How Has the Virtual Machine Market Evolved Historically and What is its Current Size?
The virtual machine market has seen considerable growth due to a variety of factors.
• The scale of the virtual machine market has swiftly expanded in the past few years. It is predicted to soar from $20.26 billion in 2024 to $23.98 billion in 2025, with a compound annual growth rate (CAGR) of 18.3%.
The growth observed in the historical period can be credited to the escalation in server consolidation, an upsurge in legacy application support, enhanced resource efficiency and cost savings, and the development and testing environment.
What Does Future Hold for The Virtual Machine Market By 2029?
The virtual machine market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for virtual machines is projected to experience significant expansion in the coming years, reaching $43.26 billion by 2029, growing at a compound annual growth rate (CAGR) of 15.9%.
The anticipated growth in this period stems from growing adoptions of cloud computing, expanding edge computing, inclining hybrid and multi-cloud architectures, in addition to rising security and compliance needs. Key trends during the forecast period are integration of serverless computing, optimization of AI and machine learning, upgraded security functions and the implementation of edge virtualization for IOT.
What Are The Primary Growth Drivers In The Virtual Machine Market?
The rise in cloud computing adoption is predicted to fuel the expansion of the virtual machine market. The term "cloud computing adoption" refers to the integration of cloud computing technologies and services into the IT infrastructure and operations of organizations. This uptake comes from cost benefits, scalability, security, and the provision for remote data and services access. Virtual machines harness cloud computing to offer on-demand and scalable computing resources, enabling different isolated environments to operate on the same physical hardware thereby improving efficiency and adaptability. For instance, as reported by AAG IT Support Service, a US-based digital transformation service provider, in June 2024, the revenue of public cloud platform-as-a-service (PaaS) reached $111 billion in 2022. It is further predicted that the worth of the cloud market will reach $376.36 billion by 2029. Moreover, an estimated 200 zettabytes (equivalent to 2 billion terabytes) of data is expected to be stored on cloud servers globally by 2025. Hence, the increasing adoption of cloud computing is a crucial driver for the expansion of the virtual machine market.
What Is The Segmentation Of The Global Virtual Machine Market?
The virtual machine market covered in this report is segmented –
1) By Type: System Virtual Machine, Process Virtual Machine
2) By Application: Small Scale Enterprises, Medium Scale Enterprises, Large Scale Enterprises
3) By Industry: Banking, Financial Services, And Insurance (BFSI), Information Technology And Telecommunications, Retail, Healthcare, Manufacturing, Government, Other Industries
Subsegments:
1) By System Virtual Machine: Type 1 Hypervisors (Bare-Metal), Type 2 Hypervisors (Hosted)
2) By Process Virtual Machine: Java Virtual Machine (JVM), NET Common Language Runtime (CLR), Other Language-Specific Virtual Machines
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How Are Emerging Trends Reshaping The Dynamics Of The Virtual Machine Market?
Keeping their position secure in the virtual machine market, prominent companies are paying attention to advanced innovative solutions like Azure HX and HBv4 virtual machines specifically designed for high-performance computing (HPC). This machine is ideal for a variety of HPC workloads including computational fluid dynamics, finite element analysis, rendering, molecular dynamics, and financial risk analysis. For example, in November 2022, the US-based tech firm, Microsoft Corporation introduced Azure HX and HBv4. The HBv4 series shines in various HPC applications, ranging from weather simulation to financial analysis, providing notable performance improvements, featuring up to 176 AMD EPYC 9004-series (Genoa) CPU cores, 688 GB of RAM, and 400 Gb/s NDR InfiniBand from NVIDIA Networking. Conversely, HX-series VMs deliver notable performance enhancements at a lower price, equipped with the latest 4th Gen AMD EPYC processors and 400 Gigabit NVIDIA Quantum-2 InfiniBand. Further, this series improves MPI collective offload and routing capacities with 400 gigabit InfiniBand, is custom-made for chip design, and provides unmatched performance and cost-effectiveness for HPC customers.
Who Are the Key Players In The Virtual Machine Market?
Major companies operating in the virtual machine market are:
• Amazon.com Inc.
• Google LLC
• Microsoft Corporation
• Alibaba Group Holding Limited
• Dell Technologies Inc.
• Huawei Technologies Co. Ltd.
• Lenovo Group Limited
• Accenture PLC
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Fujitsu Limited
• The Hewlett Packard Enterprise Company
• Vmware LLC
• NetApp Inc.
• Juniper Networks Inc.
• Red Hat Inc.
• Rackspace Technology Inc.
• Nutanix Inc.
• Docker Inc.
• Scale Computing
• CloudSimple Inc.
• Ncomputing Co. Ltd.
• Proxmox Server Solutions Gmbh
• Alludo - Cascade Parent Limited
What Are The Regional Insights Into The Virtual Machine Market?
North America was the largest region in the virtual machine market in 2024. The regions covered in the virtual machine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
