Converged Data Center Infrastructure Market

Increasing need for advanced HI services for data security and recovery drives market growth

The increasing implementation of HCI services such as disaster recovery and data security is driving the market CAGR upward. Furthermore, the rising popularity of digital technology platforms such as social networking and knowledge platforms has increased demand for HI. According to an IBM Corporation analysis published in 2020, the total average cost of a data security breach was reported to be USD 3.86 million per breach. Personal and business penalties for data breaches are included in the fee. With the help of specific component applications, hyper-converged solutions are utilized to lessen the risk of data security breaches.

It also comes with a high-security AMD processor package with security features that help to reduce security concerns.

The use of IoT in numerous industries such as automotive, manufacturing, retail, transportation, and energy has been studied to drive the industry. IoT is used in various industries because it delivers real-time information, increases operational efficiency, optimizes production, and provides other benefits that enhance the industry's efficiency while also acting as a driving factor for the Hyper-Converged Infrastructure market. According to G.E, the use of Industrial IoT has a 44% impact on worldwide energy usage.

As a result, the use of IoT in industries is expected to be a driving factor in the Hyper-Converged Infrastructure market during the projected period 2022-2027.

The market is growing as a result of rising digital transformation in data centres adopting HI solutions. Using the compute storage network, the solutions are used for data centre modernization and consolidation. It establishes a software-defined virtualized environment that makes scaling up and down data centre capabilities easy. The solutions aid in improving performance and lowering operational costs. Rising investment in data centre infrastructure development is likely to create market growth opportunities. For instance, In September 2021, Techno Electric and Engineering Company (TEECL) Power Infrastructure Company announced a USD 1 billion investment to build modern data centres in major Indian cities.

The ongoing digital transformation across various industries is a primary driver for the Global Converged Data Center Infrastructure Market Industry. Organizations are increasingly adopting cloud computing, big data analytics, and IoT technologies, necessitating robust data center solutions. In 2024, the market is projected to reach 6.7 USD Billion, reflecting the urgent need for integrated systems that can handle diverse workloads efficiently. As businesses seek to enhance operational efficiency and scalability, the demand for converged infrastructure is expected to surge, paving the way for innovative solutions that streamline IT operations.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Converged Data Center Infrastructure Market area will dominate this market, Because of the rising deployment of Industry 4.0 in the manufacturing sector in recent years. Furthermore, the presence of a high number of data centres in these locations is contributing to the growth of the Converged Data Centre Infrastructure market by reducing latency.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Converged Data Center Infrastructure Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Converged Data Center Infrastructure Market accounts for the second-largest market share because of increased mobile data usage, expanding BYOD regulations, and other factors. Further, the German Converged Data Center Infrastructure Market held the largest market share, and the UK Converged Data Center Infrastructure Market was the fastest growing market in the European region

The Asia-Pacific Converged Data Center Infrastructure Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to increasing government investments and initiatives for smart city development. Moreover, China’s Converged Data Center Infrastructure Market held the largest market share, and the Indian Converged Data Center Infrastructure Market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Converged Data Center Infrastructure Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Converged Data Center Infrastructure industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Converged Data Center Infrastructure industry to benefit clients and increase the market sector. In recent years, the Converged Data Center Infrastructure industry has offered some of the most significant advantages to medicine. Major players in the Converged Data Center Infrastructure Market, including Oracle Corporation (US), Mellanox Technologies Ltd (Israel), WS Atkins PLC (UK) MapR (US), SecureKey Technologies Inc (US), Kinetica DB Inc (US) and others, are attempting to increase market demand by investing in research and development operations.

Nutanix, Inc. is a cloud computing firm based in the United States that sells software, cloud services (including desktops as a service, disaster recovery as a service, and cloud monitoring), and software-defined storage. Dheeraj Pandey, Mohit Aron, and Ajeet Singh started Nutanix on September 23, 2009. Aron departed Nutanix in early 2013 to launch Cohesity, a privately held computer data storage startup. In August 2020, Nutanix debuted AWS clusters for hyperconverged infrastructure in hybrid cloud. The ability to lift and relocate workloads to the public cloud, particularly in cloud explosion scenarios, and disaster recovery uses are the key targeted use cases.

NEC firm, based in Minato, Tokyo, is a Japanese multinational information technology and electronics firm. Before rebranding as NEC in 1983, the corporation was known as the Nippon Electric corporation, Limited. It provides IT and network solutions to businesses, communications service providers, and government agencies, including cloud computing, artificial intelligence (AI), Internet of Things (IoT) platforms, and telecommunications equipment and software. It has also been Japan's largest PC vendor since the 1980s, when it launched the PC-8000 series. In April 2019, NEC introduced a new hyperconverged infrastructure solution that is very efficient and simple to deploy.

NEC Corporation of America and NEC Enterprise Solutions (EMEA) have announced the release of a new hyperconverged infrastructure (HCI) solution based on Scale Computing's HC3 software.