A new study by Emergen Research reveals the hyper-converged infrastructure (HCI) market size reached $7.34 billion (USD) in 2020 and is expected to achieve a revenue CAGR of 26.8% between 2021 and 2028. This rate of growth is largely being driven by the need for better data security and disaster recovery solutions, coupled with growing demand to improve workload performance.
For those unfamiliar, HCI systems provide backup and recovery environments that are flexible, scalable, and dependable for various types of physical, virtual, filetypes, and databases. Additionally, it offers an advanced level of data loss security and helps companies avoid cloud security risks as well as migratory obstacles.
The study’s data was gathered and analyzed using SWOT analysis. The researchers felt this approach presented the clearest picture of the competitive landscape of the global HCI market. Additionally, by getting market background and using current norms, policies, and trends of other leading markets for cross-references, the Emergen team was able to present their predictions for the market in the coming years.
Key findings from HCI analysis
Among some of the study’s key findings, hardware segment revenue will expand at a rather significant CAGR through 2028. This will be driven by the need for high performance solutions designed to support increased workloads, including real-time data analytics. Modern enterprises are quickly recognizing the importance of having updated hardware to support their HCI, and this understanding will help drive growth of this segment moving forward.
The disaggregated HCI segment is well-positioned to lead when it comes to revenue share contribution. A relatively new term, disaggregated HCI hardware deployment allows for CPUs and memory to be hosted in a single compute cabinet, whereas storage can be hosted in a separate storage unit.
Side-by-side HCI deployment is expected to lead in terms of overall revenue through 2028. This HCI platform is positioned alongside traditional heterogenous equipment in an existing data center, allowing enterprises to seamlessly transfer workloads to HCI.
The HCI market is relatively fragmented, with a good number of large and medium-sized companies making up a majority of market revenues. The study identified some key players here, identifying them as companies that are deploying various strategies, entering mergers and acquisitions, strategic agreements, adopting more advanced HCI technologies, developing, testing, and introducing more efficient HCI systems in the market. These companies include Dell EMC, VMware, Inc., Microsoft Corporation, International Business Machines Corporation, Cisco Systems, Inc., Nutanix, Inc., Huawei Technologies Co., Ltd., Hewlett Packard Enterprise Company, NetApp, Inc., and StorMagic Ltd.
Finally, in terms of which regions are expected to drive HCI growth, Asia Pacific will account for the largest revenue share among regional markets. This is largely attributed to increased demand for cloud-based services to help improve IT operations, increased emphasis on enhanced remote access, increased demand for virtualized desktop infrastructure, and an increased need for to reduce overall data center footprint among end users.
North America, meanwhile, will register steady growth in terms of revenue. Some of the primary factors that will drive this include increased awareness when it comes to the need for more efficient and safe data management with a unified interface at lower cost of ownership, increased emphasis on virtualized desktop infrastructure and server virtualization, along with increased adoption of Infrastructure as-a-Service (IaaS) across numerous industries.
For the solution provider, there is no better time than right now to introduce customers to the latest in HCI solutions, designed to modernize IT, simplify operations, and lower risk.
To learn more, download the report in full here.
