Global Hyper-converged Infrastructure Market Size, Forecast and Trend Highlights Over 2025-2037
Hyper-converged Infrastructure Market size was valued at USD 13.2 billion in 2024 and is projected to reach USD 205.82 billion by the end of 2037, rising at a CAGR of 23.2% during the forecast period, i.e., 2025–2037. In 2025, the industry size of hyper-converged infrastructure is evaluated at USD 15.52 billion.
The market is set to witness remarkable growth on the back of rising demand for the scalable IT solutions across numerous sectors. There has been humongous investment by government organizations to modernize service delivery and their overall IT infrastructure. For example, in financial year 2024, U.S. Department of Labor made investment in hyper converged infrastructure to aid the smooth implementation across a variety of environments. Market players are acknowledging that deployment of HCI systems in networking or computing can result in enhanced resource utilization and cost saving.
Additionally, the supply chain for HCI is fragile and Review Commission for the U.S.-China Economy and Security has found out probable vulnerabilities. These issues highlight the necessity of expanding suppliers and strengthening the local capabilities for to attenuate the risk related with the extreme dependency on the foreign deliveries. The rising investment has become an essential part to address the disruptions caused in supply chains.
Hyper-converged Infrastructure Sector: Growth Drivers and Challenges
Growth Drivers
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Rising adoption of hybrid and multi cloud strategies: It has been projected that by the end of 2025, 85.5% of the organization will use hybrid cloud infrastructure and 81% are anticipated to deploy multi cloud strategies. Market players are relying on HCI for smooth integration of the cloud platforms and optimizing resource allocation. Prominent companies such as VMware and Nutanix have incorporated HCI enabled platforms helps in seamless deployment of the hybrid or multi cloud services. This allows companies to handle workloads in cloud infrastructure with higher efficiency. Businesses are investing a plenty of budget in HCI solutions to upgrade operational efficiency and enhance flexibility.
- Rising emphasis on data security and compliance: The data published by U.S. Cybersecurity and Infrastructure Security Agency in 2023 stated that cyber threat cases reported by tech firms witnessed 38.2% rise in comparison to 2022. The rising occurrence of the cyber threats are instilling the demand for robust data security. HCI systems render state of the art security features and access control adhering to the National Institute of Standards and Technology framework. Enterprises are aligning their IT environment with well-known frameworks and including HCI’s security features to shield data.
- Increasing adoption of AI and automation: The amalgamation of automation and AI into HCI platforms enables self-protective capabilities and bolster operational efficiency. AI enabled HCI platforms have showed a 29% enhancement in resource utilization and 31% lesser operational costs. Market players are adopting HCI solutions powered with AI to address potential issues and automate routine tasks. Demand for AI integrated HCI solutions is surging in various countries driven by necessity for smart infrastructure management.
Technological Trends Reshaping the Hyper-converged Infrastructure (HCI) Landscape
The hyper-converged infrastructure market is witnessing significant transformation driven by sophisticated technologies for securing IT infrastructure across various domains. The prominent advancements such as inclusion of disaggregated HCI systems, AI for predictive analytics, and edge computing expansion. The inclusion of AI in HCI platforms has resulted in enhanced resource optimization and reduced operational costs. It is also offering customized scalability for storage and computing. These advancements have been adopted across various sectors such healthcare, finance, telecommunication, etc. The below written table is a precise overview of emerging trends and some of the real-world applications:
|
Trend |
Industry impact and adoption |
Real world applications |
|
AI-Driven Predictive Analytics |
Increases resource optimization and lower down operational costs. Adopted in finance and healthcare |
Predictive maintenance efficiency increased by 35.5% by using HCI analytics tool from VMware |
|
Hybrid & Multi-Cloud Integration |
Promotes flexible and scalable IT environments. |
Hybrid cloud performance increased by 30.5% from Dell EMC cloud optimized HCI |
|
Edge Computing Expansion |
Enables real-time data processing in manufacturing and healthcare. |
Huawei's HCI solution for IoT applications saw a 26% adoption increase within 6 months. |
|
Zero-Trust Security Models |
Strengthens cybersecurity across all sectors, particularly in government and finance. |
Nutanix's 0-trust security feature reduced cyber threats by 41%. |
|
Disaggregated HCI Systems |
Offers tailored scalability for compute and storage, benefiting data-intensive industries like telecom |
Dell EMC's HCI system reduced costs by 21% compared to traditional setups. |
AI and Machine Learning: Catalysts for Innovation in Hyper-converged infrastructure
The widespread adoption of AI and ML are transforming the hyper-converged infrastructure market by modernizing the product development and operational efficiency. Trailblazing companies are incorporating these technologies to speed up design processes. For example, Dell Technologies launched VxRail systems, exhibiting AI capabilities and offer seamless deployment of physical servers 80% faster and 62% rise in IT infrastructure management efficiency. In the increasingly data driven world, the integration of AI and ML into HCI is offering increased agility.
Table: AI and ML Integration in HCI by Leading Companies
|
Company |
Integration of AI & ML |
Outcome |
|
Dell Technologies |
Implemented AI in VxRail systems for automated operations. |
Achieved 62% increase in IT management efficiency; 79% faster server deployment |
|
VMware |
Deployed AI-based anomaly detection in Software Defined Data Centers |
Improved performance issue detection accuracy by 32%, enhancing system reliability. |
|
Nutanix |
Used AI-driven automation in HCI solutions for infrastructure management. |
Reduced infrastructure costs by 30%; decreased IT incidents by 85% for clients such as Olam International. |
Challenges
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Vendor lock-in concerns: The dependence on a particular vendor for HCI solutions makes concerns for long term costs and flexibility. Various organizations are apprehensive for reduced flexibility by incorporating HCI solutions. Key companies utilize closed architecture and restrict any type of interoperability with 3rd party solutions. Also, switching vendors may include exorbitant retraining and relicensing.
- Skill gaps and lack of technical expertise: The mushrooming adoption of the HCI has overtaken the availability of proficient workers. This has created a shortage of people who can adapt to the continually evolving HCI technology. Vendors such as Dell and Nutanix regularly update the platform making skills obsolete in long run.
Hyper-Converged Infrastructure Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
23.2% |
|
Base Year Market Size (2024) |
USD 13.2 billion |
|
Forecast Year Market Size (2037) |
USD 205.82 billion |
|
Regional Scope |
|
Hyper-converged Infrastructure Segmentation
Application (Data center consolidation, Virtual desktop infrastructure, Backup & disaster recovery, Remote Office/Branch Office, Cloud, Analytics, Database Management, Edge computing)
The data center consolidation in the hyper-converged infrastructure market is projected to witness staggering growth registering 61% of the market share. The growth of the segment is surge in demand for reduced operational costs and enhanced scalability. According to data published by U.S. Department of Energy, the worldwide cloud infrastructure market is anticipated to surpass USD 1.31 trillion by 2026, highlighting the transition towards the virtualized data centers. The adoption of the HCI cause reduction in hardware footprint by 45-60% by lowering the power. Other than this, the HCI from Nutanix enable smooth deployment of hybrid cloud aiding 35.4% higher speed in migration of the workload.
End user (BFSI, IT & Telecom, Healthcare, Manufacturing, Government, Energy & Utilities, Education, Retail, Media & Entertainment)
The BFSI segment is projected to garner the maximum share that is 45.4% driven by the emerging strict requirements for robust data security. Leading organizations are leveraging HCI solutions to remain compliant to the strict policies and boost up the operational reliance. According to data published by Institutional Deposits Corporation Financial Insights in 2024, 78.4% of the financial firms stated that paramount reason for adopting the HCI is requirement for the compliance readiness. The IT environment in banks requires 0 trust architecture for the protection of the financial data. Also, features such as built in encryption eradicates attack surfaces more effectively with HCI enabled security.
Our in-depth analysis of the global hyper-converged infrastructure market includes the following segments:
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Deployment Mode |
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Organization Size |
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Application |
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End User |
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Component |
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Customize this ReportHyper-converged Infrastructure Industry - Regional Synopsis
North America Market
The North America is projected to garner a leading position with 39.2% share in the hyper-converged infrastructure market by 2037. The growth of the market is fueled by significant investment by government and private companies in modernization of data centers. The region is hub for advanced technological landscape and almost all the sectors are fortifying their IT architecture with advanced solutions. For instance, in January 2025, the U.S. government allocated USD 42.5 billion to expand broadband access and provide high speed internet access. This is the testimony that government is committed to enhance the country’s digital infrastructure. The hyper-converged infrastructure market in U.S. also witnessing robust growth due to rising initiatives by federal government to regulate and promote communication systems.
The market in Canada is fueled by widespread adoption of the cloud services and rising security mandates for data security from the government. Regulations such as Personal Information Protection and Electronic Documents Act (PIPEDA), are compelling market players to include robust data protection solutions and raise the privacy standards. Also, including HCI solutions is an efficacious method to cope with data breach threats. Additionally, the Innovation, Science and Economic Development (ISED) department has executed scheme, the Canada Digital Adoption Program, rendering financial aid to SMEs for digital transformation.
Europe Market
The hyper-converged infrastructure market in Europe, particularly dominated by UK, Germany, France, Italy, Spain, etc., is anticipated to garner 25% of the market share by 2037. The growth is bolstered by various government initiatives and investment made for digital transformation. In November 2021, European Commission declared the launch of Digital Europe Program, infusing USD 2.41 billion to speed up the digital transformation. The funding supports the inclusion of advanced technologies such as HCI. Additionally, the 1st international investment summit in UK witnessed investors willing to invest USD 52 billion for making advanced data centers, signifying robust support for hyper-converged infrastructure market growth.
Germany is also offering lucrative growth opportunities for the market players entering in the HCI market. The country is focusing on Industry 4.0 trends and emphasizing on integrating AI and ML into IoT. The country is also focusing on data security by making regulation as General Data Protection Regulation (GDPR).
Companies Dominating the Hyper-converged Infrastructure Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The competitive landscape of the Hyper-converged infrastructure (HCI) market is rapidly evolving as established key players, IT giants and new entrants are investing in cybersecurity. Key players in the market are focused on developing robust data centers and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position.
Below are the areas covered for each company in the Hyper-converged infrastructure market:
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Dell Technologies Inc. |
USA |
25.3% |
|
Nutanix Inc. |
USA |
17.5% |
|
Hewlett Packard Enterprise (HPE) |
USA |
11.2% |
|
Cisco Systems Inc. |
USA |
8.7% |
|
Lenovo Group Ltd. |
China |
6.3% |
|
Huawei Technologies Co., Ltd. |
China |
XX% |
|
Fujitsu Ltd. |
Japan |
XX% |
|
Hitachi Vantara |
Japan |
XX% |
|
IBM Corporation |
USA |
XX% |
|
NEC Corporation |
Japan |
XX% |
|
Inspur Group |
China |
XX% |
|
Supermicro (Super Micro Computer Inc.) |
USA |
XX% |
|
Atos SE |
France |
XX% |
|
HCLTech |
India |
XX% |
|
Datacom Group |
Australia |
XX% |
Recent Developments
- In February 2024, Dell Technologies launched APEX cloud platform with seamless integration with Azure and automated scaling feature. The company witnessed 41% surge in bookings in the beginning of 2024, with enterprises prioritizing Azure native HCI deployment.
- In March 2024, Natanix launched cloud platform 6.0 capable of enhancing AI workload and improve multi cloud management. The company reported 22.3% YoY growth in Q1 of 2024, due to a rising demand for the AI driven HCI solutions.
Author Credits: Abhishek Verma
- Report ID: 4792
- Published Date: May 21, 2025
- Report Format: PDF, PPT
