As per MRFR analysis, the China Software-Defined Data Center Market Size was estimated at 7.83 (USD Billion) in 2023.The China Software-Defined Data Center Market Industry is expected to grow from 9.35(USD Billion) in 2024 to 65.58 (USD Billion) by 2035. The China Software-Defined Data Center Market CAGR (growth rate) is expected to be around 19.375% during the forecast period (2025 - 2035).
Key China Software-Defined Data Center Market Trends Highlighted
The China Software-Defined Data Centre market is growing quickly because more people want cloud computing and data management solutions that work well. The fast digital transformation in many areas of China is a major market driver. Businesses and the government are using cutting-edge technologies to make their operations more efficient. The Chinese government's plans, such as the "Internet Plus" policy, encourage businesses to use cloud services.Â
This makes it easier to manage and allocate resources, which is good for software-defined infrastructure. The expansion of artificial intelligence (AI) and the Internet of Things (IoT) is creating new opportunities in the market. These technologies need strong data processing and storage capabilities.
Companies can work with IT companies to use these new technologies to make their data centres more flexible and scalable. Also, because data management has to follow the rules, software-defined data centres can offer solutions that meet national standards. Recent trends show that more and more firms in China are moving toward hybrid cloud models, which combine public and private clouds to give them more flexibility.Â
This change shows that organizations need to achieve certain security and regulatory standards while still getting the most out of their performance. Companies are also looking for ways to cut costs and improve service delivery, which is driving up the need for automation in data management.Overall, China's move toward more flexible and efficient software-defined data centres is setting the market up for a major change, which fits in with the country's larger goals to push technology forward.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
China Software-Defined Data Center Market Drivers
Growing Need for Efficient Data Management
The demand for efficient data management solutions in China has accelerated, driven by the increasing volume of data generated across various sectors. According to the Ministry of Industry and Information Technology of the People's Republic of China, the data generated in the country is expected to reach 4.8 zettabytes by 2025. This exponential growth signifies a crucial need for Software-Defined Data Centers (SDDC) that can efficiently manage, store, and process data.
Established companies like Alibaba and Tencent are at the forefront, leveraging SDDC technologies to optimize their operations and improve service delivery. Their commitment to investing in data center infrastructure and cloud technologies is fostering significant growth in the China Software-Defined Data Center Market Industry, highlighting the urgent need for efficient data utilization strategies in an increasingly data-driven economy.
Support from Government Initiatives
The Chinese government is actively promoting digital transformation across industries as part of its strategy to enhance national competitiveness. The '14th Five-Year Plan' emphasizes the development of digital infrastructure, including data centers. With initiatives aimed at fostering innovation and technology adoption, the government highlights its commitment by allocating substantial funding for digital transformation projects.
For instance, investments are expected to reach around 1 USD Trillion by 2025, emphasizing the drive toward enhanced connectivity and infrastructure.Such governmental support propels the growth of the China Software-Defined Data Center Market, as organizations pivot towards digital solutions that can adapt to these evolving policies and technological frameworks.
Rising Adoption of Cloud Computing
The rapid adoption of cloud computing in China is a significant driver for the Software-Defined Data Center Market. A report by the China Academy of Information and Communications Technology indicates that the cloud services market in China was valued at approximately 20 USD Billion in 2020, with projections to grow at a CAGR of over 30% through 2025.Â
Companies like Baidu and Huawei are heavily investing in cloud technologies and infrastructures, impacting the growth trajectory of SDDC as organizations increasingly migrate to cloud-based operations.This transition not only enhances flexibility and scalability but also exemplifies the evolving landscape of data management that the China Software-Defined Data Center Market Industry is poised to capitalize on.
Increased Focus on Cost Reduction
Organizations in China are increasingly focused on reducing operational costs while maximizing efficiency. The global shift towards cost-effective IT infrastructure solutions is echoed in China, where businesses are looking to optimize their IT spending. A study from the China Institute of Finance and Capital Markets suggests that companies can save up to 30% on operational costs by transitioning to Software-Defined Data Centers.Â
Major players like China Mobile are streamlining their operations through SDDC, showcasing the financial benefits of adopting this technology.The potential for substantial savings motivates more organizations to embrace SDDC, thereby stimulating growth in the China Software-Defined Data Center Market Industry.
Software-Defined Data Center Market Solution Insights
The Solution segment of the China Software-Defined Data Center Market is a crucial part of the broader market landscape, reflecting a significant shift in how data centers are managed and operated across the region. As organizations in China increasingly embrace digital transformation, solutions like Software-Defined Computing (SDC), Software-Defined Storage (SDS), and Software-Defined Networking (SDN) are gaining traction due to their flexibility and efficiency. SDC allows for dynamic resource allocation, ensuring that computing power meets the fluctuating demands of various applications.This dynamic allocation is even more important in China, where cloud adoption is rapidly accelerating and businesses are striving for agility.Â
On the other hand, SDS is becoming essential for managing vast amounts of data generated by enterprises, as it simplifies storage management and improves data accessibility across the organization. With the growing consideration of big data analytics and artificial intelligence, SDS is increasingly recognized for its ability to enhance storage efficiency and optimization. SDN, meanwhile, plays a vital role in enhancing network management by allowing organizations in China to strategically manage their network resources, improving operational efficiency and reducing costs.The evolution of SDN aligns closely with the need for scalable and flexible network infrastructures that can effectively support the burgeoning Internet of Things (IoT) market in China.Â
As these technologies advance, they represent significant opportunities for enterprises to innovate and improve operational efficiencies. The domestic government's favorable policies and initiatives aimed at promoting cloud services and data analytics further support the growth in these areas, highlighting the importance of this segment in fostering innovation and competitiveness within the Chinese economy.
Additionally, as various industries, including finance, healthcare, and manufacturing, adopt Software-Defined solutions, the overall demand for integrated and sophisticated data center services is expected to rise. The Solution segment is thus central to the evolution of the China Software-Defined Data Center Market, making it an important focus for stakeholders looking to capitalize on the rapid advancements in technology and infrastructure across the region while positioning themselves at the forefront of digital transformation efforts.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Software-Defined Data Center Market Services Insights
The Services segment within the China Software-Defined Data Center Market is experiencing significant growth, driven by increasing demand for more flexible and efficient IT infrastructure. Managed services dominate this segment as organizations seek external expertise to optimize their data center operations and reduce management overhead. Consulting services play a crucial role, guiding businesses in adopting software-defined technologies and enhancing overall operational efficiency.Â
Assessment services are vital as they help companies evaluate their current infrastructure and identify areas for improvement, aligning with the country's push for digital transformation and smart technology adoption.With China’s emphasis on innovation and cloud computing, the need for robust services in the Software-Defined Data Center Market is essential for organizations aiming to stay competitive. The increasing complexity of IT environments also presents opportunities for service providers to offer tailored solutions that cater to specific business needs, making the Services segment an integral part of the overall market landscape.
Software-Defined Data Center Market Vertical Insights
The Vertical segment of the China Software-Defined Data Center Market highlights a diverse array of applications that cater to various industries, emphasizing the adaptability and efficiency of software-defined solutions. The Banking, Financial Services, and Insurance (BFSI) sector is notably significant due to its increasing need for security and data processing capabilities, driven by the rapid digital transformation within financial services. In Retail, organizations are leveraging software-defined infrastructure to enhance customer experiences through data analytics and personalized services.The IT sector continues to dominate, as companies focus on agility and scalability to support cloud-based services and complex workloads.Â
Healthcare also plays a vital role, particularly in managing vast amounts of sensitive patient data, which necessitates robust security protocols and compliance with regulations. Government agencies are increasingly adopting software-defined data centers to streamline operations and improve service delivery to citizens, reflecting the ongoing digital government initiatives in China. This segmentation demonstrates a growing recognition of how tailored data center solutions can address specific industry challenges and seize new opportunities for growth and innovation, ultimately contributing to the broader landscape of the China Software-Defined Data Center Market.
China Software-Defined Data Center Market Key Players and Competitive Insights
The China Software-Defined Data Center Market presents a dynamic landscape characterized by rapid growth and technological advancements. As enterprises increasingly seek to optimize their IT infrastructure and enhance operational efficiency, the demand for software-defined solutions has surged. Competitive insights into this market reveal a diverse array of players, each leveraging unique strategies and innovations to strengthen their foothold. The emphasis on cloud computing, automation, and virtualization continues to reshape the competitive dynamics, fostering an environment where agility and scalability are paramount.Â
Market participants are also investing significantly in research and development to bolster their offerings and stay ahead in an evolving marketplace. Dell Technologies has established a robust presence in the China Software-Defined Data Center Market by offering a comprehensive suite of solutions tailored to meet the specific needs of businesses operating in this region. Its strengths lie in a wide array of hardware and software integrations that allow for seamless scaling and management of data center resources. Dell Technologies' commitment to innovation is underscored by its solid partnerships within the ecosystem, as well as its focus on delivering cutting-edge technology that aligns with the growing demand for agility and efficiency.Â
Furthermore, its strong customer support and infrastructure services enhance its market positioning, enabling organizations across various sectors to adopt software-defined solutions effectively. VMware remains a significant player in the China Software-Defined Data Center Market, recognized for its focus on virtualization and cloud infrastructure solutions. Key products and services include VMware's vSphere and VMware Cloud Foundation, which are pivotal in driving cloud adoption and enabling businesses to manage their IT resources with enhanced flexibility. The company benefits from a strong market presence due to its early entry into the software-defined space and continuous innovation in its offerings.Â
VMware's strengths are amplified through strategic mergers and acquisitions aimed at expanding its technology portfolio and capabilities, allowing it to serve a diverse clientele ranging from small startups to large enterprises. Its emphasis on security and robust management tools positions VMware as a preferred partner for organizations looking to modernize their data handling processes in the competitive Chinese market.
Key Companies in the China Software-Defined Data Center Market Include:
China Software-Defined Data Center Market Industry Developments
Recent developments in the China Software-Defined Data Center Market have highlighted significant advancements and strategic movements among major companies. Notable players such as Dell Technologies and VMware have been expanding their cloud services and integration solutions to meet rising demand in hybrid cloud environments, reflecting the ongoing digitization across industries.Â
In July 2023, ZTE announced a partnership with Alibaba Group to enhance network performance and data management capabilities, showcasing collaboration within the sector. Moreover, in June 2023, Inspur revealed plans to invest heavily in artificial intelligence-driven innovations within data centers, aiming to improve efficiency and operational intelligence. On the mergers and acquisitions front, Huawei in April 2023 completed its acquisition of a cloud computing startup, augmenting its offerings in software-defined technologies.Â
The market has also experienced a significant valuation growth, positioning companies like Tencent and IBM to capitalize on the increasing investments in cloud infrastructures, driven largely by the Chinese government's push for technological advancement and data sovereignty. In recent years, particularly from 2021 to 2023, a continuous increase in demand for agile and scalable data center solutions has prompted further investment and innovation in the Software-Defined Data Center landscape in China.
China Software-Defined Data Center Market Segmentation Insights
Software-Defined Data Center Market Solution Outlook
Software-Defined Data Center Market Services Outlook
Software-Defined Data Center Market Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 7.83(USD Billion) |
| MARKET SIZE 2024 | 9.35(USD Billion) |
| MARKET SIZE 2035 | 65.58(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 19.375% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Dell Technologies, VMware, ZTE, Hewlett Packard Enterprise, Amazon Web Services, Inspur, Cisco, Huawei, IBM, Alibaba, Microsoft, Tencent, Lenovo, Baidu |
| SEGMENTS COVERED | Solution, Services, Vertical |
| KEY MARKET OPPORTUNITIES | Cloud infrastructure expansion, AI integration for optimization, Enhanced security solutions demand, Cost reduction initiatives, Hybrid cloud adoption growth |
| KEY MARKET DYNAMICS | growing cloud adoption, increasing automation demand, enhanced scalability needs, rising data security concerns, government support initiatives |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ):
The market is expected to be valued at 9.35 USD Billion in 2024.
By 2035, the market is projected to reach 65.58 USD Billion.
The market is expected to grow at a CAGR of 19.375% during the forecast period from 2025 to 2035.
The Software-Defined Storage (SDS) segment is expected to reach a value of 22.0 USD Billion by 2035.
The SDC segment is anticipated to be valued at 2.8 USD Billion in 2024 and 19.7 USD Billion in 2035.
Major players in the market include Dell Technologies, VMware, ZTE, and Hewlett Packard Enterprise among others.
The SDN segment is projected to be valued at 23.88 USD Billion by 2035.
The market presents growth opportunities driven by advancements in cloud computing and virtualization technologies.
Current global economic conditions may impact market dynamics, including investments and technological advancements.
The Software-Defined Networking (SDN) segment has the largest expected market size at 3.55 USD Billion in 2024.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
