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The hypervisor market size is projected to increase by USD 2.24 billion at a CAGR of 6.32% between 2023 and 2028. The growth rate of the market depends on several factors, including the cost savings and efficiency features in hypervisors, the growing mergers and acquisitions among companies of hypervisors, an the digital transformation of businesses boosting hypervisor demand. A hypervisor is a software that creates and manages virtual machines on a physical computer or server. It acts as a platform that allows multiple operating systems to run concurrently on a single physical machine, effectively dividing the resources of the host system among the guest virtual machines.
The report includes a comprehensive outlook on the Hypervisor Market, offering forecasts for the industry segmented by Deployment, which comprises on-premises and cloud. Additionally, it categorizes Product into large enterprises and SMEs, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Cost savings and efficiency features in hypervisors is the key factor driving market growth. Hypervisors allow multiple virtual machines to run on a single physical server, enabling server consolidation. This consolidation reduces the number of physical servers required, leading to lower hardware costs, reduced space requirements, and decreased power consumption. By dynamically allocating resources such as CPU, memory, and storage among multiple virtual machines based on demand, hypervisors maximize resource utilization.
Moreover, hypervisors offer scalability without necessarily scaling hardware. With the ability to provision and adjust VM resources dynamically, organizations can scale their infrastructure based on changing workloads without significant hardware investments. Hypervisor-based virtualization contributes to improved operational efficiency and cost savings, which is expected to boost the growth of the global hypervisor market during the forecast period.
The growing adoption of cloud solutions in manufacturing operations is the primary trend shaping market growth. Hypervisors serve as the foundational technology for cloud computing. These allow the creation, management, and operation of virtual machines and virtualized resources within cloud environments, supporting the infrastructure-as-a-service (IaaS) model. Hypervisors facilitate multi-tenancy in cloud environments, enabling multiple users to share the same physical infrastructure. Cloud services typically offer self-service provisioning, allowing users to create and manage their virtual resources.
Furthermore, the high demands of cloud computing drive innovation in hypervisor technology. As cloud providers strive for better performance, security, and management capabilities, hypervisor solutions evolve to meet these demands, leading to continuous advancements. With hypervisors serving as the backbone of cloud infrastructure, the adoption of cloud computing will accelerate the growth of the global hypervisor market during the forecast period.
Security concerns and vulnerabilities associated with hypervisors is a challenge that affects market growth. While hypervisors provide isolation between virtual machines, security vulnerabilities in hypervisor software pose significant risks, such as data loss. Constant vigilance, updates, and patches are necessary to mitigate potential security threats and maintain the integrity of virtualized environments. Vulnerabilities in hypervisors lead to scenarios where an attacker gains unauthorized access to the hypervisor layer from a guest virtual machine.
Moreover, the above-mentioned escape could potentially compromise the entire virtualization infrastructure, posing significant security risks. Security vulnerabilities in hypervisors could be exploited to launch denial-of-service attacks, disrupting services or causing downtime across multiple virtual machines or the entire virtualization infrastructure, which may impede the growth of the market during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. On-premises hypervisors allow enterprises to maintain direct control over their data, ensuring compliance with manufacturing regulations and internal policies. Certain applications require low latency and high performance, which can be better achieved through on-premises infrastructure. On-premises hypervisors allow these systems to continue running efficiently within the organization's infrastructure.
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The on-premises segment showed a gradual increase in the market share of USD 3.30 billion in 2018. On-premises hypervisors can be seen as a one-time investment, potentially offering cost savings over the long term, especially for organizations with predictable workloads. Despite the increasing popularity of cloud solutions, the demand for on-premises hypervisors persists due to the unique requirements, control, performance, and security considerations of certain enterprises. Thus, the on-premises segment and the global hypervisor market are expected to witness growth during the forecast period.
Large enterprises often have complex IT infrastructures that demand efficient resource utilization, scalability, flexibility, and cost-effectiveness. Hypervisors facilitate features such as live migration, snapshots, and replication, enabling seamless disaster recovery, load balancing, and high availability of services. Hypervisors enable better utilization of hardware resources by dynamically allocating CPU, memory, storage, and network bandwidth among virtual machines based on demand. In addition, enterprises can separate sensitive data and applications into isolated virtual machines for added protection. Thus, such factors will positively impact the growth of the segment and the global market in focus during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America, particularly the US, is a hub for technological innovation. Enterprises in this region often adopt cutting-edge technologies to improve efficiency, scalability, and cost-effectiveness. Hypervisors enable these companies to optimize their IT infrastructure, supporting their innovation initiatives.
Furthermore, with the increasing frequency of cyber threats, North American enterprises prioritize security. Hypervisors offer better isolation between virtual machines, enhancing security measures and reducing the risk of breaches. The combination of technological advancements, stringent compliance needs, a focus on security, and the push for digital transformation contributes to the sustained high demand for hypervisors in North America and will boost the growth of the regional hypervisor market during the forecast period.
Hypervisor Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their hypervisor market growth and trends strategies.
Global Hypervisor Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The Hypervisor Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Hypervisor Market market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The hypervisor market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Hypervisor Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.32% |
Market Growth 2024-2028 |
USD 2.24 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.74 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
acontis technologies GmbH, BlackBerry Ltd., Cisco Systems Inc., Citrix Systems Inc., General Dynamics Corp., Green Hills Software LLC, International Business Machines Corp., KRONO SAFE, Lynx Software Technologies, Microsoft Corp., NXP Semiconductors NV, Panasonic Holdings Corp., Sciopta Systems GmbH, Siemens AG, Silicon Laboratories Inc., SYSGO GmbH, TenAsys Corp., Thales Group, VMware Inc., and Wind River Systems Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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