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Service virtualization delivers a simulated test environment that creates, manages, and deploys complete test environments anytime, anywhere. Virtualization is now an integral part of IT infrastructure. Organizations have to be able to respond effectively and quickly to changing business needs, in this age of instant expectations.

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To achieve these goals, application teams need to deliver quality software on time that allows developers and testers access to unavailable or limited services in a simulated, virtual environment. With the help of services virtualization, quality improvements, risk reduction, incremental top-line revenue can be achieved.

With the advancement in technology, the market for service virtualization has increased significantly. Increased adoption of BYOD and DevOps practices for software development are crucial factors facilitating the expansion of the service virtualization market during the forecast period. It is especially useful in the development of complex API-, cloud-, and SOA (Service Oriented Architecture)-based systems. Moreover, to avoid the process bottlenecks that commonly occur when teams are developing/testing interconnected system components in parallel, service virtualization is used.

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The major factor responsible for driving service virtualization market is the need to avoid an expensive test lab and save time by detecting development errors early in production. Service virtualization also reduces infrastructure required to develop and test applications, which is another key factor responsible for bolstering service virtualization demand. On the other hand, data security regulations and policies is one of the restraints which is expected to hamper the market growth in the near future.

The global service virtualization market is segmented on the basis of component, deployment type, and industry vertical. Based on component, the global market is classified into software/tools and services. On the basis of service type, the global market is classified into managed service and professional service.