Connect with us

Technology

Data Center Virtualization Market to Reach $60.90 Billion by 2035 as Multi-Hypervisor and Kubernetes-Native Adoption Reshape Enterprise Infrastructure

Published

3 hours ago

on

DC Market Insights forecasts 7.43% CAGR through 2035; Kubernetes-native virtualization grows 21.29% annually while North America holds 40.6% of 2025 market value

LONDON, Oct. 7, 2026 /PRNewswire/ — The global Data Center Virtualization Market was valued at $29.75 billion in 2025 and is projected to reach $60.90 billion by 2035, expanding at a compound annual growth rate of 7.43%, according to a new study from DC Market Insights. The market is moving into a new phase in which platform diversification, licensing economics, Kubernetes-native infrastructure and higher demand for migration and managed services are reshaping how enterprises and data center operators deploy virtualized compute.

View the full report:  https://www.dcmarketinsights.com/report/data-center-virtualization-market 

$29.75B

$60.90B

7.43 %

40.6 %

2025 market size

2035 forecast

CAGR, 2025-2035

North America share

“The next decade of data center virtualization will be defined less by whether workloads are virtualized and more by how operators manage platform choice, licensing economics and mixed VM-container estates. Proprietary Type 1 hypervisors remain the largest segment today, but KVM-based and Kubernetes-native platforms together are projected to rise from 28.2% of market value in 2025 to 46.5% by 2035. That transition is creating a larger opportunity for migration, orchestration and managed services across enterprise, colocation and cloud environments.”

— Amit Jain, Senior Consultant, ICT & Emerging Technologies, DC Market Insights, and lead analyst of the report

Virtualized Core Growth and Licensing Changes Drive Market Expansion

DC Market Insights identifies three forces behind most of the market’s growth: expansion of the virtualized physical core base, higher software spend per core following licensing changes and a sustained wave of upgrade and migration projects. The firm models the installed virtualized core base rising from about 92.0 million in 2025 to 155.75 million by 2035. Server virtualization software alone is forecast to increase from $14.90 billion to $28.45 billion over the same period.

The report also finds that average server virtualization software spend increased from about $136 per core in 2023 to $162 per core in 2025. That price reset contributed significantly to the market’s 2025 value expansion. Looking ahead, growth becomes more volume- and service-driven as enterprises add cores, automate mixed infrastructure and outsource a larger share of ongoing operations.

Multi-Hypervisor Strategies Move Into the Mainstream

The competitive structure of virtualization is broadening. Proprietary Type 1 hypervisors accounted for 71.8% of market value in 2025, but their share is projected to decline to 53.5% by 2035. Open-source and KVM-based hypervisors are forecast to grow from $6.72 billion in 2025 to $16.83 billion by 2035, a 9.61% CAGR, while Kubernetes-native virtualization is the fastest-growing hypervisor category at 21.29% annually, increasing from $1.67 billion to $11.48 billion.

This shift does not imply the disappearance of established proprietary platforms. Instead, the report points to a more diversified operating model in which large buyers maintain core estates on established platforms while deploying new or less critical workloads on KVM-based, hyperconverged or Kubernetes-native alternatives. That architecture raises demand for cross-platform management, policy automation, skills, migration tooling and services.

Server Virtualization Software Retains the Largest Component Share

Server virtualization software represented 50.1% of global market revenue in 2025 at $14.90 billion. Professional services accounted for $4.15 billion, desktop and application virtualization for $4.66 billion, virtualization management and orchestration for $3.50 billion and managed services for $2.54 billion.

Managed services are projected to record the strongest growth among components, advancing at 11.70% annually to $7.67 billion by 2035. Virtualization management and orchestration also grows faster than the overall market, reaching $8.03 billion by 2035 as operators automate patching, policy enforcement, lifecycle management and capacity planning across several hypervisors.

On-Premises Enterprise Data Centers Lead, but Hosted and Edge Models Gain Share

On-premises enterprise data centers were the largest deployment segment in 2025 at $15.59 billion, or 52.4% of global spending. Colocation and hosted private cloud represented 23.6%, cloud service provider data centers 17.4% and edge and remote sites 6.6%. Edge and remote deployments are forecast to grow fastest at 11.90% annually, reaching $6.05 billion by 2035.

Large enterprises accounted for 69.3% of market value in 2025, while small and medium enterprises are projected to grow faster through hosted, managed and subscription-based offerings. Banking, financial services and insurance was the largest end-user vertical at 22.6% of spending, followed by IT and telecom. Healthcare is forecast to be the fastest-growing major vertical as hospitals virtualize clinical applications, shared workstations and data-intensive workloads.

North America Leads; Asia Pacific Gains the Most Share

North America led the market with $12.08 billion in 2025, representing 40.6% of global value, and is forecast to reach $22.42 billion by 2035. The region has the largest installed base of proprietary hypervisors and is therefore seeing a significant volume of licensing reviews, platform renewals and migration projects.

Europe held 27.8% of the market in 2025 at $8.27 billion, while Asia Pacific accounted for 23.4% at $6.96 billion. Asia Pacific is projected to reach $16.92 billion by 2035 at a 9.29% CAGR, gaining 4.4 percentage points of global share. The Middle East and Africa is the fastest-growing region at 9.79% annually, supported by new government, financial services and telecom infrastructure.

The United States was the largest country market at $10.77 billion in 2025, equal to 36.2% of global spending. China ranked second at $2.21 billion, followed by Germany at $1.75 billion. India is forecast to grow fastest among the major country markets at 13.49% annually through 2035.

Competitive Landscape Shifts Toward Platform Choice and Migration Economics

The report profiles 16 companies across server virtualization, desktop and application virtualization, management software and services. Broadcom (VMware) is estimated to lead the market with about 39% of 2025 value, while Broadcom, Microsoft and Citrix together account for approximately 58%. Other profiled competitors include Nutanix, Red Hat, Omnissa, Hewlett Packard Enterprise, Oracle, Proxmox Server Solutions, SUSE, Huawei, Scale Computing, Dell Technologies, IBM, Parallels and Canonical.

Recent developments reinforce the move toward broader platform choice. HPE made Morpheus VM Essentials generally available in May 2025, Omnissa announced Horizon support for Nutanix AHV, Broadcom made VMware Cloud Foundation 9.0 generally available in June 2025 and Proxmox released Proxmox VE 9.0 in August 2025. Nutanix reported fiscal 2026 revenue of $2.85 billion and more than 3,000 new customers, reflecting growing interest in alternative virtualization stacks.

Forecast Scenarios Put 2035 Market Between $51.28 Billion and $70.22 Billion

DC Market Insights’ base case places the market at $60.90 billion by 2035. A lower-growth scenario, built around faster switching to lower-cost platforms, flat spend per core after 2026 and slower core expansion, produces a $51.28 billion market. A high case, in which bundle pricing remains firm and managed services and edge deployments expand faster, places the market at $70.22 billion.

Kubernetes-native virtualization is a central structural variable in the forecast because it shifts value from the traditional hypervisor license toward container-platform subscriptions and integrated management. For buyers, that makes total cost of ownership, workload portability, governance and operational tooling increasingly important in platform selection.

Research Methodology

DC Market Insights built the market model bottom-up from annual cohorts of virtualized physical cores and concurrent hosted desktop users, with separate pricing curves for hypervisor and management software. Professional and managed services were then added as ratios of software spending. The model was split across five components, three hypervisor types, four deployment models, two organization sizes, seven verticals and five regions. Results were cross-checked against supplier disclosures, published licensing terms and country-level installed server and data center capacity estimates.

Get Free Report Sample – https://www.dcmarketinsights.com/report/data-center-virtualization-market 

Report author: Amit Jain, Senior Consultant, ICT & Emerging Technologies. Reviewed by: Deepti Agrawal, Senior Editor, Research.

Related Reports from DC Market Insights

Software-Defined Data Center MarketData Center Automation MarketData Center Orchestration MarketSoftware-Defined Networking (SDN) in the Data Center MarketAIOps for Data Center Management Market

Data Tools by DCMI – 

Data Center Map – Deal Tracker – PUE Calculator

About DC Market Insights

DC Market Insights is the data center research and consulting practice of Credence Research, founded in 2015. The firm sizes data center markets, develops forecasts to 2035 and advises investors, operators, vendors and governments on commercial due diligence, site selection, market entry, power strategy, market sizing and competitive intelligence. Its research spans the data center value chain across facilities, power, cooling, racks, cloud, AI compute, interconnection, software, services, storage, networking and energy.

Media and Research Contact

DC Market Insights
Email: sales@dcmarketinsights.com
United States: +1 628 262 7656
United Kingdom: +44 7453 598 606
Office: Tower C-1105, S 25, Akash Tower, Vishal Nagar, Pimple Nilakh, Pune, MH 411027, India
Web: www.dcmarketinsights.com

View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/data-center-virtualization-market-to-reach-60-90-billion-by-2035-as-multi-hypervisor-and-kubernetes-native-adoption-reshape-enterprise-infrastructure-302901519.html

Related Topics:
Continue Reading

Technology

AMAZON DRIVERS AT DBK1 JOIN TEAMSTERS AS NATIONWIDE ORGANIZING MOMENTUM GROWS

Published

30 minutes ago

on

October 7, 2026

By

Unionization Comes as Delivery Protection Act Gains Steam in New York City Council

NEW YORK, Oct. 7, 2026 /PRNewswire/ — Drivers at Amazon’s DBK1 Facility in Woodside, Queens, have organized with Teamsters Local 804, joining the growing ranks of Amazon drivers organizing with the Teamsters nationwide to demand better pay, health care, and job security at the e-retail giant.

The DBK1 drivers join hundreds of their co-workers who organized with the Teamsters last year. Together, they are taking on Amazon’s corrupt third-party “Delivery Service Partner” (DSP) business model, which Amazon uses to evade accountability and legal liability as it exploits workers.

Amazon Teamsters in New York City are also leading the fight to pass the Delivery Protection Act, legislation that would ban captive subcontracting for deliveries in the city and force companies to employ their drivers directly. The bill has supermajority support from the City Council and backing from the mayoral administration.

“Amazon created the DSP model to suppress workers’ rights and safety, including the right to form a union,” said Randy Korgan, Director of the Teamsters Amazon Division. “But Amazon has no answer for worker power and Teamsters solidarity. The drivers at DBK1 are joining together as we gear up to pass the Delivery Protection Act, and they will be indispensable in getting this crucial legislation across the finish line.”

“My co-workers and I have seen how scared Amazon is of the Delivery Protection Act, and it made us realize that we only have power if we join a union,” said LeAnn Rivera, a driver at DBK1 and new member of Local 804. “We are sick and tired of Amazon’s games. By joining the Teamsters, we have the power to take this company on. We can’t wait to join the fight.”

The organizing victory comes as the Teamsters Amazon National Negotiating Committee (TANNC) extends picket lines at DBK1, demanding that Amazon end its unfair labor practices and begin bargaining a union contract with over 10,000 workers nationwide who have organized with the Teamsters.

Founded in 1903, the International Brotherhood of Teamsters represents over 1.3 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more information. Follow us on X @Teamsters and on Facebook at Facebook.com/teamsters.

Contact:
Maura Drumm, (215) 510-3735
mdrumm@teamster.org

View original content to download multimedia:https://www.prnewswire.com/news-releases/amazon-drivers-at-dbk1-join-teamsters-as-nationwide-organizing-momentum-grows-302901638.html

SOURCE International Brotherhood of Teamsters

Continue Reading

Technology

Frax Makes Internet History with .frax, the First ICANN Top-Level Domain Application from a Crypto Company

Published

30 minutes ago

on

October 7, 2026

By

.frax would connect a globally recognized internet domain with onchain ownership, payments, and AI-native commerce

LAS VEGAS, Oct. 7, 2026 /PRNewswire/ — Frax today became the first crypto company to have its own top-level domain application revealed by ICANN, with .frax officially published as part of the 2026 New Generic Top-Level Domains Program. If successfully delegated, .frax would become a globally recognized internet top-level domain, similar to .com or .org.

Frax plans to make .frax the first end-to-end top-level domain designed to bridge the traditional internet and the onchain economy. Users would be able to own and manage .frax domains through Frax Name Service (FNS) on Frax’s blockchain Fraxtal while those same domains resolve through the global Domain Name System. FNS registrations also feed the Frax Burn Engine, permanently burning FRAX and allowing the ecosystem’s native digital commodity to capture value as domain usage grows.

“Crypto naming systems made internet identity ownable. ICANN domains made it universally reachable. .frax brings those two worlds together,” said Sam Kazemian, Founder of Frax. “Our goal is to build the first internet namespace where ownership lives onchain but the domain works everywhere. From there, domains can evolve into programmable financial endpoints for people, businesses, applications, and AI agents.”

The initiative also extends the financial network Frax is building around frxUSD and FraxNet. FraxNet connects financial institutions, fintechs, and companies through a shared network for digital money and payments, with each new participant expanding the reach and utility of frxUSD.

Frax also plans to explore agentic and machine-payment functionality for .frax domains, including support for emerging standards such as x402. This could enable websites, applications, and autonomous software agents to identify counterparties, access services, and initiate stablecoin payments programmatically.

The .frax application was submitted with support from MarkMonitor, an ICANN-accredited corporate domain registrar.

About Frax

Frax is a U.S.-based financial technology company building the network for secure, global, and programmable money. At its core is frxUSD, a fully backed digital dollar, and FraxNet, a financial platform connecting institutions, fintechs, and enterprises through a shared network for digital money, payments, lending, credit, and yields. Frax provides stablecoin and crypto payments infrastructure to leading financial institutions, companies, and fintechs. Since 2020, Frax has powered billions of dollars in onchain capital and activity across more than five years of serving users. Frax was ranked #5 in Stablecoins in the 2026 Fortune Crypto 100. Learn more at Frax.com.

Media Contact for Frax
Gary Bird
FortyThree, Inc.
831.888.9011
Frax@43pr.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/frax-makes-internet-history-with-frax-the-first-icann-top-level-domain-application-from-a-crypto-company-302901658.html

SOURCE Frax

Continue Reading

Technology

Survey Introduces Retail Performance Suite Connecting Retail Visibility and Execution

Published

30 minutes ago

on

October 7, 2026

By

New platform connects retail visibility, execution, shelf performance, and demand activation in a unified solution

BOSTON, Oct. 7, 2026 /PRNewswire/ — Survey, a retail intelligence and execution platform, today announced the introduction of its Retail Performance Suite at NACS SHOW Convenience Catalyst. The announcement introduces a unified platform designed to connect retail visibility, execution, shelf performance, and demand activation to help brands better understand and respond to in-store conditions.

The Retail Performance Suite brings together multiple retail capabilities within a single platform, enabling brands to identify retail opportunities, prioritize actions, coordinate field activity, and monitor performance across store networks. The platform combines retail visibility, execution, measurement, and demand activation capabilities within a unified solution.

The Retail Performance Suite is being showcased this week at NACS SHOW Convenience Catalyst, where attendees can learn more about the platform’s capabilities and its approach to connecting retail visibility, execution, shelf performance, and demand activation.

“Retail teams have access to a growing volume of data, but data alone does not address out-of-stocks, execution gaps, or compliance issues,” said Thom Green Gennaro, General Manager and Co-Founder of Survey. “The Retail Performance Suite is designed to help organizations connect retail visibility with field execution, allowing teams to identify issues, prioritize action, and track outcomes.”

The Retail Performance Suite includes four connected capabilities:

Retail Visibility – Provides retail intelligence intended to help identify in-store opportunities and risks.Execution & Compliance – Supports field activity and retail execution programs.Shelf Performance – Helps teams prioritize opportunities and monitor in-store conditions.Demand Activation – Connects retail insights with marketing and merchandising activities.

Together, these capabilities are intended to provide brands with a broader view of retail performance while supporting action across stores, retailers, and markets.

“The industry conversation is increasingly focused on how organizations use the data they already collect,” said Stevie Allegretto, Vice President of Commercial at Survey. “Brands are looking for ways to understand where attention is needed and how to allocate resources more effectively. The Retail Performance Suite is designed to support those decision-making processes.”

The announcement follows Survey’s recent publication of a national convenience retail benchmark report highlighting execution, availability, and shelf performance trends across the convenience channel.

The Retail Performance Suite is intended to help organizations connect retail visibility with operational response by combining data collection, reporting, and field execution capabilities within a single platform.

Survey states that its platform is supported by a nationwide workforce, AI-enabled technology, and photo-verified reporting. According to company data, Survey supports more than 100,000 monthly store visits, captures more than 2.1 million retail data points, collects more than 422,000 verified photos each week, and maintains a 99% data quality assurance rate.

Attendees of NACS Convenience Catalyst and industry professionals can learn more about the Retail Performance Suite at Survey.com/retail-performance-suite/ and explore additional retail intelligence resources at Survey.com.

About Survey

Survey builds modern retail solutions that help brands win where it matters most: in-store. The company’s Retail Performance Suite connects retail visibility, execution, shelf performance, and demand activation, helping brands identify opportunities, coordinate field activity, and measure performance across store networks. By combining mobile technology, AI-enabled solutions, deep industry expertise, and a nationwide network of field representatives, Survey delivers retail intelligence and operational support that help brands improve execution, strengthen brand presence, and scale with confidence and consistency. Learn more at survey.com.

Media Contact

Rodney Keener
Head of Marketing & Growth
Survey
rodney.keener@survey.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/survey-introduces-retail-performance-suite-connecting-retail-visibility-and-execution-302901659.html

SOURCE Survey

Continue Reading

Trending