According to a new report, published by KBV research, The Global Software Defined Data Center Market size is expected to reach USD 534.75 billion by 2032, rising at a market growth of 29.3% CAGR during the forecast period.
A Software Defined Data Center (SDDC) represents a transformative shift in how enterprises build, manage, and scale their IT infrastructure. In an SDDC, traditional data-center resources — including compute (servers/CPUs), storage, networking, and other infrastructure services — are abstracted from physical hardware, pooled, virtualized, and delivered as software-defined services.

The Large Enterprises segment is leading the Global Software Defined Data Center Market by Organization Size in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $338.67 billion by 2032, growing at a CAGR of 28.9 % during the forecast period. Globally, large enterprises are major adopters of software-defined data center technologies as they seek to modernize legacy infrastructure, improve operational efficiency, and support rapidly expanding digital ecosystems. Multinational corporations, telecom operators, financial institutions, and government bodies increasingly rely on software-defined compute, storage, and networking to manage massive data volumes, streamline IT operations, and enhance flexibility across hybrid and multi-cloud environments.
The Solution segment led the Global Software Defined Data Center Market by Component in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $337,829.1 million by 2032, growing at a CAGR of 28.8 % during the forecast period. Globally, software-defined data center solutions form the core of modern IT transformation as organizations shift toward agile, programmable, and scalable infrastructure models. Enterprises across regions adopt software-defined compute, storage, and networking solutions to centralize management, reduce hardware dependency, and automate critical processes within hybrid and multi-cloud environments. These solutions enable high-performance data handling, support real-time analytics, and provide flexible resource allocation that meets the demands of rapidly expanding digital services.
The Public segment is registering maximum revenue share in the Global Software Defined Data Center Market by Deployment in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $201,176.1 million by 2032, growing at a CAGR of 28.7 % during the forecast period. Across the globe, public cloud–based software-defined data center deployments continue to expand as organizations increasingly adopt cloud-first strategies to improve scalability, reduce infrastructure costs, and accelerate digital service delivery. Enterprises rely on public deployments to support high-volume applications, remote work environments, real-time analytics, and globally distributed customer platforms.
The Software-Defined Networking (SDN) segment is leading the Global Software Defined Data Center Market by Type in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $210,075.5 million by 2032, growing at a CAGR of 28.5 % during the forecast period. Globally, software-defined networking has become a core component of modern data center transformation as organizations transition to programmable, automated, and highly responsive digital infrastructure. SDN provides centralized control over network traffic, enables dynamic reconfiguration, and enhances the performance of cloud-native applications across distributed environments. Enterprises use SDN to improve network agility, support large-scale virtualization, and ensure consistent security policies across hybrid and multi-cloud architectures.
The IT & Telecom segment is registering Maximum revenue share in the Global Software Defined Data Center Market by End Use in 2024, growing at a CAGR of 27.1 % during the forecast period. Globally, the IT and telecom sector plays a pivotal role in driving the adoption of software-defined data centers as organizations expand their digital infrastructure to support cloud computing, 5G networks, and high-capacity data delivery. Telecom operators rely on software-defined architectures to virtualize network functions, automate traffic management, and enhance service agility across large and complex digital ecosystems. IT service providers use software-defined solutions to streamline infrastructure operations, reduce hardware dependency, and enable rapid deployment of cloud-native applications.
The North America region dominated the Global Software Defined Data Center Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $205,666.9 million by 2032. The Europe region is experiencing a CAGR of 28.8% during (2025 - 2032). Additionally, The Asia Pacific region would exhibit a CAGR of 30.1% during (2025 - 2032).
By Organization Size
By Component
By Deployment
By Type
By End Use
By Geography