Industry Insights

The global virtualization software market size will grow by USD 62.91 billion during 2019-2023 at a CAGR of almost 30%. The multiple benefits of SDS and the increasing focus on vCPE solutions by service providers are some of the factors expected to drive market growth. The report provides a detailed analysis of the market by technology (network function virtualization, desktop virtualization, software-defined storage, and server virtualization) and geography (APAC, Europe, MEA, North America, and South America). Also, the report analyzes the competitive landscape and offers information on several companies, including Cisco Systems Inc., Citrix Systems Inc., Microsoft Corp., Red Hat Inc., and VMware Inc.

Virtualization is the process of creating a software-based or virtual representation of IT resources such as desktops, servers, operating systems (OS), storage, or networks, which are traditionally hardware. The adoption of virtualization technology will help end-users in minimizing IT expenses and enhance the efficiency of the equipment.

The global virtualization software market is expected to witness a CAGR of 29.88% during the forecast period. Certain factors that are driving the market include increase in HCI sales driving demand for server virtualization, benefits of desktop virtualization, and multiple benefits of SDS.

Key Insights from Virtualization Software Market - Global Forecast 2019-2023

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Desktop virtualization is designed to enable remote access to a desktop and its applications for the employees of an organization. Virtual desktop infrastructure (VDI), desktop as a service (DaaS), and OS streaming are the different techniques in desktop virtualization. It reduces the need to maintain, upgrade and manage multiple physical desktop systems for organizations. The overall security of the organization is improved with the help of desktop virtualization. Virtual desktops can be accessed from multiple devices and from any location. Hence, these benefits of desktop virtualization are expected to drive the growth of the global virtualization software market.

The multiple benefits of virtual customer premises equipment (vCPE) solutions has boosted the popularity of network function virtualization (NFV) among network service providers. vCPE solutions delivered through NFV helps end-users in minimizing overall equipment and maintenance costs by reducing the total number of appliances at the customer’s end and eliminating the need to deal with complex proprietary solutions. vCPE solutions also offer greater flexibility in terms of the deployment of virtualized network services at the customer’s premises. The upcoming launch of 5G network services will further boost the demand for vCPE solutions from telecom service providers. The increasing adoption of vCPE solutions by service providers will be one of the trends which will positively impact the growth of the virtualization software market size.

The high cost involved with the management and maintenance of storage has driven organizations to adopt SDS solutions which use low-cost commodity hardware. SDS also eliminates the need for expensive fiber channel (FC) switches, thereby helping in significant cost savings. Moreover, SDS solutions offer a high level of flexibility to organizations by supporting multiple storage protocols and handling a variety of workloads. Furthermore, SDS solutions provide greater scalability without affecting the overall performance of the system. These benefits of SDS solutions in terms of cost savings, flexibility, and scalability are expected to fuel the growth of virtualization software market size at a CAGR of almost 30% during the forecast period.

Industry Analysis

Technology Insights

The technology segment has been segregated into network function virtualization, desktop virtualization, software-defined storage, and server virtualization. The network function virtualization segment accounted for the highest virtualization software market share in 2018. During the forecast period, the network function virtualization and software-defined storage segments will grow at a faster pace than the overall market. The desktop virtualization and server virtualization segments will grow at a slower pace than the overall virtualization software market size.

Network function virtualization (NFV) offers several advantages, including reduced operational costs, easy scalability, and simplified management. These advantages are expected to boost the demand for network function virtualization technology from organizations in the forthcoming years.

Regional Insights

North America accounted for the highest market share in 2018. The market’s growth in the region will be faster than the growth of the market in other regions, and it will account for the largest virtualization software market share throughout the forecast period. The US is a key market for virtualization software in the region.

The availability of a strong infrastructure and the presence of data canter technology vendors in North America will aid virtualization software market growth in North America. Increasing investments by telecom service providers and various efforts undertaken by organizations to efficiently use their existing resources are some of the other factors which will positively influence the growth of the virtualization software market size in the region.

Top Virtualization Software Companies

The market is concentrated. To aid clients in improving their market position, the virtualization software market analysis report offer information on the competitive landscape and the products offered by various companies. Moreover, the report also includes information on the upcoming virtualization software market trends and challenges that will influence market growth. This will enable companies to create strategies to make the most of the increasing virtualization software market size.

The report offers a detailed analysis of several leading virtualization software companies, including:

• Cisco Systems, Inc.
• Citrix Systems Inc.
• Microsoft Corp.
• Red Hat Inc.
• VMware Inc.

Segments Covered in the Report

Virtualization software market by technology

• Network function virtualization
• Desktop virtualization
• Software-defined storage
• Server virtualization

Virtualization software market by region

• APAC
• Europe
• MEA
• North America
• South America

Key Highlights of the Virtualization Software Market Forecast Report for the Period 2019-2023 

• CAGR of the market during the forecast period 2019-2023 
• Detailed information on factors that will accelerate the growth of the virtualization software size during the next five years 
• Precise estimation of the global virtualization software market size and its contribution to the parent market 
• Accurate predictions on upcoming trends and changes in consumer behavior 
• The growth of the virtualization software industry across APAC, Europe, MEA, North America, and South America 
• A thorough analysis of the market’s competitive landscape and detailed information on several vendors 
• Comprehensive details of factors that will challenge the growth of virtualization software companies 

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