Virtualization Software Global Market Report 2024

The virtualization software market size has grown rapidly in recent years. It will grow from $73.74 billion in 2023 to $85.83 billion in 2024 at a compound annual growth rate (CAGR) of 16.4%. During the historical period, the increase can be credited to server optimization, flexibility and agility, disaster recovery, legacy system support, and green IT initiatives.

The virtualization software market size is expected to see rapid growth in the next few years. It will grow to $159.33 billion in 2028 at a compound annual growth rate (CAGR) of 16.7%. The rise anticipated in the forecast period is linked to edge computing, containerization, adoption of hybrid and multi-cloud systems, and a focus on security and compliance. Key trends expected during this period include the integration of IoT, edge computing advancements, incorporation of AI and machine learning, and increased adoption of containerization.

The virtualization software market is poised for growth due to the increasing demand for cloud-based services. Cloud-based services entail accessing computing resources such as storage, processing power, and software applications over the internet rather than locally. Their popularity stems from benefits such as scalability, cost-effectiveness, enhanced collaboration, data security, and accessibility. Virtualization software plays a crucial role by efficiently managing resources, optimizing server utilization, and providing scalable computing resources on demand, thereby driving the growth of cloud-based services. For example, Eurostat reported in December 2023 that 45.2% of European Union enterprises used cloud computing services, marking a 4.2 percentage point increase from 2021. This trend is evident across different business sectors, with traditional small businesses, small tech companies, and enterprises embracing cloud services for various tasks.

Key players in the virtualization software market are emphasizing advanced solutions such as single hybrid cloud data platforms to meet diverse enterprise needs effectively. These platforms integrate and manage data across public and private cloud environments seamlessly. For instance, Hitachi Ltd introduced Hitachi Virtual Storage Platform One in October 2023, a single hybrid cloud data platform designed to handle large-scale tasks efficiently. It features a unified architecture with a singular control plane, data fabric, and data plane, catering to block, file, object, cloud, mainframe, and software-defined storage workloads. This comprehensive platform is AI-enabled and managed through a single software stack, offering flexibility and efficiency.

In November 2023, Broadcom acquired VMware for $69 billion, aiming to enhance enterprise customers' options in addressing complex IT challenges and accelerating software scale and growth opportunities. VMware, a leading provider of server virtualization and cloud computing software, strengthens Broadcom's position in the market, enabling them to offer more robust solutions to their clients.

Major companies operating in the virtualization software market are Amazon.com Inc., Google LLC, Microsoft Corporation, Huawei Technologies Co. Ltd., International Business Machines Corporation, Oracle Corporation, Broadcom Inc., Citrix Systems Inc., Datadog Inc., Nutanix Inc., Palo Alto Research Center Incorporated (PARC), Veeam Software Corporation, Corel Corporation, Scale Computing Inc., NComputing Co. Ltd., Canatu Oy, Tekscan Inc., FlexEnable Limited, Lynx Software Technologies Inc., TenAsys Corporation, OpenStack Foundation.

North America was the largest region in the virtualization software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtualization software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virtualization software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Virtualization software encompasses programs or platforms that facilitate the creation and management of virtual machines (VMs) or virtual environments within a physical computing system. This software finds extensive use across data centers, cloud computing environments, development and testing scenarios, and desktop computing to enhance resource utilization, boost flexibility, and streamline the management and deployment of IT infrastructure.

The primary categories of virtualization software include storage virtualization, application virtualization, network virtualization, hardware virtualization, server virtualization, operating system (OS) virtualization, and other variants. Storage virtualization involves abstracting physical storage resources into a unified virtual pool to simplify management and enhance flexibility. This software platform also supports functionalities such as PC virtualization and mobile virtualization, with deployment options including on-premises and cloud-based virtualization tailored for different organizations such as small and medium-sized enterprises (SMEs) and large enterprises.

The virtualization software research report is one of a series of new reports that provides virtualization software market statistics, including the virtualization software industry's global market size, regional shares, competitors with a server virtualization software market share, detailed virtualization software market segments, market trends and opportunities, and any further data you may need to thrive in the virtualization software industry. This virtualization software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The virtualization software market includes revenues earned by entities by hardware abstraction, resource allocation, isolation and sandboxing, snapshotting and cloning, live migration, integration with cloud services, and performance optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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