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Data Center Virtualization Market Size – Segmented by Deployment Type, Offering Type, End User, and Region – Growth, Trends, and Forecast (2018 – 2026)

Data Center Virtualization Market
Data Center Virtualization Market

Data center virtualization is a process of designing, developing or deploying a data center on cloud computing or virtualization technology. Cost saving is one of the major factors for growth of the data center virtualization market. This is owing to the fact that data center virtualization helps to reduce hardware installation, and reduces electricity cost by providing hosted platform. Therefore, it aids small and medium sizes companies to reduce their expenses on IT department.

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Advantages of disaster recovery provided by data center virtualization plays a key role for growth of market in various vertical such as banking, healthcare, education, and retail. Disaster recovery-as-a-service protects company information and data from disasters by generating multiple backups. Increasing demand for data either structured or unstructured, for analyses of the market trend, customer demand, product discretion etc. have led to raising demand for data storage, which is positively affecting growth of the data center virtualization market.

Healthcare segment is projected to exhibit the highest CAGR over the forecast period. Increasing adoption of electronic health record, hospital information system, picture archiving, and communication systems has led to demand for data storage. This increasing demand for data storage in healthcare have led to increasing adoption of cloud, which reduces IT maintenance cost.

Small and medium-sized enterprises segment is projected to exhibit the highest CAGR over the forecast period. Due to high investment cost for production and maintenance of on-premises data centers, the small and medium sized enterprises are adopting cloud based data center, which help to reduce the IT expenses.

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North America data center virtualization market held the dominant position in 2016

On the basis of geography, the data center virtualization market is segmented into North America, Europe, Asia pacific, Latin America, the Middle East, and Africa. North America held the dominant position in the market and is projected to retain its dominance throughout the forecast period. The U.S. and Canada are major growth engines in this region. This is due to increasing digitalization and high adoption of cloud technology in this region.

For instance, according to Coherent Market Insights, it is estimated that in 2015 North America had approximately 51% of the total data centers, globally. In addition to this, presence of key market leaders such as Citrix Systems, Amazon Web Services, Microsoft, and VMware is also another factor driving growth of the market of data center virtualization in this region.

Key Companies: Global Data Center Virtualization Market

Amazon Web Services, AT&T, Cisco Systems, Citrix Systems, Fujitsu, HCL Technologies, Hewlett Packard Enterprise, Huawei, International Business Machines Corporation, Microsoft, Radiant Communications, VMware are some of the major key players in the global data center virtualization market.

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