Virtualization Software Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 94.57 Billion |
| Market Size (2029) | USD 148.68 Billion |
| CAGR (2024 - 2029) | 9.47 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Virtualization Software Market Analysis
The Virtualization Software Market size is estimated at USD 94.57 billion in 2024, and is expected to reach USD 148.68 billion by 2029, growing at a CAGR of 9.47% during the forecast period (2024-2029).
Virtualization can be described as an abstraction layer that disrupts the standard paradigm of traditional computer architecture. It decouples the operating system from the physical hardware platform and applications.
- As a result of the adoption of virtualization solutions, IT organizations can achieve efficient IT resource utilization and flexibility. Virtualization allows the use of multiple virtual machines, often with heterogeneous operating systems, to run in isolation, side-by-side, on the same physical machine.
- The rapid advancements in telecommunications, cloud computing, and the Internet of Things (IoT) have pushed many firms to focus on offering a positive experience to their smartphone and web-based consumers. It is predicted that Asia-Pacific will rapidly adopt application virtualization technology. The increasing acceptance percentage of virtual desktop infrastructure (VDI) and software virtualization platforms, particularly agent-based platforms, in big IT companies are driving business expansion in the Asia-Pacific region.
- Furthermore, the rising usage of cloud-based solutions is another important driver expected to boost industry growth throughout the forecast period. In addition, the growing demand for extremely secure data and consolidated storage infrastructure is projected to fuel the demand for virtualization over the coming years.
- Network virtualization is expected to gain further attention from the solution providers with a focus on 5G introduction in services across the world. Broadband, fiber network, and other similar network-related solutions provide a new opportunity for the players in the market.
- Due to the outbreak of COVID-19, many companies are encouraging employees to work remotely (work from home), which is proving to be beneficial for vendors. This is because a growing number of customers and organizations are turning to these vendors for advice and support to enable secure remote work initiatives that can ensure the safety and productivity of their employees and maintain ongoing business operations throughout this evolving global crisis. After the pandemic, companies have also been offering permanent work-from-home jobs, and the number of permanent work-from-home jobs is increasing gradually, propelling the market's growth.
Virtualization Software Market Trends
This section covers the major market trends shaping the Virtualization Software Market according to our research experts:
PC/ Desktop Virtualization is expected to hold Major Market share
- PC virtualization refers to the virtualization of the workstation load rather than a server. With a thin client at the desk, the user typically has remote access to the PC. This provides secure and portable access, as the workstation operates in a data center server. Numerous enterprises are adopting PC virtualization solutions to minimize IT infrastructure costs and enhance deployment speed. According to a survey conducted by PC Matic, virtual private networks (VPNs) have grown significantly in the United States in recent years. 15.3% of participants used a VPN at work in 2019. The percentage of respondents increased to 63% this year.
- PC virtualization is used with application virtualization and user profile management systems to offer a comprehensive desk environment management system. Other factors anticipated to drive demand for the market include rising competition in the IT sector, which will emphasize cost savings, increasing digitization of processes, and an increase in the mobile workforce.
- The major trend observed in the market is the increasing demand for PC virtualization in the healthcare sector amid the digital transformations over the past few years. This has paved the way for IT services within the healthcare sector.
- Enterprises are focused on remote working to increase the efficiency and productivity of their employees. Virtual working and Internet computing save IT infrastructure costs. Clouds have become popular as an infrastructure, allowing the constantly scalable and virtualized distribution of computer capabilities as a utility. The increased acceptance of cloud computing and the organizational preference for installing workstations in the cloud promote the use of PC virtualization.
Asia - Pacific is Expected to Register the Largest Market
- Asia-Pacific is expected to witness the highest growth rate owing to the region's increasing adoption of virtualization technology and digitalization activities. Asia-Pacific is a key market for virtualization software and is witnessing steady growth throughout the projection timeframe due to its expanding economy, increased expenditures on IT infrastructure, and a surge in the frequency of government and commercial projects aimed at deploying IoT and artificial intelligence (AI) technology throughout several sectors.
- With the increasing use of modern technologies and the rising number of digitization activities by different regional organizations, Japan is predicted to grow significantly in the virtualization market. The rise of the IT, telecommunications, and banking, financial services and insurance (BFSI) sectors also contributes significantly to industry expansion. Increasing acceptance of virtual desktop interfaces (VDI) and software virtualization solutions is driving market growth in large-scale IT companies.
- Furthermore, increasing investments by major players operating in the market are expected to create lucrative opportunities for the market to grow over the forecast period. For instance, According to Hewlett Packard Enterprise, this year, KDDI, a renowned Japanese telecommunications operator, deployed the HPE ProLiant DL110 Gen10 -Telco server for the commercial network operation of O-RAN compliant 5G standalone base stations.
- Furthermore, this year, Microsoft announced the availability of DCsv3-series virtual machines (VMs) in Australia East, Japan East, and Southeast Asia. The virtual computers of the DCsv3 and DCdsv3 series serve to protect the confidentiality and integrity of the business code and data while they are being processed in the public cloud. Intel Software Guard Extensions and Intel Total Memory Encryption - Multi Key can ensure that data is always encrypted and protected in use. These computers are powered by the newest 3rd Generation Intel Xeon Scalable processor and can achieve 3.5 GHz with Intel Turbo Boost Max Technology 3.0.
Virtualization Software Industry Overview
The Virtualization Software Market is fragmented, with the presence of many major players. The key players in the market, such as VMware Inc, Citrix Systems Inc., Oracle Corporation, Microsoft Corporation, Red Hat Inc. (IBM Corporation), among others are making strategic partnerships, mergers, investments, and collaborations to retain their market position.
In July 2022, ABB and Red Hat collaborated to provide scalable digital solutions for the industrial edge and hybrid cloud. The collaboration enables virtualization and containerization of automation software with Red Hat OpenShift to provide advanced flexibility in hardware deployment, optimized according to application needs.
Virtualization Software Market Leaders
VMware Inc
Citrix Systems Inc.
Oracle Corporation
Microsoft Corporation
Red Hat Inc. (IBM Corporation)
*Disclaimer: Major Players sorted in no particular order
Virtualization Software Market News
- October 2022: Microsoft and Meta collaborated to create immersive experiences for the future of work and play. As announced during Meta Connect 2022, the collaboration enabled to bring Mesh for Microsoft Teams to Meta Quest devices. It will help people gather virtually where work happens on any device such as smartphones, laptops, and mixed-reality headsets. Mesh for Teams with Meta Quest Pro and Meta Quest 2 devices will enable people to connect and collaborate as if they are together in person.
- August 2022: NetApp and VMware Strengthen Global Partnership to assist customers in multicloud modernization. VMware Cloud Foundation with Tanzu enables IT to manage virtual machines (VMs) and container orchestration from a single unified platform. VMware Tanzu and VMware Cloud Foundation enable the utilization of NetApp ONTAP-based storage arrays, allowing users to build up a flexible data fabric for classic VMs and modern, containerized applications.
Virtualization Software Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Assessment of Impact Of Covid-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Cost Reductions due to Reduced Hardware Spending
5.1.2 Improved IT Efficiency due to Virtualization
5.2 Market Challenges
5.2.1 Complexity in Setting up a Virtual Environment
6. MARKET SEGMENTATION
6.1 By Platform
6.1.1 PC Virtualization
6.1.2 Mobile Virtualization
6.2 By Type
6.2.1 Application Virtualization
6.2.2 Network Virtualization
6.2.3 Hardware Virtualization
6.2.4 Other Types
6.3 By Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Latin America
6.3.5 Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 VMware Inc
7.1.2 Citrix Systems Inc.
7.1.3 Oracle Corporation
7.1.4 Microsoft Corporation
7.1.5 Red Hat Inc. (IBM Corporation)
7.1.6 Amazon Inc.
7.1.7 Google LLC.
7.1.8 NComupting Co. Ltd.
7.1.9 Parallels International GmbH
7.1.10 Huawei Technologies Co. Ltd.
7.1.11 Datadog, Inc.
7.1.12 Nutanix Inc.
7.1.13 TenAsys Corporation
7.1.14 Lynx Software Technologies
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Virtualization Software Industry Segmentation
Virtualization Software, also called a Hypervisor, allows two or more operating systems (OSs) to run on a single host machine or server. The software can run on a machine without OS (Type 1) or on top of an OS (Type 2). It allows the virtualization of components, like hardware, OS, network, or storage. The study covers the market based on the platform on which the software OS is hosted, and the type of virtualization software available across the globe.
The Virtualization Software Market is segmented by Platform (PC Virtualization and Mobile Virtualization), Type (Application Virtualization, Network Virtualization, and Hardware Virtualization), and by Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Platform | |
| PC Virtualization | |
| Mobile Virtualization |
| By Type | |
| Application Virtualization | |
| Network Virtualization | |
| Hardware Virtualization | |
| Other Types |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle-East and Africa |
Virtualization Software Market Research FAQs
How big is the Virtualization Software Market?
The Virtualization Software Market size is expected to reach USD 94.57 billion in 2024 and grow at a CAGR of 9.47% to reach USD 148.68 billion by 2029.
What is the current Virtualization Software Market size?
In 2024, the Virtualization Software Market size is expected to reach USD 94.57 billion.
Who are the key players in Virtualization Software Market?
VMware Inc, Citrix Systems Inc., Oracle Corporation, Microsoft Corporation and Red Hat Inc. (IBM Corporation) are the major companies operating in the Virtualization Software Market.
Which is the fastest growing region in Virtualization Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Virtualization Software Market?
In 2024, the North America accounts for the largest market share in Virtualization Software Market.
What years does this Virtualization Software Market cover, and what was the market size in 2023?
In 2023, the Virtualization Software Market size was estimated at USD 86.39 billion. The report covers the Virtualization Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Virtualization Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Virtualization Software Industry Report
Statistics for the 2024 Virtualization Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Virtualization Software analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
