Colocated Data Center is Expected to Dominate the Global Converged Data Center Infrastructure Market

The increasing implementation of HCI services such as disaster recovery and data security is driving the market CAGR upward.

According to TechSci Research report, “Global Converged Data Center Infrastructure Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”. The Global Converged Data Center Infrastructure is anticipated to project robust growth in the forecast period with a CAGR of  28.5% through 2028. The expansion of hyper-scale cloud service providers in the region primarily drives the growth of the Global Converged Data Center Infrastructure market in North America. Colocation services have also experienced growth in both the wholesale and retail sectors. The demand for infrastructure to support virtual desktops has increased due to rising mobile data usage and the implementation of bring-your-own-device (BYOD) regulations. As a result, Global Converged Data Center Infrastructure market share is expected to increase in North America.  Several data center companies have made significant investments in hyperscale data centers. Equinix, for instance, has announced plans to build 32 hyperscale data centers in major global markets. With a substantial investment of over USD 6.9 billion and a total capacity of 600 megawatts, Equinix aims to expand its presence and capitalize on the growing hyper-scale data center landscape. The increasing number of regional data centers will drive the Global Converged Data Center Infrastructure market further. However, the high initial investment cost of implementing infrastructure is hampering the market. While HCI offers numerous benefits, including simplified management, improved scalability, and reduced operational costs, the upfront investment required to deploy these solutions can be significant. The costs of hardware, software licenses, and professional services can be challenging, particularly for small and medium-sized enterprises (SMEs) with limited IT budgets. The high initial investment cost is a barrier to adoption, hindering market growth. However, as the market matures and technology advancements occur, the cost of Global Converged Data Center Infrastructure is expected to decline, making them more accessible to a broader range of organizations.

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Recent Developments

• In February 2023, Huawei announced its plans to accelerate the digital transformation of enterprises by implementing advanced technologies such as big data, artificial intelligence, edge computing, and intelligent manufacturing. In this context, hyper-converged infrastructure is evolving rapidly, shifting from traditional data centers to the edge, from structured to unstructured data, and from single general-purpose computing power to diversified computing power. This evolution has become one of the mainstream approaches for constructing data centers.
• Moreover, to support this trend, Huawei is preparing to launch its hyper-convergence strategy and new products like Kunpeng Hyperconvergence, Blue Whale Application Mall, hyper-convergence software, and supporting tools. These offerings will comprehensively upgrade ecosystem development, user experience, and business capabilities.
• In April 2022, Equinix and Dell expanded their partnership to provide hyper-converged data center offerings. As part of this expansion, Equinix extended its Equinix Metal line of bare metal appliances. Moreover, the expansion includes introducing several new offerings, including Dell PowerStore on Equinix Metal, Dell VxRail on Equinix Metal, and Dell EMC PowerProtect DDVE on Equinix Metal. These new solutions aimed to deliver enhanced capabilities and performance by combining Dell's advanced hardware with Equinix's robust bare metal infrastructure.

Key market players in the Global  Converged Data Center Infrastructure Market are following:-

• Emerson Electric Co.
• ABB Ltd
• Schneider Electric SE
• Riello Elettronica SpA
• EATON Corporation PLC
• Toshiba Corporation
• Xiamen Kehua Hengsheng Co. Ltd.

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“.One of the primary drivers of the converged data center infrastructure market is the exponential growth in data demands. Organizations across various industries are generating and managing vast amounts of data, thanks to digitalization, IoT devices, cloud computing, and other technological advancements. This surge in data requires more efficient and centralized data center solutions. Converged infrastructure provides a means to consolidate and streamline data center resources, making it easier to handle the increasing data workloads. Cost efficiency is a significant driver for the adoption of converged infrastructure solutions. Traditional data center architectures often involve separate components for compute, storage, networking, and virtualization, leading to increased hardware and operational costs. Converged solutions integrate these components, reducing hardware, energy, and management expenses. This makes converged infrastructure an attractive option for organizations seeking to optimize their IT spending” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based  global management consulting firm.

Converged Data Center Infrastructure Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented, By Deployment (Reference Architecture, Pre-Racked Configuration), By Component (Computational Devices, Storage Devices, Networking Devices), By Facility (On-Premises, Colocated Data Center), By Region, Competition 2018-2028. has evaluated the future growth potential of Global  Converged Data Center Infrastructure Market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the Global  Converged Data Center Infrastructure Market.

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