Omdia’s infrastructure software market forecast provides revenue opportunity estimates for 12 key segments: database infrastructure and management, server virtualization, storage virtualization, network virtualization, desktop as a service and VDI, hyper-converged infrastructure, data protection, multi- and hybrid cloud management and orchestration, DevOps (release Management), AIOps, Container Management Platforms/Services and Data Center Infrastructure Management (DCIM). The forecast covers the period 2021-26 and includes four regions, eight sub-regions, 27 countries and 16 vertical industries.
Important growth drivers
The software infrastructure market was worth approximately $143 billion at the end of 2021. Omdia forecasts that the market will grow at a CAGR of 16% over the period 2021-2026, which will make the market worth an estimated $296 billion by the end of 2026. This growth will be driven by the convergence of some key technologies that will shape the technology landscape for the foreseeable future. The main technology trends are as follows:
- The shift to greater use of edge computing and its integration into cloud environments effectively extends the cloud to the edge for those latency-sensitive applications or workloads where data sovereignty and real-time responsiveness are key attributes.
- The broader adoption of cloud computing in 2021-26 will bring increased use of the cloud for mission-critical core tasks, accelerated in part by the COVID-19 pandemic, which has forced organizations to review their operational activities and use the cloud for both Leverage resilience and agility.
- The shift from legacy to cloud native, containers, serverless and microservices and the need for platforms to manage the complex technologies required to deliver agility across a range of environments.
- Expanded use of AI and machine learning technologies, integrated with more management tools, enabling simplified operations management for a more complex technology landscape.
- The increased use of abstraction or software-defined technologies to separate hardware infrastructure from the delivery of business services. The growth of environmental sustainability and the need for organizations to monitor and manage their impact on carbon emissions.
The combined impact of this convergence is the need for IT infrastructure software that can rapidly deliver agility to meet business needs. Although the cloud offers this capability, the on-premises data center will remain an important part of any IT environment for the foreseeable future due to data sovereignty requirements, existing technical debt, and a lack of cloud-related capabilities. The shift to edge computing and edge cloud further complicates the software environment. The software infrastructure technologies must work across and between these different worlds (cloud, edge and on-premises), effectively forming the hybrid bridge and ensuring that companies can adopt the most appropriate architecture that fits their business strategy. Added to this is the need to meet increasingly stringent environmental requirements that governments will introduce as part of their globally agreed targets to reduce greenhouse gas emissions.
Important findings and developments
Omdia estimates that the fastest growing segment during the forecast period will be the Container Management Platforms/Solutions Market, which is expected to grow at a CAGR of 37%. Hybrid and multi-cloud management and orchestration and DevOps release management are expected to grow at a CAGR of 27% over this period. These three markets are at the heart of the transition to a cloudy world where service delivery depends on infrastructure, typically provided by a third party, but quality of service remains the responsibility of the CIO. AIOPs, storage virtualization, and network virtualization are three other segments set to grow over 21%, with CAGRs over the forecast period of 21.3%, 21.16%, and 21.05%, respectively, amounting to US$2.8 billion, Jan USD .8 billion or USD 34.2 billion by the end of 2026. In terms of market size, the database infrastructure and management solutions segment takes a majority share, but this share will grow from 50% in 2021 to 43% in 2026 decline when the market will be worth $127 billion.
Omdia forecasts infrastructure software spending in the Americas to grow from $71 billion in 2021 to over $144 billion by the end of 2026. India is likely to be the fastest growing country with a CAGR of 24.36%, followed by China with a CAGR of 22.95% over the forecast period (2021-26).
Roy Illsley is Principal Analyst for IT Ecosystem & Operations at Omdia. Roy’s research interests include cloud computing, cloud-native technologies, IT strategy, IT operations management, and data center technologies.