Converged Infrastructure Market

Converged Infrastructure Market Size (2022 - 2027)

The Global Converged Infrastructure market was valued at $4.24 billion in 2020, and is projected to reach $51.36 billion by 2026, growing at a CAGR of 31.5% from 2021 to 2026.

The Converged Infrastructure market is growing rapidly as it lowers the total cost of operating an IT infrastructure and a high level of flexibility for businesses. Converged infrastructure has reduced the burden of implementing and managing networks, storage, servers, and other applications for data-driven businesses. Converged infrastructure solutions enable businesses to achieve agility and automation through the use of tightly coupled hardware and software products.

Market Growth

BFSI industry has registered the highest demand in the global converged infrastructure market in 2020, and this trend is expected to continue during the forecast period. Since the financial sector is very influential in meeting the needs of its clients. With the rise of digitization, this sector has taken on the challenge of offering great digital experiences. Hence, the proliferation of quick digital transformation strategies presently consists converged infrastructure to escalate the agility of your infrastructure. Additionally, finance companies are looking to HMI to increase agility and reduce costs for strategic initiatives such as IT distribution and remote / branch offices, virtual office deployment, mission-critical applications, and recovery after disaster. This is an important factor that is expected to drive the growth of the converged infrastructure market within the BFSI industry.

Market Drivers

The key driver for the development of the global converged infrastructure market is the escalating call to improvise IT operational efficiency, improvise data protection, and reduce the cost of IT and the aging of traditional data centres. Another factor driving the converged infrastructure market is the cloud-based converged infrastructure solutions that provide ample opportunity for businesses. Converged infrastructure helps IT companies innovate by providing a simplified path to the cloud, where companies can experience and use a wide and growing range of innovation and specialized software and services. The rising need for an alternative solution to the cloud is one of the key reasons that will drive the growth in the size of the converged infrastructure market. However, they can face business risks and lose millions of dollars if their manufacturing plants are unplanned downtime. Additionally, cloud platforms are susceptible to issues of higher latency, regulatory compliance, and data security. To overcome these issues, enterprises are adopting the converged system which not only meets regulatory compliance but also ensures low latency. These systems bring cloud-like flexibility to on-premises data centres and provide greater data security. The introduction of fast non-volatile memory or NVMe and Storage Class Memory (SCM) in these converged systems will boost the global converged infrastructure market during the outlook period. These storage devices benefit converged systems through optimal use of the storage infrastructure and the ability to modify software. NVMe takes advantage of the low internal latency parallelism inherent in flash storage devices. Likewise, SCM offers very fast performance with ultra-low latency.

Market Restraints

High cost and lack of knowledge about converged infrastructure are restraining the market growth of the global converged infrastructure market.

COVID-19 Impact on Converged Infrastructure Market

Since the coronavirus outburst in December 2019, the disease has spread to nearly 120 countries around the globe and the WHO has declared it a public health emergency. The worldwide impacts of the coronavirus disease are already beginning to be felt and will remarkably influence the converged infrastructure market in 2020. COVID-19 can affect the global economy by directly affecting production and demand, creating disruption in the supply chain and market, and through its financial impact on businesses and financial businesses.

CONVERGED INFRASTRUCTURE MARKET REPORT COVERAGE:

Market Segmentation

Converged Infrastructure Market - By Type

• Certified Reference Systems & Integrated Infrastructure
• Hyper Converged Systems
• Integrated Platforms

The hyper converged systems segment will represent the highest market share by 2025. Indeed, these systems deliver the convergence of compute and storage functionality into a single, highly virtualized server solution.

Converged Infrastructure Market - By Region

1. North America
2. Europe
3. Asia Pacific
4. Latin America
5. Middle East & Africa

The converged infrastructure market in the Asia Pacific (APAC) is expected to grow at the highest CAGR due to increasing business workload. China, Japan, Australia, India and Singapore are expected to bring significant market share to the converged infrastructure market in the APAC region. Increased awareness of managing data through a common interface with low total cost of ownership, increasing focus on VDI, server virtualization, and the popularity of using infrastructure-as-a-service solutions are among the main drivers of market growth from converged infrastructure to APAC.

China, Japan and India have great potential for global converged infrastructure suppliers due to the availability of a large proportion of end user verticals, favorable economic conditions when expanding services to these regions. The latest 4G tech intervention at APAC is one of the main reasons for the region's rapid digital transformation. This has led to developments in technologies, such as IoT, BYOD, and mobility services, opening up many revenue streams and use cases for businesses. 4G technology is in a development phase at APAC, driven by the large consumer base, favorable policies and rules, and rising call for data storage and security. All these factors are considered as drivers of the converged infrastructure market because the quick digital transformation and the wide scope for growth.

Key Players

Some of the key players for the global converged infrastructure market are:

1. Cisco System Inc.
2. Dell EMC
3. Hewlett-Packard Company
4. IBM Corporation
5. NetApp Inc.
6. Oracle Corporation
7. Symantec
8. Teradata
9. VMware
10. Fujitsu
11. Hitachi Data Systems

Recent Developments 

• On July 25, 2018, VMware launched the “EVO: ​​RAIL” hyper converged infrastructure appliance for India. U.S. software company VMware Inc. has launched EVO: RAIL, a hyper converged infrastructure appliance to help IT organizations optimize the deployment and horizontal scaling of software-defined IT infrastructure, according to a release from the company.
• August 2020, Nutanix launched clusters on AWS for hyperconverged infrastructure in hybrid cloud. The main targeted use cases are the ability to lift and move workloads to the public cloud, especially in cloud explosion scenarios and disaster recovery uses.
• On April 30, 2019, NEC inroduced a new highly efficient and easy-to-deploy hyperconverged infrastructure solution. NEC Corporation of America and NEC Enterprise Solutions (EMEA) announced a new hyperconverged infrastructure (HCI) solution powered by Scale Computing's HC3 software.
• On April 2, 2019, MemVerge launched the world's first converged memory infrastructure to power the most demanding workloads in business intelligence and data science and into the future. MemVerge, the inventor of Converged Memory Infrastructure (MCI), today stepped out of stealth and introduced the first system to break down the boundaries between memory and storage to power enterprise-centric workloads on the world's most demanding data.
• On May 18, 2016, Hitachi Data Systems released latest converged infrastructure platforms for SAP HANA environments that are based on the processors, which include UCP 1000 for SAP HANA, UCP 6000 for SAP S / 4HANA, UCP 6000 for SAP HANA Dynamic Tiering and new analysis capabilities for UCP 6000 for SAP HANA.