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Add to CartComposable Infrastructure Market
By Component;
Hardware and SoftwareBy Deployment;
On-Premise and CloudBy Organization Size;
Large Enterprise and Small & Medium EnterpriseBy End User;
IT & Telecom, BFSI and OthersBy Application and Workload Type;
AI & ML & HPC, DevOps, CI & CD and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Composable Infrastructure Market Overview
Composable Infrastructure Market (USD Million)
Composable Infrastructure Market was valued at USD 5,633.55 million in the year 2024. The size of this market is expected to increase to USD 109,558.42 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 52.8%.
Composable Infrastructure Market
*Market size in USD million
CAGR 52.8 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 52.8 % |
| Market Size (2024) | USD 5,633.55 Million |
| Market Size (2031) | USD 109,558.42 Million |
| Market Concentration | Low |
| Report Pages | 318 |
Major Players
- HGST
- HPE
- Dell EMC
- Lenovo
- DriveScale
- TidalScale
- Liqid
- OSS
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Composable Infrastructure Market
Fragmented - Highly competitive market without dominant players
The Composable Infrastructure Market is expanding rapidly as enterprises seek more agile and scalable IT frameworks. These solutions allow companies to dynamically configure resources to match real-time operational requirements. Currently, over 55% of organizations are integrating composable models to enhance flexibility and move away from rigid hardware-based systems.
Focus on Efficiency and Cost Control
Composable infrastructure supports automated resource allocation, resulting in greater efficiency and significant cost benefits. Organizations report up to 40% gains in operational performance through the adoption of modular and programmable infrastructure models. This shift is driven by the growing need to maximize resource utilization while maintaining budgetary control.
Alignment with Advanced Technologies
The market is seeing a sharp rise in demand due to the integration of composable infrastructure with AI, edge computing, and analytics tools. Nearly 50% of enterprises using these technologies are turning to composable setups to better manage dynamic and data-intensive environments. This trend is reshaping enterprise IT strategies for next-gen workloads.
Building Intelligent and Scalable IT Systems
The market is benefiting from a strong enterprise focus on building resilient and future-ready infrastructure ecosystems. With over 45% of decision-makers emphasizing composability in their IT plans, there's a clear shift toward smart, scalable, and adaptive solutions. These systems are designed to evolve with business demands, promoting long-term innovation.
Composable Infrastructure Market Key Takeaways
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Rising need for flexible and scalable IT environments is driving organizations to adopt composable infrastructure that dynamically allocates compute, storage, and networking resources.
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Growing adoption of AI, machine learning, and edge computing workloads is increasing demand for infrastructure solutions that enable efficient resource utilization and faster provisioning.
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Enterprises are increasingly deploying hybrid and multi-cloud models to balance scalability, cost efficiency, and data control across distributed environments.
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Large enterprises dominate current adoption due to their complex workload requirements, while SMEs are accelerating implementation through managed and consumption-based service models.
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North America remains the leading market due to advanced digital transformation initiatives, whereas Asia-Pacific is emerging rapidly driven by infrastructure modernization and cloud expansion.
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Challenges including legacy system integration, high deployment costs, and shortage of skilled personnel are hindering widespread adoption across enterprises.
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Key vendors are focusing on open API orchestration, modular infrastructure design, and ecosystem partnerships to deliver agile and future-ready infrastructure solutions.
Composable Infrastructure Market Recent Developments
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In July 2018, Lenovo expanded its ThinkAgile portfolio with the ThinkAgile CP Series composable cloud platform, offering ease of use similar to a public cloud while providing integrated infrastructure and end-to-end automation of software-defined network, compute, and storage.
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In March 2024, SAP SE launched a new composable payment solution, the SAP Commerce Cloud open payment framework, enabling retailers to integrate with multiple payment service providers like Adyen, Stripe, Worldpay, and Airwallex for enhanced agility and scalable business operation
Composable Infrastructure Market Segment Analysis
In this report, the Composable Infrastructure Market has been segmented by Component, Deployment, Organization Size, End User, Application and Workload Type and Geography.
Composable Infrastructure Market, Segmentation by Component
The Component segmentation includes Hardware and Software. The global market is witnessing strong growth driven by the increasing need for agile, scalable, and resource-optimized data center solutions. Composable infrastructure enables IT resources to be dynamically allocated, improving operational efficiency and supporting digital transformation initiatives across industries.
Hardware
Hardware forms the backbone of composable infrastructure systems, encompassing servers, storage arrays, and network fabric modules. The segment benefits from the rising adoption of disaggregated architectures that allow hardware components to be independently upgraded. Continuous innovations in high-speed interconnects and NVMe storage are enhancing system flexibility and data throughput.
Software
Software components play a crucial role in enabling automation, orchestration, and composability across infrastructure layers. Advanced management software platforms allow enterprises to dynamically allocate compute, storage, and networking resources based on workload demands. Integration of AI-driven monitoring and policy-based provisioning is fueling rapid growth in this segment.
Composable Infrastructure Market, Segmentation by Deployment
The Deployment segmentation includes On-Premise and Cloud. Both deployment models cater to different organizational needs based on scalability, data security, and control. The shift toward hybrid IT environments is encouraging enterprises to adopt flexible composable infrastructure solutions.
On-Premise
On-Premise deployment dominates among enterprises prioritizing data sovereignty and regulatory compliance. Organizations in sectors like BFSI and government prefer maintaining physical control of infrastructure to ensure security and performance consistency. Vendors are offering modular, rack-scale solutions that integrate seamlessly into existing data centers.
Cloud
Cloud-based composable infrastructure is gaining momentum due to its elastic scalability and reduced upfront investment. It supports dynamic workload allocation across multiple environments, improving business agility. The integration of cloud-native orchestration tools enables enterprises to unify on-premise and public cloud resources under a single management layer.
Composable Infrastructure Market, Segmentation by Organization Size
The Organization Size segmentation includes Large Enterprise and Small & Medium Enterprise (SME). Adoption trends are influenced by digital transformation readiness, IT budget, and workload diversity. Both segments benefit from composable infrastructure’s ability to reduce complexity and improve resource utilization efficiency.
Large Enterprise
Large Enterprises lead in adoption due to their extensive IT ecosystems and high-performance computing needs. They are leveraging composable solutions to enhance automation, DevOps integration, and data-driven decision-making. Global corporations prioritize vendor partnerships to streamline infrastructure management across distributed environments.
Small & Medium Enterprise (SME)
Small & Medium Enterprises (SME) are increasingly adopting composable infrastructure for cost optimization and scalability benefits. These organizations leverage cloud-based solutions to minimize capital expenditure while maintaining flexibility in managing workloads. The trend toward as-a-service delivery models further supports SME adoption.
Composable Infrastructure Market, Segmentation by End User
The End User segmentation includes IT & Telecom, BFSI and Others. Growing digital infrastructure demands and increasing data volumes across industries are propelling the need for agile and scalable IT environments.
IT & Telecom
IT & Telecom companies are key adopters of composable infrastructure to support cloud services, data analytics, and network virtualization. The segment benefits from high-volume workloads requiring continuous scalability and minimal downtime. Telecom operators are integrating composable infrastructure into 5G network core systems to enhance flexibility and automation.
BFSI
BFSI organizations are embracing composable infrastructure to modernize data centers and improve real-time analytics and transactional efficiency. The need for secure, agile, and compliant computing frameworks aligns perfectly with composable models. Financial institutions use these solutions to manage diverse workloads and accelerate digital banking transformation.
Others
Others include healthcare, manufacturing, retail, and government sectors that utilize composable systems for data-intensive applications. Growing adoption of AI-driven analytics and IoT integration in these industries is fueling demand for adaptable and high-performance infrastructure architectures.
Composable Infrastructure Market, Segmentation by Application and Workload Type
The Application and Workload Type segmentation includes AI & ML & HPC, DevOps, CI & CD and Others. The rise of data-centric computing and automated development environments has made composable infrastructure an essential foundation for next-generation IT ecosystems.
AI & ML & HPC
AI & ML & HPC workloads demand high computational power and flexible resource allocation. Composable infrastructure enables dynamic resource pooling for training and inference tasks while reducing infrastructure costs. Integration of GPU-based systems and high-speed networking enhances performance in AI-driven environments.
DevOps
DevOps environments benefit from composable systems that provide automated provisioning and infrastructure-as-code capabilities. This accelerates deployment cycles, improves collaboration between development and operations teams, and enhances agility across application lifecycles.
CI & CD
CI & CD (Continuous Integration & Continuous Deployment) workloads require flexible and programmable infrastructure to support continuous software delivery. Composable infrastructure optimizes these workflows by enabling rapid scalability, test environment automation, and reduced development bottlenecks.
Others
Others include big data analytics, virtualization, and enterprise resource planning (ERP) workloads that demand efficient resource management. The scalability and programmability of composable systems support hybrid workloads across industries, driving operational efficiency.
Composable Infrastructure Market, Segmentation by Geography
In this report, the Composable Infrastructure Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
North America
North America leads the global market owing to early adoption of data center modernization and strong presence of key players like HPE, Dell Technologies, and Cisco. Enterprises in the region prioritize AI integration and automated IT resource management to enhance digital agility and competitiveness.
Europe
Europe demonstrates steady growth fueled by increasing adoption of hybrid cloud strategies and data compliance requirements. The region’s emphasis on sustainable IT infrastructure and energy-efficient data centers drives innovation in composable architecture adoption, particularly in Western Europe.
Asia Pacific
Asia Pacific is the fastest-growing region, supported by rapid digital transformation in sectors such as manufacturing, telecom, and BFSI. Countries like China, India, and Japan are investing heavily in AI-powered automation and software-defined infrastructure, fueling significant market growth.
Middle East & Africa
Middle East & Africa are experiencing increased demand due to smart city projects and large-scale IT modernization initiatives. Governments and enterprises are adopting composable systems to enhance data efficiency and optimize infrastructure spending.
Latin America
Latin America is showing promising growth, driven by increasing investments in cloud infrastructure and digital transformation initiatives. Brazil and Mexico are leading adopters, leveraging composable systems to improve operational resilience and reduce IT complexity.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Composable Infrastructure Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
| Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
|---|---|---|---|---|---|
| Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
| Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
| Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers:
- Rising demand for agile IT infrastructure
- Scalability needs in modern data centers
- Growth in cloud-native and DevOps practices
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Reduced hardware costs through resource pooling - One of the most compelling drivers behind the growth of composable infrastructure is its ability to reduce hardware costs through resource pooling. Traditional IT environments often suffer from underutilized compute, storage, and networking resources due to fixed configurations and siloed architecture. Composable infrastructure eliminates this inefficiency by allowing resources to be dynamically allocated based on workload needs, improving utilization and cutting unnecessary hardware spending.
With composable infrastructure, organizations can virtualize and pool resources in a central environment, then compose them as needed using software-defined tools. This means that rather than purchasing and provisioning excess hardware in anticipation of demand spikes, businesses can assign available resources on-demand. The result is a more cost-efficient infrastructure that matches capacity with real-time usage.
This model significantly reduces capital expenditures, especially for large enterprises and data centers managing fluctuating workloads. By avoiding overprovisioning, companies lower not only hardware acquisition costs but also operational expenses related to maintenance, energy consumption, and physical space. These savings are further magnified as the environment scales.
As organizations move toward modern workloads such as containerized applications, AI/ML, and DevOps pipelines, the need for elastic, efficient resource consumption becomes even more critical. Composable infrastructure supports these requirements while maintaining cost control, making it a strategic investment for digitally transforming businesses.
Restraints:
- High initial deployment and integration costs
- Complexity in transitioning from legacy systems
- Limited skilled workforce for advanced architecture
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Vendor lock-in risks with proprietary platforms - A significant challenge to widespread adoption of composable infrastructure is the risk of vendor lock-in due to proprietary platforms. Many current composable solutions are developed as closed ecosystems, where both hardware and management software are tightly integrated and controlled by a single vendor. This creates dependencies that can limit flexibility, increase costs, and hinder future scalability.
Enterprises that commit to one vendor’s ecosystem may face difficulty adapting to evolving technology standards or integrating third-party tools. These limitations can constrain innovation, delay modernization efforts, and reduce the overall value proposition of composability. In fast-paced IT environments, agility is essential, and vendor lock-in restricts that responsiveness.
Another risk is cost escalation over time. Proprietary licensing models often include recurring fees for software updates, support, and additional features. When organizations are locked into a single provider, they have limited negotiation power, which can lead to higher total cost of ownership (TCO) than initially expected. Exit costs or migration to a different platform may also be financially and technically burdensome.
Vendor-specific implementations may limit interoperability with hybrid or multicloud strategies, making it harder for enterprises to maintain a consistent infrastructure across environments. This is especially problematic for businesses seeking vendor-neutral and future-proof architectures that align with long-term growth and flexibility goals. To address these issues, there is a growing demand for open standards and modular architectures in composable infrastructure. Until such standards gain widespread adoption, vendor lock-in will remain a key restraint, requiring organizations to carefully evaluate the long-term implications of their composable infrastructure choices.
Opportunities:
- Adoption of AI and ML workloads
- Expansion in edge computing deployments
- Increased demand for infrastructure-as-code models
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Hybrid and multicloud infrastructure integration trends - The increasing adoption of hybrid and multicloud strategies is opening new opportunities for composable infrastructure to deliver enhanced agility and control. As enterprises distribute workloads across on-premises systems, private clouds, and multiple public cloud platforms, they require infrastructure solutions that can seamlessly integrate and orchestrate resources across these environments.
Composable infrastructure supports this vision by enabling centralized management of compute, storage, and network resources, regardless of physical location. This allows IT teams to dynamically allocate resources across hybrid setups, optimizing performance and cost. With API-driven automation and software-defined resource composition, businesses gain the flexibility to support diverse application workloads wherever they reside.
This trend is especially relevant for enterprises running mission-critical applications that require consistent performance, security, and governance across cloud boundaries. Composable platforms can help unify operations by abstracting the underlying infrastructure layers, enabling policy-based control and real-time adaptability across clouds. Multicloud strategies often aim to prevent vendor lock-in and provide redundancy. Composable systems enhance this approach by allowing businesses to shift workloads fluidly between providers based on changing requirements. This level of freedom is becoming a competitive advantage in highly regulated and performance-sensitive industries.
As hybrid and multicloud adoption accelerates, composable infrastructure that supports cross-platform integration will play a central role in enterprise IT evolution. Vendors who can offer interoperable, cloud-agnostic composability solutions are well-positioned to capture growing demand from global organizations seeking agility and resilience at scale.
Composable Infrastructure Market Competitive Landscape Analysis
Composable Infrastructure Market shows an increasingly competitive environment as providers focus on flexible, software-defined systems to enhance efficiency. Leading vendors emphasize innovation, partnerships, and expansion to capture more than significant market shares, with over 60% held by top-tier players implementing transformative strategies in hardware and software integration.
Market Structure and Concentration
The market displays moderate concentration where leading firms account for approximately 65% of total presence. Dominant vendors pursue aggressive merger activities and joint collaboration with ecosystem partners. This structure encourages new entrants to develop niche strategies and highlight differentiated value propositions to compete effectively.
Brand and Channel Strategies
Major players refine their brand and channel approaches to drive reach across enterprise and service provider segments. Nearly 70% of deployments occur through managed service channels or direct sales. Key firms adopt advanced strategies, partnerships, and co-marketing to strengthen channel influence and expand customer awareness.
Innovation Drivers and Technological Advancements
Technology leaders allocate over 55% of R&D to technological advancements and new module designs. Innovation in orchestration software, composable APIs, and security features drives market growth. These developments enable faster integration, efficient resource pooling, and seamless scalability supporting the sector’s future outlook.
Regional Momentum and Expansion
About 60% of market expansion is concentrated in North America and Europe, with rapid adoption in Asia-Pacific driving additional growth. Vendors establish local partnerships and collaboration to meet regional preferences. This regional momentum enhances strategies to deliver tailored solutions, reinforcing technological leadership and diverse service delivery.
Future Outlook
The market’s future outlook signals strong growth potential as enterprises increasingly adopt composable frameworks. More than 65% of organizations plan to upgrade existing infrastructure toward composable models. With sustained innovation, ecosystem partnerships, and resource pooling, this market is poised to redefine enterprise IT architectures and long-term performance expectations.
Key players in Composable Infrastructure Market include:
- Hewlett Packard Enterprise Development LP.
- Cisco Systems Inc.
- Dell Technologies Inc.
- Huawei Technologies Co Ltd.
- Inspur Group Co Ltd.
- Lenovo Group Limited.
- NEC Corporation
- NTT Ltd.
- SAP SE.
- TidalScale Inc.
- HGST Inc.
- DriveScale Inc.
- Liqid Inc.
- NetApp
- Nutanix Inc.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Deployment
- Market Snapshot, By Organization Size
- Market Snapshot, By End User
- Market Snapshot, By Application & Workload Type
- Market Snapshot, By Region
- Composable Infrastructure Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Rising demand for agile IT infrastructure
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Scalability needs in modern data centers
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Growth in cloud-native and DevOps practices
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Reduced hardware costs through resource pooling
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- Restraints Opportunities
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High initial deployment and integration costs
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Complexity in transitioning from legacy systems
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Limited skilled workforce for advanced architecture
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Vendor lock-in risks with proprietary platforms
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Adoption of AI and ML workloads
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Expansion in edge computing deployments
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Increased demand for infrastructure-as-code models
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Hybrid and multicloud infrastructure integration trends
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- Drivers
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PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Composable Infrastructure Market, By Component, 2021 - 2031 (USD Million)
- Hardware
- Software
- Composable Infrastructure Market, By Deployment, 2021 - 2031 (USD Million)
- On-Premise
- Cloud
- Composable Infrastructure Market, By Organization Size, 2021 - 2031 (USD Million)
- Large Enterprise
- Small & Medium Enterprise
- Composable Infrastructure Market, By End User, 2021 - 2031 (USD Million)
- IT & Telecom
- BFSI
- Others
- Composable Infrastructure Market, By Application and Workload Type, 2021 - 2031 (USD Million)
- AI & ML & HPC
- DevOps
- CI & CD
- Others
- Composable Infrastructure Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Composable Infrastructure Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Hewlett Packard Enterprise Development LP.
- Cisco Systems Inc.
- Dell Technologies Inc.
- Huawei Technologies Co Ltd.
- Inspur Group Co Ltd.
- Lenovo Group Limited.
- NEC Corporation
- NTT Ltd.
- SAP SE.
- TidalScale Inc.
- HGST Inc.
- DriveScale Inc.
- Liqid Inc.
- NetApp
- Nutanix Inc.
- Company Profiles
- Analyst Views
- Future Outlook of the Market