Nutanix

London – October 07, 2026 -- The global data center virtualization market was valued at $29.75 billion in 2025 and is forecast to reach $60.90 billion by 2035, a 7.43% compound annual growth rate, according to a new study from DC Market Insights.

Licensing resets and core expansion drove 2025 value growth

Average server virtualization software spend rose from roughly $136 per core in 2023 to $162 per core in 2025, a price reset the report identifies as a major contributor to market expansion. The installed virtualized core base is projected to climb from about 92.0 million in 2025 to 155.75 million by 2035, while server virtualization software revenue alone grows from $14.90 billion to $28.45 billion over the period.