Global Hyper Converged Infrastructure Market

Hyper Converged Infrastructure Market Size, Share, Growth Analysis, By Component(Solutions, Services), By Application(Remote Office/Branch Office, Virtual Desktop Infrastructure), By Organization Site(Large enterprises, Small), By End-User(Cloud providers, Colocation Providers), By Enterprise(Banking, Financial Services) - Industry Forecast 2024-2031


Report ID: SQMIG45C2066 | Region: Global | Published Date: February, 2024
Pages: 157 | Tables: 153 | Figures: 78

Hyper Converged Infrastructure Market Insights

Hyper Converged Infrastructure Market size was valued at USD 5941.3 million in 2019 and is poised to grow from USD 6721.7 million in 2023 to USD 14520 million by 2031, growing at a CAGR of 13.2% in the forecast period (2024-2031).

Hyper-convergence Infrastructure has recently acquired interest among organisations owing to its ability to speed the deployment of new workloads, simplify infrastructure administration, and minimise infrastructure costs. During the projection period, this has aided the expansion of the hyper-converged infrastructure market. HCI architecture is built for a pay-as-you-go pricing strategy and the capacity to scale gradually, which has aided industry growth. Because it provides integrated stack systems, integrated infrastructure systems, and integrated reference designs, business-critical applications that are now deployed on three-tier IT infrastructure will migrate to hyper converged infrastructure.

The growing desire for upgrading data centres using HCI systems to drive corporate growth benefits the Hyper Converged Infrastructure industry. It is a software-defined infrastructure approach that is used for data centre consolidations to save money and improve operational efficiencies. Increasing desktop virtualization adoption as a result of increased work-from-home scenarios during the COVID-19 pandemic might boost market expansion. In addition, increased demand for data security and disaster recovery in the IT and telecommunications sectors has fueled market expansion. Several end-user firms have embraced these HCI software solutions to reach their distant employees. According to the 2020 Environmental, Social, and Governance (ESG) Research Global Survey, roughly 87% of IT managers have implemented HCI solutions to make their organisations more agile. Microsoft Corporation announced Azure Stack HCI, a hybrid cloud-focused solution, in India in February 2021. With the release of this enhanced solution, users will be able to effortlessly adopt a multi-cloud, multi-edge hybrid strategy.

US Hyper Converged Infrastructure Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2024-2031

Global Market Size

USD 5941.3 million

Largest Segment

Solutions

Fastest Growth

Solutions

Growth Rate

13.2% CAGR

Global Hyper Converged Infrastructure Market ($ Bn)
Country Share for North America Region (%)
Global Hyper Converged Infrastructure Market By Component ($ Bn)
Global Hyper Converged Infrastructure Market By Component (%)

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Hyper Converged Infrastructure Market Segmental Analysis

Global Hyper Converged Infrastructure Market is segmented based on the Component, Application, Organization Site, End-User, Enterprise, and region. Based on Component, the Hyper Converged Infrastructure Market is segmented Solutions and Services. Based Application, the Hyper Converged Infrastructure Market is segmented into Remote Office/Branch Office, Virtual Desktop Infrastructure, Data Center Consolidation, Data Protection and Disaster Recovery, and Others (Server Virtualizations, Cloud Management). Based on Organization Site, the Hyper Converged Infrastructure Market is categorized into Large enterprises, Small and Medium-Sized Enterprises. Based on End-User, the Hyper Converged Infrastructure Market is segmented into Cloud providers, Colocation Providers, and Enterprises. Based on Enterprise, the market is segmented into Banking, Financial Services and Insurance (BFSI), IT and Telecom, Manufacturing, Government, Healthcare, and Others (Education). By region, the Hyper Converged Infrastructure Market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA.

Hyper Converged Infrastructure Market Analysis by Application

The virtual desktop infrastructure sector is predicted to have a substantial Global Hyper Converged Infrastructure Market share over the forecast period. This is partly due to growing trends such as Bring Your Own Device (BYOD) and a rise in remote work from home. According to a Cisco Systems report, 59% of US IT professionals employed BYOD during the COVID-19 outbreak. Virtual desk infrastructure refers to the centralised system used to manage the devices of remote employees.

The utilization of remote office/branch office, virtual desktop infrastructure, data centre consolidation, data security, disaster recovery, and other related services is also expanding. Because of the increasing number of data breaches, the data protection and disaster recovery applications category is expected to grow at the fastest CAGR throughout the forecast timeframe. Data breaches damaged an estimated 98.2 million individuals in the United States in the first quarter of 2021, according to the US Department of Health and Human Services. Data breaches are increasing the demand for data protection and disaster recovery software.

Hyper Converged Infrastructure Market Analysis by Component

The solutions sector is expected to have the biggest market share. This is partly due to the market's top manufacturers' increased development of small hardware systems. As an example, Dell Technologies will introduce managed storage, server, and Hyper Converged Infrastructure hardware solutions in May 2021. It can be used for data centre consolidation at the edge. It is used to store cloud services and streamline management.

During the projection period, the services category is predicted to develop at the fastest CAGR. This is mostly due to growing enterprises' digital transformations all around the world. According to a 2020 McKinsey & Company report, during the COVID-19 pandemic, worldwide digital technology use climbed from 36% to 58%. This would increase service adoption in forecast period.

Global Hyper Converged Infrastructure Market By Component, 2023 (%)

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Hyper Converged Infrastructure Market Regional Insights

Global Hyper Converged Infrastructure Market is divided into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa (MEA).

North America dominated the global market. This is largely because industry titans like as Dell Technologies, Cisco Systems Inc., Hewlett Packard Enterprise Company, IBM Corporation, Microsoft Corporation, and others are present. Furthermore, rising investment in the establishment and modernization of data centre infrastructure in this sector contributes to market growth. The construction of data centre infrastructure across North America has supported market growth.

Throughout the forecast period, Asia Pacific is predicted to grow at the fastest CAGR. This is mostly due to increasing investment by significant regional companies. Microsoft Corporation, for example, intended to invest roughly USD 1 billion in Malaysia in April 2021 to establish a new data centre in collaboration with local enterprises and government agencies. Such data centre development initiatives are projected to provide a number of chances for industry growth.

During the projection period, Europe will increase at a steady CAGR. Rising digital transformation activities by industry leaders, together with increased expenditures in data centre construction, fuel market growth. For example, in November 2021, the European Commission introduced the Digital Europe Programme, which includes USD 2.24 billion in support for enterprise digital transformation. The Digital Europe Programme aims to increase digital technology adoption in Europe's public agencies and small and medium-sized businesses.

Global Hyper Converged Infrastructure Market By Region, 2024-2031
  • Largest
  • Fastest

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Hyper Converged Infrastructure Market Dynamics

Hyper Converged Infrastructure Market Driver

Rapid Digital Transformation to Drive Market Growth

  • The market is expanding as a result of increased digital transformation in data centres that use HCI solutions. Using the compute storage network, the solutions are utilised for data centre modernization and consolidation. It provides a software-defined virtualized environment that enables data centre capabilities to be scaled up and down in a flexible manner. The solutions assist in improving performance while lowering operational expenses. Rising investment in data centre infrastructure development is likely to provide new possibilities in the sector.

Hyper Converged Infrastructure Market Restraint

Need for High Power to Hamper Market Growth

  • Computing, networking, and storage systems are all combined in hyper converged designs. It is prone to heavy workloads in a small space, necessitating more power than standard data centres. To address this, certain workloads must transfer to cloud storage, requiring extra hardware and power. The need for high power is impeding market expansion. Furthermore, Hyper Converged systems must provide sufficient power and cooling to fulfil the workload need. It may incur additional fees. Furthermore, HCI solutions face compatibility concerns. Because various manufacturers have distinct software and hardware sets, customers find it challenging to accept these HCI solutions. This compatibility difficulty, as well as the added expense and high power required for the equipment, are impeding growth.

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Hyper Converged Infrastructure Market Competitive Landscape

Various businesses are focusing on organic growth strategies such as product launches, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were among the inorganic growth strategies observed in the market. These activities have paved the way for market participants to expand their business and customer base. With rising global demand, market players in the hyper-converged infrastructure market are expected to benefit from lucrative growth opportunities in the future.

Hyper Converged Infrastructure Market Top Player's Company Profiles

  • Dell EMC
  • Nutanix
  • Hewlett Packard Enterprise
  • Cisco Systems
  • VMware Inc.
  • NetApp Inc.
  • Scale Computing
  • Pivot3
  • Huawei Technologies Co. Ltd.
  • Lenovo Group Limited
  • DataCore Software Corporation
  • Fujitsu Ltd.
  • Stratoscale
  • SimpliVity Corporation
  • Maxta Inc.
  • Atlantis Computing Inc.
  • Gridstore Inc.
  • StarWind Software Inc.
  • StorMagic Inc.
  • Diamanti Inc.

Hyper Converged Infrastructure Market Recent Developments

  • In October 2022, Dell employs a collaborative method to include cyber resilience into its HCI offering. HCI security is a unique problem since it virtualizes the whole data centre, including storage, computing, networking, and management components. This implies that West and his security team must maintain security across the whole HCI portfolio rather than focusing on a particular type of information technology system. According to West, supply chain assaults are an excellent example of this complexity.
  • In September 2022, at the next Gitex Global, DVCOM, a Dubai-based technology business, will showcase its newest hyper-converged infrastructure (HCI) and collaborative communication tools and platforms. With its HCI concept, the company will assist small and large organisations at this year's Gitex Global in achieving a seamless collaborative-converged-communication environment utilising data-voice-video.

Hyper Converged Infrastructure Key Market Trends

  • The increasing requirement for data security and disaster recovery, as well as reductions in Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), are important drivers driving the hyper-converged infrastructure market trends. These reasons contribute to market growth as key infrastructure providers use hybrid and multi-cloud installations as backup techniques, data disaster recovery solutions, or as a replacement for on-premises infrastructure. However, vendor lock-in is a prominent problem that is predicted to limit market expansion to some extent. HCI minimises the need for significant IT server and storage management resources. The HCI solution simplifies data migration and hybrid cloud deployment. The growing use of Hyper Converged Infrastructure solutions for digital transformation in end-user sectors such as retail and e-commerce, healthcare, IT & telecom, and others has fueled market expansion.

Hyper Converged Infrastructure Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our Hyper Converged Infrastructure market analysis, there is an increasing number of digital business transformation initiatives. Promotes market growth. Rising demand for data centre consolidation, along with an increase in digital transformations, drives growth. Market growth is hampered by compatibility issues and high power requirements. Compact hardware solutions advancement to strengthen market growth because of the 'work from home' and 'bring your own device' trends, virtual desktop infrastructure is expected to have a significant share. Increasing data protection demand in the banking industry to drive market growth. Product launch and expansion strategy will increase competition among key market players.

Report Metric Details
Market size value in 2023 USD 5941.3 million
Market size value in 2031 USD 14520 million
Growth Rate 13.2%
Forecast period 2024-2031
Forecast Unit (Value) USD Million
Segments covered
  • Component
    • Solutions, Services
  • Application
    • Remote Office/Branch Office, Virtual Desktop Infrastructure, Data Center Consolidation, Data Protection, Disaster Recovery, Others (Server Virtualizations, Cloud Management)
  • Organization Site
    • Large enterprises, Small, Medium-Sized Enterprises
  • End-User
    • Cloud providers, Colocation Providers, Enterprises
  • Enterprise
    • Banking, Financial Services, Insurance (BFSI), IT, Telecom, Manufacturing, Government, Healthcare, Others (Education).
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Dell EMC
  • Nutanix
  • Hewlett Packard Enterprise
  • Cisco Systems
  • VMware Inc.
  • NetApp Inc.
  • Scale Computing
  • Pivot3
  • Huawei Technologies Co. Ltd.
  • Lenovo Group Limited
  • DataCore Software Corporation
  • Fujitsu Ltd.
  • Stratoscale
  • SimpliVity Corporation
  • Maxta Inc.
  • Atlantis Computing Inc.
  • Gridstore Inc.
  • StarWind Software Inc.
  • StorMagic Inc.
  • Diamanti Inc.
Customization scope

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Historical Year 2019

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Hyper Converged Infrastructure Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Hyper Converged Infrastructure Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Hyper Converged Infrastructure Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Hyper Converged Infrastructure Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Hyper Converged Infrastructure Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Hyper Converged Infrastructure Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Hyper Converged Infrastructure Market size was valued at USD 5941.3 million in 2019 and is poised to grow from USD 6721.7 million in 2023 to USD 14520 million by 2031, growing at a CAGR of 13.2% in the forecast period (2024-2031).

Various businesses are focusing on organic growth strategies such as product launches, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were among the inorganic growth strategies observed in the market. These activities have paved the way for market participants to expand their business and customer base. With rising demand, market players in the hyper-converged infrastructure market are expected to benefit from lucrative growth opportunities in the future. 'Dell EMC', 'Nutanix', 'Hewlett Packard Enterprise', 'Cisco Systems', 'VMware Inc.', 'NetApp Inc.', 'Scale Computing', 'Pivot3', 'Huawei Technologies Co. Ltd.', 'Lenovo Group Limited', 'DataCore Software Corporation', 'Fujitsu Ltd.', 'Stratoscale', 'SimpliVity Corporation', 'Maxta Inc.', 'Atlantis Computing Inc.', 'Gridstore Inc.', 'StarWind Software Inc.', 'StorMagic Inc.', 'Diamanti Inc.'

The market is expanding as a result of increased digital transformation in data centres that use HCI solutions. Using the compute storage network, the solutions are utilised for data centre modernization and consolidation. It provides a software-defined virtualized environment that enables data centre capabilities to be scaled up and down in a flexible manner. The solutions assist in improving performance while lowering operational expenses. Rising investment in data centre infrastructure development is likely to provide new possibilities in the sector.

The increasing requirement for data security and disaster recovery, as well as reductions in Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), are important drivers driving the hyper-converged infrastructure market trends. These reasons contribute to market growth as key infrastructure providers use hybrid and multi-cloud installations as backup techniques, data disaster recovery solutions, or as a replacement for on-premises infrastructure. However, vendor lock-in is a prominent problem that is predicted to limit market expansion to some extent. HCI minimises the need for significant IT server and storage management resources. The HCI solution simplifies data migration and hybrid cloud deployment. The growing use of Hyper Converged Infrastructure solutions for digital transformation in end-user sectors such as retail and e-commerce, healthcare, IT & telecom, and others has fueled market expansion.

Hyper Converged Infrastructure Market is divided into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa (MEA).

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