Server Virtualization Market Overview
The Server Virtualization Market is projected to grow from USD 9.04 billion in 2024 to USD 12.80 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.43% during the forecast period (2024 - 2032). Additionally, the market size for server virtualization was valued at USD 7.95 billion in 2023.
Increased demand for hyper-converged integrated systems is expected to fuel the growth of the server virtualization market, and HCI reduces the enterprise's CAPEX by using a scale-up/scale-out architecture that requires only industry-standard x86 servers, not expensive, purpose-built networking, key market drivers enhancing the market growth.
Figure 1: Server Virtualization Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Server Virtualization Market Trends
Technological advancements are driving the market growth
During the anticipated period, the Server Virtualization market will increase as more companies use the newest technology to streamline corporate processes. Companies are eager to implement these technologies to increase their scalability and flexibility and lower overall operating costs. With the aid of software as a service, businesses are outsourcing their business operations to a third-party company so they can concentrate on their core capabilities. Additionally, commercial operations are becoming automated thanks to artificial intelligence and machine learning. This factor drives the market CAGR.
Additionally, the server virtualization market is experiencing growth due to various factors. These include the requirement to embrace IT solutions in line with consumer trends, the demand for streamlined procurement processes in enterprises, and the effective management of compliance policies and agreements. However, outsourcing risks and management difficulties could be improved to market growth. On the other hand, technological advancements, increased demand from the manufacturing sectors, and the adoption of AI and big data technologies present promising opportunities for market growth in the forecast period. Thus, driving the Server Virtualization market revenue.
Server Virtualization Market Segment Insights
Server Virtualization Component Insights
Based on components, the Server Virtualization market segmentation includes hardware, hypervisor, and services. The services segment dominates the server virtualization market due to the need for expertise, ongoing support, and the continuous nature of virtualization management.
Server Virtualization Deployment Mode Insights
Based on deployment mode, the Server Virtualization market segmentation includes on-premise and Cloud. The dominance of the cloud segment in the server virtualization market can be attributed to its inherent benefits, such as scalability, flexibility, cost-effectiveness, and ease of implementation. Cloud-based solutions enable organizations to access services and data seamlessly, anytime and anywhere, using any device, providing convenience and accessibility.
Figure 2:Server Virtualization Market, by Deployment Mode, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Server Virtualization Organization Size Insights
Based on organization size, the Server Virtualization market segmentation includes small and medium-sized enterprises (SMEs) and large enterprises. The large enterprise segment dominated the market because large enterprises typically have more complex needs, higher transaction volumes, and larger budgets, making outsourcing a more viable option for them. Large enterprises often have diverse supplier networks, operations, and the need for specialized procurement expertise.
Server Virtualization Vertical Insights
The Server Virtualization market is segmented based on verticals, including Banking Financial Services and Insurance (BFSI), healthcare, IT & telecommunications, manufacturing, and transportation & logistics. The Banking Financial Services and Insurance (BFSI) sector is dominant in the market due to its intricate procurement needs, encompassing regulatory compliance, risk management, and cost optimization. The BFSI industry relies on robust procurement solutions to address these specific needs.
Server Virtualization Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American server virtualization market will dominate due to the increased need to drive efficiency and effectiveness and boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: SERVER VIRTUALIZATION MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Server Virtualization market accounts for the second-largest market share because server virtualization is witnessing growth across various verticals, including energy and utilities, healthcare, and life sciences. The increased adoption of server virtualization services in these industries contributes to market expansion. Further, the German Server Virtualization market held the largest market share, and the UK Server Virtualization market was the fastest-growing market in the European Region.
The Asia-Pacific Server Virtualization Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to adoption in the manufacturing vertical. The verticals include retail and consumer goods, manufacturing, IT, and telecommunications. Moreover, China’s Server Virtualization market held the largest market share, and the Indian Server Virtualization market was the fastest-growing market in the Asia-Pacific region.
Server Virtualization Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the server virtualization market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Server Virtualization industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Server Virtualization industry to benefit clients and increase the market sector. The Server Virtualization industry has offered some of the most significant medical advantages in recent years. Major players in the Server Virtualization market, including VMware, Oracle, Red Hat, Citrix, Microsoft, Google LLC, 12K2 Networks, PCS, Huawei, and Proxmox Servers Solutions GmbH., and others, are attempting to increase market demand by investing in research and development operations.
Proxmox Virtual Environment is an open-source software for hyper-converged infrastructure. It serves as a hosted hypervisor, enabling the operation of various operating systems like Linux and Windows on x64 hardware. Proxmox VE 6.2, developed by Proxmox Server Solutions, introduces updated features such as Debian Buster (10.4) and a Linux kernel 5.4.
Google LLC is a prominent American multinational technology company known for its expertise in various domains, including online advertising, search engine technology, cloud computing, software development, quantum computing, e-commerce, artificial intelligence, and consumer electronics. Recently, Google partnered with VMWare to support VMware workloads on the Google Cloud Platform (GCP). This collaboration grants organizations complete access to fully managed Google Cloud VMware Engine services, enabling seamless operation of VMware workloads on the Google Cloud.
Key Companies In The Server Virtualization Market Include
- Nec corporation (us)
- Parasoft (us)
- Symantec corporation (us)
- Unisys (us)
- Google LLC (us)
- 12k2 networks (India)
- Huawei (China)
- Hewlett-Packard co. (us)
- Proxmox servers solutions gmbh (Austria)
- International business machines corporation (us)
- Accenture (Ireland)
- Ca technologies (us)
- Capgemini se (france)
Server Virtualization Industry Developments
May 2020: proxmox ve 6.2 was launched by promox server Solutions with updated features, namely Debian Buster (10.4) and a Linux kernel 5.4.
April 2020: Google and VMware have joined forces in a partnership to facilitate the support of VMware workloads on the Google Cloud Platform (GCP). This collaboration grants organizations full access to the comprehensive Google Cloud VMware Engine services, enabling them to seamlessly operate VMware workloads directly on the Google Cloud
Server Virtualization Market Segmentation
Server Virtualization Component Outlook
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Hardware
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Hypervisor
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Services
Server Virtualization By Deployment Mode Outlook
Server Virtualization By Organization Size Outlook
Server Virtualization By Vertical Outlook
Server Virtualization Regional Outlook
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North America
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 7.95 billion |
| Market Size 2024 |
USD 9.04 billion |
| Market Size 2032 |
USD 12.80 billion |
| Compound Annual Growth Rate (CAGR) |
4.43%(2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Component, Deployment Mode, Organization Size, and Region |
| Geographies Covered |
North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
VMware, Oracle, Red Hat, Citrix, Microsoft, Google LLC, 12K2 Networks, PCS, Huawei, and Proxmox Servers Solutions GmbH |
| Key Market Opportunities |
HCI reduces the enterprise's CAPEX by using a scale-up/scale-out architecture that requires only industry-standard x86 servers, not expensive, purpose-built networking. |
| Key Market Dynamics |
This growing demand for hyper-converged integrated systems is expected to fuel the growth of the server virtualization market. |
Frequently Asked Questions (FAQ) :
The Server Virtualization market size was valued at USD 7.95 Billion in 2023.
The market is projected to grow at a CAGR of 4.43% during the forecast period, 2024-2032.
North America witnessed the largest share of the market
The major players in the market are VMware, Oracle, Red Hat, Citrix, Microsoft, Google LLC, 12K2 Networks, PCS, Huawei, and Proxmox Servers Solutions GmbH.
The Services category dominated the market in 2024.
The Cloud had the largest share of the market.
