The global hyper-converged systems market is valued at USD 12.33 billion in 2023 and is anticipated to surge at a CAGR of 26.5% to reach USD 129.38 billion by 2033.
The market anticipates a 1.25x growth between 2022 and 2023. Key growth aspect is the increased usage of hyper-converged systems by SMEs to increase their overall business productivity.
The global market is anticipated to experience significant expansion, as hyper-converged solutions offer scalability and cost-effectiveness by lowering the overall hardware requirement in the data center infrastructure. As a result, both capital and operational expenses are decreased.
Virtualization: New Reality Exploring the Market
| Attributes | Details |
|---|---|
| Hyper-converged Systems Market CAGR (2023 to 2033) | 26.5% |
| Hyper-converged Systems Market Size (2023) | USD 12.33 billion |
| Hyper-converged Systems Market Size (2033) | USD 129.38 billion |
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From 2018 to 2022, the global hyper-converged systems sector registered significant gains, experiencing an impressive CAGR of 23.1%. The market showed an amazing jump from USD 4.24 billion in 2018 to USD 9.83 billion in 2022. The hyper-converged systems technology market accounted for a 15% share of the global software-defined infrastructure (SDI) market in 2021.
| Particulars | Details |
|---|---|
| Jan - Jun (H1), 2021 (A) | 23.5% |
| Jan - Jun (H1), 2022 Projected (P) | 24.5% |
| Jan - Jun (H1), 2022 Outlook (O) | 24.8% |
| BPS: H1, 2022 (O) - H1, 2021 (P) | (+)30↑ |
| BPS: H1, 2022 (O) - H1, 2021 (A) | (+)132↑ |
Companies are increasingly choosing to integrate HCI systems due to the numerous benefits they provide, including easier resource management, cost-effective storage, backup, and recovery, and the agility and security of the private cloud. Hence, increasing the use of software-defined HCI platforms spurs the market for such systems to expand.
Short-term growth (2023 to 2026): The short-term growth is being aided by the rising requirement for scalability and flexibility, as well as the rising demand for integrated IT solutions. The industry is likely to grow at a 2.02x growth rate during this time. By 2026, it is anticipated to reach USD 25 billion.
Medium-term growth (2027 to 2030): By 2027, the expected market valuation is USD 31.86 billion, which is likely to reach USD 66.86 billion by 2030. The rising need for enterprise apps, digital transformation projects, and the shift to the cloud are all contributing to this growth.
Long-term growth (2031 to 2033): The market anticipates a 1.60x growth between 2031 and 2033. The launch of 5G networks, the expansion of IoT usage, and the rising demand for virtualization are anticipated to accelerate growth.
Growing Demand for Flexible and Scalable IT Infrastructure
The popularity of hyper-converged devices is owing to their adaptability and scalability. These systems make it possible to combine several IT parts, like servers, storage, and networking, into a single platform. Organizations may scale their IT infrastructure more rapidly and effectively as a result of the decreased operational complexity.
Increasing Adoption of Cloud Computing
Organizations can more easily move their workloads to the cloud due to the combination of cloud computing with traditional IT infrastructure made possible by hyper-converged systems. As a result, firms are more agile and can react to changes in their business environment more quickly.
Evolving Security Requirements
Organizations are turning to hyper-converged systems to offer cutting-edge security capabilities, as they grow more conscious of the need to protect their data and systems. Organizations can benefit from the encryption, authentication, and other security protections that hyper-converged systems can offer.
Principal Consultant
Numerous Vendors Adopting Hyper-Converged Solutions to Fuel Market Expansion in North America
North America is expected to hold the leading share of 30.5% in the global market during the forecast period, due to the presence of various prominent technology vendors in the region.
Rapid developments occurring in the IT sector and increasing demand for hyper-converged solutions from the government and financial sector are key factors that are predicted to ensure the development of the region over the coming years.
| Country | United States |
|---|---|
| Market Value (2023) | USD 901.8 million |
| Market value (2033) | USD 6.64 billion |
| Market CAGR (2023 to 2033) | 22.1% |
| Country | Canada |
|---|---|
| Market Value (2023) | USD 3.74 billion |
| Market value (2033) | USD 42.13 billion |
| Market CAGR (2023 to 2033) | 27.4% |
Advanced IT Operations to Foster Demand for Hyper-Converged Networks
The market in the United States is developing attributed to increasing demand for hyper-converged networks for training and education, as well as a growing desire to reduce data center footprints.
Other factors boosting market expansion in the United States include rising demand for hyper-converged networks that enhance IT operations. The increased focus on developing wireless connectivity and upgrading the enterprise mobility infrastructure leads to the Y-o-Y growth of around 18.6% between 2022 and 2023.
| Country | China |
|---|---|
| Market Value (2023) | USD 1.39 billion |
| Market Value (2033) | USD 24.25 billion |
| Market CAGR (2018 to 2022) | 34.7% |
| Market CAGR (2023 to 2033) | 33.1% |
| Country | India |
|---|---|
| Market Value (2023) | USD 744.7 million |
| Market Value (2033) | USD 26.81 billion |
| Market CAGR (2018 to 2022) | 41.4% |
| Market CAGR (2023 to 2033) | 43.1% |
| Country | Japan |
|---|---|
| Market Value (2023) | USD 321.8 million |
| Market Value (2033) | USD 1.65 billion |
| Market CAGR (2018 to 2022) | 17.3% |
| Market CAGR (2023 to 2033) | 17.8% |
China is expected to record a high CAGR of 33.1% over the forecast period, owing to the increasing adoption of HCI systems in small- and medium-sized enterprises for the purpose of backup and disaster recovery.
Rapid use of VDI and server virtualization in data centers, expanding the number of data centers, and the growing demand to cut expenditures are likely to propel the demand for HCI systems in China.
In the government, healthcare, BFSI, and telecom & IT industries, hyper-converged systems have been used more frequently in India. It is anticipated that government programs like Made in India and Digital India accelerate the adoption of hyper-converged systems in the nation.
Hyper-converged systems are among the cutting-edge technologies that the government sector is anticipated to employ in order to boost operational effectiveness and service delivery.
The market is expanding as a result of the rising need for data centers, particularly in the banking, financial services, and insurance (BFSI) industry. As a result, the market could expect a CAGR of 36.4% by 2033.
The market is anticipated to benefit from the growing demand for better data storage and management capabilities. The expensive cost of hyper-converged systems and the scarcity of qualified personnel to manage such systems, however, might limit market expansion.
The market is anticipated to continue to expand as a result of the increased emphasis on data center modernization and automation, as well as the rising need for automated and straightforward data center management procedures.
The market is projected to expand with a CAGR of 21.3% by 2033, as a result of the rising need for scalability and flexibility, as well as the growing emphasis on cost efficiency. Additionally, market participants may benefit from the rising popularity of Software-Defined Data Centers (SDDCs) and the Internet of Things (IoT).
High Flexibility in Data Integration from Multiple Sources to Fuel Demand for Virtualization and VDI
Virtualization and VDI applications are expected to account for a 39.8% share of the hyper-converged systems sector in 2023. It is expected to grow from USD 4.90 billion in 2023 to USD 44.20 billion by 2033.
Usage of virtual servers to provide and operate virtual displays is known as virtual desktop infrastructure. VDI stores computer settings on a central system and makes them accessible to target consumers on demand. Virtualization and VDI offer substantial security features since all information is stored in the computer system rather than on the device.
Different modulation, easy accessibility, adaptability, and security and protection are a few benefits of virtualization and VDI. Several companies have significantly invested in hyper-converged appliances, as they allow working professionals to work distantly with in-built virtual desktop infrastructure (VDI) features.
Growing Preference for Data Center Transformation Services to Promote BFSI Industry Expansion
The BFSI sector offers potential growth avenues with a share of 28.6% in 2023. Also, the manufacturing industry is likely to remain the key revenue pocket for the hyper-converged systems business, with an expected valuation of USD 34.07 billion by 2033.
The BFSI sector is anticipated to register a significant CAGR of 22.1% during the forecast period, due to the increasing adoption of cloud-based systems. An increasese in cybersecurity incidents targeting enterprise systems and a growing need to simplify the adoption of modern workloads could lead to an expected value of USD 3.52 billion in 2023.
Hyper-converged systems tick all critical boxes in the banking, financial services, and insurance (BFSI) industry, such as reducing time in managing infrastructure, as well as ensuring scalability of infrastructure, availability of critical workloads, and disaster recovery (DR). In addition, these systems solve the issue of single-vendor networking infrastructure, as well as reduce operating costs at scale.
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Top Companies Are Actively Competing to Maintain their Market Share
The growing need for modernizing data centers with hyper-converged infrastructure systems to speed up business growth supports the market for these systems. In 2020, Dell EMC, Nutanix, VMware, and HPE had a substantial share of the hyper-converged infrastructure market.
With a market share of 38.9%, Dell EMC leads all other providers, followed by Nutanix (19.8%), VMware (16.3%), and HPE (15.3%). The combined market shares of other manufacturers, such as Cisco and Lenovo, is about 10%.
Businesses are leaving siloed storage, server, and networking solutions in favor of hyper-converged infrastructure, which is altering the modern data center and technology market, according to recent market breakthroughs.
Leading providers of hyper-converged systems are focusing on research and development activities to explore potential growth avenues. In addition, market participants are increasingly investing in product marketing strategies to reach a broader customer base and increase their worth in the hyper-converged systems market.
Recent Developments
The market is valued to attain USD 129.38 billion by 2033.
The market is forecast to register a CAGR of 26.5% through 2033.
The market is estimated to secure a valuation of USD 12.33 billion in 2023.
During 2018 to 2022, the market grew at a CAGR of 23.1 %.
North America is expected to sustain a 30.5% share of the global market.
In 2023, virtualization and VDI applications are poised to account for 39.8% of the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Hardware 5.2. Software 5.3. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size 6.1. Large Enterprises 6.2. Small and Medium-sized Enterprises 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Virtualization and VDI 7.2. Data Centre Consolidation 7.3. Remote Offices / Branch Offices 7.4. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. BFSI 8.2. Government 8.3. IT and Telecom 8.4. Healthcare 8.5. Energy and Utilities 8.6. Manufacturing 8.7. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia 9.5. East Asia 9.6. Oceania 9.7. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Nutanix 19.2. Cisco Systems 19.3. HPE 19.4. Huawei 19.5. NetApp 19.6. VMware 19.7. Pivot3 19.8. Scale Computing 19.9. Startoscale 19.10. DataCore 19.11. Maxta 19.12. HiveIO 19.13. Supermicro 19.14. Diamanti 19.15. Sangfor Technologies 19.16. StorMagic 20. Assumptions & Acronyms Used 21. Research Methodology
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Hyper-Converged Systems Market
