The virtual machine (VM) market continues to grow and shows no signs of slowing down. This is due to several factors, including the increasing complexity of IT infrastructure, its flexibility and scalability requirements, and the benefits of virtualization technology such as accessibility and reliability.
Add to that the ever-improving capabilities of computer systems. Last year, for instance, Meta launched the AI Research SuperCluster (RSC), one of the world’s most powerful supercomputers. Meta claims that its data processing capability is 20 times more powerful than its current counterparts. With systems like this in such rapid progress, virtualization is also poised to exceed its current limitations. VMs will likely remain a crucial component of modern IT environments. 
Virtual Machine Marketplace Size and Projections
In 2021, the VM market was valued at USD 3.8 billion and began an accelerated growth due to the COVID-19 pandemic. In 2023, it’s currently estimated to be worth USD 27.9 billion.
This exponential growth is led by key players in the VM space like IBM, Oracle, VMware, Huawei, and Hewlett Packard. North America has the biggest share of the global market given the fact that many of the biggest VM companies are headquartered in the region. A guide to virtual machines published by MongoDB details that in the US alone, this particular market is experiencing a year-over-year growth of 11.8%. In the next 10 years, it’s forecasted to have a Compound Annual Growth Rate (CAGR) of 14.2%.
These values greatly contribute to global-level projections. The worldwide VM market is expected to achieve a CAGR of 20.3%. By 2033, its global value is projected to reach USD 177.3 billion.
Why are Virtual Machines Rapidly Gaining More Users?
To understand why the VM marketplace is growing at this pace, it’s important to learn about how they work and what makes them vital. The ‘Virtual Machine Step-by-Step Guide’ released by Carleton University explains that virtual machines mainly run with the use of a hypervisor. It’s an application that serves as a virtualization tool, allowing a host computer to install and run a guest operating system. Commonly used hypervisors are VMware and VirtualBox. Programs like these let you create a single or multiple VM instances. Once a virtual machine is up and running, it can then be used like another computer without actual hardware as it’s operated by the host device.
A major reason why VMs are crucial for digital sustainability is because they form the backbone of other technologies people use on a daily basis. One great example is cloud computing. Cloud providers use VMs to offer Infrastructure-as-a-Service (IaaS), allowing users to provision and manage virtualized resources in the cloud. They set up their own hardware infrastructure, which then hosts VMs that clients can use for their data needs.
With this setup, VMs enable more efficient use of physical hardware by running multiple virtualized instances on one physical server. Hardware costs may then be reduced, along with power consumption and data center space requirements.
VMs also allow organizations or businesses to scale relatively faster, as they can quickly adjust virtualized provisions as needed. This agility is essential for businesses with fluctuating workloads or fast-paced growth targets.
Because VMs provide isolation between different virtualized instances, one VM’s performance or security issues do not affect others on the same hardware. This is appealing to users and contributes to the increasing adoption of VMs as it’s crucial for maintaining a safe IT environment. As people and businesses require more data in the digital age, cybersecurity becomes a bigger priority.
Lastly, VMs provide greater convenience and accessibility as opposed to having multiple physical devices. Virtualized environments can be backed up more efficiently than physical servers, reducing downtime and risks of data loss.
All in all, the virtual marketplace is likely to become even bigger in 2023 and beyond because of its advantages and necessary applications for more complex technology like the cloud. VMs offer a versatile and cost-effective solution for modern IT needs, whether for on-premises or online environments. With such a fundamental role in today’s digital landscape, this tool will be in use for years to come.
