# Software-Defined Data Center Market

> Software-Defined Data Center Market valued at USD 44.97 billion in 2025, forecast to reach USD 103.81 billion by 2035 at 8.73% CAGR, AI growing fastest.

Publisher: DC Market Insights  
Author: Amit Jain, DC Market Insights  
Published: 2026-10-07  
Last updated: 2026-10-07  
Next review: Apr 2027  
Page: https://www.dcmarketinsights.com/report/software-defined-data-center-market

## Key takeaways

- Spend per Core Rose 32.7% Between 2020 and 2025 as VMware Licensing Moved to VMware Cloud Foundation
- Enterprises Run Second Platforms Alongside VMware
- Licensing Cost Increases Delay Projects and Trigger Legal Action
- AI and Data Analytics Workloads Reach USD 21.93 Billion by 2035

**Frequently Asked Questions**

**What is the size of the Software-Defined Data Center Market in 2025 and 2035?**

USD 44.97 billion in 2025, rising to USD 103.81 billion by 2035. DC Market Insights estimates the market at USD 27.58 billion in 2020.

**How fast is the Software-Defined Data Center Market growing?**

8.73% a year from 2025 to 2035. Growth was faster, at 10.27% a year, between 2020 and 2025 as VMware licensing moved to VMware Cloud Foundation.

**Which offering is projected to witness the highest growth in the Software-Defined Data Center Market?**

12.85% a year for management and automation software, from USD 4.33 billion in 2025 to USD 14.50 billion by 2035. Software-defined compute remains the largest offering with 35.2% of 2025 value.

**What is the primary factor driving the Software-Defined Data Center Market?**

A 32.7% rise in software spend per core, from USD 260.00 in 2020 to USD 345.00 in 2025 according to DC Market Insights estimates, as VMware licensing moved to VMware Cloud Foundation.

**Which workload grows fastest in the Software-Defined Data Center Market?**

16.17% a year for AI and data analytics, from USD 4.90 billion in 2025 to USD 21.93 billion by 2035. Containers and Kubernetes grow at 12.62% a year.

**Which region leads the Software-Defined Data Center Market?**

North America, with USD 18.80 billion or 41.8% of 2025 value. Asia Pacific grows fastest at 10.84% a year.

**Who are the leading companies in the Software-Defined Data Center Market?**

About 45% of the market is held by Broadcom (VMware), according to a DC Market Insights estimate. Microsoft, Nutanix, Red Hat, Hewlett Packard Enterprise, Dell Technologies, Cisco, IBM, Oracle, Huawei, Lenovo, NetApp, Pure Storage and Scale Computing also compete.

**Which country spends the most on software-defined data centers?**

USD 17.01 billion in the United States, or 37.8% of 2025 spending, followed by China at USD 3.23 billion. India grows fastest at 14.44% a year (DC Market Insights estimate).

## Market by region (USD million)

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 44,970 | USD million |
| Revenue CAGR | 8.73 | % |
| Market size 2035 | 103,810 | USD million |

## Frequently asked questions

### What is the size of the Software-Defined Data Center Market in 2025 and 2035?

USD 44.97 billion in 2025, rising to USD 103.81 billion by 2035. DC Market Insights estimates the market at USD 27.58 billion in 2020.

### How fast is the Software-Defined Data Center Market growing?

8.73% a year from 2025 to 2035. Growth was faster, at 10.27% a year, between 2020 and 2025 as VMware licensing moved to VMware Cloud Foundation.

### Which offering is projected to witness the highest growth in the Software-Defined Data Center Market?

12.85% a year for management and automation software, from USD 4.33 billion in 2025 to USD 14.50 billion by 2035. Software-defined compute remains the largest offering with 35.2% of 2025 value.

### What is the primary factor driving the Software-Defined Data Center Market?

A 32.7% rise in software spend per core, from USD 260.00 in 2020 to USD 345.00 in 2025 according to DC Market Insights estimates, as VMware licensing moved to VMware Cloud Foundation.

### Which workload grows fastest in the Software-Defined Data Center Market?

16.17% a year for AI and data analytics, from USD 4.90 billion in 2025 to USD 21.93 billion by 2035. Containers and Kubernetes grow at 12.62% a year.

### Which region leads the Software-Defined Data Center Market?

North America, with USD 18.80 billion or 41.8% of 2025 value. Asia Pacific grows fastest at 10.84% a year.

### Who are the leading companies in the Software-Defined Data Center Market?

About 45% of the market is held by Broadcom (VMware), according to a DC Market Insights estimate. Microsoft, Nutanix, Red Hat, Hewlett Packard Enterprise, Dell Technologies, Cisco, IBM, Oracle, Huawei, Lenovo, NetApp, Pure Storage and Scale Computing also compete.

### Which country spends the most on software-defined data centers?

USD 17.01 billion in the United States, or 37.8% of 2025 spending, followed by China at USD 3.23 billion. India grows fastest at 14.44% a year (DC Market Insights estimate).

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "Software-Defined Data Center Market", updated 2026-10-07, https://www.dcmarketinsights.com/report/software-defined-data-center-market