According to market research report "Software-Defined Data Center Market by Component (Hardware, Software, and Services), Type (Software-Defined Compute, Software-Defined Storage, and Software-Defined Data Center Networking), Organization Size, Vertical, and Region – Global Forecast to 2025", size is projected to grow from USD 43.7 billion in 2020 to USD 120.3 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 22.4% during the forecast period. The demand for SDDC is driven by the growing need for enhancing infrastructure resiliency and service uptime, cost benefits associated with network automation and reduced energy usage, and reduced dependency on legacy hardware and hardware vendors.

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The hardware segment to hold a larger market size during the forecast period

The hardware segment is projected to contribute majorly to the market among the components, while the services segment is projected to witness a higher growth rate during the forecast period. This growth these segments are supported by the rising installations of new SDDCs that require  underlying servers for enabling proper facility functionality along with growing need for upgrades and maintenance of existing solutions

Managed services segment to hold a larger market size in 2020

The managed services segment is expected to majorly contribute to the market, while the support and maintenance segment is projected to witness a higher growth rate during the forecast period. This growth of managed services is supported by the growing focus of organizations to achieve optimized workload management with greater agility, speed, and security without having the need to worry about hassles associated with training, integration and deployment, and support and maintenance.

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North America to hold the largest market size during the forecast period

The North American SDDC market is already mature for SDDC systems, and a significant number of new installations of SDDC and upgrade of the existing data center infrastructure systems have taken place to date. Currently, the US holds the highest share in the SDDC market as it is home to large telecom giants, well-established suppliers, as well as end-user industries that continuously adapt to newer technologies for improved business productivity and work efficiency. Furthermore, most of the leading market players, such as HPE, Dell Technologies, Cisco, Oracle, and IBM, have their headquarters in this region. North America, in the coming years, is estimated to continue to lead the SDDC market.

Market Players

Market players profiled in this report include VMware (US), Microsoft (US), HPE (US), Dell Technologies (US), Oracle (US), IBM (US), Nutanix (US), Cisco (US), Huawei (China), Fujitsu (Japan), Juniper Networks (US), Commvault (US), Arista Networks (US), DataCore Software (US), Scality (US), SUSE (Germany), NetApp (US), Citrix (US), Nuage Networks [Nokia] (Finland), Lenovo (China), Stratoscale (US), Lumina Networks (US), HiveIO (US), TidalScale (US), DriveNets (US), Portworx (US), Lightbits (US), Arrcus (US), Vexata (US), Hammerspace (US), and Cohesity (US). These players offer various SDDC solutions to cater to the demands and needs of the market. Major growth strategies are adopted by the players including partnerships, collaborations and agreements, and new product launches/product enhancements.

 

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