Hyper-Converged Infrastructure Market

Global Hyper-Converged Infrastructure Market:

The global hyper-converged infrastructure market size reached US$ 11.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 70.7 Billion by 2032, exhibiting a growth rate (CAGR) of 21.5% during 2024-2032. The increasing focus on modernizing data centers, along with the rising need for managing critical applications of businesses, is propelling the growth of the market across the globe.

Hyper-Converged Infrastructure Market Analysis:

• Major Market Drivers: The elevating popularity of business automation to handle several labor-intensive tasks is one of the primary factors stimulating the market growth. Additionally, the widespread adoption of remote working practices by corporate employees is acting as another significant growth-inducing factor.
• Key Market Trends: The rising trend of using this software-associated architecture in the banking, financial services, and insurance (BFSI) sector, owing to the increasing number of online payment methods to make cashless payments, is positively influencing the overall market. Besides this, the emergence of desktop virtualization is further catalyzing the market growth.
• Geographical Trends: Asia Pacific exhibits a clear dominance of the hyper-converged infrastructure market value. This can be attributed to the easy accessibility of hyper-scale cloud service providers across the region. Moreover, the inflating investments in data centers are expected to bolster the regional market in the coming years.
• Competitive Landscape: Some of the prominent companies across the global market include Cisco Systems Inc., DataCore Software, Dell Technologies Inc., Hewlett Packard Enterprise Company, Hitachi Vantara Corporation, Huawei Technologies Co. Ltd., International Business Machines Corporation, Microsoft Corporation, NetApp Inc., Nutanix Inc., Quantum Corporation, and Scale Computing, among many others.
• Challenges and Opportunities: Although HCI can offer cost efficiencies over time, initial investments to implement hyper-converged systems can be significant. This cost barrier becomes a major challenge, particularly for small and medium-sized enterprises. Organizations across countries are ensuring that chosen infrastructures align well with their long-term IT and business strategies, which is expected to propel the market growth in the coming years.
   

Hyper-Converged Infrastructure Market Trends:

Increasing Need for Data Protection

The rising requirement for high-performance and reliable storage systems is augmenting the hyper-converged infrastructure market demand, as it offers an efficient and secure solution by integrating storage, networking, and computation into a single system. The elevating number of data breaches is expanding applications of HCI. For example, according to the IBM Data Breach's recent report, the average cost of data breaches increased by 2.6%. Furthermore, 1,802 data breaches were reported in the U.S. in 2022, impacting over 422 million individuals. Besides this, a survey around Data Privacy and Ethics was conducted by using data from Publishers Clearing House (PCH) consumer insights, revealing the lack of knowledge among people aged 25 and above about their digital privacy. Additionally, the shifting preferences from traditional storage solutions towards hyper-converged infrastructure, owing to the increasing adoption of connected devices and the introduction of the Internet of Things (IoT), are acting as significant growth-inducing factors. According to the GSMA, 5G connections are expected to reach 2 billion by 2025. With the development of advanced technologies, including GenAI, there is an escalating concern towards cybersecurity attacks. For instance, according to the HackerOne 2023 "Hacker-Powered Security Report," 61% of hackers planned to use GenAI for hacking tools and to find more vulnerabilities. In addition to this, as per the data cited by Anne Neuberger, U.S. Deputy National Security Advisor for cyber and emerging technologies, the annual average cost of cybercrimes is predicted to hit more than US$23 Trillion in 2027. These figures showcase the escalating need for HCI, as it gathers and stores analytics in a centralized management system, thereby positively influencing the hyper-converged infrastructure market outlook.

Several Collaborations

Prominent players are expanding their market presence on account of the continuous advancements in infrastructure services. They are entering into partnerships that usually involve hardware manufacturers, technology providers, and service companies working together to deliver comprehensive solutions that address complex business needs. For example, in April 2022, Dell and Equinix collaborated to provide hyper-converged data center offerings. These new solutions aimed to deliver improved capabilities and performance by combining Dell's advanced hardware with Equinix's robust bare metal infrastructures. Apart from this, in March 2022, Kyndryl, one of the world's largest IT infrastructure services providers, and Lenovo, an industry leader in PCs, storage, and server performance and reliability, announced an expansion of their global partnership to deliver and develop scalable hybrid cloud solutions and edge computing implementations. Similarly, in February 2023, Huawei announced its plans to accelerate the digital transformation of enterprises by adopting advanced technologies, such as artificial intelligence, edge computing, big data, intelligent manufacturing, etc. Furthermore, to support this trend, Huawei also introduced its hyper-convergence strategy by launching novel product offerings, such as Blue Whale Application Mall, Kunpeng Hyperconvergence, and supporting tools. As a result, according to the hyper-converged infrastructure market overview, such partnerships help companies to stay competitive in a rapidly evolving market.

Growing Hybrid Multi-Cloud Integration

The increasing cloud computing activities of companies to elevate operational flexibility and delegate routine tasks are strengthening the market. The widespread integration of HCI with hybrid multi-cloud models, as it enables businesses to manage data workflows more effectively from end-to-end, thereby ensuring easy accessibility of data for AI applications, is positively impacting the hyper-converged infrastructure market revenue. For instance, in January 2024, HCLTech, one of the leading global technology companies, in partnership with Cisco, introduced a hybrid multi-cloud networking solution that simplifies cloud management and also optimizes operations. In line with this, in April 2024, Azure Arc, one of the cloud-based services, extended the Azure Resource Manager-based management model to non-Azure resources like Kubernetes clusters, virtual machines, containerized databases, etc. Similarly, IBM, one of the multinational technology companies headquartered in New York, offers multi-cloud networking solutions, such as Hybrid Cloud Mesh, to deliver secure and predictable network connectivity. Besides this, extensive investments in AI technologies are projected to bolster the market over the forecasted period.

Hyper-Converged Infrastructure Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the hyper-converged infrastructure market forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the component, application, and end use.

Breakup by Component:

• Hardware
• Software
   

Currently, hardware holds the majority of the total market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware and software. According to the report, hardware accounted for the largest market segmentation.

Hardware-based hyper-converged infrastructure is gaining extensive traction, as it enables high levels of optimization and integration, which can vastly improve key performance in vital areas, such as storage-to-CPU data transfers. In line with this, hardware HCI can be ideal when high performance is important for workloads, including real-time data analytics tasks, and when hardware scalability and modularity are important for the business. Moreover, some of the common examples of hardware based HCI include the HPE SimpliVity 380 and 2600 platforms and Dell EMC VxRack System Flex, among others. As such, Nutanix, one of the cloud computing companies, offers a range of HCI hardware under the NX Series, specifically designed to simplify data center management and operations. They integrate storage and networking into a single platform, providing flexible and scalable infrastructure solutions.

Breakup by Application:

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

Among these, data center consolidation currently exhibits a clear dominance in the hyper-converged infrastructure market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes remote office or branch office, virtualization desktop infrastructure (VDI), data center consolidation, backup recovery/disaster recovery, critical applications virtualization, and others. According to the report, data center consolidation accounted for the largest market segmentation. 

Data center consolidation plays a significant role in fueling the adoption of hyper-converged infrastructure (HCI) solutions, thereby driving the segment's growth. Data center consolidation generally involves combining various data centers into fewer, more centralized locations. Moreover, HCI solutions simplify this process by minimizing the complexity of managing disparate infrastructure components across multiple data centers. Apart from this, it can lead to cost savings by reducing hardware footprint, optimizing resource utilization, streamlining operations, etc. These benefits will continue to bolster the hyper-converged infrastructure market growth over the foreseeable future.

Breakup by End Use:

• BFSI
• IT and Telecommunications
• Government
• Healthcare
• Manufacturing
• Energy and Utilities
• Education
• Others
   

According to the hyper-converged infrastructure market research, BFSI exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the end use. This includes BFSI, IT and telecommunications, government, healthcare, manufacturing, energy and utilities, education, and others. According to the report, BFSI accounted for the largest market segmentation. 

The expanding banking, financial services, and insurance (BFSI) sector is contributing to the global market. Additionally, the widespread adoption of online payment methods to make cashless payments is acting as another significant growth-inducing factor. Besides this, various financial institutions are focusing on rapidly modernizing and scaling up infrastructures to drive operational efficiency and customer engagement. Moreover, the rising inclination towards digital banking, especially in India, has made banking a transparent and smooth process. These institutions are leveraging advanced IT solutions, such as HCI, thereby stimulating the hyper-converged infrastructure market price. For instance, RBL Bank, one of the private sector banks in India, is using HCI and upgrading its operating platform system to a more agile system capable of addressing numerous challenges. In addition to this, in September 2020, RBL Bank partnered with Nutanix to create an agile private cloud environment that could quickly respond to business VM requests.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
  • Middle East and Africa
     

As per the hyper-converged infrastructure market research report, Asia Pacific represents largest market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (the United Kingdom, Germany, France, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The increasing popularity of utilizing Infrastructure-as-a-Service (IaaS) solutions is primarily propelling the market in the Asia Pacific. Besides this, the rising awareness among individuals towards managing data via a common interface at a reduced cost of ownership is also contributing to the growth of the market across the region. Furthermore, according to the hyper-converged infrastructure market statistics, the growing investments by key players in advanced technologies are acting as significant growth-inducing factors. Apart from this, the elevating number of data centers, in countries, such as Japan, is catalyzing the regional market. Matthew Young, senior vice president of Nutanix in APAC, noted that HCI is used, on account of the hybrid cloud deployments across the region. Moreover, the inflating popularity of desktop virtualization will continue to drive the market in Asia Pacific in the coming years.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Cisco Systems Inc.
• DataCore Software Corporation
• Dell Technologies Inc.
• Hewlett Packard Enterprise Company
• Hitachi Vantara Corporation
• Huawei Technologies Co., Ltd.
• International Business Machines Corporation
• Microsoft Corporation
• NetApp Inc.
• Nutanix Inc.
• Quantum Corporation
• Scale Computing
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Hyper-Converged Infrastructure Market News:

• April 2024: Hitachi Vantara, a subsidiary of Hitachi Ltd., announced the availability of the Hitachi Virtual Storage Platform. It is developed to transform how organizations leverage and manage their data in the evolving technological landscape.
• April 2024: IBM announced the acquisition of HashiCorp, Inc., one of the leading multi-cloud infrastructure automation companies, to create a comprehensive end-to-end hybrid cloud platform.
• April 2024: Aethir, one of the industry-leading decentralized cloud computing infrastructure providers, along with Qualcomm, showcased Aethir Edge, an edge computing device, at the Dubai Press Conference.

Hyper-Converged Infrastructure Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the hyper-converged infrastructure market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global hyper-converged infrastructure market.
• The study maps the leading as well as the fastest growing regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the hyper-converged infrastructure industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.