Dublin, Jan. 08, 2026 (GLOBE NEWSWIRE) — The “Data Center Virtualization Market Report 2025” has been added to ResearchAndMarkets.com’s offering.
The data center virtualization market is experiencing substantial growth, projected to expand from $8.64 billion in 2024 to $10.25 billion in 2025 at a CAGR of 18.6%. This growth is propelled by virtual infrastructure adoption for legacy system upgrades, virtualization in disaster recovery, and rising demand for centralized IT control, remote accessibility, and scalable solutions. Anticipated to reach $20.01 billion by 2029, the market will continue to grow at a CAGR of 18.2%, influenced by the increasing demands for hybrid and multi-cloud environments, automation in data center operations, and the integration of AI and sustainable practices.
Cloud computing, enabling scalable and cost-efficient IT solutions, significantly contributes to the market’s momentum. By December 2023, 45.2% of EU enterprises had adopted cloud services, enhancing the efficiency of data center virtualization through cloud-managed virtual servers and networks. Companies like Telefonica Tech are expanding virtual infrastructures to bolster cloud capabilities and ensure business continuity, demonstrated by their Virtual Data Center initiative launched in Ashburn, Virginia, in May 2022.
In a strategic acquisition in November 2023, Broadcom Inc. absorbed VMware Inc., strengthening their portfolio in enterprise software with VMware’s leading virtualization technologies. This acquisition underscores the industry’s shift towards comprehensive integration of virtualization, multi-cloud, and digital infrastructure solutions.
Key players in this thriving market include Google LLC, Microsoft Corporation, Alibaba Group, Dell Technologies Inc., Amazon Web Services Inc., Huawei Technologies Co. Ltd., and others. North America remains the largest market, while Asia-Pacific is anticipated to be the fastest-growing region through the forecast period. These insights are derived from comprehensive market research reports that provide valuable data, including global market sizes, trends, and opportunities across diverse sectors like BFSI, IT, manufacturing, healthcare, and retail.
The market encompasses revenues from core virtualization services such as workload balancing, automated provisioning, virtualization security, and infrastructure orchestration. It includes revenues from products like hypervisors and cloud automation tools, driven by increasing efficiencies and reduced reliance on physical hardware. Moreover, geopolitical dynamics and trade tensions are reshaping the landscape, prompting investments in domestic production and AI-driven automation for enhanced operational resilience.
Data center virtualization, evolving through server, storage, network, and desktop virtualization, continues to transform how enterprises manage IT infrastructure, ensuring agility and cost efficiency. This dynamic market is well-placed to meet the demands of an increasingly digital world.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $10.25 Billion |
| Forecasted Market Value (USD) by 2029 | $20.01 Billion |
| Compound Annual Growth Rate | 18.2% |
| Regions Covered | Global |
Coverage Details:
- Markets Covered:Type (Server, Storage, Network, Desktop, Application, Other Types), Deployment (On-Premises, Cloud-Based, Hybrid), Organization Size (SMEs, Large Enterprises), and End-Use Industries (BFSI, IT & Telecommunication, Government, and more).
- Subsegments:Including Virtual Machines, SAN, SDN, VDI, and more in respective types such as Server, Storage, Network, Desktop, and Application.
- Prominent Companies:Google LLC, Microsoft Corporation, Amazon Web Services Inc., IBM, Cisco Systems Inc., among others.
Companies Featured
- Google LLC
- Microsoft Corporation
- Alibaba Group
- AT&T Inc.
- Dell Technologies Inc.
- Amazon Web Services Inc.
- Huawei Technologies Co. Ltd.
- Tencent Holdings Ltd.
- International Business Machines Corporation
- Cisco Systems Inc.
- Oracle Corporation
- SAP SE
- Hewlett Packard Enterprise Company
- Fujitsu Limited
- Telefonaktiebolaget LM Ericsson
- NEC Corporation
- HCL Technologies Limited
- Inspur Group Co. Ltd.
- Citrix Systems Inc.
- Nutanix Inc.
- Konverge Digital Solutions Corporation.
For more information about this report visit https://www.researchandmarkets.com/r/na064y
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- Data Center Virtualization Market
