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Europe Hyper Converged Infrastructure Market

ID: MRFR/SEM/55788-HCR
200 Pages
Aarti Dhapte
October 2025

Europe Hyper-Converged Infrastructure Market Research Report By Hypervisor Type (VMware, KVM, Hyper-V), By Application (Virtual Desktop Infrastructure, Server Virtualization, Data Protection, Remote Office, Cloud) and By Regional (Germany, UK, France, Russia, Italy, Spain, Rest of Europe) - Forecast to 2035

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Europe Hyper Converged Infrastructure Market Summary

As per MRFR analysis, the Europe hyper converged-infrastructure market size was estimated at 11.72 USD Billion in 2024. The Europe hyper converged-infrastructure market is projected to grow from 12.93 USD Billion in 2025 to 34.5 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 10.31% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Europe hyper converged-infrastructure market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The market is witnessing a rising demand for scalability, particularly in Germany, which remains the largest market in Europe.
  • Integration of advanced technologies is becoming increasingly prevalent, enhancing operational efficiencies across various sectors.
  • Cost efficiency is a primary focus for organizations, especially in the UK, which is recognized as the fastest-growing region in this market.
  • Key drivers include the increased adoption of cloud solutions and a growing need for simplified IT management, which are shaping market dynamics.

Market Size & Forecast

2024 Market Size 11.72 (USD Billion)
2035 Market Size 34.5 (USD Billion)

Major Players

Nutanix (US), VMware (US), Hewlett Packard Enterprise (US), Cisco Systems (US), Dell Technologies (US), Microsoft (US), Lenovo (CN), Scale Computing (US), DataCore Software (US)

Europe Hyper Converged Infrastructure Market Trends

the hyper converged infrastructure market is experiencing growth, driven by the increasing demand for efficient data management solutions. Organizations are increasingly adopting hyper converged systems to streamline their IT operations, reduce costs, and enhance scalability. This trend is particularly evident in sectors such as healthcare, finance, and manufacturing, where the need for robust data handling capabilities is paramount. Furthermore, the integration of advanced technologies such as artificial intelligence and machine learning into hyper converged systems is likely to enhance their functionality, making them more appealing to businesses seeking to optimize their operations. In addition, the shift towards remote work and digital transformation initiatives has accelerated the adoption of hyper converged infrastructure. Companies are recognizing the importance of flexible and scalable IT solutions that can support their evolving needs. As organizations continue to prioritize agility and efficiency, the hyper converged-infrastructure market is poised for sustained growth. The increasing focus on sustainability and energy efficiency may also influence purchasing decisions, as businesses seek solutions that align with their environmental goals. Overall, the landscape appears dynamic, with various factors contributing to the ongoing evolution of the hyper converged-infrastructure market.

Rising Demand for Scalability

Organizations are increasingly seeking scalable solutions to accommodate their growing data needs. Hyper converged infrastructure offers the flexibility to expand resources seamlessly, allowing businesses to adapt to changing requirements without significant disruptions.

Integration of Advanced Technologies

The incorporation of technologies such as artificial intelligence and machine learning into hyper converged systems is enhancing their capabilities. This integration enables organizations to leverage data analytics for improved decision-making and operational efficiency.

Focus on Cost Efficiency

As businesses strive to optimize their IT budgets, hyper converged infrastructure presents a cost-effective alternative to traditional systems. The consolidation of resources reduces hardware expenses and simplifies management, appealing to organizations looking to maximize their investments.

Europe Hyper Converged Infrastructure Market Drivers

Shift Towards Edge Computing

the hyper converged infrastructure market in Europe is influenced by the shift towards edge computing. As organizations seek to process data closer to the source, the demand for edge solutions is increasing. Hyper converged infrastructure is well-suited for edge deployments, offering the necessary scalability and performance to support real-time data processing. Recent projections suggest that the edge computing market in Europe could reach €10 billion by 2027, indicating a significant opportunity for hyper converged infrastructure providers. This trend highlights the importance of adaptability in IT infrastructure, as businesses aim to leverage edge computing to enhance operational efficiency and responsiveness.

Increased Adoption of Cloud Solutions

the hyper converged infrastructure market in Europe is experiencing a shift towards cloud-based solutions. Organizations are increasingly recognizing the benefits of integrating cloud capabilities into their IT infrastructure. This trend is driven by the need for flexibility and scalability, allowing businesses to adapt to changing demands. According to recent data, the cloud services market in Europe is projected to grow at a CAGR of 15% over the next five years. This growth is likely to propel the adoption of hyper converged infrastructure, as companies seek to streamline operations and enhance their cloud strategies. Furthermore, the ability to manage both on-premises and cloud resources seamlessly is becoming a critical factor for enterprises, thereby driving the demand for hyper converged solutions.

Growing Need for Simplified IT Management

The hyper converged-infrastructure market in Europe is being driven by the increasing demand for simplified IT management. Organizations are seeking solutions that reduce the complexity of their IT environments, allowing for more efficient resource allocation and management. Hyper converged infrastructure offers a unified platform that integrates storage, computing, and networking, thereby streamlining operations. Recent surveys indicate that approximately 70% of IT decision-makers in Europe prioritize ease of management when selecting infrastructure solutions. This trend suggests that as businesses strive to optimize their IT operations, the hyper converged infrastructure market will likely see substantial growth, as it addresses the need for simplicity and efficiency in IT management.

Regulatory Compliance and Data Sovereignty

In Europe, stringent data protection regulations, such as the General Data Protection Regulation (GDPR), are influencing the hyper converged-infrastructure market. Organizations are compelled to ensure compliance with these regulations, which often necessitates localized data storage and management solutions. This regulatory landscape is pushing businesses to adopt hyper converged infrastructure that can provide enhanced security and data governance. The market for compliance-related IT solutions is expected to grow significantly, with estimates suggesting an increase of 20% in demand for compliant infrastructure solutions over the next few years. As companies navigate the complexities of data sovereignty, hyper converged infrastructure emerges as a viable option to meet these regulatory requirements while maintaining operational efficiency.

Rising Focus on Disaster Recovery Solutions

the hyper converged infrastructure market in Europe is witnessing a focus on disaster recovery solutions. As businesses increasingly recognize the importance of data protection and business continuity, the demand for robust disaster recovery capabilities is surging. Hyper converged infrastructure provides integrated backup and recovery solutions that are essential for minimizing downtime and ensuring data integrity. Market analysis indicates that the disaster recovery as a service (DRaaS) segment is expected to grow by 25% in the coming years, reflecting the urgency for organizations to safeguard their critical data. This trend underscores the role of hyper converged infrastructure in enhancing resilience and operational continuity in the face of potential disruptions.

Market Segment Insights

By Hypervisor Type: VMware (Largest) vs. KVM (Fastest-Growing)

In the hypervisor type segment, VMware holds the largest market share among its peers, dominating due to its robust features and widespread adoption. KVM, on the other hand, has made significant strides in recent years, capturing an increasing portion of the market as organizations seek cost-effective and flexible virtualization solutions. Growth trends indicate that VMware continues to benefit from various enterprise upgrades and category-leading innovations, while KVM is driving shifts towards open-source solutions and greater agility in IT infrastructures. The push for digital transformation is fueling demand, with businesses increasingly recognizing the value of hyper-converged infrastructures that can be cost-effectively managed and easily scaled.

VMware (Dominant) vs. KVM (Emerging)

VMware stands as the dominant player in the hypervisor type segment, characterized by its extensive portfolio of cloud solutions and unparalleled reliability. Organizations prioritize its advanced management capabilities and seamless integration with existing systems. Conversely, KVM is emerging as a strong competitor, particularly among small to medium-sized businesses that are attracted to its open-source nature and lower licensing costs. This shift reflects a broader trend of enterprises looking for scalable options that do not compromise on performance. As KVM gains traction, it is expected to appeal more to organizations prioritizing flexibility and customization in their hyper-converged infrastructure solutions.

By Application: Virtual Desktop Infrastructure (Largest) vs. Server Virtualization (Fastest-Growing)

In the application segment, Virtual Desktop Infrastructure holds the largest market share, driven by increased demand for remote access and flexible working solutions. Server Virtualization follows as an emerging trend, gaining traction due to its efficiency in resource utilization and optimization of IT costs. Other segments like Data Protection, Remote Office, and Cloud also contribute to the market dynamics, showcasing the diverse applications of hyper-converged infrastructure across different business environments. Growth trends indicate a strong push towards digitization and cloud adoption, fostering a competitive landscape among the segments. Specifically, Server Virtualization is experiencing rapid growth as organizations seek scalable solutions to manage workloads. Data Protection is gaining importance given the rising cybersecurity concerns, while Cloud services are benefitting from the shift towards hybrid environments, indicating a robust future for this segment.

Virtual Desktop Infrastructure: Dominant vs. Server Virtualization: Emerging

Virtual Desktop Infrastructure (VDI) continues to be a dominant player in this segment, providing enterprises with the ability to deliver desktop environments to users remotely. This approach enhances security, reduces hardware costs, and supports BYOD policies. In contrast, Server Virtualization is emerging as a vital strategy for IT departments aiming to maximize server utilization and reduce operational costs. This shift allows for better management of IT resources, facilitating faster deployment of applications and services. Both segments are witnessing innovations that drive efficiency and productivity, making them essential components of modern IT strategies in the European market.

Get more detailed insights about Europe Hyper Converged Infrastructure Market

Regional Insights

Germany : Strong Demand and Innovation Hub

Germany holds a commanding market share of 3.5% in the hyper-converged infrastructure sector, driven by robust demand for integrated IT solutions. Key growth drivers include the digital transformation initiatives by the government, which aim to enhance cloud adoption and data center efficiency. The increasing need for scalable IT infrastructure in sectors like manufacturing and finance is also notable. Regulatory support for data protection and cybersecurity further fuels market growth, alongside significant investments in infrastructure development.

UK : Innovation and Investment Surge

The UK market, with a share of 2.8%, is characterized by rapid growth in hyper-converged infrastructure, driven by increasing cloud adoption and the need for agile IT solutions. The government’s initiatives to support tech startups and digital innovation are pivotal. Demand is particularly strong in sectors like finance and healthcare, where data management is critical. The competitive landscape is vibrant, with a mix of local and international players vying for market share, supported by favorable regulatory conditions.

France : Strong Demand from Diverse Sectors

France, holding a 2.2% market share, is witnessing significant growth in hyper-converged infrastructure, fueled by the digitalization of various industries. Key growth drivers include government initiatives aimed at enhancing digital infrastructure and promoting cloud services. The demand is particularly pronounced in sectors such as retail and telecommunications, where efficient data management is essential. The competitive landscape features major players like VMware and Nutanix, alongside local firms, creating a dynamic market environment.

Russia : Potential Amidst Regulatory Hurdles

Russia's hyper-converged infrastructure market, with a share of 1.5%, is gradually expanding, driven by increasing investments in IT modernization. Key growth drivers include government initiatives to boost the digital economy and local data center development. However, regulatory challenges and geopolitical factors pose risks to market stability. Major cities like Moscow and St. Petersburg are key markets, with local players and international firms like Cisco competing for market presence, particularly in the public sector.

Italy : Focus on Digital Transformation

Italy's market share stands at 0.9%, reflecting steady growth in hyper-converged infrastructure, primarily driven by the need for digital transformation across various sectors. Government initiatives aimed at enhancing IT infrastructure and promoting cloud adoption are significant growth factors. Key markets include Milan and Rome, where demand for integrated IT solutions is rising. The competitive landscape features both local and international players, with a focus on sectors like manufacturing and finance, which are increasingly adopting hyper-converged solutions.

Spain : Investment in Digital Infrastructure

Spain, with a market share of 0.7%, is emerging as a significant player in the hyper-converged infrastructure space, driven by investments in digital infrastructure and cloud services. Government initiatives to support technology adoption in various sectors are key growth drivers. Major cities like Madrid and Barcelona are at the forefront of this trend, with a competitive landscape that includes both local startups and established international firms. The focus is on sectors such as tourism and retail, where efficient data management is crucial.

Rest of Europe : Varied Growth Across Regions

The Rest of Europe, with a market share of 0.12%, presents a fragmented landscape for hyper-converged infrastructure, characterized by diverse needs and varying growth rates. Key growth drivers include localized government initiatives and the increasing demand for IT modernization across different sectors. The competitive landscape is diverse, with local players dominating in specific regions. Countries like Belgium and the Netherlands are notable for their focus on cloud services, while others are still developing their IT infrastructure capabilities.

Europe Hyper Converged Infrastructure Market Regional Image

Key Players and Competitive Insights

The hyper converged-infrastructure market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for integrated IT solutions that enhance operational efficiency and reduce costs. Key players such as Nutanix (US), VMware (US), and Hewlett Packard Enterprise (US) are strategically positioned to leverage their technological innovations and robust service offerings. Nutanix (US) focuses on expanding its cloud services and enhancing its software capabilities, while VMware (US) emphasizes its partnerships and ecosystem development to drive customer adoption. Hewlett Packard Enterprise (US) is actively pursuing mergers and acquisitions to bolster its portfolio, indicating a trend towards consolidation in the market. Collectively, these strategies contribute to a competitive environment that is increasingly centered around innovation and customer-centric solutions.

In terms of business tactics, companies are localizing manufacturing and optimizing supply chains to enhance responsiveness to market demands. The competitive structure of the hyper converged-infrastructure market appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for diverse offerings, yet the collective impact of major companies shapes the overall market dynamics, fostering a competitive atmosphere that encourages continuous improvement and adaptation.

In October 2025, Nutanix (US) announced a strategic partnership with a leading European telecommunications provider to enhance its cloud services. This collaboration is expected to facilitate the deployment of advanced hyper converged solutions across the region, thereby expanding Nutanix's market reach and reinforcing its position as a leader in cloud infrastructure. The strategic importance of this partnership lies in its potential to drive innovation and improve service delivery, aligning with the growing demand for cloud-based solutions.

In September 2025, VMware (US) launched a new initiative aimed at integrating artificial intelligence (AI) capabilities into its hyper converged infrastructure offerings. This move is significant as it positions VMware to capitalize on the increasing trend towards AI-driven solutions, enhancing operational efficiencies for its clients. By embedding AI into its products, VMware is likely to differentiate itself in a competitive market, appealing to organizations seeking to leverage advanced technologies for improved performance.

In August 2025, Hewlett Packard Enterprise (US) completed the acquisition of a prominent software company specializing in data analytics. This acquisition is poised to enhance HPE's hyper converged infrastructure solutions by integrating advanced analytics capabilities, thereby providing customers with deeper insights into their operations. The strategic importance of this acquisition lies in its potential to create a more comprehensive offering that addresses the evolving needs of businesses in a data-driven landscape.

As of November 2025, current competitive trends in the hyper converged-infrastructure market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are playing a crucial role in shaping the landscape, enabling companies to pool resources and expertise to drive innovation. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition towards a focus on technological innovation, supply chain reliability, and the ability to deliver tailored solutions that meet the specific needs of customers.

Key Companies in the Europe Hyper Converged Infrastructure Market market include

Industry Developments

Recent developments in the Europe Hyper-Converged Infrastructure Market indicate a notable growth trajectory driven by increased demand for integrated data management solutions. Companies such as Nutanix and VMware are expanding their product offerings to meet evolving customer needs, particularly in industries migrating to hybrid cloud environments. In October 2023, Hewlett Packard Enterprise announced the expansion of its HCI portfolio to enhance operational efficiency for enterprises. Significant partnerships and collaborations are also forming, with Cisco and Microsoft integrating capabilities to streamline hyper-converged services for large enterprises.

Regarding mergers and acquisitions, in June 2023, Dell Technologies acquired a smaller virtualization company to bolster its cloud services, aiming to improve service delivery across European markets. 

Additionally, in July 2023, Oracle announced a strategic alliance with SUSE to enhance the enterprise capabilities of HCI solutions. The growth in market valuation for key players, such as Lenovo and IBM, reflects robust competition and innovation within the sector. Noteworthy is the increasing investment in Research and Development as companies seek to leverage advancements in artificial intelligence and automation. This dynamic landscape emphasizes the importance of adaptive strategies to meet the diverse needs of European clients in an increasingly complex IT environment.

Future Outlook

Europe Hyper Converged Infrastructure Market Future Outlook

the hyper converged infrastructure market is expected to grow at a 10.31% CAGR from 2024 to 2035, driven by increasing demand for integrated solutions and cloud adoption.

New opportunities lie in:

  • Development of AI-driven management tools for optimized resource allocation.
  • Expansion of edge computing solutions to enhance data processing capabilities.
  • Partnerships with telecom providers for integrated 5G and HCI solutions.

By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic partnerships.

Market Segmentation

Europe Hyper Converged Infrastructure Market Application Outlook

  • Virtual Desktop Infrastructure
  • Server Virtualization
  • Data Protection
  • Remote Office
  • Cloud

Europe Hyper Converged Infrastructure Market Hypervisor Type Outlook

  • VMware
  • KVM
  • Hyper-V

Report Scope

MARKET SIZE 202411.72(USD Billion)
MARKET SIZE 202512.93(USD Billion)
MARKET SIZE 203534.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)10.31% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies Profiled["Nutanix (US)", "VMware (US)", "Hewlett Packard Enterprise (US)", "Cisco Systems (US)", "Dell Technologies (US)", "Microsoft (US)", "Lenovo (CN)", "Scale Computing (US)", "DataCore Software (US)"]
Segments CoveredHypervisor Type, Application
Key Market OpportunitiesIntegration of artificial intelligence in hyper converged-infrastructure market enhances operational efficiency and scalability.
Key Market DynamicsRising demand for integrated solutions drives competitive innovation in the hyper converged-infrastructure market.
Countries CoveredGermany, UK, France, Russia, Italy, Spain, Rest of Europe

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FAQs

What is the projected market size of the Europe Hyper-Converged Infrastructure Market by 2024?

The Europe Hyper-Converged Infrastructure Market is expected to be valued at 10.31 USD Billion in 2024.

What will the Europe Hyper-Converged Infrastructure Market be worth by 2035?

By 2035, the Europe Hyper-Converged Infrastructure Market is anticipated to reach a valuation of 120.93 USD Billion.

What is the expected CAGR for the Europe Hyper-Converged Infrastructure Market from 2025 to 2035?

The projected CAGR for the Europe Hyper-Converged Infrastructure Market from 2025 to 2035 is 25.082 percent.

Which region is expected to dominate the Europe Hyper-Converged Infrastructure Market in 2024?

In 2024, Germany is expected to dominate the Europe Hyper-Converged Infrastructure Market with a valuation of 2.5 USD Billion.

How much will the UK contribute to the Europe Hyper-Converged Infrastructure Market by 2035?

By 2035, the UK is projected to contribute 28.0 USD Billion to the Europe Hyper-Converged Infrastructure Market.

What is the expected market size for the Hyper-V hypervisor in 2024?

The market size for the Hyper-V hypervisor is expected to be 2.81 USD Billion in 2024.

Which major players are leading the Europe Hyper-Converged Infrastructure Market?

Major players in the Europe Hyper-Converged Infrastructure Market include Lenovo, Oracle, and Hewlett Packard Enterprise.

What is the growth outlook for the KVM hypervisor segment by 2035?

The KVM hypervisor segment is projected to grow to 35.0 USD Billion by 2035.

What is the market size for France in the Europe Hyper-Converged Infrastructure Market in 2024?

In 2024, the market size for France in the Europe Hyper-Converged Infrastructure Market is expected to be 1.8 USD Billion.

What are the key applications driving the growth of the Europe Hyper-Converged Infrastructure Market?

Key applications driving growth include IT management, cloud computing, and data center optimization.

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