Software Defined Data Center Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

The software defined data center market is expected to grow from US$ 55.32 billion in 2022 to US$ 186.96 billion by 2031; it is estimated to grow at a CAGR of 22.5% from 2022 to 2031.

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.

Strategic Insights

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.

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 2031.

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.

REGIONAL FRAMEWORK

Software Defined Data Center Market Report Analysis

MARKET PLAYERS

Software Defined Data Center Market Report Scope