The software defined data center market is expected to grow from US$ 55.32 billion in 2022 to US$ 186.96 billion by 2028; it is estimated to grow at a CAGR of 22.5% from 2022 to 2028.
Software defined data centers (SDDC) help organizations and enterprises achieve scalable and agile data centers based on dynamic business needs. It allows end users to increase the data center capacity and helps achieve optimal capital expenditure (CAPEX). There is massive adoption of SDDC solutions such as software defined storage, software defined network, and server virtualization, as it helps end users achieve cost savings, improved energy efficiency, and ease of scalability. In addition, the thriving trend of cloud-based data management solutions is expected to accelerate the adoption of software defined data center solutions across several industry verticals during the forecast period.
The presence of well-known and financially strong companies such as VMware, Inc.; Microsoft; Oracle; and Huawei Technologies Co., Ltd. characterizes the global software defined data center market.
The software defined storage (SDS) segment accounted for a major market share in 2021 and is anticipated to witness steady market growth over the forecast period. With the growing penetration of IoT and the rapid increase in data generation, several organizations are automating their data centers. In addition, SDS enables organizations to achieve high efficiency, faster scalability, and greater flexibility by making storage resources programmable and helps reduce operational expenditure and storage costs, thereby propelling the software-defined storage (SDS) segment growth.
Based on industry verticals, BFSI and IT & telecom verticals account for more than half of the software defined data center market share globally. Software defined data centers provide these segments energy-efficient data management solutions along with high agility and scalability, according to the changing business needs; this has made the adoption of software defined data center more attractive among the organizations in these sectors.
Regional Analysis of Software Defined Data Center Market
From the regional perspective, North America holds the largest share of the software defined data center market. The rise in demand for cost-effective, agile, and scalable data center management solutions and centrally governable data centers are driving the region's market. Moreover, the rapid transformation of data centers from traditional to advanced software defined versions and voluminous data center traffic are expected to accelerate the market growth during the forecast period. Furthermore, the Asia Pacific market is anticipated to grow at the highest rate during the forecast period. Enterprises and businesses are experiencing a paradigm shift in their operations, especially in developing economies. Awareness about the benefits of software defined data centers has significantly increased their adoption among various organizations in the region. The digitalization of economies’ needs for efficient and cost-effective management solutions is favoring the further growth of software defined data center market in Asia Pacific.
Lucrative Regions – Software Defined Data Center Market Share
Market Insights – Software Defined Data Center Market
Industry Vertical-Based Insights
Based on industry vertical, the software defined data center market is segmented into BFSI, IT & telecom, healthcare, government & defense, education, retail, manufacturing, and others. In 2021, the BFSI segment accounted for the largest share of the software defined data center market. Financial services organizations deal with the transfer, storage, and access to vast amounts of customer-related data that is highly sensitive and confidential. Managing secured transfers and guaranteed secured access to data without any security breaches and reliable storage requires significant IT intervention. Software defined data centers provide ﬁnancial institutions and their customers with agility, flexibility, and security to share ﬁles and sensitive data between branches, headquarters, and bank clients without disrupting or delaying bank services.
Players operating in the software defined data center market are mainly focused on developing advanced and efficient products.
- In September 2021, Nutanix developed its existing cloud platform offering and released AOS version 6 software that aims to help companies build modern software-defined data centers and also to accelerate their hybrid multi-cloud environments.
- In May 2021, VMware's modern network framework used NSX technology to build cloud-scale networks with the help of a multi-cloud network that secures application traffic within and across clouds. In addition, this technology aimed to automate and boost network service allocation in cloud-based data centers, thereby becoming a major contributing factor toward the software defined data center market growth.
The software defined data center market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South America. In 2022, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the software defined data center market from 2022 to 2028.
Hewlett Packard Enterprise Development LP; Microsoft; Dell Inc.; VMware, Inc.; Oracle; IBM Corporation; Nutanix; Cisco Systems, Inc.; Huawei Technologies Co., Ltd.; and Fujitsu are among the key players operating in the software defined data center market. The market report provides detailed market insights, which help the key players strategize growth in coming years.
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Component, Type, Enterprise Size, Industry Vertical, and Geography
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
This text is related
to country scope.
The List of Companies
- Cisco Systems, Inc.
- Citrix Systems, Inc.
- Fujitsu Ltd.
- Hitachi, Ltd.
- Hewlett Packard Enterprise
- Huawei Technologies Co. Ltd.
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- VMware, Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
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- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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