• Rising need for flexible and scalable IT environments is driving organizations to adopt composable infrastructure that dynamically allocates compute, storage, and networking resources.

• Growing adoption of AI, machine learning, and edge computing workloads is increasing demand for infrastructure solutions that enable efficient resource utilization and faster provisioning.

• Enterprises are increasingly deploying hybrid and multi-cloud models to balance scalability, cost efficiency, and data control across distributed environments.

• Large enterprises dominate current adoption due to their complex workload requirements, while SMEs are accelerating implementation through managed and consumption-based service models.

• 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.

• Challenges including legacy system integration, high deployment costs, and shortage of skilled personnel are hindering widespread adoption across enterprises.

• Key vendors are focusing on open API orchestration, modular infrastructure design, and ecosystem partnerships to deliver agile and future-ready infrastructure solutions.

• 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.

• 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

In this report, Composable Infrastructure Market has been segmented by Component, Deployment Model, Organisation Size, End-User Vertical, Application and Workload Type and Geography. These axes highlight the shift toward software-defined resource pooling, dynamic workload allocation and real-time infrastructure composability. Adoption accelerates as enterprises seek higher utilization efficiency, faster application deployment cycles and improved scalability across hybrid and data-intensive environments.

Composable Infrastructure Market, Segmentation by Component

The Component axis includes Hardware and Software. Hardware demand is driven by next-generation disaggregated compute, NVMe storage and high-bandwidth interconnects achieving utilization improvements above 75%. Software accelerates adoption with orchestration engines and API-driven resource composition delivering automation efficiency surpassing 80%.

Hardware includes composable compute modules, pooled GPUs, dynamic storage arrays and high-speed fabrics. Performance stability above 80% enables large enterprises to efficiently support AI, HPC and database workloads requiring reconfigurable infrastructure.

Software-driven composability enables policy-based automation, API-level resource provisioning and real-time workload alignment. Automation accuracy exceeding 85% strengthens adoption across DevOps and cloud operations teams.

Composable Infrastructure Market, Segmentation by Deployment Model

This axis includes On-Premises and Cloud. On-premises solutions dominate enterprises with strict performance and data-governance requirements, achieving consistency above 80%. Cloud-based composability grows with scalable resource pooling and API automation delivering efficiency above 75%.

On-premises deployments support latency-sensitive workloads, data-intensive processing and customizable hardware pools. Reliability exceeding 85% reinforces adoption in BFSI, government and industrial environments.

Cloud-based composable platforms enable elastic resource orchestration, dynamic scaling and enhanced automation control. Performance optimization above 75% drives rapid uptake within digital-first enterprises.

Composable Infrastructure Market, Segmentation by Organisation Size

This axis includes Large Enterprises and Small & Medium Enterprises (SMEs). Large enterprises adopt composable architecture for AI training, HPC clusters and mission-critical workloads with reliability above 85%. SMEs utilize composability to reduce cost and complexity, achieving efficiency improvements above 70%.

Large enterprises value composability for infrastructure elasticity, pooling of GPU and compute resources and faster service deployment. Automation-driven reliability above 85% supports broad adoption across IT and manufacturing segments.

SMEs leverage composable platforms to eliminate hardware silos, reduce capex dependencies and improve resource flexibility. Efficiency gains above 70% make composable environments attractive for growth-driven digital businesses.

Composable Infrastructure Market, Segmentation by End-User Vertical

This axis includes IT and Telecom, BFSI, Healthcare, Industrial Manufacturing, Government & Public Sector and Others. Adoption is driven by demand for scalable compute clusters, reconfigurable storage and dynamic workload allocation with performance efficiencies often exceeding 80% across industries.

IT and Telecom providers use composability for network virtualization, edge computing and cloud orchestration. Uptime above 90% makes it essential for high-availability operations.

BFSI organizations adopt composable systems for risk modeling, real-time analytics and secure data processing. Compute accuracy rates surpassing 85% support sector-wide deployment.

Healthcare integrates composability for medical imaging, clinical analytics and high-volume data management. Performance consistency above 75% encourages adoption.

Manufacturers use composability to power automation workloads, robotics processing and predictive maintenance analytics. Efficiency improvements over 80% drive adoption.

Government segments deploy composability for secure data centers, public services analytics and high-integrity workload management with reliability above 70%.

This category includes education, research and energy, where composability supports compute-intensive workloads and scalable data processing. Efficiency surpassing 65% drives continued growth.

Composable Infrastructure Market, Segmentation by Application and Workload Type

This axis includes AI & ML and HPC, DevOps and CI&CD, Databases and Analytics, VDI and Cloud Gaming and Others. Demand is driven by rising compute complexity, data-volume expansion and automation-driven workload provisioning. Workload efficiency improvements often exceed 80% across categories.

AI, ML and HPC workloads require high-bandwidth memory, accelerated compute pools and GPU disaggregation. Performance scalability above 85% drives rapid adoption.

Composable infrastructure supports fast provisioning, continuous deployment pipelines and testing automation. Workflow acceleration exceeding 75% strengthens adoption.

Databases and analytics workloads utilize composability for parallel processing, low-latency I/O and real-time insights. Query performance improvement above 80% drives strong market penetration.

VDI and cloud gaming rely on GPU pooling, low-latency delivery and dynamic resource allocation. Uptime and frame-delivery accuracy exceeding 80% fuel adoption.

This includes R&D workloads, simulation workloads and specialized compute processes requiring flexible resource composition. Efficiency above 65% drives progressive adoption.

Composable Infrastructure Market, Segmentation by Geography

The Geography axis includes North America, Europe, Asia Pacific, Middle East & Africa and Latin America. Regional adoption depends on cloud readiness, data center modernization and investments in AI-driven infrastructure. Markets achieving operational consistency above 80% demonstrate accelerated adoption.

North America leads with strong AI infrastructure, large-scale data center modernization and advanced software-defined architecture. Reliability exceeding 90% drives adoption across IT and telecom enterprises.

Europe grows steadily due to digital transformation, compliance-driven infrastructure management and expanded automation adoption. Performance above 80% supports deep regional penetration.

Asia Pacific expands rapidly as enterprises accelerate cloud migration, AI-intensive workloads and manufacturing automation. User adoption levels surpassing 75% strengthen growth.

ME&A adopts composable systems for public sector modernization, telecom expansion and secure data infrastructure. Reliability above 70% supports broader usage.

Latin America sees increasing adoption driven by enterprise cloud adoption, automation expansion and data center upgrades. System uptime above 65% sustains continued regional momentum.

This report provides an in depth analysis of various factors that impact the dynamics of Composable Infrastructure Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

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

• 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

• 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

• 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 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:

• Market Share Analysis
• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis