Data Center Virtualization Market Research Report- Global Forecast 2032

Data Center Virtualization Market Research Report: Information By Type (Server, Storage, Network, and Desktop), By organization Size (Small and Medium-Sized Enterprises (SMEs) and Large Enterprises), By Vertical (BFSI, IT & Telecommunication, Manufacturing & Automotive, Government, Healthcare, and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032.

ID: MRFR/ICT/2316-HCR | 100 Pages | Author: Aarti Dhapte | March 2024         

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Data Center Virtualization Market Overview

Data Center Virtualization Market Size was valued at USD 4.8 Billion in 2022. The Data Center Virtualization market industry is projected to grow from USD 5.64 Billion in 2023 to USD 20.49 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.50% during the forecast period (2023 - 2032).The increased requirement for organisations to reduce operating costs and boost business agility is driving growth are the key market drivers enhancing the market growth.

Data Center Virtualization Market Overview.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Virtualization Market Trends

Growing technology advancement is driving the market growth

Market CAGR for data center virtualization is being driven by the rising advancement in technology. Reducing heat generation from the server, decreasing cost, easier data backup, better testing, greener pastures, no vendor lock-in, single-minded servers, better disaster recovery, and easier cloud migration characterize the data center virtualization market. Overcoming chaos, underutilized servers, missing components, resource issues, realigning employee skills, and controlling portability are some reasons restricting the data center virtualization industry. There need to be more components in adopting data center virtualization. Ixc dnformation technology firms generally virtualize a portion of their data center assets. When there is no missing data and no silos of data storage or data management equipment, data center virtualization works best. As a result, the virtual infrastructure's limited reach eventually adds to its complexity and cost. Traditionally, much money has been spent on research and development for heat reduction in data centers. As a result, the only method to reduce heat is to have fewer servers. Thus, data center virtualization is a method of dealing with the heat created by the servers.

Furthermore, the rising danger of cyber attacks is expected to impede the growth of the data center virtualization industry. The rising use of digital solutions in numerous industries for data storage, transmission, and processing applications has raised the demand for virtual servers, raising the possibility of cybersecurity breaches that result in data theft. The advantages of server virtualization, which has greatly contributed to the development of data center virtualization, are also propelling market expansion. Cost savings, more effective resource provisioning, increased productivity, IT consolidation, better administration, flexibility and scalability, enhanced storage capacity management, hosting various OSes, and improved continuity are just a few of the important advantages. Among the primary providers of server virtualization are Veritis Group Inc, VMware, Inc., HP, and Cisco Systems, Inc. The advent of such enterprises, which have a more extensive worldwide network, has resulted in more use of server virtualization, fueling industry development.

The massive need for enterprises to reduce operational costs and improve company agility and the increasing need for centralized and unified data center management will drive the development of the data center virtualization market. Furthermore, the rising need for reducing data center complexity and a rise in data center traffic will drive worldwide market trends. The rise in digitalization and boom in data centers and investments have benefited the worldwide market's growth. Furthermore, growing public awareness of the benefits of cloud-based data storage will drive market development globally. Furthermore, the end-user inclination for digital transformation would broaden the scope of the data center virtualization market's growth. Furthermore, rising client demand for online transformation will shape the worldwide market boom in the following years. Thus, driving the Data Center Virtualization market revenue.

Data Center Virtualization Market Segment Insights

Data Center Virtualization Type Insights

The Data Center Virtualization market segmentation, based on type, includes server, storage, network, and desktop. The server segment dominated the market, accounting for 35% of market revenue. The benefits of server virtualization, such as improved server dependability and availability, greater utilization of physical services and power, cheaper operating costs, and virtual machine development, may be credited to the rise of the server segment. Major corporations have developed server virtualization solutions, boosting capabilities and attracting additional business.

Data Center Virtualization Organization Size Insights

Based on type, the Data Center Virtualization market segmentation includes small and medium-sized enterprises (SMEs) and large enterprises. The large enterprises segment dominated the market. Because of the large amount of data and millions of consumers, numerous servers require storage and networking. Large enterprises have been involved in implementing various technologies that could help businesses gain better traction in the market, owing to the benefits of implementing data center virtualization, which includes simplified management, resource optimization, and integration with managed services. All of these reasons have aided the expansion of the large enterprise category..

Figure 1: Data Center Virtualization Market, by Organization Size, 2022 & 2032 (USD Billion)

Data Center Virtualization Market, by Organization Size

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Virtualization Vertical Insights

Based on Vertical, the Data Center Virtualization market segmentation includes BFSI, IT & telecommunication, manufacturing & automotive, government, healthcare, and others. The IT & telecommunication-based category generated the most income. Telecom firms use data centers to provide services and applications such as Mobile Network Monitoring, Gi-LAN, Policy and Charging Rules Function (PCRF), PDN and Serving Gateways, Assurance, CDN & OTT Caching, and Insights. As a result, there are many telecom data centers around the region; these data centers have been embracing virtualization software services to expand their capabilities, which has been a crucial element in fueling the expansion of the IT & telecommunications industry.

Data Center Virtualization Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American, Data Center Virtualization market will dominate this market; The region has been at the forefront of adopting new technology, contributing significantly to the region's progress.

Further, the major countries studied in the market report are The US, Canada, the UK, Italy, Spain, China, Japan, India, German, France, Australia, South Korea, and Brazil.



Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe has the second-largest market share for Data Centre Virtualization. Cloud adoption is also significant in this region, with cloud service providers improving and growing their infrastructure by integrating virtualization applications and services. Furthermore, the German Data Centre Virtualization market dominated, while the UK Data Centre Virtualization market grew fastest in Europe.

From 2023 to 2032, the Asia-Pacific Data Centre Virtualization Market is predicted to develop at the quickest CAGR. The region's expansion may be ascribed to causes such as increased data centers, improved digital infrastructure, corporate digitalization, increased acceptance of cloud services, and the cost-effective elements of data center virtualization. Furthermore, China's Data Centre Virtualization market had the highest market share, while India's Data Centre Virtualization market was the fastest expanding in the Asia-Pacific region.

Data Center Virtualization Key Market Players & Competitive Insights

Leading market companies are extensively spending R&D on increasing their product lines, which will help the Data Center Virtualization market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Data Center Virtualization industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Data Center Virtualization industry to serve clients and expand the market sector. The Data Center Virtualization industry has provided some of the most important benefits recently. Major players in the Data Center Virtualization market, including CloudFabrix, and others, are attempting to increase market demand by investing in research and development operations.

CloudFabrix is an AIOps and Observability platform supplier that expands and accelerates digital IT lifecycle planning and autonomous IT operations. CloudFabrix provides AI-powered actionable intelligence to IT executives and operational professionals, allowing them to make quicker and better choices. In August 2021, CloudFabrix, a pioneer in AIOps solutions, is excited to announce a new strategic alliance with, a pioneer in Software Defined Datacenter solutions. CloudFabrix AI-based Asset Intelligence & Operations will be combined with the virtualization operating system to deliver a comprehensive transformation for corporate and channel service provider (CSP) organizations.

Citrix creates secure, unified digital workplace technology that enables organizations to unleash human potential and provide a uniform workspace experience wherever work is required. Citrix provides customers a consistent platform for securing, managing, and monitoring heterogeneous technologies in complicated cloud settings. In September 2021, Citrix Systems, Inc., a cloud computing and virtualization technology corporation located in the United States, and Nutanix, Inc., a cloud computing firm based in the United States, have collaborated to provide safe access to apps and desktops from any device.

Key Companies in the Data Center Virtualization market include

  • ATTO Technology, Inc.

  • Dell Inc.

  • AT&T

  • Fujitsu

  • Cisco Systems, Inc.

  • HCL Technologies Limited

  • Hewlett Packard Enterprise Development LP

  • Huawei Technologies Co., Ltd.

  • IBM

  • Konverge

  • Microsoft

  • Oracle

  • Rahi

  • Veritis Group Inc

  • VMware, Inc.

Data Center Virtualization Industry Developments

January 2023: Zetaris (an analytical data virtualization platform founded in Australia) has announced a technical agreement with Dataiku (a French AI platform) in Australia and New Zealand. Businesses in Australia and New Zealand can use Dataiku and Zetaris to greatly increase the speed and convenience with which insights may be obtained from various data sources due to the collaboration.

August 2022: Microsoft has opened its first data center area in Qatar, opening up new prospects for cloud-first economies. With the introduction of Microsoft Azure and Microsoft 365, the new cloud data center region provides organizations access to hundreds of scalable, highly available, and robust cloud services.

April 2022: Oracle has added Oracle Linux 8 support to its Oracle Linux KVM server virtualization solution, which provides better VM auto-start configurations, complete customization when cloning VMs, and sealed template indication, among other things.

Data Center Virtualization Market Segmentation

Data Center Virtualization Type Outlook

  • Server

  • Storage

  • Network

  • Desktop

Data Center Virtualization Organization Size Outlook

  • Small and Medium-Sized Enterprises (SMEs)

  • Large Enterprises

Data Center Virtualization Vertical Outlook

  • BFSI

  • IT & Telecommunication

  • Manufacturing & Automotive

  • Government

  • Healthcare

  • Others

Data Center Virtualization Regional Outlook

  • North America

  • US

  • Canada

  • Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 4.8 Billion
Market Size 2023 USD 5.64 Billion
Market Size 2032 USD 20.49 Billion
Compound Annual Growth Rate (CAGR) 17.50% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Organization Size Vertical, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled  ATTO Technology, Inc. AT&T, Cisco Systems, Inc., Dell Inc., Fujitsu, HCL Technologies Limited, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Konverge, Microsoft, Oracle, Rahi, Veritis Group Inc, VMware, Inc.
Key Market Opportunities Advancement in technology
Key Market Dynamics Increase in use in SMEs

Frequently Asked Questions (FAQ) :

The Data Center Virtualization market size was valued at USD 4.8 Billion in 2022.

The market is projected to grow at a CAGR of 17.50% during the forecast period, 2023-2032.

The key players in the market are ATTO Technology, Inc. AT&T, Cisco Systems, Inc., Dell Inc., Fujitsu, HCL Technologies Limited, Hewlett Packard Enterprise Development LP,.

The Large Enterprises category dominated the market in 2022.

The IT & Telecommunication had the largest share in the market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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