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Data Center Virtualization Market Size - By Type (Server Virtualization, Network Virtualization, Storage Virtualization, Application Virtualization), By Service (Optimization, Consulting, Managed Services, Technical Support), Application & Forecast, 2022 - 2030

  • Report ID: GMI5350
  • Published Date: Sep 2022
  • Report Format: PDF

Data Center Virtualization Market Size

Data Center Virtualization Market size surpassed USD 5 billion in 2021 and is projected to grow at over 15.5% CAGR between 2022 and 2030. The increasing awareness pertaining to the benefits of cloud-based data storage and consumer inclination toward digital transformation will bolster the industry growth.

An upsurge in energy consumption from data centers, especially in Europe, is likely to boost the market demand. Data center virtualization utilizes virtualization software with cloud computing technology to replace the traditional physical servers and other related equipment.

Data Center Virtualization Market

The growing emphasis of enterprises functioning in the BFSI sector on transferring data to cloud platforms to improve the business agility is foreseen to impel the data center virtualization market growth. Companies are majorly engaging in strategic growth partnerships with public and private organizations in varied sectors that require digitalization of their data. They are also focusing on enhancing their flexibility and reliability by incorporating data center infrastructure.

Limited knowledge regarding data centers may restrain industry progression

Lack of awareness among companies regarding virtualization technology is a major factor restraining the industry statistics. Many companies possess limited knowledge and information about the transition from physical hardware infrastructure to virtual set-up covering different aspects of the data centers, such as servers, storage, networking, and application. Nonetheless, the increasing establishment of data centers in various regions is set to foster product outlook.

Data Center Virtualization Market Analysis

The data center network virtualization market is poised to reach a valuation of USD 10 billion by 2030. The segmental growth is attributed to rising efforts to reduce the operational cost of data centers, which can be achieved using network virtualization that groups physical networks to operate as a single or multiple independent networks called virtual networks, thus, aiding in cost-efficient data storage.

Data Center Virtualization Market By Service

The managed services segment is slated to garner nearly USD 2 billion by 2030. Growing need for running specialized and dedicated day-to-day operations at an optimum level is expected to energize managed service growth, propelling the overall data center virtualization market expansion.

The IT & telecom industry is predicted to reach USD 5 billion in revenue by 2030. The IT and telecom sector is experiencing a revolutionary change with the advent of modern technologies, such as 5G, NFC, and more. As real-time data transfer is crucial for these technologies, IT & telecom operators adopt high-performance data centers to ensure efficient data management, thus spurring data center virtualization market demand.

Asia Pacific Data Center Virtualization Market

The Asia Pacific data center virtualization market size is projected to witness around 20% gains through 2030. The soaring preference for digitalization across the regional healthcare sector has resulted in a surge in the demand for high-performance data center virtualization. Moreover, companies in the healthcare space are also integrating advanced technologies to enhance the customer experience, thereby fostering the regional progression.

Data Center Virtualization Market Share

  • Microsoft Corporation
  • Amazon Web Services
  • Cisco Systems Inc.
  • IBM Corporation
  • Dell Inc.
  • Huawei Technology
  • AT&T
  • Citrix Systems Inc.
  • Nutanix
  • SAP SE

are some of the key data center virtualization market players. These companies are opting for diverse business & marketing strategies to attract clients and achieve higher profitability. In addition, to improve the flexibility, scalability, and agility of their own data centers, companies are choosing data center virtualization, pushing product penetration further.

For instance, in January 2022, SAP SE, a German software company, launched its new cloud-based solution offering various benefits for SAP customers. In addition, SAP SE and Lenovo entered into a joint venture for RISE with SAP S/4HANA Cloud to bring the cloud to the data center. Furthermore, it causes less disruption in operations with computing & managed services and frees up IT resources to focus on strategic projects.

COVID-19 Impact

The COVID-19 pandemic presented a series of opportunities for the data center virtualization market. As a result of difficulties in mobilizing physical servers, the closing of buildings, and the opening of new spaces amid lockdowns, many industries shifted their operations to a virtual form of data management, proliferating the revenue share of the participants. Companies increasingly opted for data center virtualization for seamless business operations in light of the remote working trend, which also boosted industry penetration in both developed and developing economies globally.

This data center virtualization market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2030, for the following segments:

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Market, By type

  • Server virtualization
  • Network virtualization
  • Storage virtualization
  • Application virtualization

Market, By service

  • Optimization services
  • Consulting services
  • Managed services
  • Technical support services

Market, By Application

  • BFSI
  • Colocation
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & telecom
  • Others

The above information is provided on a regional and country basis for the following:

North America

  • U.S.
  • Canada
  • Mexico


  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux

Asia Pacific

  • China
  • India
  • Japan
  • Singapore
  • Australia
  • Indonesia

South America

  • Brazil
  • Colombia
  • Chile
  • Argentina


  • GCC
  • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size for data center virtualization valued at USD 5 billion in 2021 and is set to progress at a CAGR of over 15.5% through 2030, says this GMI analysis report.

The IT & telecom application segment is expected to garner over USD 5 billion in revenue by 2030 owing to a revolutionary change in the industry with the inclusion of modern technologies, such as 5G, NFC, and more.

The network virtualization industry is foreseen to reach a valuation of more than USD 10 billion by 2030 due to the rising efforts to reduce the operational cost of data centers, which can be achieved using network virtualization.

The Asia Pacific region is projected to attain over 20% gains through 2030 on account of soaring digitalization across the regional healthcare and telecom sectors.

Data Center Virtualization Market Scope

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 20
  • Tables & Figures: 289
  • Countries covered: 24
  • Pages: 300
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