The data center virtualization market is estimated to amass substantial gains by 2030 owing to a strong focus on digital transformation across varied industry verticals. In addition, rising energy consumption, along with notable advancements in digital technologies, is likely to propel market growth over the forecast period.
The COVID-19 pandemic has been beneficial for the market outlook as a result of the global shift toward remote working amid lockdowns. Moreover, major participants in the market have been focusing on expanding their service range and undertaking strategic collaborations and partnerships to remain ahead in the competitive landscape.
For instance, in May 2022, IBM Corporation, a multinational technology company, launched its virtual private cloud (VPC), the Citrix DaaS, powered by Intel Xeon servers. It was developed as an advanced cloud computing solution, which enables cost savings by centralizing applications and data for risk reduction.
The data center virtualization market has been bifurcated in terms of type, service, application, and region.
Based on type, the data center virtualization industry has been divided into server virtualization, network virtualization, storage virtualization, and application virtualization. The application virtualization segment held a market share of more than 40% in 2021 due to prevalent efforts toward improving the security of IT infrastructure.
With respect to service, the data center virtualization market has been categorized into optimization services, consulting services, managed services, and technical support services. In 2021, the technical support services segment accounted for approximately 45% market share. The segment is estimated to amass substantial gains by 2030 as technical support service providers support data centers in terms of aftermarket repair and maintenance solutions in case of system malfunction or downtime.
From the application perspective, the industry has been classified into BFSI, colocation, energy, government, healthcare, manufacturing, IT & telecom, and others. The data center virtualization market share from the BFSI segment is speculated to grow at a CAGR of around 20% from 2022 to 2030. Proliferating use of digital payment applications for completing transactions across the globe is expected to amplify product penetration in the BFSI sector. Moreover, to manage the ongoing market circumstances, companies in the BFSI industry are focusing on developing their back-end IT infrastructure, which is propelling segmental progress.
Meanwhile, the manufacturing application segment was valued at around $0.5 billion in 2021 and is expected to grow prominently through 2030. Mounting adoption of connected machines and robotics among manufacturers is augmenting the utilization of high-performance IT & networking solutions, thereby impelling segmental uptake.
In the regional context, the Middle East & Africa data center virtualization market is anticipated to grow at over 10% CAGR through 2030. Widespread utilization of cloud computing, IoT, robotics, and other advanced technology services across the retail, manufacturing, and BFSI sectors in the MEA region is foreseen to fuel industry growth.