Summer, who was shortlisted for the honour for the sixth time, beat electronic music pioneers Kraftwerk, rappers NWA and rock band Deep Purple to land the honour.
Hip hop stars Public Enemy, blues legend Albert King, Canadian rock band Rush, Oscar-winning singer-songwriter Randy Newman and veteran female rockers Heart will also enter the Cleveland-based music pantheon, reported Daily Express.
Producers Quincy Jones and Lou Adlers will be receiving the Ahmet Ertegun Award, which is handed out to non-performers.
The disco diva rose to fame in 1976 with the smash hit 'Love to Love you Baby.' Three years later, her singles 'Hot Stuff,' 'Bad Girls' and 'No More Tears,' a duet with Barbara Streisand, all shot to number one in the charts.
All eight winners will officially join the Hall of Fame at a ceremony in Los Angeles on April 18 next year.
To date, the Hall features 279 inductees, including Elvis Presley, the Red Hot Chilli Peppers and U2.