CAGR: 16.2% Current Market Size: USD 7.32 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global data centre virtualization market is expected to grow from USD 7.32 billion in 2022 to USD 24.33 billion by 2030, at a CAGR of 16.2% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demands to reduce data centre complexities and increasing data centre traffic.
A data centre virtualization solution creates a highly scalable, available and secure data centre. One can increase IT agility with data centre virtualization products and create a seamless foundation for managing private and public cloud services, along with traditional on-premises infrastructure, using data centre virtualization products. In other words, it is the division of virtual data centres and physical hardware into multiple. This process mainly includes the networking, storage and infrastructural elements that are required normally by data centres. It helps to enable businesses to access data remotely from different multiple locations while escalating the usage of their hardware storages. Some of the important key factors which are contributing to the constant growth of this market are the data centre, greener pastures, virtualization is enabling faster redeploying, provision of backing up data easily, reduction in cost, better testing, reduction in server’s heat generation, no vendor lock-in, single-minded servers, better disaster recovery and easier migration of cloud. Some of the very important factors boosting the market’s growth are reducing the operational costs, the requirements to enhance the business agility of enterprises and the demand for unified and centralized management of the data centres. This market is used to aid companies in using their resources of hardware storage in a better way. Some most prominent key benefits of data centre virtualization are increased IT speed and flexibility, minimizing or eliminating downtime, reduced physical space etc.
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Market Dynamics:
Drivers:
Increasing adoption of private cloud networks and rising data centre traffic is assumed to influence the market growth positively. Rising demand for improving the agility of businesses and reduction of operational costs are the key factors advancing the growth of the market. Moreover, as part of storage virtualization, data is also gathered from multiple physical devices and pooled into a unified platform, which is intended to facilitate further business development.
Restraints:
The cost attributed to the visualization tools and platforms is very high and thereby impacting the small and medium enterprises in the adoption of this software, affecting the market growth. In addition, rising concerns about data security are also hindering the market growth. Underused servers and Overcoming chaos may obstruct market growth. Moreover, the Components missing cases are the ultimate challenge which may hamper and restrain the market growth. Moreover, managing portability and Realigning staff expertise may hinder the growth of the market.
Opportunities:
The global data centre virtualization market is expected to expand in the Projection period. The cutting of the organization’s operational cost and increase in the demand by organizations for boosting business agility as well as immense focus by companies towards reduction of data centre complexities are mainly the key factors that are driving the growth of this market. Further, the rapid increase in data centre traffic and increasing adoption rate of private cloud would further help the market to prosper at a solid rate in the Projection period.
Challenges:
Among the biggest challenges in data centre virtualization are missing components. In IT organizations, part of their data centre assets is mostly virtualized. Virtualization benefits from including everything and no silos of storage appliances or data management appliances are contained within the virtual infrastructure. Moreover, there are many limitations associated with the data centre virtualization market which are hindering the market growth. Like overall power consumption will be lower and will remain highly variable.
Segmentation Analysis:
The global data centre virtualization market has been segmented based on type, organization, end-user, and region.
By Type
The type segment includes optimization services, technical support services, para virtualization tools, advisory & implementation services, host machines and others. The optimization services segment led the largest share of the data centre virtualization market with a market share of around 45.2% in 2022. Optimization involves adjusting the variables used to analyze a trading system to improve its performance. Trading systems can be optimized by reducing transaction costs or risks, or by targeting assets with a higher expected return. Market Projections show that the optimization services segment will grow at the fastest rate, with optimization services being used to plan, build, and manage data centres.
By Organization
The organization segment includes large enterprises and small & medium-sized enterprises. The small & medium-sized enterprises segment led the largest share of the data centre virtualization market with a market share of around 45.2% in 2022. To minimize the costs of hardware and maintenance for on-premises data centres, small and medium-sized companies are increasingly using cloud-based and off-premises data centre virtualization tools, which is boosting the growth of the market
By End-User
The end-user segment includes manufacturing, education, media & entertainment, healthcare, IT & telecommunications and others. The healthcare segment led the largest share of the data centre virtualization market with a market share of around 30% in 2022. Among all the segments, healthcare is the most revenue-generating segment thanks to the increased use of data centres and cloud services in managing and processing the growing amount of data. This segment is driving the data centre virtualization market. As organizations expand their IT capabilities to meet the needs of their users, virtualization strategies allow them to reduce deployment costs and increase flexibility, supporting rapid infrastructure growth. At the same time, it provides a more advanced, secure environment while cutting infrastructure costs.
Global Data Centre Virtualization Market- Sales Analysis.
The sale of data centre virtualization expanded at a CAGR of 15.5% from 2016 to 2022.
A growing awareness of the benefits of cloud services, the need for more secure and robust IT environments, and the creation of locally based data centres are all contributing factors to the growth of the data centre virtualization market.
The growing energy generation sector is a key factor fostering the demand for data centre virtualization solutions. As a result of their use of advanced technologies such as AI, machine learning, and cloud computing, many companies in the energy sector opt to virtualize their data centres to boost the efficiency of their power generation processes.
Moreover, factors like the growing need to reduce data centre complexity, the rising adoption of private clouds, the increasing expenditures on data centre technology, and the rapid increase in data centre traffic are expected to drive market growth.
Thus, owing to the aforementioned factors, the global data centre virtualization market is expected to grow at a CAGR of 16.2% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the data centre virtualization market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the data centre virtualization market and held a 37.5% share of the market revenue in 2022.
Global Data Centre Virtualization Market- Country Analysis:
Germany's data centre virtualization market size was valued at USD 0.56 billion in 2022 and is expected to reach USD 1.8 billion by 2030, at a CAGR of 16.4% from 2023 to 2030.
There are several major factors driving the growth of data centre virtualization in Germany, including digital transformation strategies, enterprises' adoption of cloud computing, IoT, AI, and GDPR implementation. Data centre facilities in Germany will increasingly demand high-performance all-flash storage arrays as new technologies like artificial intelligence and big data analytics become more prevalent.
China’s data centre virtualization market size was valued at USD 0.58 billion in 2022 and is expected to reach USD 1.9 billion by 2030, at a CAGR of 16.7% from 2023 to 2030.
Cloud computing is expected to gain traction in China due to increased demand from enterprises. Advancements in data centre technology and their integration with other associated benefits are also driving China's data centre virtualization market's growth.
India's data centre virtualization market size was valued at USD 0.45 billion in 2022 and is expected to reach USD 1.5 billion by 2030, at a CAGR of 16.6% from 2023 to 2030.
A growing number of data centres, investments in cloud technologies, rapid digitization, and the growth of the end-user industries have all contributed to the growth of the market for data centre virtualization in the country.
Key Industry Players Analysis:
To increase their market position in the global data centre virtualization business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
16.2% |
Market Size |
7.32 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Organization, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Amazon Web Services, Hewlett Packard Enterprise, HCL Technologies, IBM Corporation, Fujistu, Openstack, Radiant Communications Corporation, Huawei Technologies Co., Ltd., AT&T, Inc., Cisco Systems, Inc., Adobe Systems, Inc., Microsoft Corporation, Red Hat Inc., VMware, Inc., Citrix Systems, and Dell Corporation. |
By Type |
|
By Organization |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Data Centre Virtualization Market By Type:
Global Data Centre Virtualization Market By Organization:
Global Data Centre Virtualization Market By End-User:
Global Data Centre Virtualization Market By Region:
Global Data Centre Virtualization market is expected to reach USD 24.33 million by 2030, at a CAGR of 16.2% from 2023 to 2030.
Amazon Web Services, Hewlett Packard Enterprise, HCL Technologies, IBM Corporation, Fujistu, Openstack, Radiant Communications Corporation, Huawei Technologies Co., Ltd., AT&T, Inc., Cisco Systems, Inc., Adobe Systems, Inc., Microsoft Corporation, Red Hat Inc., Cisco Systems, Inc., VMware, Inc., Citrix Systems, Dell Corporation among others.
Increasing adoption of private cloud networks and rising data centre traffic will propel the market's growth.
North American region will witness more data centre virtualization market growth.
Political Factors- The business climate is badly impacted by bureaucracy and corruption. data centre virtualisation market. finds that operating in nations with high levels of corruption and lax law enforcement makes the business climate more uncertain due to weakened public confidence in corporate institutions and the overall political and economic system. Corruption can have an impact on a variety of corporate processes, including licensing, contracting, fraud deals, and numerous lawsuits. The organization's sustainable development will be at risk if data centre virtualization market A. decides to join markets with corrupt economic and political systems because it will undermine society, undermine the justice system, and undermine the rule of law.
Economic Factors- Wage rates and the availability of skilled workers are influenced by the supply and demand of labour. For the data centre virtualization market to grasp how to draw in talented individuals and make the most of their skills to boost business performance, it is necessary to research and Projection the state of the labour market. data centre virtualisation market. can benefit from improved workforce productivity in flexible labour markets. Operating in restrictive labour markets, however, may result in labour wage challenges as well as other problems brought up by strong labour unions. The data centre virtualization market should carefully consider the availability of qualified human capital. as a lack of skilled personnel can negatively impact business efficiency and make attracting and retaining talent more difficult.
Social Factors- For worldwide commercial enterprises like the data centre virtualization market, changes in demographic patterns including the ageing population, migration trends, and socioeconomic variables are of the utmost importance. The proper market segment or sectors with significant development potential can be selected by data centre virtualisation market A. by carefully examining the demographic factors. Migration has an impact on business and marketing strategy as well. Understanding the overall attitude toward migration is crucial for data centre virtualization market A. since it might affect the ability of businesses to hire foreign management in the host nation. Any society's acceptance of hierarchy and income disparity can be seen in the power distance. When data centre virtualization market A. enters markets with a high or low power distance, it must alter its business management processes.
Technological Factors- data centre virtualization market in order to comprehend how new technologies affect the firm's value chain and current cost structure, one must take into account the investments made by rivals on a local and macro level. In a setting where creative disruption is prevalent, research and development efforts are crucial. In this situation, the data centre virtualization market should make investments in disruptive technologies to increase their profitability and reinvest those earnings in disruptive technologies in the future. The lifecycle of developing new products has been shortened by the adoption of new technology. New products are created swiftly today, and supply chain partners have more clout as well. It increases the data centre virtualization market’s pressure. to swiftly develop new products, broaden the variety of available products, including flexibility in the value chain, and build strong commercial connections.
Environmental Factors- The use of green/eco-friendly items is becoming more popular. data centre virtualization market. can seize the chance and implement eco-friendly company strategies to gain the confidence of stakeholders. Priorities for product innovation are changing due to regulatory organisations' emphasis on ensuring conformity with environmental standards. data centre virtualization market A. must put promoting the eco-friendliness of their goods ahead of traditional value propositions. If data centre virtualization market A. uses resources excessively, the public, customers, and environmental protection organisations may react negatively.
Legal Factors- Given that some nations have severe laws enforcing labour safety, data centre virtualization market. is required to adhere to employee/labour health and safety requirements. data centre virtualization market has an ethical and moral duty to give its employees a safe working environment. In a similar vein, anti-discrimination laws (such as equal employment opportunity laws) also need to be carefully considered when developing human resource practices as discriminatory lawsuits against employers harm the organizational image and affect organizations' capacity to attract and retain talent.
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