Hyper-Converged Infrastructure Market - A USD 151.3 Billion Opportunity by 2035

Market Outlook and Forecast
Market Size & Growth Projections

According to recently published research, the global hyper-converged infrastructure market is estimated at USD 17.93 billion in 2025, and is projected to reach USD 151.3 billion by 2035, representing a forecast growth rate of 23.8% CAGR over 2026-2035.

From an intelligence-perspective, this means HCI is transitioning from a niche "data-centre consolidation" play into a mainstream platform for hybrid cloud, edge and AI-inflected workloads.

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Regional Performance Highlights

• North America is poised to hold the largest share of the global market by 2035-approximately 42.3%.

• Europe continues to evolve as a mature market with steady HCI uptake, particularly in industries with heavy compliance and virtualization demands (e.g., banks, insurance).

• Asia Pacific is emerging as a high-growth zone, driven by rapid data centre build-out, rising cloud and telco activity, and digital transformation across India, China, Southeast Asia.

What this means: from a strategic standpoint, vendors that can execute regionally in both North America (for scale/mature deployments) and Asia Pacific (for growth) will dominate the trajectory of the HCI market.

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Segment Demand & Use-Cases

Within the HCI market:

• Hardware remains the dominant component segment, projected to claim around 64.3% share by end-2035. That reflects the continued need for integrated compute + storage + networking blocks as appliances or nodes, even while software and services climb.

• On the application/use-case side, virtualising critical applications and consolidating three-tier legacy stacks are central. For instance, many organisations deploy HCI for "virtualised critical applications" (VCAs) as part of IT modernisation. With HCI, compute, storage and network are combined, enabling simplified management and higher agility.

Thus, demand is driven by the twin imperatives of cost/complexity reduction (for legacy infrastructure) and enabling new workloads (edge, hybrid cloud, container environments). From a market-intelligence vantage, HCI is positioned as the "platform foundation" for next-gen infrastructure.

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Top Market Trends

Here are the major developments shaping the hyper-converged infrastructure market - and how they are influencing vendor strategy, customer adoption and competitive tensions.

Digital-first & Hybrid Cloud Modernisation

Enterprise IT's shift to hybrid cloud and edge drives HCI adoption. Organisations no longer view infrastructure purely as on-premises or cloud, but as a continuum. HCI fits this model by offering on-prem, edge or private-cloud compatible modules that support cloud-native workloads, containers and virtual machines. For example, research shows that companies are replacing legacy three-tier stacks with HCI to manage virtual & containerised workloads across hybrid environments.

In my view, this trend underpins HCI's "next stage" growth: not just consolidation, but enabling hybrid/edge architectures.

Rise of Edge, Distributed Data Centres and Low-Latency Applications

As enterprises deploy workloads closer to the edge (retail, telecom, manufacturing, remote/ROBO sites), HCI becomes the platform of choice due to its compact footprint, scalability and simplified operations. For instance, Asia Pacific's data-centre expansion and need for efficient remote infrastructure are steering HCI uptake.

The implication: vendors must support distributed, smaller-node deployments, ruggedised form-factors and orchestration from central management consoles, increasing competitive differentials in the HCI market.

AI, Containers & Hybrid Workloads Integration

Beyond classical VMs, enterprises increasingly demand convergence of containerised workloads, Kubernetes, GPUs, AI/ML inference at the infrastructure layer. HCI platforms are evolving to support these mixed-workload environments. For example, the hardware segment remains strong because modern HCI nodes are integrating NVMe fabrics, GPUs and high-speed networking.

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Recent Company Developments

Here are eight companies driving the hyper-converged infrastructure market - each with notable moves over the past 12 months.

1. Nutanix, Inc. (US) - A pioneer of HCI software. Nutanix's strategic shift toward hybrid cloud and Kubernetes emphasises containerised workloads and multi cloud support.

Notably, the company highlighted that Indian business saw a 33 % revenue surge in Q4 FY25, making India the largest APJ region for Nutanix.
This signals HCI vendors' geographic diversification and software-first pivot.

2. Dell Technologies Inc. / VxRail - Dell's flagship HCI appliance, VxRail, remains a cornerstone product. The company announced a new agreement with Broadcom Inc. (June 2024) to continue delivering jointly-engineered HCI solutions (VxRail and vSAN) spanning edge-to-cloud.

Additionally, Dell continues to deepen its AI/infra offering; some analysts argue this marks a shift from pure HCI to disaggregated AI infrastructure, signalling evolution in the HCI market.

3. Hewlett Packard Enterprise Company (HPE) - HPE launched in May 2025 a new private-cloud portfolio built on disaggregated HCI (dHCI) and its Morpheus software, claiming up to 90 % VM-licensing cost savings.

Also, HPE unveiled Green Lake Intelligence-a unified agentic AI framework that automates the full IT stack (compute/storage/network) in hybrid cloud environments, positioning HCI as AI-ready.

4. Cisco Systems, Inc. - Cisco continues its push in HCI via its Hyper Flex platform and partnerships. Though fewer headline-specific deals in the past 12 months were publicly noted in my data set, Cisco remains a strategic HCI player often cited in competitive landscape reports.

5. Huawei Technologies Co., Ltd. - China-based vendor. With Asia Pacific's rapid data-centre growth, Huawei is well-positioned in the region's emerging HCI opportunities. Market reports list Huawei among major players in the HCI market.

Together, these developments reflect all major facets of the hyper-converged infrastructure market: hardware appliance evolution (Dell, HPE), software-first strategies (Nutanix, Data Core), regional expansion (Huawei, Hitachi), and ecosystem partnerships (Cisco, NetApp). For a market-intelligence professional, tracking such moves helps differentiate who is "leading" versus who is fast-following.

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These corporate moves reflect several broader themes: hardware innovation, IP-system upgrades, cloud service evolution, regulatory and geopolitical pressures, and cross-sector convergence. For market intelligence practitioners, tracking these company developments is essential to anticipate how product road-maps, go-to-market strategies and competitive positioning will evolve across the global video surveillance market.

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