Hyper-Converged Infrastructure Market Analysis by Component (Solutions, and Services); by Application (Remote Office/Branch Office, Virtual Desktop Infrastructure, Data Center Consolidation, and Data Protection & Disaster Recovery); and by End-User {Banking, Financial Services, & Insurance (BFSI), IT & Telecom, Manufacturing, Government, and Healthcare} – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4792 | Published Date: Apr 06, 2023
The global hyper-converged infrastructure market size is estimated to reach ~USD 358.3 Billion by the end of 2035 by growing at a CAGR of ~31.10% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of hyper-converged infrastructure was ~USD 13.9 Billion. The growth of the market can be attributed to growing concern for data security. In the year 2022, there were about 1801 instances of data breaches in the US. During the same year, data intrusions, including data breaches, leaks, and exposure, had an impact on over 421 million people. Hence, the demand for hyper-converged infrastructure is growing. Every infrastructure must include data protection as a critical component. A data security plan is necessary for each tier of the infrastructure's layer cake. These features have been naturally incorporated into the system since the emergence of HCI.
HCI offers a unified, secure platform for managing data, which makes it simpler to implement security rules and guard against data breaches. Advanced security features provided by the technology, such as multi-factor authentication and encryption, aid in preventing unauthorized access to critical data. Hence owing to this the demand for hyper-converged infrastructure is growing in order to protect data. Moreover, growing number of data centers is also estimated to boost the market growth. Around the globe, there are about 7,999 data centers. Among those, approximately 30% of the data centers are situated in the US. Moreover, the rise in consumer internet usage is contributing to the growth of data centers. Hence, the growing penetration of internet is also estimated to boost the growth of the market.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~31.10% |
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Base Year Market Size (2022) |
~ USD 13.9 Billion |
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Forecast Year Market Size (2035) |
~ USD 358.3 Billion |
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Regional Scope |
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Growth Drivers
Upsurge in Remote Workers - In the US, more than 3 million people work remotely at least half the time. While approximately 15% of businesses worldwide operate entirely remotely. Employees may gain safe access to their desktops, programmes, and data from nearly any device and from anywhere with virtual desktop infrastructure (VDI). Traditional VDI, however, presents many challenges. Scaling siloed infrastructure is challenging and demands specialized knowledge. VDI on hyper-converged infrastructure (HCI) is gaining attention as a result. Storage, networking, and computation are combined into a single, simple-to-manage system by HCI. While increasing organizational flexibility and resilience, this could assist save capital and operating costs.
Growing Investment in AI - Over 67 billion dollars were invested globally by corporations in artificial intelligence (AI) in 2020, with private investment accounting for approximately 41 billion dollars of the amount.
Rise in Online Payment - Globally, it is predicted that about 2 billion people would use proximity mobile payment transactions in 2023, up from approximately 949 million people in 2019. Hence, with hyper-converged infrastructure the online payment has been made more secure.
Surge in Adoption of Cloud-Based Services - In 2022, cloud services would be used by about 93% of businesses in the United States. Whereas, as of 2020, the cloud hosted about 40% of enterprise workloads.
Growth in Penetration of Internet - About 4 billion people used the internet as of January 2023, representing approximately 63 percent of the world's population.
Challenges
The global hyper-converged infrastructure market is segmented and analyzed for demand and supply by end-user into banking, financial services, & insurance (BFSI), IT & telecom, manufacturing, government, and healthcare. Out of which, the banking, financial services, & insurance (BFSI) segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing need for data storages and protection of data in this sector. Almost 152 million records have been affected by almost about 999 data breaches that financial companies have experienced since January 2018 in US. Hence, the banking and finance sector is particularly concerned with data privacy. Moreover, personal information is becoming more susceptible to cyber dangers as digital platforms are used more frequently for banking and financial transactions. Since, this industry deals with sensitive personal information including bank account numbers, credit card information, and other financial data, data privacy in the banking and finance sector is crucial. Therefore, the demand for hyper-converged infrastructure is estimated to increase.
The global hyper-converged infrastructure market is also segmented and analyzed for demand and supply by application into remote office/branch office, virtual desktop infrastructure, data center consolidation, and data protection & disaster recovery. Amongst these, virtual desktop infrastructure (VDI) segment is anticipated to have a significant growth over the forecast period. A desktop operating system, commonly Microsoft Windows, runs and is controlled in a data center using a desktop virtualization technology called virtual desktop infrastructure (VDI). To enable the user to interact with the operating system and its programmes as though they were running locally, the virtual desktop image is supplied via a network to an endpoint device. A conventional PC, a thin client device, or a mobile device could all be considered endpoints. Hence, with the growing trend of Bring Your Device (BYOD), along with growing number of people working from home the segment is estimated to have the significant growth, further boosting the growth of the market over the forecast period.
Our in-depth analysis of the global hyper-converged infrastructure market includes the following segments:
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By Component |
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By Application |
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By End-User |
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The market share of hyper-converged infrastructure in North America, amongst the market in all the other regions, is projected to have the highest growth by the end of 2035, backed by growing data breaching in this region, along with growing initiatives by organization for protecting data and boosting investment in AI. A data breach occurred in the past year at nearly half (about 46%) of American businesses. However, given the possibility of as-of-Yet-Undiscovered Breaches, this number was estimated to be larger. Hence, to improve hybrid cloud capabilities and advance the cloud infrastructure strategy without compromising security, many enterprises in North America are concentrating on infrastructure security. Hyper-converged infrastructure (HCI) solutions provide end-to-end flexibility, scalability, and dependability, give a high level of protection against data loss, and assist in avoiding cloud security threats, all of which are projected to increase demand for these systems and propel market expansion in this region. Moreover, throughout the predicted period, an increase in remote workers has created new security challenges for enterprises in North America, which is also estimated to boost the growth of the market.
The European hyper-converged infrastructure market is estimated to be the second largest, to have the largest share over the forecast period. Germany has seen a tremendous increase in data center investments over the years. Numerous businesses have made investments in the data centers, including Global Switch and Colt DCS. Furthermore, top cloud service providers including SAP and IBM have established their data centers all across the nation. Also, the field of virtual desktop infrastructure has expanded as a result of increased smartphone usage and mobile data usage in Europe region. According to predictions, the amount of mobile data traffic would increase significantly in the future years in this region. As a result, these developments affect the need for hyper converged infrastructure, which boosts the development of the Europe hyper converged infrastructure market.
Additionally, the market in Asia Pacific region is estimated to have the significant growth over the forecast period. The Asia Pacific market expansion is attributed to the rise in digital innovation hubs, the proliferation of hybrid cloud deployments, and the number of data centers and investments. Moreover, there has been growing small and medium size business in this region. These small and medium-sized businesses are attempting to bring about digital change in their respective sectors which is further bringing in data security concern. Hence, this factor is estimated to boost the demand for hyper-converged infrastructure in this region.
Microsoft Corporation in India revealed the public availability of Azure Stack HCI, a new hyper converged infrastructure (HCI) solution that blends native Azure hybrid capabilities with the flexibility, scalability, and price-performance benefits of hyper converged infrastructure. It was predicted that this Azure Stack portfolio component would give businesses easy access to Microsoft Azure for hybrid cloud scenarios across datacenters, remote offices, cloud, and edge locations. Azure Stack HCI solutions were anticipated to be offered by 15 partners with Microsoft-validated hardware to guarantee the best performance and dependability. These solutions were compatible with both Windows and Linux virtual machines.
Through the establishment of a VMware Center of Excellence, the Smart World & Communication (SWC) business of L&T, a significant Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services, and VMware Inc., a significant global provider of multi-cloud services, announced their strategic partnership to hasten the adoption of digital infrastructure solutions across industries (COE).
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The major factors driving the growth of the market are upsurge in remote workers, growing investment in AI, rise in online payment, and others.
Ans: The market size of hyper-converged infrastructure is anticipated to attain a CAGR of ~31.10% over the forecast period, i.e., 2023 – 2035.
Ans: High power requirement, impacted by compatibility issues, and lack of investment in hyper-converged infrastructure are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Dell Technologies, VMware Inc., Nutanix Inc., Cisco Systems Inc., and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: Ans: The market is segmented by component, application, end-user and by region.
Ans: The banking, financial services, & insurance (BFSI) segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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