Hyper-Converged Infrastructure Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Hyper-Converged Infrastructure Market Analysis
Hyper-converged infrastructure market is expected to register a healthy CAGR of over 13% during the forecast period as HCI solutions are increasingly capable of operating business-critical workloads while reducing data-center complexity and promoting affordability.
- Hyperconvergence (HCI) began as a cloud infrastructure substitute. However, it will not necessarily be in direct competition with the public cloud in the future. HCI is used to maintain strong control over all IT resources as more businesses adopt a cloud-first strategy. The firms anticipate that HCI will become increasingly prevalent as cloud adoption increases. Vendors of hyper-converged infrastructure already recognize the benefits of leveraging the public cloud, which many businesses trust for its manageability and flexibility while enhancing capabilities with hyper-converged technology that enables companies to manage both environments in an integrated manner.
- Increasing demand from various applications leads to the growing efficiency of IT infrastructure, eventually boosting the demand of the global hyper-converged infrastructure market during the forecast period. Hyper-converged infrastructure systems allow organizations to keep data safe in their on-premises data centers and provide multiple data protection features such as snapshots, replication, and encryption, fueling the market demand across various organizations.
- The market is growing due to increasing digital transformation in data centers adopting HCI solutions. According to Cloudscene, around 2,751 data centers were in the United States as of this year, and 484 more were found in Germany. With 458, the United Kingdom came in third place after China and the other countries in terms of the number of data centers. Many data centers will create growth opportunities for the market studied.
- Hypervisors play an important role during the deployment of any virtualization having a limited choice as the hypervisors offered are vendor-dependent and may restrict the adoption of hyper-converged infrastructure solutions.
- Virtual desktop infrastructure has been a game-changer for hyper-converged infrastructure in the past and in this COVID-19 environment. The allure of VDI has been its security. This makes it easier to install and maintain the desktop PCs of hundreds or thousands of users by running each as a VM on a central server. After the pandemic, the market is proliferating due to the increasing number of data centers and digitization in many regions. For example, according to Germany's digital group, Bitkom, the COVID-19 pandemic and widespread digitization have accelerated the country's data center performance. The capacity of data processing centers in Germany increased by 84% in terms of IT performance between 2010 and 2020. This will continue to grow by another 30% in five years.
Hyper-Converged Infrastructure Industry Segments
Hyperconverged infrastructure (HCI) is an assortment of servers and storage incorporated into a distributed infrastructure platform with intelligent software to create flexible building blocks that replace legacy infrastructure consisting of separate storage networks, servers, and storage arrays. It combines commodity data center server hardware with locally attached storage devices (spinning disk or flash). It is powered by a distributed software layer to eliminate common pain points associated with legacy infrastructure.
The scope of the study focuses on the market analysis of hyper-converged infrastructure solutions. Market sizing encompasses the revenue generated through hyper-converged infrastructure solutions around the globe sold by various market players. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates during the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem. The scope of the report encompasses market sizing and forecast for segmentation by service, organization, end-user industry, and geography.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|By Organization Type|
|Small & Medium Enterprise|
|By End-user Industry|
|IT & Telecommunication|
|Government and Defence|
|Other End-user Industries|
|Rest of the World|
Hyper-Converged Infrastructure Market Trends
This section covers the major market trends shaping the Hyper-Converged Infrastructure Market according to our research experts:
Growing Need for Enhanced Data Protection Driving the Market Growth
- More than ever, organizations require storage performance that is reliable and fast. Hyperconverged infrastructure (HCI) offers safe and secure infrastructure. HCI streamlines management, consolidates resources, and lowers costs by integrating networking, storage, and computation into a single system. These advantages have led to increased HCI adoption, and many enterprises view the product as essential to their strategic IT priorities.
- The market is expanding because of the rising use of HCI solutions like data security and disaster recovery. The demand for HCI has also increased due to the widespread use of digital technology platforms like social media and knowledge platforms. According to the IBM Data Breach Report 2022, from USD 4.24 million last year to USD 4.35 million this year, the average data breach cost increased by 2.6%. The typical price increased by 12.7% from USD 3.86 million last year. Penalties for data breaches are included in the price, personally and corporately. With the aid of components and apps, hyper-converged systems lower the danger of data security breaches. Additionally, it comes with a high-security AMD processor package with security capabilities to reduce security concerns.
- In addition to being more adaptable and scalable than conventional storage, it offers improved data security. It is crucial as more connected devices, such as smart home appliances and the Internet of Things (IoT), use these networks. The capacity of HCI to gather and store analytics in a centralized management system makes it another appealing feature for the 5G future. Viewing collected data through a single pane of glass is already and will continue to benefit 5G. According to the GSMA, 5G connections will surpass 1 billion this year and 2 billion by 2025. Such a rise in 5G connections will drive the HCI market.
- HCI is optimized for virtual workloads, similar to public cloud-based services, and provides consumption-based infrastructure economics and flexibility. It enables enterprises to rapidly scale their resources by adding HCI building blocks to respond quickly to business demands, contributing to IT service agility. Because the essential cloud computing services, such as centralized, unified administration, computation, storage, and data security, are embedded into hyper-converged systems.
- Automation and machine learning are already commonly regarded as productivity boosters for businesses that employ them to improve application performance and handle massive amounts of data. AI handles workload demands, optimizes application workloads, and optimizes HCI storage. By bridging the gaps between on-premises private cloud, public cloud, and existing data center infrastructure, hyper-converged infrastructure at the center of a hybrid multi-cloud model enables businesses to manage end-to-end data workflows and ensure that data is easily accessible for AI. For example, according to the Artificial Intelligence Index Report 2021, last year, the global total corporate investment in artificial intelligence (AI) reached almost USD 94 billion, a significant increase from the previous year's investment of USD 67.85 billion. Such rises in AI investment will drive the market studied.
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North America is Expected to Register the Fastest Growth
- The expansion of hyper-scale cloud service providers in North America is responsible for the market's growth. Colocation services have also increased in the wholesale and retail sectors over the past few years. Additionally, the infrastructure for virtual desktops has expanded due to rising mobile data usage, expanding BYOD regulations, and other factors. HCI's market share in North America will increase as a result.
- Several data center companies have invested heavily in hyperscale data centers. Last year, Equinix announced plans to build 32 hyperscale data centers in some major global markets. With a total capacity of 600 megawatts and more than USD 6.9 billion in investment, the company aims to tap new markets and gain a better position in the growing landscape of hyper-scale data centers. Such a rise in the region's data centers will drive the region's HCI market.
- Furthermore, in the first quarter of this year, to develop and deliver scalable hybrid cloud solutions and edge computing implementations, Kyndryl, a provider of IT infrastructure services, and Lenovo, a market leader in PCs, storage, and server performance and reliability, announced the expansion of their existing global partnership. With a full portfolio of ready-to-roll, plug-and-play solutions, Lenovo's current partnerships with other Kyndrylecosystem alliance partners will enable deep collaboration to deliver the best solutions for customers across the hybrid cloud, HCI, and edge computing applications.
- Moreover, in the last year, enterprise deployments of hyper-converged infrastructure are driving a surge in software-defined storage. Due to this trend, DataCoreSoftware acquired object storage specialist CaringoInc. to provide block, file, and object storage as a single package. The Swarm platform from Caringo is designed for hyperscale data access and storage while solving data governance needs and minimizing hardware dependence. The organization released the latest version of its data management solution, which expanded data access capability across dispersed storage resources.
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Hyper-Converged Infrastructure Market Competitor Analysis
The hyper-converged infrastructure market is moderately competitive and consists of a few major players. Some of the players currently dominate the market in terms of market share. However, with the advancement in infrastructure services across the cloud platform, new players are increasing their market presence, thereby expanding their business footprint across emerging economies. The Key players in the market are continuously making partnerships, mergers, and investments to retain their market position.
- April 2022 - Equinix and Dell expanded their partnership for hyper-converged data center offerings. Expansion to its Equinix Metal line of bare metal appliances. This includes releasing several new offerings, such as Dell PowerStoreon Equinix Metal, Dell VxRail on Equinix Metal, and Dell EMC PowerProtectDDVE on Equinix Metal.
Hyper-Converged Infrastructure Market Top Players
Hewlett Packard Enterprise Development LP
Cisco System Inc.
*Disclaimer: Major Players sorted in no particular order
Hyper-Converged Infrastructure Market Recent Developments
- March 2022 - Kyndryl, one of the leading global IT infrastructure services providers, and Lenovo, one of the industry leaders in PCs, storage, and server performance and reliability, announced the expansion of their global partnership to provide optimal solutions for customers across the hyper-converged infrastructure (HCI), hybrid cloud, and edge computing applications with a complete portfolio of ready to roll, plug and play solutions.
- February 2022 - The green panel chose to upgrade its data center and streamline manufacturing and business processes by deploying Dell EMC VxRailHCI. The green panel intended to modernize its IT infrastructure and implement new technologies that may drive customer-centric product innovation. To enable mission-critical workloads, the woodworking giant chose Dell EMC VxRailHCI over a public cloud option.
Hyper-Converged Infrastructure Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Need for Enhanced Data Protection
5.1.2 Rising Demand for Integration Over Cloud Platform
5.2 Market Restraints
5.2.1 Loss of Data Privacy Over the Business Eco-system
6. MARKET SEGMENTATION
6.1 By Service
6.2 By Organization Type
6.2.1 Large Enterprise
6.2.2 Small & Medium Enterprise
6.3 By End-user Industry
6.3.1 IT & Telecommunication
6.3.5 Government and Defence
6.3.6 Other End-user Industries
6.4.1 North America
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Nutanix Inc.
7.1.2 Dell Inc.
7.1.3 VMware Inc.
7.1.4 Hewlett Packard Enterprise Development LP
7.1.5 Cisco System Inc.
7.1.6 Oracle Corp.
7.1.7 Microsoft Corp.
7.1.8 NetApp Inc.
7.1.9 IBM Corp. (Red Hat Inc.)
7.1.10 Huawei Technologies Co. Ltd
7.1.11 StarWind Software Inc.
7.1.12 Datacore Software Corp.
7.1.13 Maxta Inc.
7.1.14 Pivot3 Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Hyper-Converged Infrastructure Market Research FAQs
What is the study period of this market?
The Hyper-Converged Infrastructure Market is studied from 2018 - 2028.
What is the growth rate of Hyper-Converged Infrastructure Market?
The Hyper-Converged Infrastructure Market is growing at a CAGR of 13% over the next 5 years.
Which region has highest growth rate in Hyper-Converged Infrastructure Market?
North America is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Hyper-Converged Infrastructure Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Hyper-Converged Infrastructure Market?
Nutanix Inc., Dell Inc., VMware Inc., Hewlett Packard Enterprise Development LP, Cisco System Inc. are the major companies operating in Hyper-Converged Infrastructure Market.
Hyper-Converged Infrastructure Industry Reports
In-depth industry statistics and market share insights of the Hyper-Converged Infrastructure sector for 2020, 2021, and 2022. The Hyper-Converged Infrastructure research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Hyper-Converged Infrastructure report PDF.