Dell Technologies Inc. expanded its APEX cloud platform offerings in April 2023, adding fuel to a broader infrastructure shift that new research from FactMR values at USD 24.6 billion in 2025, with growth projected to reach USD 204.4 billion by 2036. The move, aimed at supporting enterprise hyper-converged infrastructure (HCI) deployments, reflects a pattern playing out across the sector as vendors compete to replace legacy three-tier data center architecture with unified, software-defined systems.

Dell isn't alone in moving on this. Hewlett Packard Enterprise expanded its GreenLake cloud services in India in May 2023 to capture rising demand tied to the country's Digital India programme, while Huawei Technologies expanded its cloud and data center solutions in China the same year, aligning with Beijing's New Infrastructure initiative. Fujitsu, meanwhile, rolled out integrated HCI solutions for enterprise customers in Japan in February 2023. Each move targets a different regional growth curve, but all point to the same underlying demand: enterprises want fewer, more manageable infrastructure components, not more.

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Why Enterprises Are Abandoning Three-Tier Architecture

Traditional data centers separate compute, storage and networking into distinct hardware stacks — a model that's increasingly expensive to operate as workloads scale. Hyper-converged systems fold all three into a single, centrally managed platform, cutting hardware complexity and giving IT teams a faster path to scale virtualization, hybrid cloud and disaster-recovery workloads.

That trade-off comes at a cost. FactMR's analysis notes that higher upfront software licensing and integrated hardware pricing remain a real barrier, and vendor lock-in is a recurring concern among enterprise buyers weighing a switch. Even so, the report finds large enterprises — organizations with the most complex, distributed IT environments — are projected to hold around 70% of market share by 2026, and hyper-converged infrastructure appliances alone are expected to account for roughly half of component spending.

Where Growth Is Concentrated

India is forecast to post the fastest growth among major markets tracked in the report, at an 11.5% CAGR through 2036, followed by China at 11.2%. The U.S. market — still the largest base of enterprise data center and cloud-provider spending — is projected to grow at 10.8% annually over the same period, with Japan at 10.2% and Australia at 10.1%.

"In this updated edition of the Hyper-Converged Systems Market report, industry participants will observe that enterprise IT infrastructure is increasingly transitioning toward integrated software defined platforms," said Shambhu Nath Jha, Principal Consultant at FactMR. Jha added that vendors with strong virtualization capabilities and scalable infrastructure offerings are best positioned to hold their ground as the shift plays out across regional markets over the next decade.

Market Snapshot

• 2025 market value: USD 24.6 billion
• 2026 estimated value: USD 30.9 billion
• 2036 forecast value: USD 204.4 billion
• CAGR, 2026–2036: 25.8%
• Large-enterprise share of market, 2026: ~70%

About the Report

The Hyper-Converged Systems Market report from FactMR covers market sizing and forecasts from 2026 to 2036 across component, enterprise size, application and region, drawing on primary interviews with IT infrastructure providers, system integrators, cloud service operators and enterprise technology managers, combined with desk research and a hybrid top-down/bottom-up sizing model. Full segmentation, competitive profiling and country-level detail are available in the complete report: https://www.factmr.com/report/hyper-converged-systems-market

Demand Drivers

• Enterprises replacing legacy three-tier data center architecture with software-defined, centrally managed platforms
• Rising need for infrastructure that scales cleanly with virtualization, hybrid cloud and enterprise application workloads
• Government-backed digital infrastructure programs — including India's Digital India initiative and China's New Infrastructure policy — accelerating regional cloud and data center investment
• Growing edge and remote-office deployment, where compact, pre-configured HCI appliances reduce on-site hardware footprint

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About Factmr

Factmr is a global market research and consulting firm, trusted by Fortune 500 companies and emerging businesses for reliable insights and strategic intelligence. With a presence across the U.S., UK, India, and Dubai, we deliver data-driven research and tailored consulting solutions across 30+ industries and 1,000+ markets. Backed by deep expertise and advanced analytics, Factmr helps organizations uncover opportunities, reduce risks, and make informed decisions for sustainable growth