Industry: IT and Telecommunication
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 187
Report ID: PMRREP34974
The global hyper-converged infrastructure market is predicted to reach a size of US$ 10.9 Bn by 2024. It is projected to witness a CAGR of 21.8% during the forecast period to attain a value of US$ 51.3 Bn by 2031. Small-to-medium-sized businesses are adopting HCI solutions, especially for managing hybrid or multi-cloud environments at a lower cost.
Small-to-medium-sized companies are estimated to account for 30% of the total HCI industry by 2030. Entry-level HCI solutions and affordable subscription-based models are driving this trend.
It is enabling SMBs to access the benefits of HCI without the high upfront costs associated with conventional IT infrastructure. As containerized applications are becoming the standard for cloud-native development, HCI platforms are integrating with Kubernetes and container orchestration tools to support novel workloads.
Key Highlights of the Industry
|
Market Attributes |
Key Insights |
|
Hyper-converged Infrastructure Market Size (2024E) |
US$ 10.9 Bn |
|
Projected Market Value (2031F) |
US$ 51.3 Bn |
|
Global Market Growth Rate (CAGR 2024 to 2031) |
21.8% |
|
Historical Market Growth Rate (CAGR 2019 to 2023) |
16.2% |
By 2026, nearly 80% of enterprises in North America are estimated to implement hybrid and multi-cloud environments where hyper-converged infrastructure plays a key role by allowing for seamless integration. The rapid surge is data generation and the rise of data-driven business models are estimated to emerge as prominent growth drivers.
Around 50% of large enterprises in the region are likely to adopt AI-driven business models by 2025, thereby resulting in an elevated demand for scalable and efficient infrastructure solutions. The region is home to several leading HCI vendors like Dell Technologies, Cisco, Nutanix, and VMware, which further boosts the development and deployment of cutting-edge HCI solutions.
Countries in Asia Pacific, including India, Japan, South Korea, and China are heavily investing in digital transformation across various industries. As these economies adopt cloud technologies, there is likely to be an increasing demand for scalable and flexible infrastructure solutions like HCI. For example,
Increasing use of IoT devices and applications is increasing the need for edge computing solutions that can process data closer to where it is generated. HCI is well suited for edge computing applications owing to its ability to manage computing, networking resources, and storage in a compact and scalable form. This makes it ideal for remote or distributed locations.
Software Defined Networking (SDN) enables the software to virtualize and manage the entire infrastructure stack, thereby providing flexibility and facilitating automation. Virtualization platforms like VMware, Microsoft, and Hyper-V are set to continue to be the key components in HCI systems. They provide essential virtualization layers that enable HCI systems to efficiently run Virtual Machines (VMs).
Nutanix, popular for its software-first approach, is estimated to capture 32% of the market share by 2031 as demand for non-hardware-dependent solutions grows. As hybrid and multi-cloud strategies dominate the market, cloud management software solutions are estimated to become increasingly critical. These are set to facilitate seamless integration between on-premises infrastructure and public cloud platforms.
Large enterprises are driving substantial demand for HCI owing to their significant IT budgets, complex IT environments, and the need for scalability. They also have more resources to invest in HCI solutions for transforming IT systems into modern and cloud-integrated infrastructures.
Large enterprises are also adopting hybrid and multi-cloud strategies that pose a demand for scalable and efficient infrastructure that can easily be provided by HCI. Organizations require flexible infrastructure which is supported by HCI that can manage massive datasets and complex workloads with the rise of AI, machine learning, and big data.
By 2025, around 85% of enterprises are likely to be using hybrid cloud, while 80% will adopt a multi-cloud approach. Businesses are increasingly adopting hybrid and multi-cloud strategies to avoid vendor lock-in, optimize resource allocation, and ensure regulatory compliance. HCI solutions play a key role in managing these complex environments, offering centralized management and seamless integration with cloud services.
As edge computing becomes prevalent in industries like manufacturing, retail, and healthcare, the need for HCI solutions at the edge is estimated to surge. Edge computing, combined with HCI, offers real-time data processing and analytics with minimal latency.
The shift toward cloud-native architecture, including containers and microservices, is further driving the need for infrastructure solutions. These can efficiently support the new workloads, with HCI offering a scalable, automated platform.
The hyper-converged infrastructure market witnessed a robust CAGR of 16.2% during the historical period from 2019 to 2023. This growth was prominently attributed to the widespread digital transformation, rise of hybrid cloud models, and need for cost-efficient IT solutions.
Early adoption of HCI was driven by enterprises looking to modernize legacy systems. By 2022, Nutanix, VMware, and Dell EMC were the leading vendors in the industry, collectively capturing over 70% of the total market share.
The hybrid cloud model gained traction, with over 85% of enterprises adopting hybrid IT strategies by 2023, thereby pushing demand for HCI solutions. HCI reduced total cost of ownership (TCO) for enterprises by up to 60%, making it an attractive alternative to traditional infrastructure?. Adoption among small and medium enterprises increased due to cost reductions in entry-level HCI systems.
Surging Demand for Simplified IT Operations to Bolster Growth
A survey conducted by IDC revealed that businesses using HCI witnessed a 55% reduction in time spent on IT administration tasks, thereby enabling their IT teams to focus on strategic initiatives?. HCI replaces conventional siloed infrastructure with a single, unified platform, decreasing the requirement for multiple management tools. By simplifying IT operations, HCI decreases the requirement for specialized staff and extensive training.
Centralized management also results in cost savings in licensing, hardware maintenance, and energy consumption.
HCI simplifies resource scaling by allowing businesses to add or remove resources without disrupting operations.
Simplified IT operations are critical for managing distributed workforces. HCI allows businesses to rapidly deploy Virtual Desktop Infrastructure (VDI) and cloud-hosted applications to support remote work. Demand for VDI witnessed an increase of 45% during 2020 to 2023 due to remote work trends, thereby driving HCI adoption?.
Rising Adoption of Hybrid and Multi-cloud Strategies to Facilitate Adoption
Around 85% of enterprises are predicted to adopt hybrid cloud as their primary IT architecture by 2025, up from 70% in 2021?. HCI is integral to hybrid cloud setups as it simplifies the integration of on-premises resources with cloud services. The solution supports multi-cloud deployments by enabling consistent management across different cloud platforms. By 2023, 76% of enterprises were running applications across multiple clouds.
Organizations can optimize costs by opting for the most cost-effective cloud platform for particular workloads while maintaining a robust on-premises system with HCI. Over 70% of organizations using HCI cited improved cloud integration as a primary benefit?.
The solutions also provide centralized management tools, enabling IT teams to monitor and manage hybrid or multi-cloud environments efficiently. HCI facilitates data and application migration between clouds, ensuring business continuity.
Vendor Lock-in to Emerge as a Significant Challenge
Vendor lock-in is a significant challenge as it impacts organizations’ flexibility and long-term cost management. As several HCI solutions are integrated into a vendor’s ecosystems, they restrict compatibility with other products, thereby discouraging multi-vendor strategies.
Once locked in, businesses have witnessed higher costs for licensing, upgrades, and support compared to multi-vendor systems. If the vendor does not support emerging innovations like AI or particular hybrid cloud features, businesses are likely to struggle in adopting new technologies or switch providers.
Migrating workloads from an HCI solution that is reliant on a proprietary hypervisor to a public cloud is likely to be complex and expensive. For example,
HCI vendors usually bundle software and hardware, thereby decreasing opportunities for customizing solutions to particular businesses requirements.
Education and Public Sector Digitization to Create New Opportunities
Digitization in education and public sector facilitates hyper-converged infrastructure market growth, as these sectors are increasingly adopting digital solutions for operational efficiency. Increased adoption of remote learning and digital classrooms has driven substantial demand for scalable IT solutions. HCI is an ideal choice for institutions that need robust virtual learning environments.
Educational institutions are leveraging HCI to modernize their IT infrastructures, enabling cloud services, centralized data management, and improved disaster recovery capabilities. For instance,
HCI solutions reduce hardware costs by consolidating IT resources, which is particularly beneficial for budget-constrained educational organizations. The public sector's increased focus on data security and disaster resilience has further propelled adoption of hyper-converged infrastructure.
HCI solutions also offer built-in encryption and replication features, ensuring data protection even during emergencies. Government authorities worldwide are adopting HCI to improve public service delivery, optimize IT resource utilization, and ensure secure data management.
In the U.K., public institutions are adopting HCI to support virtualized critical applications and enhance disaster recovery mechanisms. Public sector organizations are further migrating workloads to hybrid cloud environments through HCI. It is enabling better integration of on-premises systems with cloud platforms for scalability and flexibility.
Application in Disaster Recovery and Data Protection to Forge Avenues
A study conducted by IDC revealed that businesses using Nutanix HCI reported a 58% improvement in Recovery Time Objectives (RTOs) compared to traditional systems?. HCI’s ability to integrate computing, storage, and networking in a single system while enabling near-instantaneous data recovery makes it a preferred choice for disaster recovery solutions. HCI systems offer built-in replication, allowing organizations to maintain copies of critical data in geographically diverse locations while decreasing downtime risk during disasters. For instance,
Conventional disaster recovery solutions often need separate hardware and software while HCI consolidates these needs, thereby decreasing capital and operational costs. For example,
Several HCI solutions feature end-to-end encryption and automated backup capabilities which are crucial in industries like healthcare and BFSI, where data sensitivity is high. HCI’s seamless integration with hybrid and public cloud platforms supports long-term data archiving and compliance needs, thereby fostering its utilization.
Companies in the hyper-converged infrastructure industry are heavily investing in unique features like AI-driven automation, hybrid cloud integration, and enhanced disaster recovery capabilities to maintain a competitive edge. Businesses are targeting emerging markets like India and China, that have a high demand for virtualization and disaster recovery?.
Collaborations with cloud providers and IT firms are common strategies used by businesses in the marketplace. Companies are progressively working toward offering solutions that decrease the total cost of ownership (TCO). They are also working toward providing enhanced post-sale support and flexible pricing models, such as subscription-based services, to attract and retain customers.
Recent Industry Developments
|
Attributes |
Details |
|
|
Forecast Period |
2024 to 2031 |
|
|
Historical Data Available for |
2019 to 2023 |
|
|
Market Analysis |
US$ Billion for Value |
|
|
Key Regions Covered |
|
|
|
Key Market Segments Covered |
|
|
|
Key Companies Profiled in the Report |
|
|
|
Report Coverage |
|
|
|
Customization and Pricing |
Available upon request |
By Component
By Enterprise Size
By Application
By End User
By Region
To know more about delivery timeline for this report Contact Sales
The market is predicted to reach a size of US$ 51.3 Bn by 2031.
It is an integrated system combining virtualization, compute, networking, and storage all on a single platform.
Hyper-converged infrastructure decreases complexity and costs, thereby increasing operational efficiency, scaling resources, and optimizing IT infrastructures.
Nutanix, VMware, Hewlett Packard Enterprise (HPE), Cisco, Lenovo, and Dell EMC are a few key businesses.
The market is projected to witness a CAGR of 21.8% through the assessment period.
