Data Center Virtualization Market Size & Share 2022 to 2030
Market Size by Type (Server Virtualization, Network Virtualization, Storage Virtualization, Application Virtualization), by Service (Optimization, Consulting, Managed Services, Technical Support), Application & Forecast.
Report ID: GMI5350
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Published Date: September 2022
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
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.
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.
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.
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
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
Market, By service
Market, By Application
The above information is provided on a regional and country basis for the following:
North America
Europe
Asia Pacific
South America
MEA
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →