Virtual Machine Market

Global Virtual Machine Market Size (2024 to 2029)

The global virtual machine (VM) market was worth USD 3.82 billion in 2023, and it is predicted to grow from USD 3.93 billion to USD 4.53 billion by 2029, with a CAGR of 3.49% between 2024 and 2029.

A software implementation of a computer machine is defined as a virtual machine (VM). It creates a distinct replica of a genuine computer that allows users to do activities in the same way that they would on a real computer. It is a piece of software that can not only simulate the behavior of a different computer but also conduct functions such as launching programs and apps on that computer. These machines are used to install one operating system [OS] on top of another operating system [OS] on the same computer. These machines can be set up via firmware, hardware, software, or a mix of these methods. Organizations can have a variety of virtual machines (VMs) running different operating systems and store them all on a single host machine, which can be monitored using a hypervisor. As a result of the rising complexity of modern computing systems as a result of tightly interacting hardware and software components, virtual machines (VMs) are gaining in popularity. Virtualization serves as an interconnection technique, allowing incompatible systems to communicate with one another.

MARKET DRIVERS

The rise in benefits such as data security against disaster and increased application utilization is likely to propel the virtual machine market forward in the foreseeable era. Furthermore, the virtual machine market is being driven by the convenience of use and simple maintenance replacements. Additionally, the market is expected to benefit from increased digitalization and continuous improvement in IT infrastructure.

MARKET RESTRAINTS

Issues with performance efficiency and productivity as a result of running many virtual machines on a single physical computer system are expected to stymie the virtual machine market's growth over the forecast period. Furthermore, the price efficiency to allow virtual machine sales would give additional potential prospects for market growth during the forecast period. However, the lack of isolation between different virtual machines may provide further difficulties to market expansion.

Impact of COVID-19 on the global virtual machine market

The COVID-19 pandemic has functioned as a stimulus for worldwide corporations to develop automation technologies, particularly in the domain of drones for monitoring and drug delivery. COVID-19's unparalleled economic impact on demand and supply, as well as its geopolitical and global consequences, will have an impact on the future of automation. In the post-COVID age, the coronavirus pandemic may drive improvements in automation, digitalization, and artificial intelligence (AI) in the vehicle sector, improving resilience to future pandemics. The COVID-19 pandemic has functioned as a stimulus for worldwide corporations to develop automation technologies, particularly in the domain of drones for monitoring and drug delivery. COVID-19's unparalleled economic impact on demand and supply, as well as its geopolitical and global consequences, will have an impact on the future of automation. In the post-COVID age, the coronavirus pandemic may drive improvements in automation, digitalization, and artificial intelligence (AI) in the vehicle sector, improving resilience to future pandemics.

REPORT COVERAGE

SEGMENTAL ANALYSIS 

Global Virtual Machine Market Analysis By Component

During the projected period, the Software sector is expected to dominate the market. The fact that VMs are software computers and that the installation of a computer machine may be done with the software will lead to a high reliance on software in the sector, which will lead to high demand for software, which will add to the segment's market share.

Global Virtual Machine Market Analysis By Product

During the projection period, the System virtual machines sector is expected to have a significant market share. System virtual machines have many advantages, such as the ability to run many OS environments in parallel on the same hardware while remaining isolated from one another. It can also give the instruction set architecture (ISA), which is slightly different from what an actual machine can deliver. The inclusion of these features in System virtual machines would increase the segment's market share.

Global Virtual Machine Market Analysis By Application

The market is expected to be dominated by large-scale businesses. Because major businesses have more resources than small and medium businesses, they are constantly focusing on infrastructural improvement to ensure improved productivity, which will lead to stronger demand for and use of virtual machines in these businesses.

The Small and Medium Enterprises [SME] segment, on the other hand, is expected to increase at a quicker rate. Despite having fewer resources than large-scale enterprises, due to the growing number of SMEs and increased competition to stay in business, these businesses are eager to follow the industry trend, which will result in the quick integration of virtual machines into their operations, contributing to the segment's growth rate. Furthermore, because SMEs have fewer organizational complications, it is easier for them to implement rapid infrastructure changes, which contributes to the segment's growth rate.

REGIONAL ANALYSIS 

The global virtual machine market was dominated by North America, followed by Europe. Due to the growing number of data centers and the region's booming IT industry, Asia Pacific is expected to have the fastest growth rates during the forecast period.

In 2020, the value of virtual machines in the United States will have increased by over 11.8% annually. Because of the presence of important virtual machines and cloud computing service vendors in the region, the United States is expected to be one of the most lucrative markets in North America throughout the projection period. As organizations continue to transfer their complete server virtualization setup to the virtual cloud, virtual machine use in the United States has climbed by 2.5%. Furthermore, rising demand, particularly from the healthcare and manufacturing sectors, has fueled the expansion of the virtual machine market in the United States.

The United Kingdom, as a G7 economy, is one of the most developed IT and related services markets in the world, and it is one of the most important global markets for cloud computing. As one of the most advanced global marketplaces for cloud computing, the United Kingdom has a sizable company ecosystem serving the primary market, such as data centers and cloud VMs. Cloud computing is a major driver of the UK's data-driven economy, with cloud-based virtual machine platforms, infrastructure, and services assisting firms in every industry and sector.

China is one of the major cloud computing marketplaces in the world. Alibaba, Tencent, and Huawei are among the companies best positioned to profit from the opportunities that exist in China. With cloud infrastructure spending expected to skyrocket, China will entice some major industry players. In addition, the Chinese government is committed to growing the cloud computing sector in the country, which presents significant prospects for virtual machine vendors. The Chinese government is always focused on cloud and associated ICT technologies to improve digital transformation, which will boost the Chinese market.

The Indian cloud computing business is thriving, with all of the main global cloud providers such as Amazon, Microsoft, IBM, Google, and others all having a presence in the nation. Small and medium-sized businesses, as well as large corporations, are actively shifting to cloud-based virtualization technologies throughout the country. During the forecast period, the manufacturing sector in the Indian virtual machine market is expected to increase at a CAGR of 35%.

KEY MARKET PLAYERS

Companies playing a key role in the global virtual machine market include Oracle (US), IBM (US), Red Hat Software (US), Microsoft Corp (US), Citrix Systems (US), HP (US), Amazon Web Services Inc (US), Huawei Technologies (China), Inspur (China) and New H3C Technologies Co Ltd (China).  VMware is the leading company in the global virtual machine market.

RECENT HAPPENINGS IN THE MARKET

• Vodafone announced plans to deploy VMware's entire Telco Cloud Platform to handle all workloads on its 5G standalone core networks across the operator's European countries, marking a significant expansion in its use of VMware systems.
• International Business Machines Corp and Amazon.com Inc's Amazon Web Services established a partnership to expand the reach of a collection of tools used by oil firms to manage various types of data. Oil businesses can employ oil-industry cloud data tools in their privately-held data centers within their countries thanks to IBM's OpenShift technology.
• Oracle, a cloud service provider, has partnered with Bharti Airtel's data center unit in an expansion effort that would expand the company's customer base in one of its fastest-growing areas.
• Red Hat has released version 8.5 of its main-line branch of Red Hat Enterprise Linux (RHEL), which improves containerization, predictive analytics, and multi-cloud support.

DETAILED SEGMENTATION OF THE GLOBAL VIRTUAL MACHINE MARKET INCLUDED IN THIS REPORT

This research report on the global virtual machine market has been segmented and sub-segmented based on component, product, application and region.

By Component

• Hardware
• Software
• Combination

By Product

• Process VM
• System VM

By Application

• Large
• SMEs

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa