The server virtualization software market has seen considerable growth due to a variety of factors.
• The server virtualization software market is expected to grow from $9.49 billion in 2024 to $10.42 billion in 2025, at a CAGR of 9.8%.
The growth is fueled by the need for cost reduction, improved resource utilization, greater flexibility, disaster recovery capabilities, and support for legacy applications.
The server virtualization software market is expected to maintain its strong growth trajectory in upcoming years.
• The server virtualization software market is expected to reach $14.98 billion by 2029, at a CAGR of 9.5%.
Growth is driven by subscription models, edge-native virtualization, developer experience focus, automation, self-service capabilities, and regulatory compliance. Trends include containerization, edge computing expansion, hybrid cloud adoption, AI/ML workloads, and security and compliance needs.
The server virtualization software market is projected to expand due to the rising demand for cloud-based services. These services provide computing resources, such as storage, processing power, and software applications via the internet, rather than being hosted on a local device or network. The popularity of these services is due to their scalability, cost-effectiveness, improved collaboration, data security, and accessibility. Server virtualization software, which is used in cloud-based services, abstracts physical server resources into multiple virtual instances, promoting resource utilization and scalability. For instance, Eurostat, a European Union governmental organization based in Luxembourg that serves as the statistical office, reported in December 2023 that the cloud computing services adoption rate among small and medium-sized enterprises increased to 59% in 2023, up from 53% in 2021. As a result, the server virtualization software market is growing due to the increasing demand for cloud-based services.
The server virtualization software market covered in this report is segmented –
1) By Type: Guest Operating System (OS) And Virtual Machine, Hypervisor, Para Virtualization, Full Virtualization
2) By Deployment: Cloud, On-Premise
3) By Organization: Small And Medium Enterprise, Large Enterprise
4) By End Use: Healthcare, Information Technology (IT) And Telecommunication, Government And Public Sector, Transportation And Logistics, Manufacturing, Other End Uses
Subsegments:
1) By Guest Operating System (OS) And Virtual Machine: Virtual Machine Monitors (VMM), Virtualized OS
2) By Hypervisor: Type 1 Hypervisor (Bare-Metal), Type 2 Hypervisor (Hosted)
3) By Para Virtualization: Full Para Virtualization, Para Virtualized Device Drivers
4) By Full Virtualization: Hardware-Assisted Full Virtualization, Software-Based Full Virtualization
Leading corporations in the server virtualization software market are concentrating on inventing superior solutions like enterprise virtualization hypervisors and management platforms to boost business efficacy and scalability. These are software platforms enabling the establishment and governance of numerous virtual machines on one physical server, making the most of resource usage. For example, SteelDome Cyber LLC, an American firm providing enterprise technology solutions, released StratiSERV, an enterprise virtualization hypervisor and management platform, in March 2024, adhering to the transformative virtualization scenario. It delivers unparalleled flexibility, scalability, and performance to handle the dynamic needs of enterprise units. It can operate independently or in conjunction with StratiSTOR, SteelDome's enterprise storage platform, providing consumers with total control and adaptability of their infrastructure.
Major companies operating in the server virtualization software market are:
• Amazon.com Inc.
• Microsoft Corporation
• Dell Inc.
• Huawei Technologies Co. Ltd.
• Hewlett-Packard Company
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Broadcom Inc.
• Fujitsu Limited
• Citrix Systems Inc.
• Nutanix Inc.
• Sangfor Technologies Inc.
• SUSE LLC
• Corel Corporation
• Vates
• Virtuozzo International GmbH
• Scale Computing
• OpenStack Foundation
• SteelDome Cyber LLC
• Proxmox Server Solutions GmbH
North America was the largest region in the server virtualization software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the server virtualization software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.