Software-Defined Data Center Market Size

Software-Defined Data Center Market size was over USD 102.87 billion in 2024 and is anticipated to cross USD 1.81 trillion by 2037, growing at more than 24.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of software-defined data center is estimated at USD 123.2 billion.

The growth of the market can be attributed to the rise in the adoption of the Internet of Things (IoT) worldwide together with the rising need for software-defined networking (SDN) to control the network in a unified manner using rule-based management. As per findings, there were nearly 13 billion IoT-connected devices in 2022, and that number is expected to almost double to approximately 26 billion by 2030. Hence, with software-defined DCN envisioned to address the heterogeneity and application-specific requirements of IoT in the context of DCN, the market is anticipated to grow with the increasing number of IoT-connected devices worldwide.

In addition to these, factors that are believed to fuel the market growth of software-defined data centers include the increasing development of hybrid cloud applications together with the expansion of the software-defined storage portfolio by some of the market key players. For instance, IBM Corporation in October 2022, announced the addition of Red Hat storage product roadmaps and Red Hat associate teams to the IBM Storage business unit, to bring consistent application and data storage across on-premises infrastructure and cloud. Moreover, the increasing emphasis and importance of infrastructure consistency, application agility, IT management, and flexible consumption consistency are further anticipated to boost the growth of the SDDC market.