Unveiling the Future: 32 Virtualization Statistics and Trends

June 5, 2023

virtualization statistics

Modern technologies shape the era we live in. Among these paradigm-shifting technologies, virtualization stands out as it continues to transform our relationship with hardware, software, and data.

You can feel its presence across industries, from the sprawling data centers of Silicon Valley to any small business server room. It’s not just changing how businesses use technology – virtualization is revolutionizing it. Many companies have started turning to data virtualization software to facilitate agile data storage, retrieval, and integration processes through virtual data layers.

Let’s look through the illuminating lens of statistics to discover exciting trends propelling virtualization into the future. 

Key virtualization statistics and trends in 2023

Virtualization creates a virtual version of something: a server, a desktop, a storage device, an operating system, or even a network. It empowers users to run multiple virtual machines on a single piece of hardware, each operating independently and with its own dedicated resources. It allows businesses to scale quickly while increasing resource utilization and reducing costs.

Let’s dive into some exciting trends of virtualization.

  • 66% of companies have reported increased agility due to virtualization adoption. 
  • 34% of companies allocate virtualization budgets and deploy technology within a year, while 17% do not. 
  • Companies observe a 50% improvement in operational efficiency after adopting virtualization. 
  • Businesses with 100 computers or more have adopted virtualization, and smaller businesses, with fewer than 100 computers are following up quickly.
  • 53% of enterprises and 33% of small businesses are increasing their x86 server virtualization.
  • 60% of businesses deploy cloud technology to store confidential data.

Did you know? An x86 server is a system that uses an x86 central processing unit (CPU) architecture. Intel developed x86, a family of complex instruction set computer (CISC) instruction architecture.

Server virtualization statistics

Server virtualization is the process of partitioning a single physical server into multiple unique and isolated virtual servers, each capable of running its operating system and applications. Businesses use it to maximize their hardware usage, dramatically improving system scalability and significantly decreasing costs.

Let’s see what else is in store with these server virtualization statistics.

  • 80% of x86 server workloads are virtualized, and virtualization technologies are becoming more lightweight to support more workloads.
  • Companies use only 25% of the available processing power of virtualized servers.
  • Server virtualization is the largest segment in the virtualization market.
  • Many companies claim they’re 70-80% virtualized in their data center. However, their actual average server performance level remains 25-30%.
  • Oracle VM VirtualBox is the leader in the server virtualization software category. 
  • IT companies observed a 40% reduction in hardware and maintenance costs after virtualization.
  • Virtual machines take 50-90% less time in one-time server management tasks. 
  • 50% of hardware and maintenance costs can be saved by consolidating multiple applications onto a single server.
  • Over 64,100 businesses cater to server virtualization.
  • The network functions virtualization (NFV) market is expected to reach $51.2 billion in 2027. 

Gone are the days when each application needed its own dedicated server, leading to underutilized resources and towering expenses. With server virtualization software, you can make the most out of the hardware, condensing physical infrastructure without compromising performance or reliability. 

Virtualization software statistics 

Virtualization software is a suite of applications designed to create virtual, rather than physical, versions of devices and resources. These could range from servers and networks to storage devices and operating systems. It abstracts and isolates the software from the underlying hardware, enabling multiple virtual machines to run simultaneously on a single physical machine with its resources.

  • Many companies, 306,766 to be exact, offer virtualization solutions. 
  • Citrix Hypervisor, a smaller player in the virtualization scene, commands a 0.24% market share. 
  • Oracle VM, another contributor in the field, accounts for 0.96% of the market share in virtualization.

$120 to $149 billion

is the projected revenue driven by the virtualization software market in 2026.

Source: Statista

  • A substantial 58% of tier-one banks have already incorporated virtualization technology across their infrastructures.
  • Virtualization helps companies save costs, reducing expenses by up to 31% simply by consolidating multiple server workloads onto fewer hosts.

Virtualization software produces a more robust and resilient IT infrastructure, facilitating more accessible backup, recovery, and migration processes.

Data virtualization statistics

With data virtualization, applications can retrieve and manipulate data without needing to know its technical details, such as how it's formatted or where it's physically located. This method creates a single virtual layer aggregating data from various sources, making it readily accessible and actionable.

Whether you're a seasoned data scientist, an IT professional, or a business leader eager to boost data-driven growth, let these statistics shed light on the potential of data virtualization.

  • 70% of organizations will focus on small and wide data in 2023, providing more context for analytics and making artificial intelligence (AI) less data hungry.

$10 billion

is the expected market size of the global data virtualization market by 2028.

Source: Business Wire

  • Adit Madan, Director of Product Management at Alluxio, highlighted that although various forms of virtualization (including data, desktop, storage, and network) are exploring new frontiers, there was a marked uptick in investments in storage system virtualization in 2022.

With data virtualization, companies can unlock real-time insights, improve their decision-making process, and bolster their agility without investing in costly physical data consolidation or wrangling with data silos.

Application virtualization statistics

Application virtualization encapsulates an application from the underlying operating system on which it's executed. This encapsulation allows the application to run in a self-contained, virtual environment, eliminating installation processes, minimizing application conflicts, and enhancing software portability.

Below are some statistics to see what’s trending in application virtualization.

  • Docker has been instrumental in containerizing over 3.5 million applications.


of all corporate workloads will run in the cloud by 2023.

Source: Spiceworks

  • Enterprise-scale businesses with a workforce exceeding 1,000 are adopting application virtualization at a rate twice that of their smaller counterparts.
  • IBM advocates that application consolidation in virtualized environments provides a more economical solution.

Businesses can use application virtualization to simplify their application management, improve system compatibility, and enhance user experience across diverse platforms. It also contributes to the scalability of operations, allowing businesses to adapt to changing needs quickly.

Desktop virtualization statistics

Desktop virtualization involves creating virtual versions of a computer's desktop environment that are hosted on a central server rather than the physical machine. It allows users to access their desktops anywhere, on any device, offering unprecedented flexibility and mobility.

Discover the latest movement in desktop virtualization with these stats.

$20.1 billion

is the estimated market size of the desktop virtualization market in 2027.

Source: MarketsandMarkets

  • A double-digit growth rate in desktop virtualization adoption is anticipated by the close of 2022.
  • Intending to expand their service offerings, 49% of VDI (Virtual Desktop Infrastructure) providers plan to incorporate DaaS (Desktop as a Service), while an additional 22% are expecting to integrate cloud-based VDI solutions.

Desktop virtualization is an essential tool for organizations seeking to modernize their IT infrastructure and adapt to the demands of a dynamic workforce. 

Unveiling a virtual world

Virtualization is not just a fleeting trend, but a powerful force driving digital transformation across industries. These statistics and trends reveal a growing momentum in its adoption, underlining its role in developing modern IT infrastructures.

From server consolidation to desktop flexibility, from data unification to application portability, virtualization continues to redefine interaction with digital resources. This technology will shape new paradigms in efficiency, scalability, and cost-effectiveness.

Whether you're an IT professional, a business leader, or a tech enthusiast, keeping pace with these trends will be essential in navigating the digital seascape. After all, virtualization’s evolution mirrors the technological advancement trajectory. Let’s unveil the future where digital agility and flexibility are desirable and indispensable.

Learn more about data virtualization and understand why businesses need it.

data virtualization software
Data never lies!

Find the best data virtualization software to assist with data storage, retrieval, and integration processes by using virtual data layers.

data virtualization software
Data never lies!

Find the best data virtualization software to assist with data storage, retrieval, and integration processes by using virtual data layers.

Unveiling the Future: 32 Virtualization Statistics and Trends Check out these virtualization statistics to fuel your digital transformation strategy. Take a statistical dive into virtualization trends. https://learn.g2.com/hubfs/G2CM_FI609_Learn_Article_Images_%5BVirtualization_Trends%5D_V1b.png
Sagar Joshi Sagar Joshi is a former content marketing specialist at G2 in India. He is an engineer with a keen interest in data analytics and cybersecurity. He writes about topics related to them. You can find him reading books, learning a new language, or playing pool in his free time. https://learn.g2.com/hubfs/Sagar%20JoshiUpdated.jpeg https://www.linkedin.com/in/sagarjoshi9/

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