By Sneha Korad and Makarand Sinnarkar
The hyper-converged infrastructure market size was valued at US$3.84 billion in 2018, and is projected to reach US$33.16 billion by 2026, growing at a CAGR of 30.7% from 2019 to 2026. Hyper-converged infrastructure (HCI) is a single system framework that includes storage, computing, and network resources that help companies to easily deploy and manage with a single user interface.
Hyper-convergence infrastructure has gained high traction from the recent past among enterprises to draw its potential to streamline the deployment of new workloads, ease infrastructure management, and optimize infrastructure costs. This has further supported the growth of the hyper-converged infrastructure market during the forecast period. HCI architecture is designed for a pay-as-you-go cost model and has the ability to scale incrementally which has positively impacted the growth of the market. Business-critical applications which are currently deployed on three-tier IT infrastructure will transition to hyperconverged infrastructure as it offers integrated stack systems, integrated infrastructure systems, and integrated reference architectures.
Among the industry vertical, the BFSI industry dominated the global hyper-converged infrastructure market in terms of revenue in 2018 and is expected to continue this trend during the forecast period. As the financial sector is highly influential towards meeting their customer needs. With rising digitization has challenged this sector to deliver great digital experiences. Thus, proliferation of robust digital transformation strategies now includes hyper-converged infrastructure to increase its infrastructure agility. Moreover, financial firms are inclining toward HCI to drive agility and lower costs for the strategic initiatives such as distributed it and remote offices/branch offices, virtual desktop deployment, business-critical applications, and disaster recovery. This is a major factor expected to drive the growth of the hyper-converged infrastructure market among the BFSI industry.
The hyper-converged infrastructure market in North America dominated in terms of revenue share in 2018. Rise in shift toward innovative technology that provides cloud-like economics for existing data centers without the need to compromise in its performance, availability, or reliability is a major factor that drives the adoption of HCI market in the region. This allows HCI adopters to witness improved operational efficiency, scalability, and accelerated deployment time.
The report focuses on the hyper-converged infrastructure market growth prospects, restraints, and analysis. The study provides Porter’s five forces analysis of the hyper-converged infrastructure industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.
The hyper-converged infrastructure market segmentation includes component, application, industry vertical, and region. By component, it is categorized into hardware and software. On the basis of application, it is divided into remote office or branch office, virtualization desktop infrastructure (VDI), data center consolidation, backup recovery or disaster recovery, critical applications virtualization, and others. Depending on industry vertical, it is categorized into BFSI, IT & telecommunications, government, healthcare, manufacturing, energy & utilities, education, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global hyper-converged infrastructure market forecast include Cisco Systems, Inc., Dell Inc., Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd. , Microsoft Corporation , NetApp, Inc. , Nutanix, Inc. , Pivot3 , Scale Computing, and VMware, Inc. Major players operating in this market have witnessed high growth in demand for hyper-converged infrastructure, especially due to on-going data center modernization projects or initiatives among data center industry across the globe. This study includes hyper-converged infrastructure market analysis, trends, and future estimations to determine the imminent investment pockets.
Top Impacting Factors
Growing need for data protection and disaster recovery and reduction in Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) are major factors driving the growth of the hyper-converged infrastructure market trends. These factors are attributed to the growth of the market as major infrastructure vendors are adopting hybrid and multi-cloud deployments as either backup strategies or data disaster recovery options or as an alternative for on-premises infrastructure. However, vendor lock-in is a major factor expected to hinder the market growth to a certain extent. Furthermore, rise in investments in data center infrastructures is an opportunistic factor of the market.
Growing Need for Data Protection and Disaster Recovery
The growth of data centers will anticipate high adoption of hyper-converged infrastructure owing to its architecture that disrupts the enterprise datacenter by fragmenting it’s data silos to manage the storage, network, and compute stack with simplicity and flexibility. Hence, rise in need for data protection solution purpose built and integrated with HCI is garnering high traction among data center industries which in turn is expected to support growth of the market.
Reduction In Capital Expenditure (Capex) and Operational Expenditure (Opex)
A costly endeavor for any organization is data center infrastructure. Hyper-converged infrastructure is gaining high traction as it lowers the infrastructure costs by collaborating or integrating commodity hardware with a simple operational model. This is a major factor expected to drive the growth of the global hyper-converged infrastructure market during the forecast period. In addition, the commodity hardware is also used to host applications as virtual machines or containers due to HCI’s hardware agnostic approach.
Covid-19 Impact on the Hyper-Converged Infrastructure Market –
The global lockdown has not impacted on the hyper-converged infrastructure market as the operations in the IT industry are carried out normally by ‘working from home’ structure. And, as a result, the use of hyper-converged infrastructure in IT industry has a constant demand across the world.
Moreover, the new installation of hyper-converged infrastructure has been postponed during the coronavirus pandemic. The on premises working has been banned during the active lockdown therefore the upcoming IT organizations has postponed the installation of hyper-converged infrastructure.