Hyper-Converged Infrastructure Market - Forecast(2024 - 2030)

Hyper-Converged Infrastructure Market Overview

Hyper-Converged Infrastructure Market size is forecast to reach $22.2 billion by 2027, after growing at a CAGR of 20.2% during the forecast period 2022-2027. Hyper-Converged Infrastructure (HCI) operates by grouping multiple information technology (IT) components such as servers, data storage devices, virtual desktop infrastructure networking equipment and software into a single and optimized commercial off the shelf package. While Hyper-Converged Infrastructure (HCI) is a software-centric architecture that incorporates compute, storage and virtualized computing resources in a single system which contains x86 hardware. Increasing demand for data protection requirements, server virtualized computing, disaster recovery, hardware segments, enhance IT operational efficiency, and improvements in data protection and software defined networking from IT and telecom industry are the factors driving the growth of the Converged & Hyper-Converged Market. In this era where data is intellectual and valuable property, recent surveys by IT giants have portrayed that 87% of IT companies agreed to the fact that HCI make assessments agiler. The increased adoption of IoT in various technologies including smart homes, smart cities, Industry 4.0, connected vehicles and so on is analyzed to boost the Hyper-Converged Infrastructure market size during the forecast period 2022-2027 as it provides with reduced latency, lower processing times and many other benefits.

Report Coverage

The report: “Hyper-Converged Infrastructure Industry Outlook (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Hyper-Converged Infrastructure Industry. 

By Hypervisor: Vmware (ESX/ESXI/Vsphere), KVM (Kernel-based Virtual Machine) and Hyper-V.
By Application: Network and data security, virtualization, data protection, ROBO, Cloud and Others.
By End Use Industry: BFSI, Healthcare, Government, Retail, Education, Cloud Service Network and Others.
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle East and Africa).

Key Takeaways

• North America dominates the Hyper-Converged Infrastructure market owing to high adoption of the technologies such as IoT and 5G.
• The growing popularity of connected vehicles globally and the implementation of Hyper-Converged Infrastructure solutions in the connected vehicles to assist the Hyper-Converged Infrastructure market growth during forecast period 2022-2027.
• IT and Telecom is hold the major market share in 2021. However, increasing adoption of digital, mobile banking initiatives, advanced platforms and so on in the BFSI industry is impacting on the significant growth rate in the Hyper-Converged Infrastructure market during 2022-2027.

Hyper-Converged Infrastructure Industry Segment Analysis – By Hypervisor

Hyperconverged infrastructure is becoming the dominant solution for organizations seeking to create a true hybrid cloud environment due to its ability to quickly build a private cloud, extend to public cloud and offer cloud-like manageability. Nutanix is a hyper-converged infrastructure pioneer who has transformed itself into a software and subscription company focused only on HCI commercial off the shelf software innovation. The San Jose, Calif.-based company is a dominant software defined networking market leader, along with VMware, for HCI on a global basis. The $94 billion infrastructure giant continues to dominate the worldwide hyper-converged market as Dell Technologies doubles down on server innovation with new PowerEdge servers. The Round Rock, Texas-base company has been leading the HCI systems market for years thanks to VxRail, Dell’s flagship HCI product jointly created with VMware. This has led to VMWare dominating the market in 2021 with share of 39.5%.

Hyper-Converged Infrastructure Market Industry Outlook - By End User

Converged and hyper-converged infrastructure is essential as it has improved the efficiency of the systems and also reduction in costs. This infrastructure has also led to the essential hardware upgradation in the existing infrastructure systems and improved the scalability and due to the advancement in technology which has raised the business demands for more IT functionalities that is reliable, efficient and easy to use. Thus, this major factor has led to the growth of the Converged and Hyper-converged market and is expected to grow more in the coming years. Geographically North America dominated the hyper-converged infrastructure market owing to higher demand of hyper-converged infrastructure in the U.S., as a result of presence of major technology giants across the U.S., coupled with presence of the major IT & telecom and BFSI companies. Asia Pacific is projected to have fastest growth, owing to rapidly increasing adoption of the modern IT services to store data at an economical cost, growing awareness for data management, rising focus toward VDI, server virtualized computing, increasing popularity of using infrastructure-as-a-service (IaaS) solutions, and favourable government policies in developing nations such as China, and India in this region. Among all the end-user industry, IT and Telecom has the highest market share in the hyper-converged infrastructure market at 24.9% share in 2021.

Hyper-Converged Infrastructure Industry Segment Analysis – By Geography

North America is dominating the Hyper-Converged Infrastructure market size with a market share of 39% in 2021, owing to the increased adoptions of industry 4.0 in the manufacturing sector, in the past few years. Moreover the presence of large number of data centers in these regions is also adding up as a boosting factor for Hyper-Converged Infrastructure market as they help in minimizing latency. APAC is analyzed to be have the highest growth rate during the forecast period 2022-2027. The major factors such as the increased investments and government initiatives for the development of smart cities in India, China and other countries are further fueling the growth of Hyper-Converged Infrastructure market in this region. As of International Data Corporation, China's smart cities initiatives is forecast to reach $38.92 billion by 2023 thereby elevating the growth of the Hyper-Converged Infrastructure market.

Hyper-Converged Infrastructure Market Drivers

Growing demand for IoT in various industries

The employment of IoT in various industries including automotive, manufacturing, retail, transportation, energy and so on has been analyzed to drive the market. IoT is employed in these industries as it provides real time information, improves operational efficiency, optimization in production, and other benefits that impact the efficiency of the industry and further contributing as the driving factor for the Hyper-Converged Infrastructure market. G.E has stated that employment of Industrial IoT has 44% impact on global energy consumption. Therefore the employment of IoT in industries is analyzed to be a driving factor for Hyper-Converged Infrastructure market during forecast period 2022-2027.

Rising Virtualization and Adoption

Globally, rising usage of virtualization, increasing need of data protection & disaster recovery, low capex & total cost of ownership are the prime growth drivers of the hyper-converged infrastructure market. In addition, development of technologies to create high value hyper-converged infrastructure and increase in adoption of hyper-converged infrastructure in emerging economies such as China, India and others, is expected to create new opportunities for the hyper-converged infrastructure market. However, higher cost of the research and development, demerits of bundled solutions are the key restraints for the hyper-converged infrastructure market. In 2021, Server virtualization is the most widely used virtualization technology by businesses in North America and Europe with an adoption rate of 92 percent, while a further five percent of businesses plan to use it in the next two years. This will drive market demand for Hyperconverged infrastructure including commerical off the shelf over the next few years.

Hyper-Converged Infrastructure Market Challenges

High costs and security issues

Although Hyper-Converged Infrastructure is employed in many applications, the high initial cost and the maintenance cost act as the hindering factor for the Hyper-Converged Infrastructure industry. Moreover the Hyper-Converged Infrastructure forces businesses to grapple with the same network security models and the physical security parameters for more remote servers in which security footprints and the traffic patterns are accessible to everyone thereby hindering the security of the database and acting as a challenge. However according to an IDC study on the cost savings in organizations using the Nutanix Enterprise Cloud platform with hyper-converged infrastructure (HCI) calculated that they could achieve a staggering five-year ROI of 477% on average. Thus, despite the price comparison with IT, the advantages of HCI combined with the ROI will drive investment in the market.

Hyper-Converged Infrastructure Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Hyper-Converged Infrastructure market. In 2021, the market has been consolidated by the Hyper-Converged Top 10 companies including

1. Huawei
2. Scale Computing
3. Cisco Systems Inc.
4. Dell Inc.
5. Nutanix
6. IBM
7. Fujitsu
8. VMWare
9. Hewlett Packard Enterprise (HPE)
10. Microsoft Corporation

Recent Developments

• In August 2021, Quantum Announces Definitive Agreement to Acquire Hyperconverged Software Startup EnCloudEn Technology. This adds hardware-agnostic hyper-converged infrastructure (HCI) software including software defined networking solutions that extends Quantum's HCI offerings for the surveillance market, and accelerates shift to subscription-based software acquisition model.
• In July 2020, HPE unified the SimpliVity and Nimble dHCI engineering R&D into a single merged entity. SimpliVity and Nimble dHCI are based on ProLiant servers and managed through InfoSight software.
• In July 2020, VMware Announced its Acquisition of Datrium to Provide Disaster Recovery-as-a-Service for Hybrid Cloud Environments.

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