The Global Virtual Machine Market size is expected to reach $30.3 billion by 2030, rising at a market growth of 15.8% CAGR during the forecast period.
Virtual machines allow for the efficient scaling of IT infrastructure to accommodate growing network demands, ensuring that telecom services remain responsive to the needs of consumers and businesses. Consequently, the telecommunications & ITES segment would generate approximately 20.86% share of the market by 2030. This consolidation results in cost savings, reduced energy consumption, and a more efficient utilization of resources in data centre environments.
The major strategies followed by the market participants are product launch as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November 2023, Parallels Inc., a software development company, has launched the Parallels Desktop extension for Visual Studio Code. This extension will allow developers to manage a wide variety of operations for their VMs and will meet demand for improved extensibility, smooth customization, and an easy-to-use interface. Additionally, it provides users with an integrated platform to manage Parallels desktop virtual machines, all within the familiar environment of Visual Studio Code (VS Code). In November 2023, Microsoft Azure, a cloud computing platform of Microsoft Corporation, unveiled an AI-optimized VM series featuring AMD’s flagship MI300X GPU. The Virtual Machine series features an unprecedented 1.5 TB of high-bandwidth memory (HBM) that utilizes the power of AMD's MI300X GPU. Additionally, with large capacity and more bandwidth, users can process large models faster, using fewer GPUs.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google, Inc. are the forerunners in the Market. In February 2024, Microsoft Corporation, an IT company, has launched Azure virtual machines in all Azure for China regions, including China East, China East 2, China East 3, China North, China North 2, and China North 3. Using Azure VMs allows users to improve security by starting up in a known and trusted environment, and it helps reduce persistent malware such as boot kits and rootkits. Moreover, it enables features like Credential Guard and virtualization-based security, as well as virtual Trusted Platform Modules (vTPM), which are necessary prerequisites for domain controllers. And Companies such as Amazon.com, Inc. Oracle Corporation, VMware, Inc. are some of the key innovators in Market.
Integrating containers with virtual machines enables organizations to adopt hybrid deployment strategies. By running containers within virtual machines, companies can achieve greater flexibility in managing workloads, allowing seamless transitions between on-premises VMs and cloud-based containerized environments. Therefore, the market is expanding significantly due to the containerization and integration with Kubernetes.
Cloud providers offer Infrastructure as a Service (IaaS) platforms, where virtual machines are fundamental building blocks. Organizations can deploy and manage VMs on these cloud platforms, taking advantage of on-demand computing resources without investing in and maintaining physical infrastructure. Thus, because of the cloud adoption and hybrid cloud strategies, the market is anticipated to increase significantly.
Licensing costs for virtualization solutions can constitute a substantial portion of an organization's IT budget. This financial burden may deter smaller businesses or those with limited resources from fully embracing virtualization technologies, slowing down overall market growth. Thus, high licensing costs can slow down the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
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Opportunities 
Challenges By type, the market is categorized into system virtual machine and process virtual machine. In 2022, the system virtual machine segment held the 66.86% revenue share in the market. Virtual machines provide a high isolation level between operating systems running on the same physical hardware. This ensures compatibility and reliability, accelerates the development lifecycle, and supports creating robust software products.
Based on organization size, the market is classified into large enterprises and SMEs. The large enterprises segment acquired a 33.77% revenue share in the market in 2022. Large enterprises often grapple with the complexity of managing diverse IT environments. Virtual machines simplify infrastructure management by providing centralized control and automation. This versatility allows large enterprises to address the varied needs of different departments and business units.
On the basis of vertical, the market is divided into BFSI, telecommunications & ITES, government & public sector, healthcare & life sciences, and others. In 2022, the BFSI segment dominated the market with 29.14% revenue share. This enhances operational efficiency, allowing BFSI organizations to focus on delivering financial services rather than dealing with intricate IT tasks.
Free Valuable Insights: Global Virtual Machine Market size to reach USD 30.3 Billion by 2030
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region acquired a 27.87 revenue share in the market. The Asia Pacific region has witnessed a surge in cloud adoption, with a significant reliance on virtualization technologies. Healthcare organizations in Asia Pacific leverage virtual machines to modernize their IT infrastructure. The telecommunications industry in Asia Pacific relies on virtual machines for NFV and the deployment of 5G networks.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 9.6 Billion |
| Market size forecast in 2030 | USD 30.3 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 15.8% from 2023 to 2030 |
| Number of Pages | 247 |
| Number of Tables | 350 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Organization Size, Vertical, Region |
| Country scope |
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| Companies Included | Amazon.com, Inc., Citrix Systems, Inc. (Cloud Software Group, Inc.), Hewlett Packard enterprise Company, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), IBM Corporation, Microsoft Corporation, Oracle Corporation, VMware, Inc. (Broadcom Inc.), Google LLC (Alphabet Inc.), Parallels Inc. (Cascade Parent Limited) |
By Type
By Organization Size
By Vertical
By Geography
This Market size is expected to reach $30.3 billion by 2030.
Containerization and integration with Kubernetes are driving the Market in coming years, however, High Licensing costs in virtual machines restraints the growth of the Market.
Amazon.com, Inc., Citrix Systems, Inc. (Cloud Software Group, Inc.), Hewlett Packard enterprise Company, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), IBM Corporation, Microsoft Corporation, Oracle Corporation, VMware, Inc. (Broadcom Inc.), Google LLC (Alphabet Inc.), Parallels Inc. (Cascade Parent Limited)
The expected CAGR of this Market is 15.8% from 2023 to 2030.
The SMEs segment is leading the Market, By Organization Size in 2022 there by, achieving a market value of $20.4 billion by 2030.
The North America region dominated the Market, By Region in 2022 there by, achieving a market value of $10.6 billion by 2030, growing at a CAGR of 15 % during the forecast period.
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