By the end of 2033, the worldwide server virtualization software market is expected to have grown from US$ 8 billion in 2023 to US$ 16 billion, with a compound annual growth rate of 7.1%.

The process of generating several virtual servers from a single physical server—a location where numerous companies host their files on networks—is known as server virtualization. A hypervisor is a type of specialized server virtualization software that divides a real server into many virtual servers.

Every virtual server, often referred to as an instance or virtual environment, has a distinct operating system running on it. By doing this, the performance capacity of real servers is increased without requiring the installation of new virtual machines for increased processing power.

Download a Sample Copy Of Report

As a result, server virtualization has several advantages for businesses' IT infrastructure, such as decreased hardware footprints, cost savings, and efficient resource use. Virtualizing servers is a great choice for web hosting companies. VirtualBox from Oracle, Hyper-V from Microsoft, and VMware vSphere from VMware are important software solutions that are often used in businesses.

The worldwide market has significant development potential as a result of the COVID-19 pandemic. Overall market revenue was positively impacted by increased enterprise expenditure on digital platforms to maintain company operations under global lockdown limitations.

The pandemic's impact on digitalization led to a notable increase in corporate organizations' use of cloud-based services and access to data center services.

Key Companies Profiled

  • Amazon.Com, Inc
  • Hewlett-Packard Co,
  • Broadcom Inc
  • IBM Corp
  • Capgemini SE
  • Cisco Systems, Inc
  • Citrix Systems Inc
  • Dell Inc
  • Microsoft Corporation

The widespread use of server virtualization in cloud computing to enhance user access to cloud platforms and allow various applications has led to the huge uptake of cloud deployment models. The cloud deployment methods are being driven by the rapid adoption of advanced cloud technologies and the increasing migration of enterprises toward cloud-based services like Azure, Amazon Web Services, and Google Cloud.

 

A lot of large businesses employ server virtualization software. Server virtualization software is being used by large businesses to enhance their IT infrastructure and provide flexible computing resources as needed. Additionally, the growing demand from small and medium-sized businesses is driving server virtualization software sales growth.

Small and medium-sized businesses have been gradually adopting cloud services as a result of growing knowledge of the cost savings, higher administrative efficiency, and improved protection against cyberattacks.

Furthermore, the enormous expansion of the IT and telecommunications sectors, especially in emerging countries like China and India, is helping the worldwide market for server virtualization software. Businesses may reduce total operating costs, minimize energy usage, and increase IT operational efficiency by utilizing server virtualization.

The need for flexible server solutions for intricate computer networks is growing

Organizations must integrate a large number of computer networks in order to function properly as commercial activities grow. As a result, managing the whole burden of an organization's current networks becomes more difficult.

Through server virtualization, businesses may maximize the space processing capacity of their physical servers and manage complex computer networks with flexible options. One key factor driving the global market is the rise in corporate demand for flexible service options like virtual private servers.

Early Adoption of Contemporary Technology and the Existence of Key Market Participants

Throughout the projected period, North America is anticipated to maintain its position as the global market leader. North America's dominance over the worldwide server virtualization software industry is not unexpected, since the region has led the way in several significant IT developments.

Because of its easily accessible IT infrastructure, specialized IT service providers, a sizable installed server base, and emphasis on energy saving, North America is a leading player in the server virtualization space.

North America's market leader is the United States. In 2022, the US market was estimated to be worth US$ 2.6 billion. The main factors driving the growth of the US market are the early adoption of contemporary technology by businesses and the presence of major international companies there. The US market is expanding due to rising demand for software-defined data centers and rising usage of Software as a Service (SaaS) by big businesses in the nation.

Read More

Competitive Landscape

Software for server virtualization is very competitively sold. In order to grow their market share and customer base, major companies in the server virtualization software industry are utilizing a variety of development strategies, including product releases, collaboration, and mergers and acquisitions.

  • In August 2022, VMware, Inc.—a well-known American cloud computing and virtualization technology business—announced that it will remain in collaboration with Microsoft Corp., the world's largest IT company. Through VMware vSphere, the agreement aimed to give enterprises access to multi-cloud services in Microsoft Azure. In order to provide clients with an affordable and adaptable cloud solution, Azure VMware Solution was created as part of VMware Cloud Universal.
  • Leading US software corporation Red Hat, Inc. teamed up with US Department of Energy (DOE) laboratories in May 2022 to create standards for cloud environments in high-performance computing (HPC). The collaboration aimed to offer solutions for ML, AI, and DL-based HPC workloads that operate efficiently.
  • In October 2021, Alibaba Cloud, a division of Alibaba Group, stated that "Yitian 710" server chips will be available for use in its data centers. The development of Alibaba Cloud's in-house servers, called "Panjiu," which would run on these processors, was also disclosed. It is expected that the combination will improve computer performance and reduce energy usage, thereby enhancing cloud services.
  • In September 2021, Google LLC announced that it will be expanding its Chrome Enterprise Recommended partner program to include the installation of the Chrome Operating System (OS) in contact centers. Numerous advantages are expected from the expansion, such as access to virtualized desktop infrastructure, secure platform and remote administration, and certified contact-center solutions.

Segmentation of Server Virtualization Software Industry Research

  • By Type :
    • OS-level Virtualization
    • Para Virtualization
    • Full Virtualization
  • By Deployment :
    • Cloud
    • On-premise
  • By Organization :
    • Small & Medium Enterprises
    • Large Enterprises
  • By End Use :
    • BFSI
    • Healthcare
    • IT & Telecommunication
    • Government & Public Sector
    • Transportation & Logistics
    • Manufacturing
    • Others
  • By Region :
    • North America
    • Latin America
    • Europe
    • APAC
    • MEA

As businesses continue to prioritize digital transformation and optimize their IT operations, the demand for server virtualization software is expected to remain strong. This market's future looks promising, with ample opportunities for innovation and advancement, ensuring that it remains a vital component of the global IT landscape.

FAQ:

What is the anticipated growth rate for the demand for server virtualization software?

Worldwide demand for server virtualization software is anticipated to increase at a CAGR of 7.1% from 2023 to 2033.

At what compound annual growth rate (CAGR) is the demand for OS-level virtualization expected to grow?

Demand for OS-level virtualization is estimated to evolve at a CAGR of 5.5% during the forecast period.

What was the market size in the United States in 2022?

The United States market was valued at US$ 2.6 billion in 2022.