The global data centre virtualisation market size is anticipated to reach $23,14-billion by 2030, growing at a CAGR of 16,5% from 2023 to 2030, according to a new report by Grand View Research.
The requirement for unified and centralised management of data centres and the mounting need to reduce operating costs for organisations and enhance business agility are key factors driving the market.
Factors such as the rising demand to decrease data centre complexity, increasing spending on data centre technology, rising demand for enhanced network security, and adoption of optimisation services will also contribute to the growth of the market.
Additionally, the Covid-19 pandemic has expanded the penetration of digital transformation. Growing adoption of smart devices, IoT, digital transactions, rising automation scope in manufacturing industries via industry 4.0 technologies, and potential for huge data generation in sectors including education, healthcare, BFSI, IT & telecom, and media & entertainment will accelerate the development of data centres, thereby fueling the market for data centre virtualisation.
More businesses are incorporating DevOps and cloud-native technologies onto the businesses development process, which has resulted in the lines between the modern container-based platforms and traditional virtualisation platforms to blur; of which a major part can be attributed to organisations opting for cloud-native technologies in support of legacy applications or those not suited for containerisation.
Organisations operate on a tightrope because they need to negotiate both worlds without burdening IT operations. This has resulted in more IT teams turning to composable disaggregated infrastructure (CDI). CDI can also provide resources on demand to accommodate different workloads, including applications running in VMs, bare metal, and containers in VMs.
The market players have been involved in various strategic initiatives, including partnerships, acquisitions, and mergers. Such initiatives have helped enhance product capability and have a wider sales channel, among others, which has accelerated the growth of the data center virtualisation industry over the forecast period.
Highlights from the Data Centre Virtualisation Market Report include:
* The server type segment is estimated to occupy the largest share of the market in 2022. It is projected to continue its dominance over the forecast period. The growth of server virtualisation can be attributed to major companies coming up with a server virtualisation solution, enabling capabilities, thereby attracting more businesses.
* By component, the software segment occupied the largest revenue share of around 79% in 2022. Rising adoption of virtualisation software such as network virtualisation, storage virtualisation, and server virtualisation in data centres is contributing to the market’s growth.
* By service, the optimisation services segment is projected to witness the highest CAGR of more than 18% from 2023 to 2030. The growth of the optimisation services segment can be attributed to its benefits, which include better data mobility, increased profitability, and enhanced security and compliance.
* By organisation size, the small and medium-sized enterprises (SMEs) segment is projected to witness the highest CAGR of approximately 17% from 2023 to 2030. Effective campaigns in the data center virtualisation industry offering solutions specific to SMEs have also been boosting SMEs’ adoption of data centre virtualisation.
* By end-use, the healthcare segment is projected to witness the highest CAGR of around 18% from 2023 to 2030. The growth of the healthcare segment can be attributed to the increasing demand for easy and secure data sharing, and access to high-quality health records, among others.
* The key players have a wider sales channel, thereby driving the market’s growth. Some major companies operating in the data centre virtualisation industry include VMware; IBM; Fujitsu; Dell; AT&T; Microsoft; Oracle; and HCL Technologies.