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The Virtualization Software Market size is forecast to increase by USD 48.45 billion, at a CAGR of 9.56% between 2023 and 2028. The growth rate of the market depends on several factors, including the infrastructure cost reduction and improved operational efficiency, the increasing demand due to data security and compliance concerns, and the rising adoption of digital transformation initiatives. Virtualization software allows the development of virtual instances of operating systems, servers, storage, and networks on a single physical hardware platform. It improves resource utilization, scalability, and IT infrastructure management. This technology underpins cloud computing by allowing the consolidation of numerous environments on a single server. Overall, virtualization software transforms IT by abstracting physical resources, increasing flexibility, and lowering costs through efficient resource allocation and administration.
The report offers extensive research analysis on the Virtualization Software Market, with a categorization based on Platform, including PC virtualization and mobile virtualization. It further segments the market by Technology, encompassing network virtualization, desktop virtualization, software-defined storage, and server virtualization. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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One of the key factors driving the virtualization software market growth is the infrastructure cost reduction and improved operational efficiency. The virtualization of hardware resources is a crucial driver in the global virtualization software market, as companies attempt to enhance operational efficiency while minimizing infrastructure costs. In addition, virtualization allows different operating systems to run on a single physical server by permitting the development of virtual computers.
Moreover, this consolidation improves hardware utilization, reducing the requirement for significant physical infrastructure. In addition, VMware vSphere and Microsoft Hyper-V are widely used virtualization solutions that enable enterprises to efficiently distribute computing resources, reduce server sprawl, and save money. Therefore its ability to maximize the potential of existing hardware while preserving or enhancing performance, virtualization has emerged as a critical solution for enterprises seeking resource economy and long-term operational strategies. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the virtualization software market growth is the increasing trend toward edge computing. The transition towards edge computing is having a significant impact on the global virtualization software market by increasing virtualization at the edge adoption. In addition, edge computing entails processing data closer to its source, lowering latency, and improving real-time application support. Furthermore, edge virtualization enables the construction of virtualized environments at decentralized locations, hence optimizing processing capabilities for edge devices.
For example, in a smart factory, virtualized edge servers can efficiently manage data processing for IoT devices or offer real-time analytics at the edge in a smart city. In addition, this trend underscores the requirement for agile, responsive computing solutions, emphasizing the significance of virtualization software in providing efficient, distributed, and low-latency processing for a variety of edge computing applications. Hence, such factors are driving the market growth during the forecast period.
The complexity of implementing virtualization solutions is one of the key challenges hindering the virtualization software market growth. Due to its inherent complexity, the installation of virtualization solutions, especially in large businesses, poses a considerable challenge, needing qualified personnel for seamless integration. In addition, large-scale organizations frequently have complex IT infrastructures with various applications, databases, and systems.
Moreover, integrating virtualization technologies, such as server or desktop virtualization, necessitates knowledge of the existing architecture, compatibility, and data migration complexities. For instance, transitioning traditional systems to virtualized environments might be complicated due to differences in operating systems or application requirements. In addition, the requirement for highly specialized expertise in virtualization platforms such as VMware or Hyper-V highlights the challenge, necessitating organizations to invest in professional IT workers or partner with experienced service providers to negotiate the complexity and maximize the benefits of virtualization. Hence, suhc factors are hindering the market growth during the forecast period.
The PC virtualization segment is estimated to witness significant growth during the forecast period. In the global virtualization software market, PC virtualization is a crucial platform that offers increased flexibility and resource utilization. In addition, this area is dominated by industry leaders such as VMware, Microsoft, and Oracle. Furthermore, the market is constantly evolving, with developments such as hardware-assisted virtualization and desktop virtualization solutions.
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The PC virtualization segment was the largest segment and was valued at USD 49.54 billion in 2018. Moreover, businesses use PC virtualization to improve security, optimize operations, and cut hardware expenses. In addition, the expansion of remote work increases demand for virtualized desktop environments. Furthermore, the competitive landscape is exemplified by VMware vSphere, Microsoft Hyper-V, and Oracle VM VirtualBox, which showcase varied solutions for organizations seeking efficient virtualization methods. In addition, the growing demand for scalable, cost-effective IT infrastructures across numerous industries is fuelling the expansion of the PC virtualization segment as a platform, which, in turn, will drive the growth of the global virtualization software market during the forecast period.
The advancements in technology will fuel the network virtualization segment which in turn will increase the market growth. Network virtualization is the main technology in the global virtualization software market, encouraging resource utilization and scalability. In addition, it enables numerous isolated networks to run on a shared physical infrastructure by facilitating the establishment of virtual networks. Moreover, the segment is evolving, with greater adoption driven by a growing desire for versatile, secure, and cost-effective networking solutions. Furthermore, the continuous advancement of technology is projected to affect the virtualization landscape and its inclusion into larger cloud computing plans. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 37% 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. The virtualization software market in North America is fuelled by the extensive enterprise adoption for improved utilization of resources and cost-effectiveness. In addition, prominent companies such as VMware, Microsoft, and Citrix dominate, providing solutions to a wide range of corporate demands. Moreover, the regional virtualization software market is competitive because of the high fixed cost of entry, which encourages innovation and service differentiation. In addition, the regional virtualization software market is still evolving, propelled by advances in cloud computing and rising demand for virtualization in industries such as IT, healthcare, and finance. Hence, such factors are driving the market growth in North America during the forecast period.
Virtualization Software 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 virtualization software market growth and trends strategies.
Global Virtualization Software 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.
Alphabet Inc: The company offers virtualization software such as Itopia Cloud Automation Stack software enterprises which can migrate VDI workloads to Google Cloud, under this subsidiary Google LLC.
Amazon.com Inc: The company offers virtualization software such as AWS Nitro System for physical hardware and bios, virtualizes the CPU, storage, and networking, and provides a rich set of management capabilities.
Broadcom Inc: The company offers virtualization software such as Vmware virtualization and cloud computing software.
The Virtualization Software Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Virtualization Software Market market analysis and report of qualitative and quantitative analysis of companies have 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 virtualization software 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 to 2028.
Virtualization Software Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.56% |
Market Growth 2024-2028 |
USD 48.45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.89 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acronis International GmbH, Alphabet Inc., Amazon.com Inc., Anuta Networks International LLC, Broadcom Inc., Cascade Parent Ltd., Cisco Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Lumen Technologies Inc., Microsoft Corp., Nokia Corp., Nutanix Inc., Open Text Corp., Oracle Corp., Rackspace Technology Inc., SolarWinds Corp., and TIBCO Software 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 Platform
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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