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Cloud Computing Adoption Drives Growth In The Virtual Machine Driving Market Acceleration in the Virtual Machine Industry, 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsHow Large Will the Virtual Machine Market Size By 2025?
Over the past few years, the size of the virtual machine market has experienced significant expansion. It is projected to rise from $20.26 billion in 2024 to $23.98 billion in 2025, boasting a compound annual growth rate (CAGR) of 18.3%. The historic period's progression is due to a surge in server consolidation, enhanced legacy application support, improved resource efficiency, and cost savings, along with advancements in the testing environment.
How Big Is the Virtual Machine Market Size Expected to Grow by 2029?
The market size of the virtual machine is projected to witness swift expansion in the upcoming years, reaching a value of $43.26 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 15.9%. The elevated growth anticipated in the forecast period can be credited to the escalating adoption of cloud computing, expansion of edge computing, rise in hybrid and multi-cloud architectures, and growing security and compliance demands. Foreseen trends within this period encompass the integration of serverless computing, optimization of AI and machine learning, improved security functionalities, and edge virtualization for IOT.
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Which Key Market Drivers Powering Virtual Machine Market Expansion and Growth?
The surge in the uptake of cloud computing is likely to stimulate the expansion of the virtual machine market. The integration of cloud computing technologies and services into an organization's IT systems and tasks is what constitutes this uptake. The reasons for this include cost reduction, scalability, security, and the convenience of accessing data and services remotely. Virtual machines harness cloud computing to offer on-demand, expandable computing resources and let multiple isolated environments function on the same physical hardware, hence enhancing efficiency and flexibility. For example, AAG IT Support Service, a US-based digital transformation service vendor, revealed in reports from June 2024 that in 2022, the revenue from public cloud platform-as-a-service (PaaS) reached $111 billion. Predictions also suggest that by 2029, the cloud market will be valued at $376.36 billion. It is forecasted that by 2025, cloud servers worldwide will store approximately 200 zettabytes (2 billion terabytes) of data. As a result, the rapid uptake of cloud computing is fuelling the advancement of the virtual machine market.
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Which Fast-Growing Trends Are Poised to Disrupt the Virtual Machine Market?
Leading entities in the virtual machine market are focusing on the development of novel and advanced solutions such as Azure HX and HBv4 virtual machines for high-performance computing (HPC) to ensure their dominance in the marketplace. These machines are designed for a range of HPC tasks, encompassing computational fluid dynamics, finite element analysis, rendering, molecular dynamics, and financial risk analysis. For example, in November 2022, US technology firm Microsoft Corporation unveiled Azure HX and HBv4. The HBv4 series shines in multiple HPC applications from climate modeling to financial analysis. It provides substantial performance improvements with features like up to 176 AMD EPYC 9004-series (Genoa) CPU cores, 688 GB of RAM, and 400 Gb/s NDR InfiniBand from NVIDIA Networking. Conversely, the HX-series VMs provide substantial performance upgrades at a lower expense, powered by the latest 4th Gen AMD EPYC processors combined with 400 Gigabit NVIDIA Quantum-2 InfiniBand. In addition to this, the series enhances MPI collective offload and routing abilities with 400 gigabit InfiniBand, is customized for chip production, and delivers unmatched performance and cost-effectiveness for HPC customers.
What Are the Emerging Segments in the Virtual Machine Market?
The virtual machine market covered in this report is segmented -
1) By Type: System Virtual Machine, Process Virtual Machine
2) By Application: Small Scale Enterprises, Medium Scale Enterprises, Large Scale Enterprises
3) By Industry: Banking, Financial Services, And Insurance (BFSI), Information Technology And Telecommunications, Retail, Healthcare, Manufacturing, Government, Other Industries
Subsegments:
1) By System Virtual Machine: Type 1 Hypervisors (Bare-Metal), Type 2 Hypervisors (Hosted)
2) By Process Virtual Machine: Java Virtual Machine (JVM), NET Common Language Runtime (CLR), Other Language-Specific Virtual Machines
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Who Are the Global Leaders in the Virtual Machine Market?
Major companies operating in the virtual machine market are Amazon.com Inc., Google LLC, Microsoft Corporation, Alibaba Group Holding Limited, Dell Technologies Inc., Huawei Technologies Co. Ltd., Lenovo Group Limited, accenture* PLC, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Fujitsu Limited, The Hewlett Packard Enterprise Company, Vmware LLC, NetApp Inc., Juniper Networks Inc., Red Hat Inc., Rackspace Technology Inc., Nutanix Inc., Docker Inc., Scale Computing, CloudSimple Inc., Ncomputing Co. Ltd., Proxmox Server Solutions Gmbh, Alludo - Cascade Parent Limited
Which are the Top Profitable Regional Markets for the Virtual Machine Industry?
North America was the largest region in the virtual machine market in 2024. The regions covered in the virtual machine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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