/Challenge Analysis
- 3.3.3. Market Opportunity Analysis
- 3.4. Business Environment Analysis Tools
- 3.4.1. Porter's Five Forces Analysis
- 3.4.2. PEST Analysis
- 3.5. COVID-19 Impact Analysis
Chapter 4. Data Center Virtualization Market Type Outlook
- 4.1. Data Center Virtualization Market Share by Type, 2022 & 2030 (USD Billion)
- 4.2. Server
- 4.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
- 4.3. Storage
- 4.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 4.4. Network
- 4.4.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 4.5. Desktop
- 4.5.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 4.6. Application
- 4.6.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 4.7. Others
- 4.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 5. Data Center Virtualization Market Component Outlook
- 5.1. Data Center Virtualization Market Share by Component, 2022 & 2030 (USD Billion)
- 5.2. Software
- 5.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
- 5.3. Services
- 5.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 6. Data Center Virtualization Market Service Outlook
- 6.1. Data Center Virtualization Market Share by Service, 2022 & 2030 (USD Billion)
- 6.2. Advisory & Implementation Services
- 6.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
- 6.3. Optimization Services
- 6.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 6.4. Managed Services
- 6.4.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 6.5. Technical Support Services
- 6.5.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 7. Data Center Virtualization Market Organization Size Outlook
- 7.1. Data Center Virtualization Market Share by Organization Size, 2022 & 2030 (USD Billion)
- 7.2. Small and Medium-Sized Enterprises (SMEs)
- 7.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
- 7.3. Large Enterprises
- 7.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 8. Data Center Virtualization Market End-use Outlook
- 8.1. Data Center Virtualization Market Share by End-use, 2022 & 2030 (USD Billion)
- 8.2. BFSI
- 8.2.1. Market size estimates and forecasts, 2018 - 2030 (USD Billion)
- 8.3. IT & Telecommunication
- 8.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.4. Manufacturing & Automotive
- 8.4.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.5. Government
- 8.5.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.6. Healthcare
- 8.6.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.7. Education
- 8.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.8. Retail & SCM
- 8.8.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.9. Media & Entertainment
- 8.9.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 8.10. Others
- 8.10.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
Chapter 9. Data Center Virtualization Market: Regional Outlook
- 9.1. Data Center Virtualization Market Share by Region, 2022 & 2030 (USD Billion)
- 9.2. North America
- 9.2.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.2.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.2.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.2.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.2.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.2.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.2.7. U.S.
- 9.2.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.2.7.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.2.7.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.2.7.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.2.7.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.2.7.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.2.8. Canada
- 9.2.8.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.2.8.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.2.8.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.2.8.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.2.8.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.2.8.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.3. Europe
- 9.3.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.3.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.3.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.3.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.3.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.3.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.3.7. UK
- 9.3.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.3.7.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.3.7.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.3.7.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.3.7.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.3.7.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.3.8. Germany
- 9.3.8.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.3.8.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.3.8.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.3.8.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.3.8.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.3.8.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.3.9. France
- 9.3.9.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.3.9.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.3.9.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.3.9.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.3.9.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.3.9.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.3.10. Italy
- 9.3.10.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.3.10.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.3.10.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.3.10.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.3.10.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.3.10.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.3.11. Spain
- 9.3.11.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.3.11.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.3.11.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.3.11.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.3.11.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.3.11.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.4. Asia Pacific
- 9.4.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.4.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.4.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.4.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.4.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.4.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.4.7. China
- 9.4.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.4.7.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.4.7.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.4.7.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.4.7.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.4.7.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.4.8. India
- 9.4.8.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.4.8.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.4.8.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.4.8.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.4.8.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.4.8.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.4.9. Japan
- 9.4.9.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.4.9.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.4.9.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.4.9.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.4.9.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.4.9.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.4.10. Australia
- 9.4.10.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.4.10.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.4.10.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.4.10.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.4.10.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.4.10.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.4.11. South Korea
- 9.4.11.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.4.11.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.4.11.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.4.11.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.4.11.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.4.11.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.5. Latin America
- 9.5.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.5.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.5.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.5.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.5.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.5.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.5.7. Brazil
- 9.5.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.5.7.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.5.7.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.5.7.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.5.7.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.5.7.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.5.8. Mexico
- 9.5.8.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.5.8.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.5.8.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.5.8.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.5.8.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.5.8.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.5.9. Argentina
- 9.5.9.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.5.9.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.5.9.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.5.9.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.5.9.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.5.9.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.6. Middle East & Africa
- 9.6.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.6.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.6.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.6.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.6.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.6.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.6.7. UAE
- 9.6.7.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.6.7.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.6.7.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.6.7.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.6.7.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.6.7.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.6.8. Saudi Arabia
- 9.6.8.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.6.8.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.6.8.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.6.8.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.6.8.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.6.8.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
- 9.6.9. South Africa
- 9.6.9.1. Market estimates and forecast, 2018 - 2030 (USD Billion)
- 9.6.9.2. Market estimates and forecast by type, 2018 - 2030 (USD Billion)
- 9.6.9.3. Market estimates and forecast by component, 2018 - 2030 (USD Billion)
- 9.6.9.4. Market estimates and forecast by service, 2018 - 2030 (USD Billion)
- 9.6.9.5. Market estimates and forecast by organization size, 2018 - 2030 (USD Billion)
- 9.6.9.6. Market estimates and forecast by end-use, 2018 - 2030 (USD Billion)
Chapter 10. Competitive Landscape
- 10.1. Company Categorization (Mature Players, Emerging Players)
- 10.2. Company Share Analysis, 2022
- 10.3. Heat Map Analysis, 2022
- 10.4. Strategy Mapping
- 10.5. Company Profiles (Overview, Financial Performance, Product Overview, Strategic Initiatives)
- 10.5.1. ATTO Technology, Inc.
- 10.5.2. AT&T
- 10.5.3. Cisco Systems, Inc.
- 10.5.4. Dell Inc.
- 10.5.5. Fujitsu
- 10.5.6. HCL Technologies Limited
- 10.5.7. Hewlett Packard Enterprise Development LP
- 10.5.8. Huawei Technologies Co., Ltd.
- 10.5.9. IBM
- 10.5.10. Konverge
- 10.5.11. Microsoft
- 10.5.12. Oracle
- 10.5.13. Rahi
- 10.5.14. Veritis Group Inc
- 10.5.15. VMware, Inc.