By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. North America has been segmented into the US, Canada, and Mexico. According to the MRFR analysis, the US is expected to gain the highest market share, followed by Canada and Mexico. The demand for server virtualization is increasing due to the growing adoption of cloud computing in North America.
The presence of major companies such as Microsoft Corporation, Google, Oracle Corporation, Red Hat Inc., Google, Amazon Web Services Inc., and others is one of the driving factors for the growth of the market in this region. Apart from these factors technological factors like a well-established IT infrastructure, Internet connectivity, advanced industrial automation are some drivers for the region’s growth. Heavy spending on Research and developments and government fundings contribute to the growth of server virtualization market in the U.S.For instance, the Biden Administration's proposed $65 billion investment in IT at civilian agencies in the year 2023.
By prioritizing IT upgrades, the government seeks to create a more efficient and responsive system that meets the evolving needs of Americans in the digital age. The U.S. government spent over $100 billion in fiscal year 2022 on information technology (IT), and $12 billion went to cloud services. The projection of approximately 5,000 data centers in the U.S. (National Telecommunications and Information Administration), with a demand growth of 9% per year through 2030, highlights the increasing need for efficient computing solutions.
This surge in demand is closely linked to the growth of the server virtualization market, which allows organizations to maximize hardware utilization and reduce costs
Europe has been segmented into the UK, Germany, France, Spain, and the rest of Europe. According to the MRFR analysis, Germany is expected to gain the highest market share, followed by UK and France. Some of the factors responsible for market growth include the increasing use of cloud-based solutions and the advanced level of industrial automation in the country.
Stringent regulations and initiatives like the EU Cloud Strategy, Digital Services Act (DSA), Digital Markets Act (DMA) create a favorable environment for the growth of server virtualization market in this region.Many high tech companies are investing in this region .For example, Google is investing $1 billion in a new data center in Waltham Cross, Hertfordshire, to support the UK's digital economy.
In September 2024 Amazon announced that it is set to invest £8 billion ($10.5 billion) in the UK over the next five years to expand its Amazon Web Services (AWS) data centers. This investment aims to create over 14,000 jobs annually and contribute an estimated £14 billion to the UK’s GDP. The UK Government's commitment of £1.5 billion for research compute infrastructure and £7.5 billion for cloud computing in public services signals substantial growth potential in the server virtualization market. This investment reflects an increasing need for scalable and flexible resources, as organizations pursue digital transformation and modernization.
Asia-Pacific has been categorized into 7 segments, namely China, Japan, India, South Korea, Australia and New Zealand (AnZ), Southeast Asia and the rest of Asia-Pacific. The Asia-Pacific server virtualization market is expected to register the highest CAGR of 6.7% during the forecast period 2024 to 2032. According to the MRFR analysis, China is expected to account for the highest market share, followed by India and Japan. Asia-Pacific is one of the biggest markets for the IT & telecom industry, followed by BFSI and Healthcare for server virtualization.
The digital transformation initiatives in this region, government fundings , increased data generation, improvements in internet infrastructure, including fiber optics and 5G networks ,smart city initiatives growth and increased demand for data centers all directly and indirectly contribute to the growth of this market in Asia Pacific region.
The Middle East & Africa’s virtualization market is expected to strongly expand in the years to come. Several local service providers are delivering consulting, integration, and support services for virtualization in the region. The GCC countries, as well as South Africa, are emerging markets and they are adopting the digital transformation at a fast rate. Enterprises across verticals are adopting virtualization technology due to its advantages, such as increased storage space & availability, optimal resource utilization, server consolidation ,cost reduction, and data protection. East African countries such as Kenya are advancing in technology.
Microsoft and G42 have announced a $1 billion digital investment initiative in Kenya, marking the largest private-sector digital investment in the country’s history. This initiative, in collaboration with Kenya’s Ministry of Information, includes building a green data center . Several initiatives are promoting growth for server virtualization in the Middle East, including the National Digital Economy Strategy in the UAE, Saudi Vision 2030, and Qatar's Digital Government Strategy. Other significant projects include the Smart Dubai Initiative, Oman Vision 2040, and Bahrain's Cloud First Policy.
Brazil, Peru, Chile, and Argentina are exhibiting a rise in the adoption of virtualization technology. Many businesses are adopting the technology as it leads to increased cost-savings and higher returns on investments, which is expected to propel the growth of the South American market. Brazil is one of the countries that are likely to lead the market in South American. The market growth can be attributed to investments in technological advancements .Also government initiatives like NIB Mission 4 to facilitate the digital transformation of 50% of Brazilian industrial companies by 2033, with an intermediate target of 25% by 2026.
Recently Microsoft announced its largest single investment in Brazil, with plans to spend 14.7 billion Reais in cloud and artificial intelligence (AI) infrastructure over three years. The government initiatives in Brazil such as Digital Brazil Strategy help advance the virtualization market by focusing on better digital infrastructure and promoting technological progress in the country. There is also seen increase in the number of cloud service providers and data centers in key cities like São Paulo and Rio de Janeiro . Government initiatives also enhance digital infrastructure and technology innovation, which supports the growth.
An increase in cloud computing services and local data centers promote virtualization technologies in other regions of South America.
FIGURE 3: SERVER VIRTUALIZATION MARKET VALUE BY REGION 2024 and 2035 (USD Million)
Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review
Further, the countries considered in the scope of the Server Virtualization Market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.
