Software Defined Data Center Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component, By Type, By Deployment, By Industry, By Region & Competition, 2021-2031F

Description

The Global Software Defined Data Center Market is projected to expand significantly, rising from a valuation of USD 46.78 billion in 2025 to USD 156.38 billion by 2031, reflecting a compound annual growth rate of 22.28%. This architectural model entails the virtualization of all infrastructure components-such as networking, storage, CPU, and security-delivering them as a service. The industry is largely driven by the urgent demand for scalable IT frameworks and the increasing uptake of hybrid cloud environments that depend on seamless automation. Additionally, the proliferation of data-heavy workloads requiring efficient, flexible resource allocation fuels this expansion. As noted by AFCOM in 2024, 56% of respondents intended to implement AI-capable solutions, a trend that underscores the necessity for the agile, high-density infrastructure inherent in software-defined designs.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 46.78 Billion
Market Size 2031	USD 156.38 Billion
CAGR 2026-2031	22.28%
Fastest Growing Segment	Hybrid
Largest Market	Asia Pacific

Despite these positive indicators, the market confronts a major obstacle in the form of complex integration with legacy systems. Transitioning to this model frequently demands specialized technical expertise and introduces potential security vulnerabilities associated with a centralized control plane. These factors can discourage risk-averse organizations from undertaking a complete overhaul of their physical infrastructure, thereby impeding broader adoption.

Market Driver

The rapid shift toward hybrid and multi-cloud architectures serves as a key driver for the Global Software Defined Data Center Market, creating a need for unified infrastructure management. With organizations distributing their workloads across on-premises sites and various public cloud platforms, the challenge of managing these fragmented environments grows considerably. Software-defined architectures address this by abstracting hardware to create a centralized control plane, allowing for policy-based automation and smooth workload movement between private and public clouds. This trend is confirmed by Flexera's "2024 State of the Cloud Report" from March 2024, which notes that 89% of organizations use multi-cloud strategies, emphasizing the essential need for the virtualization and orchestration features that SDDC solutions offer to ensure consistency.

Simultaneously, the rising integration of Artificial Intelligence and Machine Learning workloads is forcing data centers to become more agile and high-density. Since AI applications require immense and variable computational power that static hardware cannot efficiently handle, SDDC frameworks are crucial for the dynamic allocation of resources, including GPU virtualization. This capability ensures infrastructure can scale instantly for model training and inference tasks. This shift is prompting major strategic adjustments, as highlighted by Cisco's July 2024 "Global Networking Trends Report," where 89% of IT professionals indicated plans to deploy AI-ready data centers within two years. Furthermore, Hitachi Vantara reported in 2024 that IT leaders anticipate investments in AI, processing power, and data storage will more than double by late 2026.

Market Challenge

A major barrier to market growth is the difficulty of integrating Software Defined Data Center architectures with legacy systems. Conventional infrastructure typically functions within rigid, hardware-focused silos that clash with the flexible, virtualized character of SDDC. Transitioning from these entrenched legacy environments necessitates substantial reconfiguration, which brings about considerable financial costs and operational risks. Consequently, organizations are often forced to manage unwieldy hybrid environments, which postpones the decommissioning of physical hardware and diminishes the immediate return on investment for software-defined technologies.

Moreover, this complex migration requires a workforce skilled in both maintaining legacy systems and implementing modern virtualization strategies-talent that is currently in short supply. Without access to such expertise, companies struggle to carry out the necessary infrastructure overhauls. The Uptime Institute noted in 2024 that 71% of data center operators faced a shortage of qualified staff for critical operations. This severe skills gap exacerbates integration difficulties, causing risk-averse enterprises to delay modernization efforts and ultimately hindering the expansion of the global market.

Market Trends

The incorporation of Artificial Intelligence for self-healing operations is transforming SDDC management, moving the focus from reactive troubleshooting to predictive maintenance. This trend entails embedding machine learning algorithms within the control plane to constantly monitor system health and automatically address anomalies before performance is affected, rather than simply hosting external AI workloads. By adopting AIOps, software-defined architectures can dynamically adjust resources and fix network bottlenecks in real-time, which greatly lowers operational overhead and downtime. Highlighting this shift, Cisco's "2024 Global Networking Trends Report" from May 2024 indicates that 60% of IT professionals plan to deploy AI-driven predictive automation to streamline network operations over the next two years.

At the same time, the rise of Green SDDC is making sustainable energy management a core architectural priority rather than an afterthought. Facing increasing pressure to lower carbon footprints, data centers are utilizing software-defined solutions to enhance power usage effectiveness (PUE) via automated cooling controls and intelligent workload placement. This strategy leverages virtualization to optimize hardware utilization, thereby reducing energy waste and adhering to corporate environmental goals. This shift is supported by Nutanix's March 2024 "Enterprise Cloud Index," which found that 98% of organizations back sustainability initiatives, with over half of the respondents modernizing their IT infrastructure specifically to improve environmental outcomes.

Key Market Players

Microsoft Corporation
VMware, Inc.
Hewlett Packard Enterprise Development LP
Dell EMC
Oracle Corporation
Nutanix, Inc.
Cisco Systems, Inc.
Huawei Technologies Co., Ltd.
IBM Corporation
Citrix Systems, Inc

Report Scope

In this report, the Global Software Defined Data Center Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Software Defined Data Center Market, By Component

Solution
Services

Software Defined Data Center Market, By Type

Software Defined Compute
Software Defined Networking
Software Defined Storage
Others

Software Defined Data Center Market, By Deployment

Public
Private
Hybrid

Software Defined Data Center Market, By Industry

IT & Telecommunication
Government
Healthcare
Manufacturing
BFSI
Retail
Others

Software Defined Data Center Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Software Defined Data Center Market.

Available Customizations:

Global Software Defined Data Center Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Software Defined Data Center Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Component (Solution, Services)
- 5.2.2. By Type (Software Defined Compute, Software Defined Networking, Software Defined Storage, Others)
- 5.2.3. By Deployment (Public, Private, Hybrid)
- 5.2.4. By Industry (IT & Telecommunication, Government, Healthcare, Manufacturing, BFSI, Retail, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Software Defined Data Center Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Component
- 6.2.2. By Type
- 6.2.3. By Deployment
- 6.2.4. By Industry
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Software Defined Data Center Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Component
    - 6.3.1.2.2. By Type
    - 6.3.1.2.3. By Deployment
    - 6.3.1.2.4. By Industry
- 6.3.2. Canada Software Defined Data Center Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Component
    - 6.3.2.2.2. By Type
    - 6.3.2.2.3. By Deployment
    - 6.3.2.2.4. By Industry
- 6.3.3. Mexico Software Defined Data Center Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Component
    - 6.3.3.2.2. By Type
    - 6.3.3.2.3. By Deployment
    - 6.3.3.2.4. By Industry

7. Europe Software Defined Data Center Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Component
- 7.2.2. By Type
- 7.2.3. By Deployment
- 7.2.4. By Industry
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Software Defined Data Center Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Component
    - 7.3.1.2.2. By Type
    - 7.3.1.2.3. By Deployment
    - 7.3.1.2.4. By Industry
- 7.3.2. France Software Defined Data Center Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Component
    - 7.3.2.2.2. By Type
    - 7.3.2.2.3. By Deployment
    - 7.3.2.2.4. By Industry
- 7.3.3. United Kingdom Software Defined Data Center Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Component
    - 7.3.3.2.2. By Type
    - 7.3.3.2.3. By Deployment
    - 7.3.3.2.4. By Industry
- 7.3.4. Italy Software Defined Data Center Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Component
    - 7.3.4.2.2. By Type
    - 7.3.4.2.3. By Deployment
    - 7.3.4.2.4. By Industry
- 7.3.5. Spain Software Defined Data Center Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Component
    - 7.3.5.2.2. By Type
    - 7.3.5.2.3. By Deployment
    - 7.3.5.2.4. By Industry

8. Asia Pacific Software Defined Data Center Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Component
- 8.2.2. By Type
- 8.2.3. By Deployment
- 8.2.4. By Industry
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Software Defined Data Center Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Component
    - 8.3.1.2.2. By Type
    - 8.3.1.2.3. By Deployment
    - 8.3.1.2.4. By Industry
- 8.3.2. India Software Defined Data Center Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Component
    - 8.3.2.2.2. By Type
    - 8.3.2.2.3. By Deployment
    - 8.3.2.2.4. By Industry
- 8.3.3. Japan Software Defined Data Center Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Component
    - 8.3.3.2.2. By Type
    - 8.3.3.2.3. By Deployment
    - 8.3.3.2.4. By Industry
- 8.3.4. South Korea Software Defined Data Center Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Component
    - 8.3.4.2.2. By Type
    - 8.3.4.2.3. By Deployment
    - 8.3.4.2.4. By Industry
- 8.3.5. Australia Software Defined Data Center Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Component
    - 8.3.5.2.2. By Type
    - 8.3.5.2.3. By Deployment
    - 8.3.5.2.4. By Industry

9. Middle East & Africa Software Defined Data Center Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Component
- 9.2.2. By Type
- 9.2.3. By Deployment
- 9.2.4. By Industry
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Software Defined Data Center Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Component
    - 9.3.1.2.2. By Type
    - 9.3.1.2.3. By Deployment
    - 9.3.1.2.4. By Industry
- 9.3.2. UAE Software Defined Data Center Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Component
    - 9.3.2.2.2. By Type
    - 9.3.2.2.3. By Deployment
    - 9.3.2.2.4. By Industry
- 9.3.3. South Africa Software Defined Data Center Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Component
    - 9.3.3.2.2. By Type
    - 9.3.3.2.3. By Deployment
    - 9.3.3.2.4. By Industry

10. South America Software Defined Data Center Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Component
- 10.2.2. By Type
- 10.2.3. By Deployment
- 10.2.4. By Industry
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Software Defined Data Center Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Component
    - 10.3.1.2.2. By Type
    - 10.3.1.2.3. By Deployment
    - 10.3.1.2.4. By Industry
- 10.3.2. Colombia Software Defined Data Center Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Component
    - 10.3.2.2.2. By Type
    - 10.3.2.2.3. By Deployment
    - 10.3.2.2.4. By Industry
- 10.3.3. Argentina Software Defined Data Center Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Component
    - 10.3.3.2.2. By Type
    - 10.3.3.2.3. By Deployment
    - 10.3.3.2.4. By Industry

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Software Defined Data Center Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Microsoft Corporation
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. VMware, Inc.
15.3. Hewlett Packard Enterprise Development LP
15.4. Dell EMC
15.5. Oracle Corporation
15.6. Nutanix, Inc.
15.7. Cisco Systems, Inc.
15.8. Huawei Technologies Co., Ltd.
15.9. IBM Corporation
15.10. Citrix Systems, Inc