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China Software Defined Infrastructure Market

ID: MRFR/ICT/61529-HCR
200 Pages
Aarti Dhapte
February 2026

China Software Defined Infrastructure Market Research Report By Type (Compute, Storage, Network), By Deployment Model (On-Premises, Cloud-Based, Hybrid), By Technology (Virtualization, Containers, Infrastructure Automation, Orchestration) and By End User (IT Telecommunications, BFSI, Healthcare, Retail, Government)- Forecast to 2035

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China Software Defined Infrastructure Market Summary

As per Market Research Future analysis, the China Software Defined Infrastructure Market size was estimated at 4548.6 USD Million in 2024. The Software Defined-infrastructure market is projected to grow from 4954.34 USD Million in 2025 to 11646.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 8.9% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The China software defined-infrastructure market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The hybrid cloud solutions segment is currently the largest, reflecting a shift in enterprise IT strategies.
  • Automation and orchestration are becoming increasingly critical as organizations seek to enhance operational efficiency.
  • Security and compliance concerns are prompting businesses to invest more in software defined-infrastructure solutions.
  • Rising demand for scalability and government initiatives are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 4548.6 (USD Million)
2035 Market Size 11646.0 (USD Million)
CAGR (2025 - 2035) 8.92%

Major Players

VMware (US), Cisco (US), Hewlett Packard Enterprise (US), Microsoft (US), IBM (US), Dell Technologies (US), Red Hat (US), Nutanix (US), Oracle (US)

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China Software Defined Infrastructure Market Trends

The China Software Defined Infrastructure Market is currently experiencing a transformative phase, driven by the increasing demand for flexible and scalable IT solutions. Organizations are increasingly adopting software-defined technologies to enhance operational efficiency and reduce costs. This shift is largely influenced by the need for rapid deployment of applications and services, which traditional infrastructure often struggles to accommodate. As businesses seek to optimize their resources, the software defined-infrastructure market is poised for substantial growth, reflecting a broader trend towards digital transformation across various sectors. Moreover, the integration of artificial intelligence and machine learning into software defined-infrastructure is becoming more prevalent. These technologies enable predictive analytics and automation, allowing organizations to manage their infrastructure more effectively. The emphasis on security and compliance is also shaping the market, as companies prioritize safeguarding their data and ensuring regulatory adherence. As a result, the software defined-infrastructure market is evolving to meet these complex demands, indicating a robust future trajectory for stakeholders involved in this space.

Increased Adoption of Hybrid Cloud Solutions

Organizations are increasingly gravitating towards hybrid cloud models, which combine on-premises infrastructure with public cloud services. This trend allows for greater flexibility and scalability, enabling businesses to optimize their workloads based on specific needs. The software defined-infrastructure market is adapting to support these hybrid environments, facilitating seamless integration and management of diverse resources.

Focus on Automation and Orchestration

The push for automation within the software defined-infrastructure market is gaining momentum. Companies are recognizing the benefits of automating routine tasks, which enhances operational efficiency and reduces human error. Orchestration tools are becoming essential for managing complex environments, allowing for streamlined processes and improved resource allocation.

Emphasis on Security and Compliance

As organizations increasingly rely on software defined-infrastructure, the focus on security and compliance is intensifying. Companies are prioritizing robust security measures to protect sensitive data and ensure adherence to regulatory standards. This trend is driving innovation within the market, as providers develop solutions that integrate security features into the infrastructure management process.

China Software Defined Infrastructure Market Drivers

Shift Towards Edge Computing

The software defined-infrastructure market in China is witnessing a significant shift towards edge computing. As the demand for real-time data processing and low-latency applications grows, businesses are increasingly adopting edge solutions to enhance their operational capabilities. This transition is particularly relevant in industries such as manufacturing and smart cities, where immediate data analysis is crucial. Recent statistics suggest that the edge computing segment within the software defined-infrastructure market is expected to expand by over 40% in the next few years. This growth is driven by the need for localized data processing, which reduces latency and improves overall system performance. Consequently, companies are investing in software defined technologies that facilitate edge computing, thereby reshaping the infrastructure landscape in China.

Rising Demand for Scalability

The software defined-infrastructure market in China is experiencing a notable surge in demand for scalable solutions. As enterprises increasingly seek to enhance their operational efficiency, the ability to scale resources dynamically becomes paramount. This trend is particularly evident in sectors such as e-commerce and telecommunications, where fluctuating workloads necessitate flexible infrastructure. According to recent data, the market for scalable software defined solutions is projected to grow by approximately 25% annually. This growth is driven by the need for businesses to adapt quickly to changing market conditions while minimizing costs. Consequently, vendors are focusing on developing innovative solutions that allow for seamless scaling, thereby positioning themselves favorably within the software defined-infrastructure market. The emphasis on scalability is likely to continue shaping the competitive landscape in the coming years.

Government Initiatives and Support

In China, government initiatives aimed at promoting digital transformation are significantly influencing the software defined-infrastructure market. The Chinese government has launched various programs to encourage the adoption of advanced technologies, including software defined solutions. These initiatives often include financial incentives, tax breaks, and grants for companies investing in digital infrastructure. As a result, many organizations are increasingly integrating software defined technologies into their operations to align with national strategies. Recent reports indicate that government support has led to a 30% increase in investments in software defined infrastructure over the past year. This trend is expected to continue, as the government remains committed to fostering innovation and enhancing the country's technological capabilities, thereby driving growth in the software defined-infrastructure market.

Growing Importance of Data Security

Data security is becoming an increasingly vital concern within the software defined-infrastructure market in China. As cyber threats evolve and data breaches become more frequent, organizations are compelled to adopt robust security measures. The software defined approach offers enhanced security features, such as automated threat detection and response capabilities. Recent surveys indicate that approximately 70% of enterprises in China consider security a top priority when selecting software defined solutions. This heightened focus on security is driving demand for solutions that integrate advanced security protocols and compliance measures. Consequently, vendors are investing in developing software defined technologies that not only meet performance requirements but also address security challenges. The growing importance of data security is likely to shape the future landscape of the software defined-infrastructure market.

Increased Focus on Energy Efficiency

Energy efficiency has emerged as a critical driver in the software defined-infrastructure market in China. With rising energy costs and growing environmental concerns, organizations are increasingly prioritizing energy-efficient solutions. The software defined approach allows for better resource management and optimization, leading to reduced energy consumption. Recent analyses indicate that companies adopting energy-efficient software defined technologies can achieve up to 20% savings on their energy bills. This trend is particularly pronounced in data centers, where energy consumption is a significant operational expense. As a result, vendors are developing solutions that not only enhance performance but also minimize energy usage, thereby appealing to environmentally conscious consumers. The emphasis on energy efficiency is likely to continue influencing purchasing decisions within the software defined-infrastructure market.

Market Segment Insights

By Type: Compute (Largest) vs. Storage (Fastest-Growing)

In the China software defined-infrastructure market, the Compute segment holds the largest market share, driven by the increasing demand for advanced computing capabilities. This segment caters to various enterprises looking for scalable and high-performance solutions. In contrast, the Storage segment is witnessing rapid growth, reflecting the expanding data needs of organizations as they adopt digital transformation strategies. The growth in the Storage segment is fueled by the rise in data generation and the need for efficient management solutions. Organizations are investing in scalable storage options to accommodate their increasing workloads, leading to significant advancements in this area. Furthermore, the integration of AI and cloud technologies is also contributing to accelerated growth in the Storage segment, making it a vital component of the software defined-infrastructure landscape.

Compute (Dominant) vs. Storage (Emerging)

The Compute segment remains dominant in the China software defined-infrastructure market, offering robust processing power essential for a variety of applications. Its strengths lie in providing high-speed computing resources that are highly scalable, catering to the demands of both enterprises and cloud service providers. The segmentation reflects a focus on innovation in compute capabilities, ensuring that performance will continue to meet market needs. Meanwhile, the Storage segment is emerging as a crucial player, characterized by its rapid advancements in data handling technologies such as NVMe and cloud-based solutions. As data volumes explode, the need for effective storage solutions also escalates, positioning this segment for rapid adoption and growth in response to market demand.

By Deployment Model: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

In the China software defined-infrastructure market, the deployment model landscape is dominated by Cloud-Based solutions, which account for a significant portion of market share. This model benefits from increased scalability and flexibility, attracting a wide range of enterprises looking to modernize their IT infrastructure. On the other hand, the Hybrid model is gaining traction, appealing to organizations that wish to leverage both on-premises and cloud resources, contributing to a diverse deployment strategy that meets varied business needs. Growth trends indicate a robust shift towards Cloud-Based deployments as businesses seek to capitalize on the efficiencies of cloud technologies. The Hybrid model is emerging as the fastest-growing segment, driven by the need for companies to maintain control over sensitive data while also embracing cloud capabilities. This trend is spurred by rising in cybersecurity concerns and operational flexibility, as organizations strive to enhance their IT agility in a competitive landscape.

Deployment Model: Cloud-Based (Dominant) vs. Hybrid (Emerging)

Cloud-Based deployment models are recognized as the dominant force within the China software defined-infrastructure market, providing enterprises with unparalleled flexibility, cost-effectiveness, and ease of scalability. These solutions enable organizations to adapt quickly to changing demands without the heavy lifting of traditional infrastructure. Conversely, the Hybrid model is emerging as a key player, blending the strengths of on-premises and cloud services to provide a balanced approach to IT management. This model caters to businesses that require both the security of local resources and the advantages of cloud solutions. The Hybrid model's rise is attributed to increasing data sovereignty concerns, regulatory compliance, and a growing emphasis on resource optimization in the digital transformation journey.

By Technology: Containers (Largest) vs. Virtualization (Fastest-Growing)

In the China software defined-infrastructure market, the distribution of market share reveals that Containers are the largest segment, heavily favored for their efficiency and flexibility in deployment. Virtualization, while a significant component, is currently in a competitive landscape but is rapidly rising as organizations seek to optimize their infrastructure. The adoption of cloud technologies and hybrid models is further shaping this distribution. Growth trends indicate that the Containers segment is propelled by the increasing demand for microservices and DevOps practices among enterprises in China. Meanwhile, the fastest growth of Virtualization is driven by the urgent need for resource efficiency and cost reduction strategies that businesses are adopting to navigate the competitive environment. As companies continue to embrace digital transformation, both segments are poised for expansion.

Technology: Containers (Dominant) vs. Virtualization (Emerging)

Containers are recognized as the dominant force in the technology segment, offering unparalleled agility and scalability for various application deployments. Their architecture supports microservices, aligning well with modern development practices. As businesses gravitate towards DevOps and continuous integration/continuous deployment (CI/CD), containers are becoming critical for fostering innovation and flexibility. Conversely, Virtualization remains an emerging segment characterized by its ability to consolidate resources and lower operational costs. While it faces challenges from the rising preferences for containerization, its proven track record in maximizing infrastructure utilization ensures that it continues to hold strategic value for enterprises aiming to optimize their IT landscapes.

By End User: IT Telecommunications (Largest) vs. BFSI (Fastest-Growing)

The market share distribution among the end user segments reveals that IT Telecommunications takes the lead, capturing a significant portion due to its essential role in digital infrastructure. Following closely is the BFSI sector, which is rapidly expanding in its adoption of software defined-infrastructure solutions. Other segments like Healthcare, Retail, and Government also contribute to the market, but with comparatively smaller shares. Growth trends in these segments are driven by the increasing need for efficient data management and security across industries. The IT Telecommunications sector is fueled by innovations in networking technologies, while BFSI is embracing software defined-infrastructure to enhance customer services and reduce operational costs. Healthcare and Government are catching up, focusing on regulatory compliance and service delivery improvements.

IT Telecommunications (Dominant) vs. BFSI (Emerging)

The IT Telecommunications sector stands dominant in the China software defined-infrastructure market, characterized by its robust infrastructure and rapid technological advancements. This segment thrives on the demand for high-speed connectivity and cloud computing services, positioning itself as a critical enabler of digital transformation across various industries. In contrast, the BFSI sector, labeled as emerging, is witnessing a fast-paced adoption of software defined-infrastructure solutions, motivated by the need for enhanced data security, compliance, and improved customer experience. Both segments showcase unique strengths, with IT Telecommunications focusing on scalability and reliability, while BFSI emphasizes innovation and customer-centricity.

Get more detailed insights about China Software Defined Infrastructure Market

Key Players and Competitive Insights

The software defined-infrastructure market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for flexible IT solutions. Major players such as VMware (US), Cisco (US), and Hewlett Packard Enterprise (US) are strategically positioning themselves through innovation and partnerships. VMware (US) focuses on enhancing its cloud infrastructure capabilities, while Cisco (US) emphasizes network optimization and security solutions. Hewlett Packard Enterprise (US) is actively pursuing regional expansion, particularly in Asia, to capitalize on the growing demand for software-defined solutions. Collectively, these strategies contribute to a competitive environment that is increasingly focused on agility and customer-centric solutions.Key business tactics within this market include localizing manufacturing and optimizing supply chains to enhance responsiveness to regional demands. The competitive structure appears moderately fragmented, with several key players exerting influence over market dynamics. This fragmentation allows for a diverse range of offerings, catering to various customer needs while fostering innovation through competition.

In October VMware (US) announced a strategic partnership with a leading cloud service provider to enhance its multi-cloud capabilities. This move is significant as it positions VMware (US) to better serve enterprises seeking to leverage multiple cloud environments, thereby increasing its market share and reinforcing its commitment to innovation in cloud infrastructure.

In September Cisco (US) launched a new suite of security-focused software defined solutions aimed at protecting data across hybrid environments. This initiative underscores Cisco's (US) focus on integrating security into its infrastructure offerings, which is increasingly critical as cyber threats evolve. By prioritizing security, Cisco (US) not only enhances its product portfolio but also addresses a growing concern among enterprises, potentially leading to increased customer trust and loyalty.

In August Hewlett Packard Enterprise (US) unveiled a new line of software defined storage solutions designed to optimize data management for enterprises. This development reflects HPE's (US) commitment to innovation and its understanding of the critical role that data plays in modern business operations. By enhancing its storage capabilities, HPE (US) positions itself as a key player in the data-driven economy, appealing to organizations looking to streamline their operations.

As of November current competitive trends in the software defined-infrastructure market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, enabling companies to leverage complementary strengths and enhance their offerings. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This shift suggests that companies will need to invest in R&D and forge strategic partnerships to maintain a competitive edge in an ever-evolving market.

Key Companies in the China Software Defined Infrastructure Market include

Industry Developments

Alibaba Group announced in February 2025 that it would allocate more than US $52 billion (380 billion yuan) to cloud infrastructure and artificial intelligence over the next three years, surpassing its cumulative investment in the previous decade. This announcement indicated a significant commitment to AI-powered SDI.Alibaba Cloud announced its intention to expand its data center infrastructure globally at its 2024 Global Summit. This initiative will include the establishment of its inaugural cloud region in Mexico, as well as additional regions in Malaysia, Thailand, the Philippines, and South Korea. 

This coincides with the introduction of its Model Studio generative AI platform, which is designed to increase the accessibility of AI tools related to SDI.Alibaba Cloud announced at an AI Dynamics Conference in April 2025 that its Qwen family of large language models is currently being utilized by more than 290,000 enterprise clients in China, including those in the healthcare, automotive, retail, and robotics sectors, through Model Studio. These models are essential for the expedited integration of AI into infrastructure services.

Future Outlook

China Software Defined Infrastructure Market Future Outlook

The Software Defined Infrastructure Market in China is projected to grow at 8.92% CAGR from 2025 to 2035, driven by cloud adoption, automation, and demand for scalability.

New opportunities lie in:

  • Development of AI-driven resource management tools
  • Expansion of hybrid cloud solutions for enterprises
  • Integration of edge computing with existing infrastructure

By 2035, the market is expected to achieve substantial growth and innovation.

Market Segmentation

China Software Defined Infrastructure Market Type Outlook

  • Compute
  • Storage
  • Network

China Software Defined Infrastructure Market End User Outlook

  • IT Telecommunications
  • BFSI
  • Healthcare
  • Retail
  • Government

China Software Defined Infrastructure Market Technology Outlook

  • Virtualization
  • Containers
  • Infrastructure Automation
  • Orchestration

China Software Defined Infrastructure Market Deployment Model Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 2024 4548.6(USD Million)
MARKET SIZE 2025 4954.34(USD Million)
MARKET SIZE 2035 11646.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 8.92% (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 Million
Key Companies Profiled VMware (US), Cisco (US), Hewlett Packard Enterprise (US), Microsoft (US), IBM (US), Dell Technologies (US), Red Hat (US), Nutanix (US), Oracle (US)
Segments Covered Type, Deployment Model, Technology, End User
Key Market Opportunities Integration of artificial intelligence in software defined-infrastructure market enhances operational efficiency and resource management.
Key Market Dynamics Rapid technological advancements drive competitive dynamics in the software defined-infrastructure market, reshaping local industry standards.
Countries Covered China
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FAQs

What is the expected market size of the China Software Defined Infrastructure Market in 2024?

The expected market size of the China Software Defined Infrastructure Market in 2024 is valued at 3.9 billion USD.

What will the China Software Defined Infrastructure Market be valued at in 2035?

In 2035, the China Software Defined Infrastructure Market is projected to be valued at 10.2 billion USD.

What is the expected CAGR for the China Software Defined Infrastructure Market from 2025 to 2035?

The expected CAGR for the China Software Defined Infrastructure Market from 2025 to 2035 is 9.133 percent.

Who are the key players in the China Software Defined Infrastructure Market?

Some key players in the China Software Defined Infrastructure Market include UCloud, Tencent, Alibaba Cloud, and Huawei.

What is the market size for Compute in the China Software Defined Infrastructure Market by 2035?

The market size for Compute in the China Software Defined Infrastructure Market is expected to reach 3.9 billion USD by 2035.

What is the market size for Storage in the China Software Defined Infrastructure Market in 2024?

The market size for Storage in the China Software Defined Infrastructure Market is expected to be 1.2 billion USD in 2024.

What will the Network segment market size reach in the China Software Defined Infrastructure Market by 2035?

The Network segment market size is projected to reach 3.1 billion USD in the China Software Defined Infrastructure Market by 2035.

What are some emerging trends in the China Software Defined Infrastructure Market?

Emerging trends in the China Software Defined Infrastructure Market include increased cloud adoption, enhanced automation, and integration of AI technologies.

How is the current global scenario impacting the China Software Defined Infrastructure Market?

The current global scenario is influencing the China Software Defined Infrastructure Market by accelerating the demand for flexible and scalable infrastructure solutions.

What challenges does the China Software Defined Infrastructure Market face in its growth?

The challenges faced by the China Software Defined Infrastructure Market include cybersecurity threats and the complexity of system integrations.

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