Composite material high-pressure storage vessel has been increasingly applied in the hydrogen storage industry. This study aims to establish parametric analysis of fiber wound composite vessel and investigate the stress distribution, failure mechanism as well as the burst strength. Based on the maximum strain criterion and Tsai-Wu failure criterion, the burst strength of the vessel and the failure mechanism of the cylinder segment were evaluated and studied. The stresses of the cylinder were much higher than those of the dome. The cylindrical part of the vessel is its weakest area. Matrix failure initiated at the spiral wound layer, then the accumulation of matrix failure resulted in the stiffness becoming degraded and hence fiber failure happened on the hoop wound layers. The fiber failure leaded to the ultimate failure of the vessel. The wound scheme of the outer layers also plays an important role on the load-bearing ability of the vessel. The burst strength of vessel with case-A wound was 122 MPa, while it was 91 MPa for case-B wound, about 25.4% decrease. The numerical results were compared with the burst mode studied in experiments on composite vessels and a good agreement was obtained. This study provides a theoretical foundation for safe design and utilization of composite material high-pressure vessel in the fields of hydrogen storage.