PUBLISHER: Orion Market Research | PRODUCT CODE: 1771330
PUBLISHER: Orion Market Research | PRODUCT CODE: 1771330
Global Hyper-Converged Infrastructure (HCI) Market Size, Share & Trends Analysis by Component (Hardware, Software), by Application (Remote office/branch office, Virtualization Desktop Infrastructure (VDI), Data center consolidation, Backup/recovery/disaster recovery, Virtualizing critical applications, Others), by End-User Industry (Cloud Providers, Colocation Providers, Enterprises), by Organization Size (Large enterprises, Small and Medium-sized Enterprises (SMEs)), by Enterprise (Banking, Financial Services, and Insurance (BFSI), IT and telecom, Government, Healthcare, Manufacturing, Energy, Education, Others) and Forecast Period (2025-2035)
Industry Overview
Hyper-Converged Infrastructure (HCI) market was valued at $12,850 million in 2024 and is projected to reach $133,025 million by 2035, with a growing CAGR of 23.7% during the forecast period (2025-2035). The major factors that propel the HCI market include the rising application of HCI in various industries such as BFSI and IT & telecom and others due to several advantages including disaster recovery, optimized operational expenditure, and capital expenditure capabilities. Moreover, the growing adoption of HCI by enterprises for various applications such as virtual desktop infrastructure (VDI), data center consolidation, and others. Moreover, HCI solutions are being adopted significantly by SMEs due to various benefits such as reduction of cost, enhanced security, improved efficiency of data, and others. The HCI-based applications are considered as highly predictable and easier to manage as the costs are normally on a subscription model. HCI enables mass-scale computing power and minimizes IT requirements and physical storage, providing significant savings to SMEs.
Market Dynamics
Hyper-Converged Infrastructure Increases IT Efficiency
HCI reduces data center footprint by reducing typical infrastructure stacks down to scalable building blocks with compute, storage and networking built in that enable running the same infrastructure at the edge as in core data centers, resulting in additional efficiency while improving resiliency and performance. Traditional infrastructure lacks sufficient visibility into the data to support the new compliance and control requirements. One of the benefits of using hyper-converged infrastructure is that it can integrate with most existing IT environments, that's due to deployment on commodity hardware, such as servers and disk or flash storage devices, and it relies mostly on software to create a single manageable system across an organization's data center, public cloud services, and even the edge.
Hyper-Converged Infrastructure Enhances The Security
Hyper-converged infrastructure incorporates security measures directly into its architecture, enhancing the security framework of the infrastructure. Integrated features such as data encryption, secure virtualization, and zero-trust network segmentation, defense against external and internal threats. Moreover, the centralized management inherent in HCI allows for easy, consistent updates and patches across the entire system, ensuring vulnerabilities are addressed promptly. This comprehensive and unified approach to security significantly reduces the risk of breaches and enhances compliance with industry standards. Additionally, In the event of a system failure or data loss, recovery processes are easy and less disruptive, minimizing downtime and ensuring the continuity of business operations.
Market Segmentation
The Data Center Consolidation Segment is the Largest Contributor to the Hyper-Converged Infrastructure Market Growth
The data center consolidation segment is expected to be the largest contributor to the growth of the hyper-converged infrastructure market due to its ability to simplify and optimize IT system environments. Organizations are increasingly looking to reduce the complexity, cost, and physical footprint of traditional data centers by replacing siloed systems with integrated, software-defined infrastructure. HCI solves this by combining computing, storage, and networking in a single platform, resulting in improved resource utilization, centralized management, and reduced operational overhead. As enterprises modernize their infrastructure to support cloud, edge, and digital transformation initiatives.
Global HCI Market to Be Driven by BFSI Industry
Among the industry, the BFSI segment held considerable growth in the market owing to the significant rise in the deployment of HCI in the BFSI sector coupled with significant growth in the industry. Significant demand for VDI applications further contributes to the HCI market share. VDI's separation of the application from the endpoint ensures that data remains inside the data center, enabling the IT department to exercise control over data security, disclosure, access, and auditing. Concerns regarding the customers' data security drove banks and financial services companies to set up HCI. Moreover, implementation of VDI is expected to increase owing to the benefits it provides, including, reduction in configuration drift, enhanced data security, improved application performance, and ease of installation. Many organizations have already implemented server virtualization, and fewer have implemented VDI.
The global hyper-converged infrastructure market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific is estimated to have considerable market growth in the global market during the forecast period. The market growth is attributed to the significant adoption of HCI for various applications such as VDI, and data center consolidation in economies such as China, Japan, India, South Korea, Thailand, and Australia. The increasing number of SMEs has increased the adoption of various HCI applications, which in turn, is expected to drive the adoption of HCI technology in the region.
North America holds a considerable share of the global HCI market.
North America is projected to hold a significant market share in the global HCI market. Major economies that are anticipated to contribute to the North American HCI market are the US and Canada. The US is the largest economy and has most of the large market players making North America the largest market across the globe. The North American market is expected to hold a significant market share during the forecast period. Major US-based global players in the HCI market are Microsoft Corp., VMware Inc., and IBM Crop. And others hold a considerable market share. In North America major industries that are using HCI technology are IT & telecom, BFSI, government, and others. Further, the US government is also securing its IT budget by adopting HCI technology. This allows the government to spend more on advanced technology rather than spending on basic IT hardware every year.
The key players in the HCI market contribute significantly by providing different types of products and increasing their geographical presence across the globe. The key players in the market include Dell Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., VMware by Broadcom, Cisco Systems, Inc., IBM Corporation, and others. These market players adopt various strategies such as product launches, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. For instance, in March 2025, ZTE partnered with Virtuozzo to launch a Hyper-Converged Infrastructure for Alternative Cloud Providers, empowering alternative cloud providers to fully meet the diverse cloud needs of customers across various industries.
Recent Developments