Hyper-Converged Infrastructure Market size was valued at USD 10.04 Billion in 2023 and is set to cross USD 135.49 Billion by the end of 2036, expanding at more than 23.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hyper-converged infrastructure is estimated at USD 12.97 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 hyper-converged infrastructure 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 hyper-converged infrastructure market.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
23.8% |
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Base Year Market Size (2023) |
USD 10.04 Billion |
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Forecast Year Market Size (2036) |
USD 135.49 Billion |
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Regional Scope |
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End-user {Banking, Financial Services, & Insurance (BFSI), IT & Telecom, Manufacturing, Government, Healthcare}
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 2036. 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.
Application (Remote Office/Branch Office, Virtual Desktop Infrastructure, Data Center Consolidation, Data Protection & Disaster Recovery)
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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North American Market Forecast
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 2036, 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.
Europe Market Forecast
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.
APAC Market Statistics
Additionally, the hyper-converged infrastructure 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).
Author Credits: Abhishek Verma
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