Software-defined data center (SDDC) market forecast to 23% CAGR through 2023
Growing investments in 5G services are fueling the IoT market worldwide, notes technology market analyst Technavio.
As explained by Technavio, "A key factor driving the growth of the global software-defined data center (SDDC) market size is the surge in the adoption of cloud services. The demand for cloud solutions from enterprises has been increasing significantly over the last few years," notes the analyst. "This is mainly because cloud solutions provide benefits such as a reduction in CAPEX and OPEX, pay-per-use policies, disaster recovery, high computation power, actionable insights using analytics, and access from anywhere. Vendors in the SDDC market are effectively addressing the requirements of cloud services and offering tailored products and services."
With the surge in the adoption of cloud solutions, Technavio expects the demand for SDDC solutions will continue to increase during the forecast period.
The firm maintains that the increasing demand for higher bandwidth and low latency will have a positive impact on the market and contribute to its growth significantly over the forecast period.
Nonetheless, the analyst warns that that market's growth momentum will decelerate in coming years because of the decrease in its year-over-year growth. The Global Software-defined Data Center (SDDC) Market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
A Technavio senior analyst adds, "Growing investments in 5G services are fueling the IoT market worldwide. The increasing number of IoT enabled devices results in the generation of huge volumes of IoT data, which requires enhanced storage, network, and compute capacities from data centers. This necessitates the installation of data centers that can address the bandwidth and low-latency requirements of end-users. SDDC solutions play an important role in increasing the efficiency of data center components, including storage, compute, and network infrastructure. These factors are expected to positively impact the SDDC market growth during the forecast period. Apart from the increasing demand for higher bandwidth and low latency, other factors such as expanded partnerships and M&A activities, along with the growing implementation of IoT will have a significant impact on the growth of the SDDC market size during the forecast period."
The new market research report segments the global software-defined data center (SDDC) market by component (SDS, SDC, and SDN), and geographic regions (North America, Europe, APAC, South America, and MEA). Technavio says the North American region led the software-defined data center (SDDC) market in 2018, followed by Europe, APAC, South America, and MEA respectively.
The software-defined data center (SDDC) market analysis report further identifies factors such as data center modernization, rise in the adoption of cloud services, and enterprises’ willingness to adopt advanced technologies such as AI and MI to fuel market growth in North America.