Data center virtualization market to surpass $20 billion by 2030
The data center virtualization market is set to surpass $20 billion by 2030, according to new forecasts from Global Market Insights.
According to the analyst firm, government initiatives to promote the digitalization of public data and significant investment by large-scale firms to provide data banks are the chief drivers of the industry.
For instance, in March 2022, Microsoft, an American technology giant, announced its plan to develop a new sustainable data center region in Finland with the intent to transform and enable large-scale carbon-free district heating and migrate the servers to a unified cloud platform that can support them in systematically handling the facilities with more flexibility in terms of future expansion.
Increasing need to cut energy consumption
According to Global Market Insights, it is predicted that through 2030, the server virtualization market will expand at a CAGR of more than 20%. The demand for technology in the data centre virtualization industry is anticipated to increase between 2022 and 2030 due to the energy efficiency of data centre servers. It utilises a software application to partition a physical server into numerous distinct and isolated virtual servers, reducing energy consumption and making it a more affordable option.
Robust efforts to effectively build IT infrastructures
The strong focus of new or existing data center operators on designing the IT & telecom infrastructure systematically is speculated to spur the need for consulting services. The consulting services segment held a significant share in the data center virtualization industry in 2021 and is projected to attain more than 20% gains from 2022 to 2030.
Mounting adoption of telehealth and telemedicine
The healthcare application is slated to register around 15% growth between 2022 and 2030. The segmental development is attributed to the surging preference for telehealth and telemedicine technologies that are leading to massive data accumulation, bolstering the demand for high-quality data centers. Moreover, an increase in medical data will boost the need for the construction of robust IT infrastructure, compelling healthcare organizations to outsource their data center operations and propelling sector growth.
South America is expected to become a significant source of income
By 2030, the South American data centre virtualization market is anticipated to generate revenues of about USD 1 billion. Due to the increased use of social media platforms, the area is predicted to grow into a significant hub for this market. The expansion of social media and internet user bases throughout South America's economy is enhancing data generation and fostering regional business expansion.
Product development to remain a vital growth strategy
The strategic landscape of the data center virtualization market will witness a series of partnerships and collaborations among enterprises from varied sectors, along with product range expansion by industry players. In July 2022, tech leader Cisco Systems Inc. introduced a new Webex Wholesale Route-to-Market (RTM) for service provider firms to cater to the prevailing needs of small- to mid-size businesses (SBMs). The innovation was devised to enable service providers to provide managed services for Webex, coupled with the scalability, agility, and flexibility to make their own co-branded offers. Some of the key industry players profiled in the report include Microsoft Corporation, Amazon Web Services, Cisco Systems Inc., IBM Corporation, Dell Inc., Huawei Technology, AT&T, Citrix Systems Inc., Nutanix, and SAP SE.