Software Defined Data Center Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Software-Defined Data Center (SDDC) Market Size accounted for USD 60.5 Billion in 2022 and is projected to achieve a market size of USD 479.9 Billion by 2032 growing at a CAGR of 23.2% from 2023 to 2032.

Software-Defined Data Center Market Report Key Highlights

• Global software-defined data center market revenue is expected to increase by USD 479.9 Billion by 2032, with a 23.2% CAGR from 2023 to 2032
• North America region led with more than 41% of software-defined data center market share in 2022
• Asia-Pacific Software-Defined Data Center market growth will record a CAGR of over 24% from 2023 to 2032
• SDDCs' top benefits include increased IT agility and flexibility (69% of respondents), greater security (61%), and cost savings (56%)
• By 2025, the adoption rate of SDDCs is expected to increase by 78%
• According to a VMware study, 98% of respondents claimed they have seen benefits from establishing an SDDC, with enhanced agility being the most frequently cited benefit
• Increasing need for data center automation and agility, drives the software-defined data center market size

A software-defined data center (SDDC) is a data center architecture that virtualizes and abstracts all of the underlying hardware resources (such as storage, networking, and computing) and manages them through software. The SDDC approach enables greater flexibility, scalability, and automation, making it easier to manage and optimize data center resources. This is achieved by utilizing software-defined networking (SDN), software-defined storage (SDS), and software-defined computing (SDC) to abstract hardware resources and pools them into logical resources that can be managed and provisioned through software.

The SDDC market size is expected to grow significantly in the coming years. The increasing adoption of cloud computing and the need for scalable, flexible, and efficient data centers are the major factors driving the growth of the SDDC market. Additionally, the growing demand for automation and the need for better management and optimization of data center resources are also driving market growth. The SDDC market is also seeing significant growth due to the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. AI and ML require massive amounts of data to be processed and analyzed in real time, which requires highly scalable and efficient data center infrastructures. The SDDC approach provides the necessary flexibility, scalability, and automation to enable these technologies to function efficiently, which is driving the demand for SDDC solutions in the market.

Global Software-Defined Data Center Market Trends

Market Drivers

• Growing adoption of cloud computing
• Increasing demand for automation
• Better management and optimization of data center resources
• Increasing demand for virtualization
• Rapid growth of big data analytics
• Growing adoption of artificial intelligence and machine learning

Market Restraints

• Security concerns
• Complexity of implementation
• High initial investment

Market Opportunities

• Increasing adoption of hybrid cloud infrastructure
• Growing demand for edge computing
• Emergence of 5G technology

Software-Defined Data Center Market Report Coverage

Software-defined data center (SDDC) also called virtual data center (VDC) is a term related to marketing that aims at the extension of the concept of virtualization like pooling, abstraction, and automation of all resources of data-center, and services to achieve ITaaS (IT as a service). A system where all the elements of infrastructure such as storage, networking, security, and CPU are virtualized and deployed as a service is called a software-defined data center. SDDC is cast away to combiners and data-center builders other than towards tenants, as ITaaS represents an output of SDDC. To tenants, software awareness in infrastructure is invisible. Data storage resources are software-based where all other resources including networking, security, and storage are combined in a software-defined data center. A user portal is provided by SDDC which uses web-sever and is responsible for the delivery of data. It helps its customers to get access to information using the cloud and virtualization. Also, it is responsible for providing advanced data management which is, in turn, responsible for creating a backup of the data.

All those providing increased security at less price, scalability, improved data center agility, and management of operation of the data center are responsible for the growth of SDDC. Organizations involved in retail, telecom, IT, and healthcare have faced abrupt growth in big data and hence it has become important for them to adopt SDDC. Hence, the market of SDDC is expected to reach a new level in the field of automated data centers involving SDDC. The key challenge in this is data security. Various verticals such as IT and telecom, healthcare, government, and retail have adopted SDDCs. Other industry segments such as media, entertainment, education transportation, and utilities are supporting the implementation of SDDCs. The government and BFSI sector is thought to be the one who will lead the market of SDDCs because of their abrupt increase in big data and increased demand for all software-related services and data storage.

Software-Defined Data Center Market Segmentation

The global software-defined data center market segmentation is based on component, type, deployment, industry, and geography.

Software-Defined Data Center Market By Component

• Solution
• Service

According to our software-defined data center industry analysis, the solution segment held the largest market share in 2022. SDDC solutions offer a more efficient and cost-effective way of managing this data growth compared to traditional data center architectures. With the explosion of data generated by businesses and individuals, the need for scalable and flexible data center solutions is becoming more critical. Moreover, the growing popularity of edge computing and IoT devices is also contributing to the expansion of the SDDC market. As the number of connected devices and endpoints continues to increase, SDDC solutions are becoming an essential infrastructure component for managing and processing data from these devices.

Software-Defined Data Center Market By Type

• Software Defined Compute
• Software Defined Storage
• Software Defined Networking
• Others

In terms of type, the software-defined compute segment is leading the market in 2022. is a critical component of the software-defined data center (SDDC) market. This segment refers to the use of virtualization technologies to abstract and pool compute resources such as processors, memory, and storage. The software-defined compute segment is expected to experience significant growth in the coming years due to several factors. One factor driving the growth of the software-defined compute segment is the increasing demand for more flexible and scalable data center solutions. Traditional data centers rely on physical hardware and fixed configurations, which can limit their ability to adapt to changing business needs. In contrast, software-defined compute solutions enable businesses to dynamically allocate compute resources on demand, reducing costs and increasing flexibility.

Software-Defined Data Center Market By Deployment

• Public
• Hybrid
• Private

According to the software-defined data center market forecast, the public segment is expected to experience significant growth in the coming years. One factor driving the growth of the public deployment segment is the increasing adoption of cloud computing. Cloud computing has become an essential infrastructure component for businesses of all sizes, as it enables organizations to rapidly deploy and scale their applications and services. Public cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) offer a range of SDDC solutions that can be deployed on their cloud infrastructure, making it easier for businesses to adopt SDDC technologies.

Software-Defined Data Center Market By Industry

• IT & Telecom
• Healthcare
• Government
• Manufacturing
• Retail
• BFSI
• Others

In terms of the industry, the IT & telecom segment dominates the software-defined data center market in 2022. One factor driving the growth of the IT & telecom segment is the increasing demand for more flexible and scalable data center solutions. IT and telecom companies operate some of the largest data centers in the world, and they are under constant pressure to optimize their infrastructure to reduce costs and increase efficiency. SDDC solutions enable these companies to abstract and pool their infrastructure resources, making it easier to manage and scale their data centers.

Software-Defined Data Center Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)