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Hyper Converged Infrastructure Market

Hyper Converged Infrastructure Market

Hyper Converged Infrastructure Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:

254

Base Year:

2023

Date

May - 2024

Format:

PDF XLS PPT

Report Code:

VMR-2490

Segments Covered
  • By Component By Component Hardware, Software
  • By Application By Application Remote Office/Branch Office, Virtualization Desktop Infrastructure (VDI), Data Center Consolidation, Backup/Recovery/Disaster Recovery, Virtualizing Critical Applications
  • By End User By End User Cloud Providers, Colocation Providers, Enterprises
  • By Organization Size By Organization Size Large Enterprises, Small & Medium-sized Enterprises (SMEs)
  • By Enterprise By Enterprise Banking Financial Services & Insurance (BFSI), IT & Telecom, Government, Healthcare, Manufacturing, Energy, Education, Other Enterprises
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Snapshot
Base YearBase Year: 2023
Forecast YearsForecast Years: 2024 - 2032
Historical YearsHistorical Years: 2018 - 2022
Revenue 2023Revenue 2023: USD 16.2 Billion
Revenue 2032Revenue 2032: USD 155.7 Billion
Revenue CAGRRevenue CAGR (2024 - 2032): 28.6%
Fastest Growing Region Fastest Growing Region (2024 - 2032) Asia Pacific
Largest Region Largest Region (2023): North America
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Hyper Converged Infrastructure Market Share

The global Hyper Converged Infrastructure Market is valued at USD 16.2 Billion in 2023 and is projected to reach a value of USD 155.7 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 28.6% between 2024 and 2032.

Key highlights of Hyper Converged Infrastructure Market

  • The North American region dominated the Hyper Converged Infrastructure market in 2023, obtaining the largest revenue share of 41.3%,
  • The Asia Pacific region is expected to witness the fastest growth of the Hyper Converged Infrastructure Market during the forecast period,
  • In 2023, the hardware segment dominated the Hyper Converged Infrastructure market with revenue share of 72.4%,
  • The Data Center Consolidation segment asserted its dominance and captured the largest revenue share of 28.9% in 2023,
  • Banking, Financial Services, and Insurance (BFSI) segment accounted to have the largest revenue share of 25.6% in 2023,
  • Based on the latest findings from the IBM Data Breach report, the average expense linked to data breaches has risen by 2.6% to reach USD 4.35 million, encompassing penalties. Hyper Converged Infrastructure (HCI) systems play a crucial role in alleviating the threat of data breaches through their integrated components and applications, frequently leveraging high-security AMD processors equipped with advanced security features.

Hyper Converged Infrastructure Market Size, 2023 To 2032 (USD Billion)

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Hyper Converged Infrastructure Market: Regional Overview

North America accounted for the largest revenue share of 41.3% in 2023. The growth of the Hyper Converged Infrastructure market in North America is primarily fueled by the expansion of hyper-scale cloud service providers in the region. Additionally, both wholesale and retail sectors of colocation services have experienced significant growth. The demand for infrastructure to support virtual desktops has surged due to the increasing usage of mobile data and the implementation of bring-your-own-device (BYOD) regulations. Consequently, the market share of Hyper Converged Infrastructure is expected to rise in North America. In addition, substantial investments made by various data center companies are accelerating the growth of the Hyper Converged Infrastructure Market. For example, Equinix has planned to develop 32 hyperscale data centers in major global markets. With an investment exceeding USD 6.9 billion and a total capacity of 600 megawatts, the company is expanding its presence and supporting the growing hyper-scale data center landscape.

U.S. Hyper Converged Infrastructure Market Overview

The US Hyper Converged Infrastructure market, valued at USD 22.3 Billion in 2023 to USD 32.85 Billion in 2032, is anticipated to grow at a CAGR of 4.4% from 2024 to 2032. The popularity of consuming infrastructure-as-a-service solutions, the increasing demand for Hyper Converged Infrastructure applications, and the need to enhance IT operational efficiency, improve data protection, reduce IT costs, and streamline system deployments are some major factors propelling the growth of the Hyper Converged Infrastructure Market. Various companies are collaborating to develop advanced technologies that boost the growth of the Hyper Converged Infrastructure market in the United States. For instance, Kyndryl and Lenovo, prominent players in the IT infrastructure services and PC/storage/server industries, announced an expansion of their global partnership. This expansion aimed to deliver comprehensive solutions for customers across Hyper Converged Infrastructure (HCI), hybrid cloud, and edge computing applications.

Hyper Converged Infrastructure Market: Component Overview

In 2023, the Hardware segment generated a significant revenue share of 72.4%. The Component segment is divided into Hardware and Software. The hardware segment is expected to have the largest market share in the Hyper Converged Infrastructure (HCI) market due to the increasing development of small hardware systems by top manufacturers. For instance, Dell Technologies introduced managed storage, server, and HCI hardware solutions in May 2023, which can be used for data center consolidation at the edge. These solutions are used to store cloud services and streamline management. In addition, the emerging trends, such as Bring Your Device (BYOD) and the surge in work from home from remote locations, are augmenting the segmental growth of the market. According to Cisco Systems Survey, 59% of the employees in the IT sector across the U.S. have adopted BYOD during the COVID-19 pandemic. Virtual desktop infrastructure is the centralized system used to manage remote employees’ devices.

Hyper Converged Infrastructure Market: Application Overview

The Data Center Consolidation segment held a significant revenue share of 28.9% in 2023. The Application segment covers Remote Office/Branch Office, Virtualization Desktop Infrastructure (VDI), Data Center Consolidation, Backup/Recovery/Disaster Recovery, and Virtualizing Critical Applications. The wide range of applications of the data center consolidation segment fuels the growth of the Hyper Converged Infrastructure Market in recent years. HCI is a revolutionizing infrastructure approach in order to be used for data center consolidations to improve operational efficiencies. The growing requirement for data security and disaster recovery along with the minimization of capital expenditure (CAPEX) and operational expenditure (OPEX) are some major factors propelling the segmental growth of the Hyper Converged Infrastructure Market. The data center consolidation segment in the Hyper Converged Infrastructure (HCI) market refers to the use of HCI technology to streamline and simplify the management of data center infrastructure. The integration of HCI infrastructure approaches such as computing, storage, and networking into a single system can be managed through a unified interface, which, in turn, is augmenting the segmental growth of the Hyper Converged Infrastructure Market.

Key Trends

  • The increasing adoption of hybrid cloud strategies, which is being increasingly integrated with hybrid cloud management platforms to provide seamless management and scalability across different environments, is boosting the Hyper Converged Infrastructure Market demand. For Example, Nutanix offers a comprehensive HCI solution with native integration to public cloud services like AWS, Azure, and Google Cloud Platform (GCP). This allows organizations to easily extend their HCI deployments to the cloud and manage their hybrid infrastructure from a single pane of glass.
  • The increasing adoption of IoT technologies in order to provide local processing power and reduce latency for edge workloads is fueling the Hyper Converged Infrastructure Market growth. For example, VMware's vSAN Edge solution is designed specifically for edge computing environments. It enables organizations to deploy HCI clusters in remote locations with limited space and resources, providing compute and storage capabilities at the edge.
  • The incorporation of software-defined networking technologies, which provide greater flexibility and agility in network configuration and management, is a revolutionizing trend in the growth of the Hyper Converged Infrastructure Market. For example, Cisco's HyperFlex HCI platform integrates with Cisco's software-defined networking solution, Cisco ACI (Application Centric Infrastructure), to provide automated, policy-driven network provisioning and management for HCI deployments.
  • Increasing focus on security features by various organizations such as encryption, data-at-rest protection, and integrated threat detection is accelerating the growth of the Hyper Converged Infrastructure Market. For example, HPE SimpliVity HCI solution includes built-in data encryption and data deduplication features to ensure data security and reduce storage costs.

Premium Insights

The increasing adoption of cloud computing technologies across various industries is responsible for the growth of the Hyper Converged Infrastructure Market in recent years. The integration of on-premises and cloud resources in HCI solutions is providing the scalability, cost-effectiveness, and flexibility. This strategy enables dynamic workload management and hybrid cloud deployments which support both private and public clouds to optimize their IT operations. For instance, Kyndryl and Lenovo, key players in IT infrastructure services and the PC/storage/server sectors, revealed an expansion of their global partnership. This expansion is designed to provide customers with holistic solutions spanning Hyper Converged Infrastructure (HCI), hybrid cloud, and edge computing applications.

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Market Dynamics

Integration of cloud computing services emerges various growth opportunities in the Hyper Converged Infrastructure Market

HCI presents enhanced data security and scalability when compared to traditional storage solutions. With the proliferation of connected devices and the Internet of Things (IoT), HCI's capability to collect and store analytics within a centralized management framework becomes increasingly valuable. This feature aligns seamlessly with the trajectory of 5G networks, where HCI's unified interface for data visualization proves advantageous. According to the GSMA, 5G connections are anticipated to exceed 1 billion this year and reach 2 billion by 2025, further propelling the Hyper Converged Infrastructure market. Optimized for virtual workloads akin to public cloud-based services, HCI offers flexible, consumption-based infrastructure economics. The integration of HCI solutions in various applications can expand business demand and enhance IT service flexibility. Thus, the integration of essential cloud computing services such as centralized administration, storage, computation, and data security is providing a comprehensive solution in the growth of the Hyper Converged Infrastructure Market.

Integration of AI and Machine Learning Propels the Hyper Converged Infrastructure Market growth

The incorporation of advanced technologies, such as machine learning (ML) and artificial intelligence (AI) in order to enhance the overall efficiency and infrastructural administration of the organizations. For instance, Huawei has introduced its strategy to expand the digital transformation of organizations through the deployment of advanced technologies such as big data, artificial intelligence, edge computing, and intelligent manufacturing. Within this framework, Hyper Converged Infrastructure is undergoing rapid evolution, transitioning from conventional data centers to the edge, from structured to unstructured data, and from single general-purpose computing power to diversified computing capabilities. This has resulted in the growth of the Hyper Converged Infrastructure Market in recent years.

Competitive Landscape

The competitive landscape of the Hyper Converged Infrastructure market is highly competitive, providing technically advanced products, strategic collaboration, and partnership. For instance, in February 2023, Huawei unveiled its strategy to expedite the digital transformation of enterprises through the deployment of cutting-edge technologies, including big data, artificial intelligence, edge computing, and intelligent manufacturing. Within this framework, Hyper Converged Infrastructure is undergoing rapid evolution, transitioning from conventional data centers to the edge, from structured to unstructured data, and from single general-purpose computing power to diversified computing capabilities. This evolution has emerged as one of the primary methods for constructing modern data centers. Likewise, in April 2022, Equinix and Dell broadened their collaboration to offer hyper-converged data center solutions. As a component of this expansion, Equinix extended its Equinix Metal range of bare metal appliances.

The key players in the global Hyper Converged Infrastructure market include - Nutanix Inc. (U.S.), Dell Inc. (U.S.), VMware Inc. (U.S.), Hewlett Packard Enterprise Development LP (U.S.), Cisco System Inc. (U.S.), Oracle Corp. (U.S.), Microsoft Corp. (U.S.), NetApp Inc. (U.S.), IBM Corp. (U.S.), Huawei Technologies Co. Ltd. (China), StarWind Software Inc. (U.S.), Datacore Software Corp. (U.S.), Maxta Inc. (U.S.), Pivot3 Inc. (U.S.) among others.

Recent Market Developments

Huawei Unveils Net5.5G-Oriented Products and Solutions

  • In February 2024, Huawei launched the Net5.5G-oriented products and solutions, covering mobile backhaul, enterprise campus, converged transport, and data center network, to fully support carriers' business success.

Other Market Developments

  • In October 2023, Cisco and Nutanix introduced Cisco Compute Hyperconverged, marking Cisco's shift towards hybrid multi-cloud computing following the end-of-life announcement for HyperFlex. This move utilizes their recently formed alliance.
  • In September 2023, Cisco committed to providing five years of support and service for existing HyperFlex installations. Orders will be accepted until March 2024.
  • In August 2023, the Data Center Intelligence Group (DCIG), a prominent global technology analyst firm, chose Huawei FusionCube as one of the premier enterprises Hyper Converged Infrastructure (HCI) providers worldwide in their DCIG 2023-24 Top 5 report.

The global Hyper Converged Infrastructure market can be categorized as Component, Application, Organization Size, Enterprise, End User, and Region.

Parameter Details
Segments Covered

By Component

  • Hardware
  • Software

By Application

  • Remote Office/Branch Office
  • Virtualization Desktop Infrastructure (VDI)
  • Data Center Consolidation
  • Backup/Recovery/Disaster Recovery
  • Virtualizing Critical Applications

By End User

  • Cloud Providers
  • Colocation Providers
  • Enterprises

By Organization Size

  • Large Enterprises
  • Small & Medium-sized Enterprises (SMEs)

By Enterprise

  • Banking Financial Services & Insurance (BFSI)
  • IT & Telecom
  • Government
  • Healthcare
  • Manufacturing
  • Energy
  • Education
  • Other Enterprises

By Region

  • North America
    • U.S.
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Nutanix Inc. (U.S.)
  • Dell Inc. (U.S.)
  • VMware Inc. (U.S.)
  • Hewlett Packard Enterprise Development LP (U.S.)
  • Cisco System Inc. (U.S.)
  • Oracle Corp. (U.S.)
  • Microsoft Corp. (U.S.)
  • NetApp Inc. (U.S.)
  • IBM Corp. (U.S.)
  • Huawei Technologies Co. Ltd. (China)
  • StarWind Software Inc. (U.S.)
  • Datacore Software Corp. (U.S.)
  • Maxta Inc. (U.S.)
  • Pivot3 Inc. (U.S.)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
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FAQ
Frequently Asked Question
  • The global Hyper Converged Infrastructure valued at USD 16.2 Billion in 2023 and is expected to reach USD 155.7 Billion in 2032 growing at a CAGR of 28.6%.

  • The prominent players in the market are Nutanix Inc. (U.S.), Dell Inc. (U.S.), VMware Inc. (U.S.), Hewlett Packard Enterprise Development LP (U.S.), Cisco System Inc. (U.S.), Oracle Corp. (U.S.), Microsoft Corp. (U.S.), NetApp Inc. (U.S.), IBM Corp. (U.S.), Huawei Technologies Co. Ltd. (China), StarWind Software Inc. (U.S.), Datacore Software Corp. (U.S.), Maxta Inc. (U.S.), Pivot3 Inc. (U.S.).

  • The market is project to grow at a CAGR of 28.6% between 2024 and 2032.

  • The driving factors of the Hyper Converged Infrastructure include

  • North America was the leading regional segment of the Hyper Converged Infrastructure in 2023.