The global data center virtualization market size is expected to reach USD 23.14 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 16.0% from 2022 to 2030. The necessity for centralized and unified management of data centers and the growing need to lower operating costs for businesses and increase business agility are major drivers of the market.
- By component, the software segment accounted for the largest revenue share of over 70.0% in 2021 and is anticipated to maintain its dominance over the forecast period. Surged use of virtualization software owing to its benefits such as better disaster recovery solutions, reduced hardware costs, enhanced performance, increased IT agility, and quick availability of resources is contributing to the market growth.
- The service segment is expected to register the highest growth rate of 16.8% during the forecast period as these services provide organizations with an understanding of the transformation roadmap.
- In terms of organization size, the large enterprise segment dominated the market and captured a revenue share of over 70.0% in 2021. Early and rapid adoption of data center virtualization software and services by large enterprises to handle large volumes of data is propelling segment growth. The small and medium-sized enterprise segment is expected to exhibit the highest growth rate of 16.5% during the forecast period.
- In terms of the end-use industry, the IT & telecommunication segment accounted for the largest revenue share of over 60.0% in 2021 and is anticipated to maintain its dominance over the estimated timeframe. The rapidly growing IT and telecom industry across the globe is creating more demand for virtual data centers.
- North America held the largest revenue share of over 40.0% in 2021 and is expected to retain its position over the forecast period. The presence of various leading market players in the region is a major factor contributing to the market growth.
- Asia Pacific is expected to grow at the highest rate of 17.3% during the forecast period owing to the growth of end-use industries and a rise in investments in cloud technologies.
Data Center Virtualization Market Growth & Trends
It is anticipated that factors including the growing demand to reduce data center complexity, rising spending on data center technology, growing demand for improved network security, and adoption of optimization services will also contribute to the market growth.
Furthermore, COVID-19 has increased the penetration of digital transformation. Increasing adoption of digital transactions, smart devices, and IoT, rising automation scope in manufacturing industries via industry 4.0 technologies, and potential for huge data generation by the sectors such as BFSI, education, healthcare, IT & telecom, and media & entertainment will boost the growth of data centers, thereby driving the market for data center virtualization.