Dublin, Jan. 28, 2026 (GLOBE NEWSWIRE) — The “Data Centre Virtualization Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031” has been added to ResearchAndMarkets.com’s offering.
The Global Data Centre Virtualization Market is projected to expand from USD 9.82 Billion in 2025 to USD 25.09 Billion by 2031, registering a CAGR of 16.92%. Reducing capital and operational expenditures acts as a primary catalyst for market growth, driven by the need to minimize physical hardware footprints and optimize resource utilization.
Virtualization technologies enable organizations to consolidate servers, thereby lowering cooling costs and power consumption, which directly benefits operational sustainability and the bottom line. This financial motivation is especially critical as companies strive to maximize IT investment value during fluctuating economic conditions. For instance, the ‘2024 State of the Cloud Report’ by Flexera indicated that 59% of organizations prioritized optimizing existing cloud resources to achieve cost savings, underscoring the financial drive to adopt virtualized resource management for spending control and waste elimination.
The accelerating shift toward hybrid and cloud architectures is a second major factor reshaping the sector, as enterprises move from traditional on-premise silos to flexible, distributed computing environments. This transition requires robust virtualization layers capable of abstracting workloads across diverse infrastructures to ensure seamless interoperability and mobility between public cloud services and private clouds. Nutanix’s ‘6th Annual Enterprise Cloud Index’ in March 2024 revealed that 90% of IT decision-makers view the hybrid multicloud as their ideal operating model, a preference that fuels demand for advanced virtualization software. Reflecting the infrastructure scale needed for these environments, CBRE reported a 69.2% year-over-year increase in primary market data center construction in 2024, highlighting the physical expansion necessary to house these virtualized ecosystems.
Market Challenges
The significant complexity involved in managing virtualized environments, alongside the risk of virtual sprawl, creates substantial barriers to market growth. As organizations rapidly generate virtual instances without strict oversight, a proliferation of underutilized virtual machines often occurs. This sprawl not only consumes storage and computing power but also widens the attack surface, introducing critical security vulnerabilities that are difficult to monitor. Consequently, IT departments face increasing administrative burdens, necessitating the diversion of skilled personnel from strategic projects to routine threat mitigation and maintenance tasks.
This operational friction directly impedes the rate of virtualization adoption, as enterprises become hesitant to scale their virtual infrastructure when management overhead exceeds efficiency benefits. The severity of this issue is reflected in recent industry statistics; the Uptime Institute noted in 2024 that networking and IT-related issues rose to account for 23% of all impactful outages. This increase is largely attributed to the challenges of maintaining stability within increasingly distributed and complex digital environments, highlighting why management difficulties remain a primary restraint on the expansion of the Global Data Centre Virtualization Market.
Market Trends
The growing demand for GPU virtualization represents a critical trend, driven by the need to maximize the efficiency of scarce high-performance computing resources essential for artificial intelligence workloads. As enterprises expand AI production, they encounter hardware shortages that require pooling physical GPUs to support multiple simultaneous users. This scarcity creates a significant bottleneck; Cisco’s ‘2024 AI Readiness Index’ noted that only 21% of organizations possess the necessary GPUs to meet current and future AI requirements. Consequently, virtualization has become indispensable, enabling companies to slice physical GPU cores into virtual instances to optimize costly hardware investments and ensure availability for various inference and training tasks.
Concurrently, the convergence of virtual machine and containerization technologies is transforming data center architecture by enabling VMs to be managed directly within container orchestration platforms. This trend allows organizations to modernize legacy applications by migrating them into cloud-native environments without immediate refactoring, effectively unifying the management plane for all workloads. This shift is gaining traction as IT teams aim to streamline infrastructure and eliminate operational silos. According to the ‘Voice of Kubernetes Experts Report 2024’ by Portworx, 58% of organizations plan to migrate some virtual machines to Kubernetes management, indicating a definitive move toward a unified, container-centric virtualization strategy.
Key Players Profiled in the Data Centre Virtualization Market:
- VMware, Inc.
- Microsoft Corporation
- Cisco Systems, Inc.
- IBM Corporation
- Oracle Corporation
- Nutanix, Inc.
- Citrix Systems, Inc.
- Red Hat, Inc.
- Hewlett Packard Enterprise Company
- Dell Technologies Inc.
Report Scope
In this report, the Global Data Centre Virtualization Market has been segmented into the following categories:
Data Centre Virtualization Market, by Type:
- Advisory & Implementation Services
- Optimization Services
- Managed Services
- Technical Support Services
Data Centre Virtualization Market, by Organization Size:
- Small & Medium-Sized Enterprises (SMES)
- Large Enterprises
Data Centre Virtualization Market, by Vertical:
- IT & Telecommunication
- Government
- Education
- Healthcare
- Media & Entertainment
- Manufacturing & Automotive
- Others
Data Centre Virtualization Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Key Attributes
| Report Attribute | Details |
| No. of Pages | 181 |
| Forecast Period | 2025-2031 |
| Estimated Market Value (USD) in 2025 | $9.82 Billion |
| Forecasted Market Value (USD) by 2031 | $25.09 Billion |
| Compound Annual Growth Rate | 16.9% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/va206h
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- Data Centre Virtualization Market
