The software defined data center market size has grown significantly in recent years, catapulting from $75.85 billion in 2024 to an anticipated $91.35 billion in 2025, marking a compound annual growth rate (CAGR) of 20.4%. This growth can be attributed to the influence of industry standards and vendor offerings, along with an increasing demand for streamlined operations, scalability, and cost efficiency. Over the next few years, the market size is expected to grow exponentially to approximately $226.29 billion in 2029, predicting a CAGR of 25.5%. The growth during this forecast period is anticipated due to vendor innovations, increasing reliance on edge computing and IoT, continued emphasis on digital transformations, and higher demand for automation and orchestration.
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What Are The Key Growth Drivers For The Software Defined Data Center Market?
Significant market growth is driven by the escalating adoption of digitalization. This shift towards digitalization can be attributed to numerous factors including increased productivity, enhanced decision-making capabilities, operational cost reduction, and technological advancements, among others. As digitalization spreads, there will be a surge in the amount of data to be stored, creating a larger demand for data center services to manage these operations.
Which Are The Main Segments In The Software Defined Data Center Market?
1) By Type: Software Defined Computing (SDC), Software-Defined Storage (SDS), Software-Defined Data Center Networking (SDDCN), Automation And Orchestration
2) By Component: Hardware, Software, Services
3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large enterprises
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Government And Defense, Healthcare, Education, Retail, Manufacturing, Others Verticals
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Who Are The Major Players In The Software Defined Data Center Market?
Some of the major players operating in the software defined data center market include VMware Inc., Microsoft Corporation, Hewlett Packard Enterprise Company, Dell Technologies Inc., Oracle Corporation, Cisco Systems Inc., Citrix Systems Inc., International Business Machines Corporation, SAP SE, Hitachi Ltd., Fujitsu Ltd., NEC Corporation, Juniper Networks Inc., Western Digital Corporation, Nutanix, Red Hat Inc., Huawei Technologies Co. Ltd., Lenovo Group Limited, NetApp Inc., Pure Storage Inc., Tintri Inc., DataCore Software, Scale Computing, Pivot3, StratoScale, Coho Data Inc., Maxta Inc., Hedvig Inc., Diamanti Inc., and Robin Systems Inc.
What Are The Key Trends In The Software Defined Data Center Market?
A major emerging trend in this market is the growing adoption of hyper-scale cloud. Hyper-scale refers to the massive scale in computing, typically used for big data or cloud computing. For example, in December 2023, Rackspace Technology, Inc., a US-based cloud computing company, launched its SDDC (Software Defined Data Center) Enterprise and Business solutions for SAP, powered by VMware’s virtualized infrastructure.
Which Regions Are Dominating The Software Defined Data Center Market?
In 2024, North America held the largest share in the software defined data center market while Asia-Pacific is expected to experience the fastest growth in the forecast period. The regions covered in the market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
What Does The Software Defined Data Center Market Report 2025 Offer?
The Software Defined Data Center Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities. A software defined data center (SDDC) refers to a data storage facility where all elements – networking, storage, CPU, and security – are virtualized and offered as a service. The market research report identifies essential market definitions and provides in-depth analysis to inform intelligent business decisions.
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