Global Data Center Virtualization Market Is Anticipated to Surge Approximately $29.7 Billion By 2030

05-May-2023 | Zion Market Research

The global data center virtualization industry size was nearly $18.1 Billion in 2022 and is anticipated to surge to approximately $29.7 Billion by 2030 along with recording the highest growth rate of nearly 10.1% from 2023 to 2030.

Global Data Center Virtualization Market Size

Data center virtualization makes use of virtualization software as well as cloud computing tools, thereby replacing conventional physical servers and various other devices that are housed in the physical data center. In addition to this, data center makes use of virtualization in data centers and is referred to as software-defined data center, thereby allowing the firms in regulating their entire IT framework as a sole unit.  Data center virtualization provides a slew of benefits such as low operating costs, improved speed & flexibility, fewer capital costs, and lesser real estate needs & infrastructure facilities.

Furthermore, escalating demand for minimizing operational costs of organizations and increasing the performance of the business will drive the global data center virtualization market trends. The growing trend of centralized & unified management of data centers will expand the scope of the growth of the market globally. In addition to this, escalating demand for reducing data center complexities along with the rise in data center traffic will embellish the global market expansion. An increase in digitization along with a rise in the number of data centers is likely to benefit the expansion of the global market. Moreover, growing consciousness about benefits derived as a result of a preference for cloud-based data storage will bolster the global market expansion.

However, data center localization has negatively affected the growth of the global data center virtualization industry in the years ahead. Strict laws pertaining to data center localization can create hurdles in the industry surge in the coming years. Growing security concerns can further hinder global industry expansion.  

Global Data Center Virtualization Market

The global data center virtualization market is sectored into components, organization size, end-use, and region.   

The component segment of the data center virtualization market is sub-segmented into service and software segments. Furthermore, the service segment, which contributed lucratively towards the global market revenue share in 2022, is projected to register the highest CAGR of 16.7% over the forecast timeline. The segmental surge in the coming eight years can be credited to the ability of services in providing an in-depth understanding of the business transformation map. Apart from this, the services offer rounding-off abilities enabling businesses in operating a whole data center as well as related cloud services as a blended entity.

On the basis of organization size, the data center virtualization industry across the globe is sectored into small & medium enterprises and large enterprise segments. The small & medium enterprises segment, which contributed notably towards the global market share in 2022, is predicted to record the fastest CAGR of 17% over the assessment period. The segmental expansion in the ensuing years is due to the large-scale acceptance of data center virtualization among the SMEs as a result of benefits including flexible and constant access to desktops, enhanced security & compliance, and less IT management costs provided by data center virtualization to the small & medium enterprises.

On the basis of end-use, the data center virtualization market across the globe is divided into education, BFSI, media & entertainment, IT & telecommunication, retail & SCM, manufacturing & automotive, government, healthcare, and others segments. Moreover, the healthcare segment, which accounted lucratively towards the global market share in 2022, is projected to record the highest gains in the ensuing years.

The growth of the segment in the next couple of years can be credited to the humungous demand for data center virtualization across the healthcare segment owing to the former’s ability in enhancing quality, reducing operating costs, and delivering effective patient care through the upgradation of healthcare data centers. Furthermore, a virtual healthcare data center has the ability in addressing growing business demands with the help of a service-oriented strong IT healthcare model.

Furthermore, North America, which contributed to more than 40% of the global data center virtualization industry share in 2022, is anticipated to lead the regional industry expansion over the analysis period. The regional market surge over the forecast timeline can be a result of large-scale adoption of data center virtualization software by various organizations across the countries such as Canada and the U.S. Apart from this, the presence of key players including Cisco Systems, Inc., VMware, Inc., Microsoft Corporation, and Citrix Systems.   

Browse the full “Data Center Virtualization Market By Component (Service and Software), By Organization Size (Small & Medium Enterprises and Large Enterprises), By End-Use (Education, BFSI, Media & Entertainment, IT & Telecommunication, Retail & SCM, Manufacturing & Automotive, Government, Healthcare, and Others), and By Region - Global And Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, And Forecasts 2023 – 2030. Report at

Recent Developments:

  • In the first quarter of 2019, VMware, Inc., a U.S.-based cloud computing & virtual technology firm, introduced VMware cloud on Dell EMC which will assist VMware provide secure, scalable, and strong infrastructure data center solutions to its customers. The strategic initiative is anticipated to accelerate the growth of the industry across the globe.
  • In the second half of 2021, Citrix Systems, Inc., a U.S.-based cloud computing & virtualization tech company, and Nutanix, Inc., a U.S.-based cloud computing firm, signed a partnership deal for providing secured access to apps and desktops from any instrument.
  • In the third quarter of 2022, Microsoft Corporation established its first data center in Qatar, thereby creating new growth opportunities for the cloud-based economy in the country in the upcoming years. The initiative will embellish the expansion of the data center virtualization business in the Middle East region.

Key players in the global data center virtualization market include:

  • Hewlett Packard Enterprise Development LP
  • VMware Inc.
  • HCL Technologies Limited
  • Microsoft Corporation
  • AT&T Corporation
  • Cisco Systems Inc.
  • Citrix Systems Inc.
  • Huawei Technologies Co. Ltd.
  • Fujitsu Limited
  • Radiant Communications Corp.
  • IBM Corporation.

The global data center virtualization market is segmented as follows:

By Component

  • Service
  • Software

By Organization Size

  • Small & Medium Enterprises
  • Large Enterprises

 By End-Use

  • Education
  • BFSI
  • Media & Entertainment
  • IT & Telecommunication
  • Retail & SCM
  • Manufacturing & Automotive
  • Government
  • Healthcare
  • Others

 By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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