Global Market Size, Forecast and Trend Highlights Over 2025-2037
Software Defined Infrastructure Market size was valued at USD 52.2 billion in 2024 and is expected to secure a valuation of USD 163.8 billion in 2037, expanding at a CAGR of 9.2% during the forecast period, i.e. 2025-2037. In 2025, the industry size of software defined infrastructure is assessed at USD 57 billion.
The growing adoption of software defined infrastructure (SDI) across several enterprises and governments globally is expected to fuel market growth during the forecast period. Governments and enterprises are emphasizing modernizing legacy data centers to adopt emerging technology advancements. The SDI offers business control over resource functions through software to improve scalability, operational efficiency, and system flexibility. SDI solutions help data centers handle increasing workload demands through operational streamlining while boosting resource usage, which results in better workload management and reduced operating expenses.
Companies across the globe, have been joining forces to offer carbon-efficient data center solutions. For instance, in July 2023, HCLTech partnered with Schneider Electric to create environmentally friendly solutions for Asia Pacific data centers. The strategic alliance of HCLTech and Schneider Electric demonstrates how sustainable infrastructure functions as the essential catalyst between operational performance and environmentally responsible data center development. The data center industry exhibits a prevalent trend that involves combining SDI with sustainability.
Software Defined Infrastructure Market: Growth Drivers and Challenges
Growth Drivers
- Rise in adoption of cloud computing: The integration of multiple cloud platforms results in challenging difficulties for managing diverse IT infrastructure. SDI resolves this complex management issue through environment unification which helps businesses to optimize both resource allocation and performance delivery. SDI forms an abstraction layer that simplifies systems from dependence on hardware, which brings businesses the ability to become agile and rapidly expand operations while addressing shifting IT execution needs. The solution streamlines administration processes while enhancing operational efficiency and minimizing system complexity, so it functions as a critical foundation in modern cloud approaches.
Companies have been developing advanced solutions to address the challenges of handling the diverse IT infrastructure, for instance, in October 2024, Infoblox introduced enhanced solutions, which serve to revolutionize hybrid and multi-cloud network management of essential services including DNS and IP addresses. Infoblox offers enterprise solutions that enhance visibility together with automation capabilities to assist businesses operating over diverse and distributed cloud environments. Infoblox solutions streamline repetitive duties, which enables organizations to dedicate their efforts to key objectives and protects against operational interruptions and human errors. The technology demonstrates how SDI solutions help enterprises operating hybrid and multi-cloud architectures to provide secure streamlined cloud operations across their full cloud deployment. - Innovations in technology: Modern Software defined infrastructure (SDI) technology development depends largely on Software-Defined Networking (SDN) and Software-Defined Storage (SDS) alongside virtualization solutions. The combination of these innovations brings greater flexibility with enhanced scalability and better efficiency to IT infrastructure, which allows businesses to minimize operational costs and simplify their respective networks. The combined impact of these technologies enables organizations to practice strong network and storage, and computing resource management which drives infrastructure agility and responsiveness.
Mirantis, in January 2025, unveiled an open-source project Rockoon, that serves to deliver Kubernetes control functionality, a manages OpenStack cloud lifecycle operations. The new open-source project simplifies OpenStack deployment and management on Kubernetes clusters; therefore, business operations can achieve better container orchestration integration with their cloud infrastructure.
Challenges
- Lack of standardization: The lack of standardization protocols and frameworks is expected to hinder the software defined infrastructure (SDI) market growth, as the standardization makes integration between diverse components such as SDN and SDS complicated, which creates operational challenges together with higher maintenance expenses. Multiple incompatible components within the software defined infrastructure market prevent organizations from developing connected scalable systems, which in turn makes adoption processes complicated. Standardization deficiency in product development leads vendors to pick proprietary alternatives, which results in reduced collaboration opportunities along with innovative system development possibilities.
- Reluctance to change: Reluctance to change poses a significant barrier to software defined infrastructure adoption. Organizations often hesitate to overhaul their existing IT infrastructure due to concerns about potential risks, including operational disruptions, prolonged downtimes, and the high costs of transitioning to SDI. This resistance is particularly evident in industries with legacy systems deeply embedded in their operations. The fear of uncertain outcomes, coupled with the complexity of migrating to new technologies, slows the shift to SDI despite its long-term benefits.
Software defined infrastructure adoption experiences major slowdowns as organizations resist changes in their existing systems. Organizations hold back from replacing their current IT infrastructure, as they face concerns about various potential threats including operational interruptions, prolonged service outages, and expensive transition costs to SDI. Organizations within industries maintain strong resistance in industries with complex legacy systems that are deeply distributed through their operational infrastructure. SDI adoption faces delays due to the fear among organizations of uncertain impacts and the complexity of new technology migrations.
Software Defined Infrastructure Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.2% |
|
Base Year Market Size (2024) |
USD 52.2 billion |
|
Forecast Year Market Size (2037) |
USD 163.8 billion |
|
Regional Scope |
|
Software Defined Infrastructure Segmentation
Type (Compute, Storage, Network)
The compute segment is set to dominate over 42.9% software defined infrastructure market share by 2037, attributed to the rising business needs for flexible resilient scalable computing resources. SDI allows organizations to use cloud-native applications at scale while helping them optimize resource allocation and schedule workloads to meet evolving modern business needs. The BlueField-3 Data Processing Unit (DPU) launched by NVIDIA, in April 2021, functions to transfer essential tasks outside servers thereby boosting SDI performance and system efficiency.
Edge computing combined with AI workloads is also expected to fuel the demand for compute-type solutions based on software defined infrastructure. In January 2023, Intel's introduction of Intel 4th Gen Xeon Scalable processors improves computational capabilities across AI and edge-based machine learning solutions and real-time applications at their edge. The solution enables efficient management of compute-intensive processing needs at substantial scales, making it an excellent fit for healthcare, manufacturing, and telecommunications sectors. SDI technology enables enterprises to enhance their capability for controlling massive data manipulations as well as intricate computational requirements.
Technology (Virtualization, Containers, Infrastructure Automation, Orchestration)
The virtualization segment in software defined infrastructure market is poised to register rapid growth during the driven by factors including the rising businesses’ demand for efficient resource management along with scalability and reduced costs. Through the concept of virtualization, organizations can represent system hardware to manage a plurality of virtual environments on one server, thereby optimizing available resources. VMware vSphere 7 Update 2 rolled out in March 2021, to improve both security performance and workload management capabilities within virtual environments. Virtualization technology now uses integrated artificial intelligence and machine learning frameworks which help these systems run within hybrid cloud platforms.
Virtual desktop infrastructure solutions also represent a major driver behind recent software defined infrastructure (SDI) market expansion trends. Microsoft joined forces with NVIDIA in September 2024, to boost virtual desktop performance for remote workers by accelerating their platform through GPU-based Azure Virtual Desktop capability. Organizations that transition to remote work operations are expected to benefit from this partnership through its goal to create non-disrupted experiences for end users. The growing market need for adaptable secure efficient computing environments connects with Microsoft's new VDI solution implementation.
Our in-depth analysis of the global software defined infrastructure market includes the following segments:
|
Type |
|
|
Deployment Model |
|
|
Technology |
|
|
End user |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportSoftware Defined Infrastructure Industry - Regional Scope
North America Market
North America in software defined infrastructure market is set to dominate over 49.7% revenue share by 2037, attributed to the rising demand for flexible IT systems that primarily benefit healthcare institutions alongside finance organizations and governmental departments. Organizational adoption of SDI solutions occurs as the digital transformation requires combined with scalability requirements. Cisco introduced the HyperFlex 4.0 platform in 2022, as a software-driven solution to simplify cloud infrastructure setup for enterprise customers. The product helps enterprises execute quick hybrid and multi-cloud environment expansions while providing control over system management.
The regional major players are dedicating efforts to enhance operational effectiveness and minimize costs and SDI solutions have proven successful in addressing these requirements. IBM redefined its Red Hat OpenShift hybrid cloud solution in August 2024, as a consolidated system that enables effortless hybrid workflow control across multiple deployment infrastructures. The growth of software defined infrastructure has been accelerated by rising edge compute investments aimed at manufacturing and retail industries.
The U.S. software defined infrastructure market experiences rapid growth as organizations seek better data security protection and compliance standards. Organizations implement SDI solutions to meet regulatory requirements and protect data privacy as the California Consumer Privacy Act (CCPA) has combined with rising privacy concerns create adapting challenges in hybrid environments. VMWare launched the SDI-based platform VMware vSphere+ was launched in June 2022, to help businesses achieve better infrastructure management and fortified security measure control. This technology helps organizations fulfill multiple compliance requirements by supporting their digital transformation plans.
The Canada software defined infrastructure market expansion derives primarily from government support for innovation alongside smart city development programs. Courting digital transformation, cities have started embracing SDI solutions as these systems enable better infrastructure performance while cutting operational expenses. There has been an increased demand for sustainable data centers in the country, that has taken hold across Canada as part of the nation's ongoing drive for ecological responsibility. The adoption of SDI solutions by Canadian businesses continues to rise to support their green IT strategies because these solutions outperform traditional IT infrastructures in terms of energy efficiency. IBM announced to expand of its operations in Canada, with the Cloud Multizone region in April 2024, to enhance generative AI and improve Canadian business cloud operations through more efficient energy utilization.
Asia Pacific Market Analysis
The Asia Pacific software defined infrastructure market is expected to account for a significant revenue share between 2025 and 2037. Digital transformation initiatives across multiple industries across the region drive rapid software defined infrastructure (SDI) market expansion for SDI solutions. Governments and major companies operating in India, China, and Japan continue to invest heavily in updating their data centers and cloud frameworks as these updates create better operational performance and flexible scaling capabilities. Investments in SDI continue to grow because this technology allows simplified control of IT resources within hybrid and multi-cloud setups.
Enhanced innovation across the region is possible, owing to the modern SDI tool developments including Kubernetes and OpenStack. Several Chinese tech firms united in 2023 to create artificial intelligence programs for SDI systems that enhance both resource distribution and automation capabilities. The partnership indicate rising interest within the area in employing AI alongside automation methods for IT infrastructure systems.
The software defined infrastructure market in China operates under two primary drivers which are digital transformation efforts and the need for technology self-reliance. Local innovation advances through strategic alliances between domestic firms and academic organizations. Tencent Cloud established an AI-driven SDI solution development, in November 2024, through research targeting efficiency improvements and system automation in massive data facilities. China's e-commerce boom alongside fintech development has created stronger requirements for resilient IT infrastructure while SDI has become an essential infrastructure solution. The country's initiative for green computing drives organizations to select SDI to operate data centers with better energy efficiency.
The software defined infrastructure market in India is witnessing significant growth, due to the country’s growing cloud service ecosystem, which has been crucial in supporting the country’s digital transformation. According to a report from the Ministry of Information & Broadcasting, the establishment of the GI Cloud (MeghRaj) initiative, under the Enhancement of National Informatics Centre (NIC) National Cloud Services project, in 2022, is expected to modernize the country’s cloud infrastructure and to address the evolving cloud requirements from Government departments. India's expanding IT startup sector has led to partnerships that drive innovation within SDI technologies. Tata Consultancy Services (TCS) partnered with VMware in 2023 to produce unified SDI solutions that help enterprises achieve better agility and resource management performance.
Companies Dominating the Software Defined Infrastructure Market
- Cisco Systems
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Nutanix
- Dell Technologies
- Google Cloud
- Alibaba Group
- IBM
- Oracle
- Intel
- Red Hat
- Amazon Web Services
- Salesforce
- Microsoft
- VMWare
- Lenovo
- Hewlett Packard Enterprise
The competitive landscape of the software defined infrastructure market is rapidly evolving, attributed to the integration of advanced technologies in software defined infrastructure by key players. They are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global software defined infrastructure (SDI) market:
In the News
- In February 2023, MICS and Nokia partnered to implement a new SDN controller into the BICS’ network. The controller is developed to automate optimal traffic routing on the network.
- In March 2021, IBM unveiled IBM Cloud Satellite, which leverages SDI principles to enable cloud services with enhanced energy efficiency for enterprises, aligning with the increasing demand for sustainability data centers.
Author Credits: Abhishek Verma
- Report ID: 7118
- Published Date: Feb 07, 2025
- Report Format: PDF, PPT
