Virtual Machine Market - Regional Analysis
North America Market Insights
In the global virtual machine market, North America is expected to capture the largest revenue share of 40.6% over the forecasted years. The region’s prominence in this field is backed by the presence of cybersecurity regulations, cloud leaders. Also, it's continuously upgrading its technological infrastructure, coupled with increased adoption of cloud spending, which is also propelling market growth. Red Hat, in May 2025, announced the public preview of Red Hat OpenShift virtualization on Microsoft Azure, enabling organizations to streamline the migration of virtual machines to a scalable, cloud-native platform. It is delivered as a self-managed operator within Azure Red Hat OpenShift, wherein the solution allows enterprises to manage virtual machines and containers together across a consistent hybrid cloud environment. Further, by simplifying operations, accelerating VM migration, and optimizing resources, the offering helps organizations modernize legacy virtualization.
The U.S. is the frontrunner in the regional market, primarily driven by high IT spending, an advanced business ecosystem, and an enhanced approach towards digital transformation. The country represents a very mature IT infrastructure, which positions it as a predominant leader in this field. In July 2025, Platform9 announced that it had entered into a partnership with Commvault to integrate advanced data protection capabilities into Platform9 Private Cloud Director, strengthening cyber resilience for enterprise private clouds. Besides, the integrated solution delivers agentless VM backup and recovery, application-consistent backups, granular file recovery, and disaster recovery across virtual machines and Kubernetes workloads. In addition, by combining Platform9’s enterprise-grade virtualization features with Commvault’s trusted data protection, organizations can securely modernize and protect mission-critical private cloud environments.
Canada is efficiently growing in the virtual machine market as organizations across various industries opt for cloud computing and digital transformation initiatives. Enterprises in the country are leveraging virtual machines to modernize their IT infrastructure and support hybrid and multi-cloud environments. In this regard, IBM in April 2025 announced that it has expanded its cloud infrastructure in the country by inaugurating a new cloud multizone region in Montreal, complementing its Toronto MZR, to support regulated industries with secure, high-performance cloud solutions. These MZRs provide access to IBM Power Virtual Server, VMware Cloud Foundations, and IBM WatsonX AI, thereby enabling organizations in the country to deploy and manage virtual machines and AI workloads locally by ensuring compliance with data sovereignty and privacy regulations. Hence, these advancements offer scalable, hybrid cloud capabilities, low-latency connectivity, and enterprise-grade security.
APAC Market Insights
Asia Pacific is likely to register the fastest growth in the international virtual machine market owing to the rapid adoption of cloud-native technologies and digital transformation initiatives across countries. Governments across the region are encouraging data localization and secure infrastructure adoption, whereas most of the enterprises are deploying VMs to manage complex workloads. In July 2025, Microsoft reported that Airlock Digital, which is an Australia-based cybersecurity company, migrated 600 virtual machines from CentOS 7 to Ubuntu 24.04 LTS on Microsoft Azure with support from Canonical, achieving faster, more secure operations. It also mentioned that this migration improved performance and reduced costs by allowing automated management, simplified infrastructure, and standardized virtual machines across deployments, hence contributing to overall market growth.
In China, the virtual machine market is efficiently growing, shaped by the government’s push for digital sovereignty and self-reliant cloud infrastructure. Leading domestic cloud providers are offering VM solutions that support AI, big data, and enterprise applications, thereby allowing organizations to maintain strict regulatory compliance and leverage virtualization technologies. In April 2022, Alibaba Cloud and VMware announced the launch of the next-generation Alibaba Cloud VMware Service in the country, providing enterprises with a hybrid cloud platform to migrate and modernize workloads with lower costs and risk. It also mentioned that the service integrates VMware’s cloud technologies with Alibaba Cloud’s infrastructure, offering enterprise-grade compute, storage, and networking, along with unified management for both VMs and containers. Furthermore, it supports enhanced security, disaster recovery, and compliance with China’s cybersecurity regulations, also enabling faster application modernization through Kubernetes and native Alibaba Cloud services.
India’s virtual machine market is progressing rapidly on account of expanding IT services, startups, and e-commerce platforms. Organizations in the country are utilizing VMs to scale compute resources on demand, whereas the cloud service providers are making it suitable VM offerings to meet the diverse business needs. In this context, Neon Cloud in April 2025 announced the launch of its cloud platform in the country with a data center in Gurgaon, to offer virtual machines, Kubernetes, and soon GPU services, along with storage, backups, and network management solutions. The company aims to empower businesses in India with scalable, enterprise-grade cloud infrastructure without any sort of vendor lock-in or hidden costs. Furthermore, Neon Cloud is focused on startups and SMBs, thereby enabling digital transformation and supporting AI/ML workloads with future GPU offerings.
Europe Market Insights
Europe has a strong hold in the market, positively influenced by stringent data privacy regulations, such as GDPR, which require enterprises to adopt secure and compliant virtualization solutions. Simultaneously, the rising cloud adoption and the heightened demand for computing solutions are also propelling continued market progression in the region. In December 2025, HPE announced updates to its GreenLake cloud and Morpheus software to deliver advanced virtualization, AI, and hybrid cloud capabilities. At Discover Barcelona 2025, it also mentioned the innovations, which include zero-trust security, automated network provisioning, Kubernetes and container support, and integrated data protection for virtual machines. In addition, collaborations with NVIDIA enhance AI adoption and data intelligence, whereas new HPE StoreOnce and Alletra solutions ensure high-performance, resilient, and secure operations across enterprise workloads.
The increasing adoption of virtual machines to modernize legacy IT systems and support Industry 4.0 initiatives is the key factor behind the robust growth of the virtual machine market in Germany. The market is also witnessing higher adoption in manufacturing and automotive sectors, where secure and reliable virtualization is highly essential for industrial automation and predictive analytics. In November 2025, Scaleway announced a new cloud availability zone in Germany, which is a public tender win with the City of Copenhagen, and participation in the ECB’s digital euro project. The company provides fully operated cloud infrastructure supporting virtual machines, AI workloads, and secure data management, aligning with EU governance and digital sovereignty standards. Hence, such milestones solidify Scaleway’s role in delivering high-performance, transparent, and sovereign cloud services across Europe.
France’s market is growing due to the presence of financial services, government, and healthcare sectors, which are looking for resilient, hybrid cloud infrastructure. Organizations across the country are implementing VMs to ensure business continuity and enable secure multi-cloud integration, while mainly focusing on regulatory compliance. In September 2025, OVHcloud announced that it had launched public VCF as-a-Service, which is a fully managed VMware solution that is aimed at SMEs and MSPs, enabling scalable deployment and modernization of virtual machine workloads while also controlling costs. It is built on VMware Cloud Director, and the service offers adjustable resources, pre-configured images, along with integrated Veeam backup for secure, high-performance operations. Further, with a 99.95% SLA, unmetered bandwidth, and ISO 27001-certified datacenters, OVHcloud ensures reliable, sustainable cloud infrastructure for businesses.
