According to Fact.MR, a market research and competitive intelligence provider, the global server virtualization software market is estimated to achieve a valuation of US$ 16 billion by 2033, expanding at a 7.1% CAGR from 2023 to 2033.

Server virtualization is a cost-effective technique to deliver web hosting services while maximizing the use of current resources in IT infrastructure. Servers only utilize a small part of their computing power without server virtualization. Since the workload is allocated to only a subset of the network’s servers, servers lie idle. Data centers get overloaded with underutilized servers, resulting in resource and power waste.

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Server virtualization enables each virtual server to operate as a separate physical device by splitting each physical server into several virtual servers. Each virtual server can run its own operating system and applications. This procedure optimizes resource efficiency by converting each virtual server into a physical server.

Associated servers are growing in number as enterprise networks that connect all the computers and other devices of organizations in various locations become more complicated. Furthermore, to achieve higher organizational efficiencies, enterprises are embracing technologies such as Big Data analytics; as a result, enterprise data is rapidly expanding, raising the number of servers connected with data handling. With a rise in the number of servers, the running and maintenance expenses are increasing quickly due to a variety of factors, such as the purchase and installation of new hardware devices, power and cooling requirements, daily monitoring, and maintenance.

Server virtualization software can assist in minimizing reliance on physical servers by leveraging an individual server with optimal capabilities. Furthermore, with server virtualization software, the challenges related to physical server management, including application disruption during the upgrade process and application failure due to server inactivity, are removed from the process loop or process cycle. Due to these factors, the global server virtualization software market is predicted to grow substantially during the forecast period.

Key Takeaways from Market Study

  1. The global server virtualization software market amounted to US$ 8 billion in 2023.
  2. The market is predicted to evolve at a CAGR of 7.1% during the forecast period (2023 to 2033).
  3. Revenue from the sales of server virtualization software is expected to reach US$ 16 billion by 2033.
  4. The United States market was worth US$ 2.6 billion in 2022.
  5. The OS-level virtualization segment is projected to increase at a CAGR of 5.5% from 2023 to 2033.

Increased demand for high-speed data centers and rapid shift to cloud computing systems for efficient virtual server outcomes are driving the need for server virtualization software,” says a Fact.MR analyst.

Regional Analysis

North America is expected to dominate the global server virtualization software market during the forecast period. The regional market is projected to be fueled by increased adoption of server virtualization, technological advancements, and increased investments in cloud-based services.

Moreover, the United States is leading the North American market due to the presence of major global information technology and telecommunications businesses such as VMware, IBM Corporation, and Cisco Systems, Inc.

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