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The growing need for flexible, adaptive, and automated foundation arrangements is changing the Software-Defined Data Center (SDDC) industry. Since 2023, this sector has been characterized by major characteristics that reflect the changing data center administration landscape and the need to simplify asset utilization and improve flexibility and competency.
The Software-Defined Data Center market has widely used hybrid and multi-cloud methods. Organisations are increasingly using on-premises data centres and cloud services to satisfy their demands. This trend is generating demand for SDDC arrangements that provide consistent reconciliation and organization across cloud circumstances, enabling enterprises to improve IT agility, versatility, and cost efficiency.
The SDDC market emphasizes computerization to simplify and work on complicated data center projects. Mechanization reduces manual mediation, increases productivity, speeds up transmitting, and reduces errors. SDDC arrangements are incorporating advanced robotization for tasks like provisioning, design the board, and asset improvement, helping organizations adapt to shifting responsibilities and business requirements.
Additionally, SDDC companies are using hyper-merged framework (HCI). HCI integrates process, storage, and systems management into a single framework for a more efficient foundation model. The need to improve data center infrastructure, simplify equipment, and increase flexibility drives this trend. HCI is particularly useful for companies looking to upgrade their framework without sacrificing performance or agility.
The SDDC industry prioritizes security, and companies are scaling up their software-defined security initiatives. As data centers become increasingly virtualized and dynamic, security risks increase. SDDC solutions are adapting by adding tiny division, encryption, and risk localization to protect sensitive data and comply with industry standards.
Additionally, SDDC market focus is growing on maintainability and energy efficiency. SDDC arrangements are adapting to the industry transition toward sustainable and eco-friendly practices by adding features that improve asset usage, energy efficiency, and green processing.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | a dynamic workload-based strategy that is carefully linked with company processes, the marketplace, and consumer expectations |
| Market Dynamics | Big data development trends and affordability have resulted in increased use of SDDC across sectors that include banking and financial services, the retail sector, telecommunications & information technology, and healthcare. |
Software Defined Data Center Market Highlights:
Software-Defined Data Center Market Overview
Software-Defined Data Center Market size is projected to grow from USD 66.77 Billion in 2024 to USD 276.42 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.43% during the projected timeframe (2024 - 2032). Additionally, the market size for software-defined data center was valued at USD 54.51 Billion in 2023.
Big data development trends and affordability have resulted in increased use of SDDC across sectors that include banking and financial services, the retail sector, telecommunications & information technology, and healthcare are the key market drivers contributing to market growth and expansion.
Figure 1: Software Defined Data Center Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Software Defined Data Center Market Trends
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.
Additionally, hardware cost reductions are predicted to accelerate the use of software-defined data centers. Companies who use SDDC do not need to acquire hardware, acquire vendor-specific expertise to manage and operate it or deal with physical machine updates. It increases the management of resources in the firm, resulting in greater overall efficiency. Additionally, the usage of software-defined data centers is increasing to guarantee greater control and administration of hardware and software. Entrepreneurs and providers of services are putting money into hybrid cloud and SDDC to stay ahead of the competition. Because hybrid clouds enable enterprises to store and retain significant data resources on their servers without transferring them to a publicly accessible cloud for processing, they are becoming increasingly popular.
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.
Software-Defined Data Center Market Segment Insights
Software Defined Data Center Solution Insights
The global Software Defined Data Center market segmentation, based on Solutions, includes SDC, SDS, and SDN. The SDC segment dominated the market, accounting for 42% of market revenue (USD 18.7 Billion) in 2022, attributable to the widespread use of cloud-native software. It uses cloud computing concepts to decrease deployment risks while improving service adaptability, efficiency, and reliability.
Software Defined Data Center Services Insights
The global Software Defined Data Center market segmentation, based on Services, includes managed, consulting, and assessment. The managed category generated the highest market revenue of about 40.9% (USD 18.2 billion) in 2022. Businesses' increased emphasis on achieving optimized management of workloads that offers greater quickness, acceleration, and safety without struggling with the challenges of instruction, cooperation and installation, support, and upkeep has been mainly contributing to the development of the managed services category.
Figure 2: Software Defined Data Center Market, by Services, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Software Defined Data Center Vertical Insights
The global Software Defined Data Center market segmentation, based on Vertical, includes BFSI, Retail, IT, Healthcare, and Government. The IT segment dominated the market, accounting for 38% of market revenue (USD 10.7 Billion) in 2022 due to the growth of big data and the rising need for software-based storage of information and services.
Software Defined Data Center Regional Insights
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, MRFR 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.
Software-Defined Data Center Key Market Players & Competitive Insights
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.
Key Companies in the Software-Defined Data Center market include
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VMware Inc. (US.)
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EMC Corporation (US.)
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IBM Corporation (US.)
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Citrix Systems (US.)
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Microsoft Corporation (US.)
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Cisco Systems, Inc. (US.)
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Hitachi, Ltd. (Japan)
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Fujitsu, Ltd. (Japan)
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NEC Corporation (Japan)
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HPE Co (US.)
Software Defined Data Center Industry Developments
June 2021: NTT Limited introduced updated worldwide data center interconnect network services for optimizing hybrid cloud systems in June 2021, based on advanced SDN technology. A worldwide unified networking fabric solution that allows NTT's global data centers and major cloud service suppliers to connect confidentially and safely.
April 2021: 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 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.
Software-Defined Data Center Market Segmentation
Software Defined Data Center Solution Outlook
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SDC
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SDS
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SDN
Software Defined Data Center Services Outlook
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Managed
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Consulting
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Assessment
Software Defined Data Center Vertical Outlook
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BFSI
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Retail
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IT
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Healthcare
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Government
Software Defined Data Center Regional Outlook
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North America
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US
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Canada
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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
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