Composable Infrastructure Market
By Type;
Software and HardwareBy Organization Size;
Large Enterprises and Small & Medium-sized Enterprises (SMEs)By Vertical;
BFSI, Healthcare, IT & Telecom, Government, and ManufacturingBy 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 |
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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 Recent Developments
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In July 2018, Lenovo expanded its ThinkAgile portfolio with the ThinkAgile CP Series composable cloud platform that offers all the ease,of,use of a public cloud environment secured behind the customer’s own data center firewall. Think Agile CP Series is a fully,integrated infrastructure with application marketplace 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, designed to help retailers adapt to evolving customer expectations. This solution enhances agility by integrating SAP Commerce Cloud with various third,party payment service providers, including Adyen, Stripe, Worldpay, and Airwallex, based on specific use cases. SAP SE's composable architecture allows retailers to select payment partners that align with their needs, enabling them to scale their businesses rapidly without relying on a single provider.
Composable Infrastructure Market Segment Analysis
In this report, the Composable Infrastructure Market has been segmented by Type, Organization Size, Vertical and Geography.
Composable Infrastructure Market, Segmentation by Type
The Composable Infrastructure Market has been segmented by Type into Software and Hardware.
Software
The software segment plays a crucial role in the composable infrastructure ecosystem by enabling the dynamic allocation of compute, storage, and networking resources. It facilitates centralized management and automation, helping organizations scale IT operations efficiently. This segment accounted for approximately 58% of the market share, driven by rising demand for agile and programmable infrastructure environments.
Hardware
The hardware segment includes the physical components such as servers, storage devices, and networking systems that support composable infrastructure. While less flexible than software, hardware is essential for performance and reliability. This segment holds around 42% of the market, with growth influenced by increasing data center modernization and high-performance computing needs.
Composable Infrastructure Market, Segmentation by Organization Size
The Composable Infrastructure Market has been segmented by Organization Size into Large Enterprises and Small & Medium-sized Enterprises (SMEs).
Large Enterprises
The large enterprises segment leads the adoption of composable infrastructure due to their need for scalable, agile, and cost-efficient IT solutions. These organizations benefit from resource optimization and centralized management tools, supporting complex workloads across global operations. This segment contributes to nearly 62% of the market share, fueled by ongoing investments in digital transformation.
Small & Medium-sized Enterprises (SMEs)
The SMEs segment is rapidly embracing composable infrastructure to improve operational efficiency and reduce infrastructure costs. Limited IT budgets drive SMEs to seek flexible and software-defined environments that offer better resource utilization. This segment accounts for approximately 38% of the market, supported by the rise of cloud-native applications and remote work models.
Composable Infrastructure Market, Segmentation by Vertical
The Composable Infrastructure Market has been segmented by Vertical into BFSI, Healthcare, IT & Telecom, Government, and Manufacturing.
BFSI
The BFSI sector heavily adopts composable infrastructure to ensure high availability, data security, and scalable performance across financial operations. It enables better resource provisioning and supports real-time analytics. This vertical holds nearly 28% of the market, driven by digital banking and regulatory compliance needs.
Healthcare
The healthcare segment leverages composable infrastructure for handling electronic health records (EHRs), clinical applications, and medical imaging data. The ability to scale and manage sensitive data securely boosts its adoption. It accounts for around 19% of the market, propelled by the surge in telemedicine and AI-driven diagnostics.
IT & Telecom
The IT & Telecom vertical is a prominent adopter due to its demand for high-performance computing and network flexibility. Composable infrastructure enhances cloud-native deployment and supports fast-paced service delivery. This segment captures approximately 24% of the market share, driven by increasing data traffic and 5G expansion.
Government
Government organizations are turning to composable infrastructure to modernize legacy systems, improve inter-agency collaboration, and enhance data security. The need for scalable and cost-effective IT frameworks has led to a market share of nearly 15% in this segment.
Manufacturing
The manufacturing sector utilizes composable infrastructure to support industrial IoT applications, smart factories, and real-time production analytics. This enables better process automation and operational visibility. The segment represents about 14% of the market, driven by the shift towards Industry 4.0.
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
Composable Infrastructure Market Share (%), by Geographical Region
North America
North America dominates the composable infrastructure market, accounting for nearly 40% of the global share. The region's growth is fueled by early technology adoption, robust IT infrastructure, and strong demand from large enterprises and cloud service providers.
Europe
Europe holds a significant share of about 25%, driven by the region's focus on data center modernization and strict data privacy regulations. Key industries such as BFSI and manufacturing are leading adopters in this region.
Asia Pacific
Asia Pacific is the fastest-growing region, capturing around 20% of the market. Rapid digital transformation, increased cloud adoption, and rising investments in smart infrastructure across countries like China, India, and Japan are major growth drivers.
Middle East and Africa
The Middle East and Africa region is gradually expanding its presence, accounting for approximately 8% of the market. Growth is supported by ongoing IT infrastructure upgrades and the emergence of smart city initiatives in countries like the UAE and South Africa.
Latin America
Latin America contributes nearly 7% to the global market, with countries like Brazil and Mexico adopting composable infrastructure to enhance IT agility and optimize resource utilization in public and private sectors.
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 |
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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.
Competitive Landscape Analysis
Key players in Composable Infrastructure Market include:
- HGST (US)
- HPE (US)
- Dell EMC (US)
- Lenovo (China)
- DriveScale (US)
- TidalScale (US)
- Liqid (US)
- OSS (US)
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 Type
- Market Snapshot, By Organization Size
- Market Snapshot, By Vertical
- 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
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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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- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Drivers
- 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 Type, 2021 - 2031 (USD Million)
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Software
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Hardware
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Composable Infrastructure Market, By Organization Size, 2021 - 2031 (USD Million)
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Large Enterprises
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Small & Medium-sized Enterprises (SMEs)
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- Composable Infrastructure Market, By Vertical, 2021 - 2031 (USD Million)
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BFSI
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Healthcare
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IT & Telecom
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Government
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Manufacturing
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- 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 Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- HGST (US)
- HPE (US)
- Dell EMC (US)
- Lenovo (China)
- DriveScale (US)
- TidalScale (US)
- Liqid (US)
- OSS (US)
- Company Profiles
- Analyst Views
- Future Outlook of the Market