PUBLISHER: The Business Research Company | PRODUCT CODE: 1659153
PUBLISHER: The Business Research Company | PRODUCT CODE: 1659153
Hyper-converged infrastructure (HCI) amalgamates the traditional data center elements, storage, computing, networking, and management into a cohesive system. This unified setup yields three primary advantages including heightened IT efficiency, improved storage capabilities at reduced costs, and enhanced scalability. These systems operate within a unified software framework.
Within the realm of hyper-converged infrastructure, the key components encompass hardware and software. Hardware constitutes physical components like recording devices, CPUs, transmitters, and receivers, whether analog or digital in nature. The hypervisors integral to HCI include VMware, Kernel-based Virtual Machines (KVM), and Hyper-V. These hypervisors find utility across large enterprises and small to medium-sized enterprises (SMEs). Applications of HCI span various domains such as remote or branch offices, virtualization desktop infrastructure (VDI), data center consolidation, backup, recovery, disaster recovery, and virtualizing critical applications. End-users across sectors like banking, financial services, insurance (BFSI), IT, telecommunications, manufacturing, government, healthcare, among others, benefit from these applications.
The hyper-converged infrastructure market research report is one of a series of new reports from The Business Research Company that provides hyper-converged infrastructure market statistics, including hyper-converged infrastructure industry global market size, regional shares, competitors with hyper-converged infrastructure market share, detailed hyper-converged infrastructure market segments, market trends, and opportunities, and any further data you may need to thrive in the hyper-converged infrastructure industry. This hyper-converged infrastructure market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The hyper converged infrastructure market size has grown exponentially in recent years. It will grow from $17.72 billion in 2024 to $22.42 billion in 2025 at a compound annual growth rate (CAGR) of 26.5%. The growth in the historic period can be attributed to data center modernization, cost efficiency, simplified management, scalability requirements, streamlined deployment, increased workload demands, performance improvements, hyper-convergence awareness.
The hyper converged infrastructure market size is expected to see exponential growth in the next few years. It will grow to $65.08 billion in 2029 at a compound annual growth rate (CAGR) of 30.5%. The growth in the forecast period can be attributed to enhanced security features, data analytics requirements, green it initiatives, automation and orchestration trends, adoption in various industries, and vendor ecosystem development. Major trends in the forecast period include enhanced disaster recovery and business continuity, composable infrastructure concepts, integrated networking solutions, containerization and Kubernetes support, focus on HCI security, software-defined storage innovations, partnerships and ecosystem expansion.
The evolution of IT infrastructure stands as a significant driver propelling the future growth of the hyper-converged infrastructure market. IT infrastructure encompasses the elements essential for managing and operating enterprise IT services, improving the efficiency of IT operations for businesses across varied scales and setups. Challenges faced by IT departments span complex single-site setups or multiple sites utilizing diverse platforms. For instance, in 2022, International Data Corporation reported a $55.7 billion expenditure on IT infrastructure, forecasting a 10.9% annual growth in demand for servers, Ethernet switches, and business storage solutions. This surge in IT infrastructure development is spurring demand in the hyper-converged infrastructure market.
The surge in cloud adoption is poised to fuel the expansion of the hyper-converged infrastructure market. The term 'cloud' refers to a network of remote servers facilitating data storage, management, and processing over the internet. Hyper-converged infrastructure (HCI) plays a pivotal role in supporting this shift toward cloud adoption. By integrating computing, storage, networking, and virtualization resources, HCI simplifies data center management and scalability. It enables organizations to establish private clouds or seamlessly connect to public cloud services, accelerating workload migration and enhancing resource allocation. For instance, in January 2023, Google reported a rise in the use of multiple public clouds from 21% to 26% in 2022, alongside a surge in hybrid cloud usage from 25% to 42.5%. This escalation in cloud adoption is driving the hyper-converged infrastructure market.
Technological advancement is a prominent trend gaining traction in the hyper-converged infrastructure market. Key players in this market are concentrating on creating advanced products to enhance their competitive edge. For example, in June 2024, StorMagic, a US-based company specializing in data storage solutions aimed at resolving edge data challenges, launched a new hyper-converged infrastructure solution called SvHCI. This solution seeks to compete with VMware by delivering substantial cost savings and high availability, particularly for edge environments and small-to-medium-sized businesses (SMBs). SvHCI integrates a hypervisor with virtual networking and StorMagic's existing virtual storage technology, SvSAN. Its goal is to simplify operations and ensure high availability using only two servers, potentially reducing software costs by up to 62% compared to VMware offerings.
Major players are concentrating on collaborations and partnerships to bolster their standing in the market. Strategic partnerships entail structured affiliations between commercial enterprises, usually formalized through business agreements or contracts. For instance, in May 2022, Scale Computing teamed up with Servix, aiming to deliver straightforward, reliable, and cost-effective infrastructure solutions to Brazil's IT market. This collaboration merges servers, storage, and virtualization into a unified solution, simplifying IT infrastructures for organizations of varying sizes.
In June 2024, Broadcom Inc., a US-based provider of various semiconductor and infrastructure software products, acquired VMware, LLC for around $61 billion. Through this acquisition, Broadcom intends to incorporate VMware's offerings into its extensive portfolio, with a focus on helping enterprise customers modernize their private and hybrid cloud environments. A significant aspect of this strategy involves investing in VMware Cloud Foundation. VMware, LLC is a US-based company specializing in cloud computing and virtualization technology, and it is also a provider of hyper-converged infrastructure solutions.
Major companies operating in the hyper converged infrastructure market are Dell Technologies Inc., Nutanix Inc., Pivot3 Inc., Hewlett Packard Enterprise Co., Cisco Systems Inc., VMware Inc., Microsoft Corporation, NetApp Inc., Scale Computing Inc., StorMagic Ltd., Huawei Technologies Co. Ltd., HiveIO Inc., Super Micro Computer Inc., Hitachi Vantara Corporation, Diamanti Inc., Lenovo Group Limited, NEC Corporation, StarWind Software Inc., Fujitsu Ltd., DataCore Software UK Ltd., IBM Technology Corp., Sangfor Technologies Inc., DataDirect Networks Inc., Red Hat Inc., Nyriad Ltd., Sunlight Inc.
North America was the largest region in the hyper converged infrastructure market in 2024. The regions covered in the hyper converged infrastructure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the hyper converged infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The hyper-converged infrastructure market consists of revenues earned by entities by providing services such as database software, collaboration applications, remote management and testing environments, and other services. The market value includes the value of related goods sold by the service provider or included within the service offering. The hyper-converged infrastructure market also includes sales of integrated HCI and disaggregated HCI hardware. Values in the hyper-converged infrastructure market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Hyper Converged Infrastructure Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on hyper converged infrastructure market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for hyper converged infrastructure ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The hyper converged infrastructure market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.