Virtualization Security Market by Component (Solution and Service), Deployment (On- premise and Cloud), and Enterprise Size (Large Enterprises and SMEs), End-use (BFSI, Government & Defense, IT & Telecommunication, Healthcare, Retail, Manufacturing, Education, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Virtualization Security Market Analysis

The global virtualization security market is anticipated to garner $6,986.3 million in the 2021–2028 timeframe, growing from $2,571.6 million in 2020, at a healthy CAGR of 13.6%.

Market Synopsis

The market for virtualization security is primarily driven by technical advancements, acquisitions, and collaborations.

The main restraining factor of virtualization security market is lack of skilled IT workforce.

According to the regional analysis of the market, the Asia-Pacific virtualization security market size is anticipated to grow at a CAGR of 14.3%, by generating a revenue of $2,353.7 million during the review period.

Virtualization Security Overview

In computing, virtualization refers to the creation of a virtual, rather than actual version of something, such as virtual computer hardware platforms, storage devices, and computer network resources. Security virtualization, often known as virtualized security, refers to software-based security solutions that run in a virtualized IT environment. Hardware-based network security, on the other hand, is static and uses firewalls, routers, and switches to protect networks.

COVID-19 Impact on Virtualization Security Market

The pandemic-driven rapid adoption of digital technologies will continue during the recovery period. Much of the quick IT work done during the COVID-19 crisis could have resulted in new cyber risk exposures. The technique for ensuring the security of the virtualized infrastructure is known as virtualization security. The demand for cloud computing technologies is a major element driving the market's growth. Hackers attempt to obtain important information by bypassing security layers and manipulating the cloud environment's defenses. Virtualization security functions as a barrier to protect network perimeter access. It ensures traffic segregation while also providing dedicated cloud security. As a managed service, it also provides customized firewall control to the cloud. During the COVID-19 pandemic, there is an increase in demand for cloud computing technology, particularly in the healthcare industry, to analyze patient data. During the COVID-19 pandemic, the cloud computing business has seen substantial expansion, which is propelling the virtualization security market forward.

A Growing Number of Small and Medium Size Businesses and Large Corporations Are Adopting Virtual Applications

Over the past few decades, companies have been seen seeking to maintain company continuity by building interfaces for their employees to access critical business software remotely, as well as expanding VPN/remote access capabilities. As employees moved to remote locations, need for collaboration tools for intra-organization communication increased. In all of these domains, hyperscaler CSPs (content security policy) observed an increase in demand for their goods. Due to difficulties in procuring a sufficient number of laptops, demand for CSP-provided virtual desktop interfaces, which allow a distant working employee to access corporate applications, has grown. Cloud-based virtual contact centers that can work with a remote staff have become a necessity and demand for the virtual machine security in cloud computing is increasing. Utilizing cloud computing has proven to be more cost effective for organizations, where they could manage with a remote workforce, eliminate server/hardware requirements, and drastically reduce maintenance/operational costs. As business application development leveraging on-premise hardware and labor was being delayed due to a sudden lack of resources, organizations realized that by utilizing cloud computing, they could manage with a remote workforce, eliminate server/hardware needs, and substantially reduce maintenance/operational costs.  Cloud service providers claims of lower support costs and fewer hardware/software resource requirements have suddenly become the most sought-after capabilities. Cloud computing has shown to be one of the most crucial enablers of virtualization security for enterprises to secure virtual machine secure and virtual machine mode of the infrastructure, rising to the occasion.

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Lack of Skilled IT Experts in Virtualization Security to Restrain the Market Growth

The major factors behind data breaches, according to a report by the Enterprise Strategy Group (ESG) and the Information Systems Security Association (ISSA), are a lack of sufficient training for non-technical personnel and a shortage of highly experienced cybersecurity professionals. Lack of skilled IT experts in virtualization security as IT talent for on-premises infrastructure is often difficult to come by might restrain the market growth.

Demand for Virtualization Security Solutions and Services Is Growing Among both large and small organizations

The growth of cloud computing services is hastening the rate at which businesses outsource computational services or sell idle computational resources. Increasing demand for network security among enterprises and individuals is prompting companies to invest in virtual security tools to provide reliable security and data transformation services. Companies are looking for a solution that would increase the return on investment by investing in virtual tools which can easily complete the function of a costly hardware standalone device. The Small Business Administration (SBA), a United States government agency reported, attackers broke into their system as pandemic relief funds started to be allocated. This impacted an estimated 8,000 businesses across America. The use of virtualization security has range of benefits such as, increased business efficiency, decreased downtime during maintenance, money, and many more. The functions of virtualization security are to offer IT sector is network virtualization, storage virtualization, server virtualization and desktop virtualization. Moreover, compared to the large enterprises segment, the SMEs segment is facing challenges in terms of resources. They require enhanced infrastructure without investing much into it. Cost-effectiveness is an important need for SMEs, as they have a limited budget and therefore, face constraints with respect to marketing and gaining visibility. Additionally, some organizations such as NComputing are helping SMEs in providing cost efficient application virtualization solutions.

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Enterprise size: Research Dive Analysis

The solution sub-segment is anticipated to have a dominant market share and generate a revenue of $4,955.9 million by 2028, growing from $1,853.4 million in 2020. Virtualization models offer a wide range of applications, each with its own set of risks. Among these, the threat of cyber-attacks is one of the most serious, necessitating the use of some sort of security solution. The expanding use of virtualization technology around the world has increased the market demand for virtualization security. Cloud computing's rapid growth has resulted in a slew of non-traditional security dangers, as well as a new and higher demand for information security.

The service sub-segment of the global virtualization security market is anticipated to have the fastest growth and surpass $2,030.4 million by 2028, growing from $718.2 million in 2020, with CAGR of 13.6%. Cloud computing is a promising computing paradigm that has recently attracted a lot of interest from academics and industry. Cloud computing is a computer paradigm in which resources in the computing infrastructure are given as services over the Internet by combining a combination of existing and emerging techniques from research areas such as service-oriented architectures (SOA) and virtualization. Growing adoption of the cloud-based solutions across the globe has boosted the demand for the virtualization security services.

Enterprise size: Research Dive Analysis

The cloud sub-segment of the global virtualization security market is anticipated to have a dominant market share and surpass $4,332.0 million by 2028, with an increase from $1,548.3 million in 2020. Virtualization has emerged as a way of improving system security and delivering on promise of cloud computing. It allows businesses to cut IT costs while improving the efficiency, use, and flexibility of their current computer gear. Because the virtualization platform constructed in the private cloud is physically isolated from the Internet, the virtualization platform's virus and Trojan library cannot be updated quickly, and the virtualization platform's vulnerabilities cannot be corrected in a timely manner. Because the Internet environment produces new viruses and Trojans on a regular basis, Internet-based businesses can update security software by visiting Internet servers in real time and ensuring that they have the most up-to-date security services.

Enterprise size: Research Dive Analysis

The large enterprises sub-segment of the global virtualization security market is anticipated to have a dominant market share and surpass $4,384.2 million by 2028, with an increase from $1675.2 million in 2020. Thousands of businesses have moved their operations to the cloud during the last decade. Enterprise cloud computing gives firms new ways to cut expenses while improving their robustness, flexibility, and network security. Enterprise organizations are frequently targeted by cyber criminals wishing to steal or expose data. Data breaches are extremely costly to remedy and can negatively impact your reputation and customer relationships. With enterprise cloud, organizations can access security tools like system-wide identity/access management and cloud security monitoring. They can easily implement network-wide identity and access controls. Cloud service providers also play a role in supporting data security in public and private deployments

The SMEs sub-segment of the global virtualization security market is anticipated to have a fastest growing market share and surpass $2602.1 million by 2028, with an increase from $ 896.4 million in 2020, at a CAGR of 14.5%. The cloud's technology is equally appropriate for small and medium-sized organizations. Cloud services help businesses save time and money by increasing productivity. Small businesses struggle to establish and maintain fundamental apps, let alone leverage new ones, while companies of all sizes suffer.

Enterprise size: Research Dive Analysis

The IT & telecommunication sub-segment of the global virtualization security market is anticipated to have a dominant market share and surpass $1291.5 million by 2028, with an increase from $504.3 million in 2020. For the past half-decade, cloud computing has grown in popularity. It has had a significant impact on the IT, technology, and business sectors. This has resulted in a significant increase in global security solution spending. Telecommunications companies have been forced to update their networks and migrate to virtualized and cloud architectures as a result of the rise of cloud-native 5G technology, an unanticipated jump in data traffic due to the global pandemic, a boom in broadband services, and rising customer demands for security solutions are some of the reasons of growth for the market.

The BFSI sub-segment of the global virtualization security market is anticipated to have the fastest growth and surpass $1211.7 million by 2028, with an increase from $411.5 million in 2020, with the CAGR 14.7%. Organizations in the banking, financial services, and insurance (BFSI) sectors are speeding up their digital transformations, making significant progress with digitization efforts, and adding crucial capabilities to adapt and innovate in the new normal. To obtain better agility, flexibility, and efficiency, the BFSI business is using data virtualization, which enables digital transformation via a modern data integration data delivery model. The increasing use of virtualization solution is creating the way of growth for the virtualization security market across the globe.

Enterprise size: Research Dive Analysis

The Market for Virtualization Security in North America to be the Most Dominant

The North America virtualization security market accounted $914.2 million in 2020 and is projected to register a revenue of $2,430.5 million by 2028. Due to the presence of significant technical professionals and substantial IT budgets, firms in this region have been displaying a progressive growth in the use of virtualization security solutions and services. Traditional network and security workloads can be transformed into computation with the help of virtualization of security and network activities. Virtual functions can be implemented on typical high-volume servers in any data center, network node, or cloud, and can be intelligently co-located with business workloads.

The Market for Virtualization Security in Asia-Pacific to be the Most Lucrative

The Asia-Pacific virtualization security market accounted $821.1 million in 2020 and is projected to register a revenue of $2,353.7 million by 2028. The booming IT infrastructure in China and Japan is expected to drive the virtualization security market in APAC to new heights. In this area, the virtualization security market is likely to increase, with leading companies focused on growing their presence across a variety of industries, including healthcare, BFSI, retail, and manufacturing. The security requirements of enterprises and critical players are always changing. Virtualization is assisting enterprises in improving their operational dynamics. It also aids in the expansion of the physical device's existing memory by loading additional data onto abstract or virtual hardware.

Competitive Scenario in the Global Virtualization Security Market

Product advancements, innovations, and business expansion are common strategies followed by major market players.

Enterprise size: Research Dive Analysis

Some of the leading virtualization security market players are IBM, Fortinet Inc., Cisco Systems, Inc., Citrix Systems, Inc., Trend Micro, VMware, Sophos Ltd, Juniper Networks, Inc., Broadcom Corporation, Check Point Software Technologies, Ltd.

Porter’s Five Forces Analysis for the Global Virtualization Security Market:

• Bargaining Power of Suppliers: Bargaining power of the suppliers is high due to the low number of expertise present in the market for the virtualization security solutions.
  Thus, the bargaining power suppliers is high.
• Bargaining Power of Buyers: The bargaining power of buyers is low due to few numbers of players including VMware, Citrix Systems, Inc., and Check Point Software Technologies, Ltd, having major market shares owing to which product dependency is high among buyers.
  Thus, the bargaining power of the buyers is low.
• Threat of New Entrants: The companies entering virtualization security market have to deal with the advanced options available from all the major players. 
  Thus, the threat of the new entrants is low.
• Threat of Substitutes: Due to the entry of businesses with technologically enhanced platforms and lower cost solutions, the threat of substitutes is considerable.
  Thus, the threat of substitutes is high.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is low mainly because of the high number of players operating in virtualization security industry.
  Therefore, competitive rivalry in the market is low.