Software-Defined Data Center Market Surges to $184.5 billion by 2029 | CAGR 19.4%
Delray Beach, FL, Jan. 06, 2026 (GLOBE NEWSWIRE) -- According to MarketsandMarkets™, the Software-Defined Data Center Market is expected to grow from USD 75.9 billion in 2024 to USD 184.5 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 19.4% during the forecast period.
Browse 239 market data Tables and 54 Figures spread through 239 Pages and in-depth TOC on " Software Defined Data Center Market - Global Forecast to 2029"
Software-Defined Data Center Market Share & Growth:
- Market Size Available for Years: 2019–2029
- 2024 Market Size: USD 75.9 billion
- 2029 Projected Market Size: USD 184.5 billion
- CAGR (2024–2029): 19.4%
Software-Defined Data Center Market Analysis & Forecast:
- Based on services, the training and consulting segment is projected to account for the largest market share over the forecast period.
- North America is expected to dominate the market share throughout the forecast period.
- By offering, the services segment is anticipated to register the highest CAGR during the forecast period.
- For telecom providers, SDDCs enable 5G, edge computing, and NFV deployment, helping meet rising demand with high performance.
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The SDDC market is gaining demand worldwide, driven by the increasing requirement for improved agility, scalability, and cost efficiency in handling modern IT infrastructures, as well as the fast-growing adoption of virtualization and cloud technologies.
The offering segment of the SDDC market is segmented into solutions and services. SDDC solutions are integrated approaches toward modernizing data center operations through virtualization and automation of central components, including storage, computing, and networking. It offers organizations flexible, scaled, and efficient management of data centers, thus helping to turn traditional infrastructure into agile, software-driven environments.
The SDDC solution, like the SDN solution, keeps the hardware and software separate, defines centralized management and automation, makes things run more smoothly, and allows for the fast deployment of applications and services. For example, Broadcom's VMware SDDC provides computing, storage, and networking virtualization while including robust cloud management solutions, making it comparable to on-premises data centers in the shape of a private cloud or off-site through securely delivered IaaS. With these solutions, smooth scalability is realized through increased resource usage, henceforth making SDDC a notable component of business strategies to enhance IT resilience and modernization to realize digital transformation. The future of SDDC solutions for businesses is promising, with organizations searching for more effectiveness in dealing with growing data volumes and more complex workloads.
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The SDDC market is segmented by region into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Asia Pacific comprises China, Japan, Australia & New Zealand, and the Rest of Asia Pacific. For the Asia Pacific, SDDC solutions are suitable for both the large and small industries and the various end users, including enterprises and telecom providers, because of the influence of cloud computing, AI, and IoT, with the coming through of 5G technology. The implementation of the 5G network is quite influential in the market, with the collaboration of telecommunications providers and service providers working together to set up SDDC around the region. The increasing digital transformation in different sectors and growing cybersecurity and data protection regulations foster a significant demand for robust SDDC solutions. Companies seek to handle the complexity of IT environments, optimize software expenditures, and ensure compliance with stringent regulatory standards, leading to a growing adoption of SDDC technologies.
This region has over 700 data centers by hyperscale providers recorded in late 2021. The rising need for flexible and efficient data center setups in the social media and gaming industries is also helping to drive the SDDC industry.
Enterprises are fast adopting SDDC to manage the complexities of IT setups and achieve operational efficiency. Abstraction and virtualization of compute, storage, and network resources empower SDDC with central management and automation through software, enabling scalability, flexibility, and agility. SDDC offers a single platform that integrates with cloud services, enabling hybrid and multi-cloud solutions. This connection makes it easier to move work, enhances disaster recovery options, and ensures that regulations are enforced consistently across various environments. Enterprises gain from SDDC by reducing dependency on hardware, simplifying processes, and improving cost management through resource sharing and adjustment as needed. Recent SDDC technology advancements have focused on using ML and AI to predict and automate decisions, resulting in improved performance and lower risks.
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SDDCs are becoming crucial for telecom service providers, helping them manage and deliver services more effectively in a fast-changing industry. By simplifying how they handle computing, storage, and networking, SDDCs make it easier for telecom operators to scale up, stay flexible, and run operations smoothly. This technology lets telecom companies adjust their resources quickly, improve service delivery, and use their infrastructure more efficiently, all while cutting costs linked to traditional hardware.
For telecom providers, SDDCs bring several benefits. They support the rollout of new technologies like 5G, edge computing, and network functions virtualization (NFV), vital for handling increasing demand and offering high-performance, low-latency apps. SDDCs also make it easier to connect with cloud services so that telecom operators can provide flexible, on-demand services and better support various cloud setups.
Companies in Software Defined Data Center Market:
Companies in Software Defined Data Center Market are VMware (US), Microsoft (US), Cisco (US), HPE (US), IBM (US), Dell Technologies (US), Oracle (US), Nutanix (UK), Huawei (China), and Fujitsu (Japan).
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