Software Defined Data Center Market

Growing use of SDDC across various sectors is driving market growth

Market CAGR for software-defined data centers is driven by the rising use of SDDC across various sectors. The market is being driven by rising internet usage and digitalization. Furthermore, the software-defined data center (SDDC) market has expanded in recent years due to a growing multi-cloud strategy among enterprises and the adoption of new and emerging technologies, including 5G and the Internet of Things, throughout various industrial sectors. Increasing infrastructural resilience and operation uptime has increased demand for SDDCs, contributing to SDDC advancement.

Furthermore, firms are increasingly using SDDCs to store essential corporate data, which adds to the development of the software-defined data center market.

The COVID-19 epidemic has impacted several businesses and created economic problems worldwide. However, it had a favorable impact on the market. With growing data and multi-cloud strategies, SDDC has become an essential enterprise tool. The pandemic also compelled numerous businesses to embrace the WFH model to ensure business viability and continuity during a critical moment, leading to increased adoption of cloud computing and interest in SDDC services. Furthermore, the decreased availability of vital assets for overseeing and tracking SDDCs is expected to raise the need for managed services throughout the crisis.

For instance, according to a Computer World white paper, up to 13% of servers purchased in the coming year would be used to handle prediction analysis, ML & AI in software-defined data centers. On the other hand, firms may need to pay more attention to the challenges of employing obsolete platforms and maintaining new IT infrastructure. Thus, demand for Software-Defined Data Centers is anticipated to increase throughout the projected timeframe due to the rising use of SDDC across various sectors. Thus, driving the Software Defined Data Center market revenue.

The Global Software-Defined Data Center Market Industry is on a trajectory of remarkable growth, with projections indicating a market size of 470.9 USD Billion by 2035. This anticipated expansion underscores the increasing reliance on software-defined solutions across various sectors. The market's growth is driven by factors such as cloud adoption, operational efficiency, and the integration of emerging technologies. As organizations continue to invest in software-defined infrastructure, the Global Software-Defined Data Center Market Industry is expected to evolve, reflecting the dynamic nature of technological advancements and the changing needs of businesses.

The emergence of edge computing presents a transformative opportunity for the Global Software-Defined Data Center Market Industry. As businesses seek to process data closer to the source, the integration of software-defined solutions at the edge becomes increasingly relevant. This shift allows for reduced latency and improved performance, particularly for applications requiring real-time data processing. The growing adoption of IoT devices further fuels this trend, as organizations leverage software-defined infrastructure to manage vast amounts of data generated at the edge. Consequently, the Global Software-Defined Data Center Market Industry is poised for substantial growth as it adapts to the demands of edge computing.

Data security concerns significantly influence the Global Software-Defined Data Center Market Industry. With the increasing frequency of cyber threats, organizations are prioritizing secure data management solutions. Software-defined data centers offer advanced security features, such as automated threat detection and response capabilities, which are essential for safeguarding sensitive information. As enterprises navigate the complexities of regulatory compliance and data protection, the demand for secure infrastructure is expected to rise. This trend indicates that the Global Software-Defined Data Center Market Industry will continue to evolve, adapting to the growing need for robust security measures in an increasingly digital landscape.

The Global Software-Defined Data Center Market Industry experiences a robust demand for cloud services, driven by enterprises seeking scalable and flexible IT solutions. As organizations increasingly migrate to cloud environments, the need for software-defined infrastructure becomes paramount. In 2024, the market is projected to reach 66.8 USD Billion, reflecting a significant shift towards cloud-based operations. This trend is likely to continue, as businesses recognize the advantages of agility and cost-effectiveness offered by software-defined data centers. The anticipated growth in cloud adoption suggests that the Global Software-Defined Data Center Market Industry will play a crucial role in shaping the future of enterprise IT.

The integration of artificial intelligence (AI) into software-defined data centers is reshaping the Global Software-Defined Data Center Market Industry. AI technologies enhance the capabilities of software-defined infrastructure by enabling predictive analytics, automated resource management, and improved decision-making processes. As organizations increasingly leverage AI to optimize their IT operations, the demand for software-defined solutions is expected to surge. This trend aligns with the broader digital transformation initiatives undertaken by businesses worldwide. The Global Software-Defined Data Center Market Industry is likely to benefit from this integration, as AI-driven innovations become essential for maintaining competitive advantage in a rapidly evolving technological landscape.

Operational efficiency emerges as a critical driver within the Global Software-Defined Data Center Market Industry. Organizations are increasingly adopting software-defined solutions to streamline their operations and reduce overhead costs. By automating resource allocation and management, companies can optimize their IT infrastructure, leading to enhanced performance and reduced downtime. This focus on efficiency is expected to propel the market forward, with projections indicating a compound annual growth rate of 19.43% from 2025 to 2035. As businesses strive for greater productivity, the Global Software-Defined Data Center Market Industry is likely to witness heightened investment in innovative technologies that support operational excellence.

By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Software Defined Data Center market area will dominate during the projected timeframe, owing to the worldwide development of large enterprises through introducing goods and collaborations that will boost the market growth in the North American region.

Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Software Defined Data Center Market Share by Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe region’s Software-Defined Data Center market accounts for the second-highest market share due to supportive economic factors, such as tax breaks, plentiful renewable energy supplies, and solid data security and privacy legislation, which drive data centers' needs. Further, the German Software-Defined Data Center market holds the largest market share, and the UK Software-Defined Data Center market is expected to grow and expand significantly in the European region during the projected timeframe.

The Asia-Pacific Software Defined Data Center Market is expected to grow quickly during the projected timeframe. This is due to rising industrialization and the emergence of new markets. The APAC region's fundamental IT infrastructure rapidly evolves, creating a self-replicating cycle that drives more investment and development. Moreover, China’s Software-Defined Data Center market dominates the market share, and the Indian Software-Defined Data Center market is expected to expand and grow steadily in the Asia-Pacific region during the projected timeframe.

Leading market players invested heavily in research and Development (R&D) to scale up their manufacturing units and develop technologically advanced solutions, which will help the Software Defined Data Center market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their global footprint, with significant market developments including new product portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings.

The Software-Defined Data Center industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.

Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the critical business strategies organizations use in the global Software Defined Data Center industry to benefit customers and capture untapped market share and revenue. The Software-Defined Data Center industry has recently offered significant advantages to the Information and Communications Technology industry. Moreover, more industry participants are utilizing and adopting cutting-edge technology has grown substantially.

Major players in the Software-Defined Data Center market, including VMware Inc. (US), EMC Corporation (US), IBM Corporation (US), Microsoft Corporation (US), Cisco Systems, Inc. (US); Hitachi, Ltd. (Japan), Fujitsu, Ltd. (Japan), NEC Corporation (Japan), Citrix Systems (US), HPE Co (US) are attempting to expand market share and demand by investing in R&D operations to produce sustainable and affordable solutions.

IBM (International Business Machines) is a computer, technology, and IT consulting firm headquartered in the United States. It is the world's largest technology business and the second most valuable worldwide brand. It produces and sells software and computer components, web hosting, and consulting services in fields including mainframe systems and nanotechnology. On June 16, 1911, Charles Ranlett Flint and Thomas J. Watson Sr. created the corporation, which is located in Armonk, New York. IBM Corporation introduced an upgraded storage solution in April 2021 that improved data accessibility and availability throughout the hybrid cloud.

The company expects to release innovative container-native SDS technologies to help enterprises boost data availability throughout complex hybrid clouds for better company efficiency and resilience.

Cisco Systems, Inc. is an IT and communications firm that designs, manufactures, and sells Internet Protocol-based networking devices and services. The company operates in three regional segments: North America, EMEA, and Asia-Pacific. Switches, NMI & Modules, Routers, Optical Communication, Network Points, Next-Generation Firewalls, Sophisticated Malware Protection, VPN Clients, and Web Security are among its product categories. Sandra Lerner and Leonard Bosack formed the firm on December 10, 1984, headquartered in San Jose, California. Cisco and Microsoft strengthened their networking agreements to make it easier for IT to directly link branches to Microsoft Azure Virtual WAN.

Cisco SD-WAN is going to be hosted in Microsoft Azure.