Composable Infrastructure Market Trends and Forecast
The future of the global composable infrastructure market looks promising with opportunities in the BFSI, it and telecom, government, healthcare, and manufacturing markets. The global composable infrastructure market is expected to grow with a CAGR of 21.1% from 2025 to 2031. The major drivers for this market are growing adoption of automation, increase in business agility, and rising data processing need.
Lucintel forecast that, within the type category, hardware is expected to witness higher growth over the forecast period.
Within the application category, BFSI is expected to witness the highest growth.
In terms of regions, In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Composable Infrastructure Market
This market of composable infrastructure has been growing dynamically with the constant emergence of novel trends. Those trends are looking to take business and governmental capitals by storm regarding the flexibility and scalability that they provide. And those trends redefine the way how organizations deploy as well as manage IT resources.
• Increased Adoption of Hyperconverged Infrastructure: The rise of hyperconverged infrastructure adoption: In addition, an increase in hyperconverged infrastructure adoption by the integration with composable infrastructure offers a better way to stream IT resources with an approachable IT management platform. Hyper-converged infrastructure unifies computing, storage, and networking and presents them under one solution which is scalable through scaling up their resources. Organizationally, achieving more flexibility, with efficiency is guaranteed in this form of integration between HCI and composable infrastructures. Such trends are mainly experienced in the financial, healthcare, and telecommunication industries because agility and scalability are business growth tools.
• Composable Infrastructure and Edge Computing: With an upsurge in edge computing, composable infrastructure is being used for decentralization in IT operations. Through it, organizations can handle and scale their resources in different locations, thereby becoming inevitable tools for edge deployments. Edge computing cuts latency and accelerates performance by processing data closer to its source. Composable infrastructure therefore allows for the transparent incorporation of edge devices, giving businesses a high degree of flexibility in the immediate management of data and compute resources, while avoiding the cost or inefficiency of centralized data centers.
• AI and Machine Learning Integration: AI and ML are becoming an integral part of composable infrastructure. Organizations can leverage AI and ML to automate the management of resources, optimize performance, and reduce operational costs. With these technologies, real-time monitoring and intelligent decision-making ensure that IT resources are dynamically allocated according to demand. The trend is growing toward AI and ML combined with composable infrastructure, particularly in finance, healthcare, and retail, where data-driven insights are essential for operational success.
• Sustainability Focus: As environmental concerns are becoming more pressing, organizations are looking for ways to make their IT infrastructures more sustainable. Composable infrastructure, with its ability to scale resources on demand, helps reduce energy consumption and optimize resource usage. By dynamically allocating resources based on current needs, businesses can avoid over-provisioning and reduce their carbon footprint. This trend is gaining much traction because companies are looking to meet sustainability goals while at the same time maintaining high-performance IT environments, especially in data centers and cloud computing.
• The Adoption of Multi-Cloud And Hybrid Loud Architectures: Multi-cloud and hybrid cloud architectures are now the mainstream, and composable infrastructure plays a key role supporting these strategies. Organizations are increasingly using a combination of private and public clouds to optimize performance, reduce costs, and enhance scalability. Composable infrastructure allows for seamless integration across multiple cloud environments, providing businesses with the flexibility to manage resources efficiently and cost-effectively. This trend is particularly relevant for enterprises that require the ability to scale resources rapidly across different cloud platforms.
These emerging trends shape the composable infrastructure market in terms of greater flexibility, improved performance, and sustainability. These trends will become more mature in the future and become an essential part of the modern IT environment to meet business needs in this regard of digital transformation.
Recent Development in the Composable Infrastructure Market
Several key developments are shaping the composable infrastructure market, as businesses and governments work to implement flexible and scalable IT solutions. These developments reflect the growing demand for composable solutions across industries and geographies.
• Hewlett Packard Enterprise’s Composable Systems: Hewlett Packard Enterprise (HPE) has made significant strides in the composable infrastructure market with the development of its HPE Synergy platform. This platform allows businesses to dynamically allocate compute, storage, and networking resources based on workload requirements. By offering a modular approach to infrastructure management, HPE Synergy helps organizations improve flexibility, scalability, and efficiency. This development has been a game-changer for enterprises looking to modernize their IT infrastructure and optimize resource usage.
• Focus on Alibaba Cloud on Composable Solutions: Alibaba Cloud, the giant of Chinese cloud, has focused heavily on the composable infrastructure solutions. It integrates AI, big data analytics, and scalable cloud platforms through composable infrastructure. Such innovations are quite critical in sectors such as e-commerce, finance, and logistics because data-driven insights and real-time processing become pivotal. Alibaba Cloud is thus helping businesses in China as well as other countries optimize their overall IT environment to high performance through composable cloud infrastructure.
• Siemens’ Adoption of Composable Infrastructure for Manufacturing: Siemens, a global leader in the manufacturing sector, has embraced composable infrastructure to support its digitalization efforts. The company has implemented composable infrastructure in its manufacturing facilities to enhance automation, improve data processing, and streamline resource management. This development is a part of SiemensÄX%$%X broader strategy to use cutting-edge technologies like AI, IoT, and big data analytics to transform industrial processes and improve operational efficiency.
• Indian Government Support for IT Modernization: The Indian government is actively promoting the adoption of composable infrastructure as part of its wider digital transformation plan. By promoting cloud computing, data center growth, and IT modernization initiatives, the government is creating an environment that encourages businesses to use composable solutions. The Indian market is expected to see increased investment in composable infrastructure as companies look to enhance scalability and performance in sectors like banking, e-commerce, and telecommunications.
• Hybrid Cloud and Composable Infrastructure: Japanese corporations are increasingly adopting hybrid cloud and composable infrastructure solutions to optimize their IT resources. Companies like Sony and Toyota are investing in composable technologies to improve the flexibility and scalability of their data centers. By adopting composable infrastructure, Japanese businesses can manage IT resources more efficiently and enhance their ability to deploy advanced technologies like AI, IoT, and robotics.
These developments indicate that composable infrastructure is becoming increasingly important in the global IT landscape. Composable solutions are the most critical aspect of modernizing IT environments and driving digital transformation across industries as businesses seek to transform their IT environments.
Strategic Growth Opportunities in the Composable Infrastructure Market
The composable infrastructure market demonstrates strategic growth opportunities across the wide and varied applications of the need for increased flexibility, scalability, and efficiency in the management of IT resources.
• Enterprise IT Optimization: Composable infrastructure is a prime opportunity for enterprises to optimize their IT environments. With composable solutions, businesses can dynamically allocate resources based on demand, thus reducing waste and improving performance. This is especially beneficial for organizations in sectors such as finance, healthcare, and retail, where scalability and efficiency are critical to meeting business needs. Growth in enterprise IT optimization is a major opportunity in the composable infrastructure market.
• Cloud Data Centers: The increasing adoption of the cloud presents a growing demand for composable infrastructure that supports cloud data centers. Composable solutions allow cloud providers to scale the resources dynamically, thus adjusting based on the growing numbers of their customers. Optimizing cloud data center operations on composable infrastructure makes possible a more flexible and cost-effective services delivery by providers. This growth opportunity is quite relevant to companies within the cloud services market.
• AI/ML Workloads: Composable infrastructure plays an important role in supporting the IT resources of the large-scale flexible applications needed in AI and ML. This facilitates faster processing, efficient handling, and real-time allocation of IT resources in line with the workloads. Opportunities for such sectors as finance, healthcare, and manufacturing will therefore be realized under the deployment of AI and ML.
• Edge Computing Growth: With the increased adoption of edge computing, the demand for composable infrastructure to support decentralized IT operations has gone up. Composable infrastructure enables businesses to manage resources effectively across multiple locations in edge, reduces latency, and improves performance. This signifies a large opportunity for composable infrastructure providers, particularly in sectors like telecom, manufacturing, and transportation.
• Sustainability and Energy Efficiency: The growing interest in sustainability offers an area where composable infrastructure can play a significant role in reducing energy and conserving resources. Business organizations can help prevent over-provisioning and minimize carbon footprint by automatically distributing IT resources depending on current needs. This is a growth opportunity, especially among firms interested in addressing sustainability with robust, high-performance IT environments.
These strategic growth opportunities demonstrate the growing need for composable infrastructure to facilitate advanced business needs. As digital transformation continues to gain traction within organizations, composable solutions will play an essential role in realizing greater flexibility, efficiency, and scalability in IT management.
Composable Infrastructure Market Driver and Challenges
The composable infrastructure market is influenced by various drivers and challenges that are shaping its growth trajectory. Technological, economic, and regulatory factors are key drivers, while challenges related to implementation and integration are affecting the pace of adoption.
The factors responsible for driving the composable infrastructure market include:
1. Technological Advancements in Cloud and Data Centers: The continuous evolution of cloud computing and data center technologies is driving the growth of composable infrastructure. Innovations such as AI, machine learning, and edge computing demand scalable and flexible IT resources. Composable infrastructure is, therefore, a key enabler for modern IT environments.
2. Increasing Demand for Scalability: Businesses grow, and their IT infrastructures need to scale efficiently. Composable infrastructure provides a solution to this demand by allowing organizations to allocate resources dynamically, thus ensuring that the IT environment grows with business needs.
3. Cost Efficiency: Composable infrastructure helps the business reduce its IT costs through the optimization of resource usage. By dynamically allocating resources based on current needs, businesses can avoid over-provisioning and cut down on operational costs, thus making composable infrastructure an attractive solution for cost-conscious organizations.
4. Rise of Data-Driven Technologies: Growing reliance on data analytics, AI, and IoT is driving demand for composable infrastructure. These technologies require considerable data processing and compute resources and, therefore composable infrastructure provides a much needed solution for any business looking at optimizing its IT operations.
5. Government Support to Digital Transformation Governments across the globe are supporting initiatives for digital transformation, thus opening up an effective environment for adoption of composable infrastructure. Investment in cloud computing, data centres, and modernization of the IT sector within the public sectors is fueling the growth in the composable infrastructure market.
Challenges in the composable infrastructure market are:
1. Complexity in Implementation: The implementation of composable infrastructure can be complex. Businesses need to change their current IT environments. Organizations may find it challenging to integrate composable solutions with legacy systems, thus slowing down the adoption process.
2. Data Security Concerns: The dynamic nature of composable infrastructure raises data security concerns when resources are allocated across multiple cloud environments. Robust security and regulatory compliance becomes one of the main challenges facing businesses adopting the composable model.
3. Highly Costly At Initial Stage: Composable infrastructure might reduce all the operational expenditures in the longer run, while it requires substantial initial investment costs for the execution of these solutions. This results in a burden on smaller-scale businesses and even some organizations in terms of higher budgets.
These drivers and challenges will define the future of the composable infrastructure market. Businesses will continue to step towards the optimization of their IT environments, and composable solutions will play the central role in enabling such digital transformation while overcoming significant challenges on implementation, security, and cost.
List of Composable Infrastructure Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies composable infrastructure companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the composable infrastructure companies profiled in this report include-
• HGST
• HPE
• Dell EMC
• Lenovo
• Drivescale
• Tidalscale
• Liqid
Composable Infrastructure Market by Segment
The study includes a forecast for the global composable infrastructure market by type, application, and region.
Composable Infrastructure Market by Type [Value from 2019 to 2031]:
• Software
• Hardware
Composable Infrastructure Market by Application [Value from 2019 to 2031]:
• BFSI
• It And Telecom
• Government
• Healthcare
• Manufacturing
• Others
Composable Infrastructure Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Composable Infrastructure Market
The composable infrastructure market has gained momentum as businesses increasingly focus on flexibility and scalability in their IT infrastructure. Composable infrastructure allows organizations to dynamically allocate resources as needed, making it easier to manage hardware and software through a unified platform. As data centers become more complex and enterprises look for ways to optimize performance and reduce costs, composable infrastructure has emerged as a critical solution. The United States, China, Germany, India, and Japan are embracing composable infrastructure for digital transformation, efficiency, and data-driven innovation.
• United States: There is an acknowledgment by tech giants and enterprises in the United States to improve their cloud capabilities with the help of composable infrastructure. Leading companies such as Hewlett Packard Enterprise (HPE) and Dell Technologies are at the forefront with solutions that enable businesses to scale their IT resources dynamically. U.S. enterprises are embracing composable infrastructure as part of their digital transformation strategies, and this is important for data centers and high-performance computing environments. The U.S. government also incentivizes innovation within the tech sector by encouraging its businesses to adopt more flexible IT infrastructures to achieve the growing demand for edge computing and AI-powered services.
• China: Composable infrastructure is also part of ChinaÄX%$%Xs efforts in modernizing its digital infrastructure as well as to encourage technological revolution. The composable solutions are being developed by Chinese companies, such as Huawei and Alibaba, which are working on smarter and more efficient data centers. The Chinese government is supporting this shift through policies that encourage innovation in IT infrastructure and cloud technologies. The rapidly growing data-intensive industries are setting composable infrastructure as a major enabler for Chinese enterprises in optimizing resource utilization and better response to emerging technologies such as AI, 5G, and big data analytics.
• Germany: Germany is looking to be a leader in the European composable infrastructure market as several enterprises across automotive, manufacturing, and telecommunication sectors have invested in the solutions. Efficiency and resource management will be the core focus of the German market in the high-performance computing environment. Siemens and SAP are already embedding composable infrastructure in their solutions to help the clients in enhancing their digital transformation strategies. In addition, GermanyÄX%$%Xs government is encouraging this market through innovation-based initiatives such as the "Digital Agenda," which emphasizes the improvement of IT infrastructure in both private and public sectors.
• India: India is rapidly adopting composable infrastructure to support the countryÄX%$%Xs growing IT and tech industries. Indian enterprises, especially in sectors like banking, e-commerce, and telecommunications, are increasingly leveraging composable infrastructure to handle the massive volumes of data they generate. The Indian government is also taking steps to promote cloud computing and data center growth, creating a favorable environment for composable solutions. As India continues to experience a digital transformation, businesses are looking to enhance their IT infrastructure to stay competitive in a market that is becoming increasingly data-driven and reliant on scalable technology.
• Japan: Japan has been at the forefront of technological innovation, and the adoption of composable infrastructure is no exception. Companies in sectors such as electronics, automotive, and finance are hoping to optimize their IT infrastructure to support advanced technologies such as AI, robotics, and IoT. Japanese businesses are working with global IT providers to implement composable solutions that enable more flexible and efficient data center management. The Japanese government is supporting digital transformation by providing initiatives encouraging business investment in leading-edge infrastructure. Consequently, the composable infrastructure is gaining immense strategic importance to JapanÄX%$%Xs blossoming digital economy.
Features of the Global Composable Infrastructure Market
Market Size Estimates: Composable infrastructure market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Composable infrastructure market size by type, application, and region in terms of value ($B).
Regional Analysis: Composable infrastructure market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the composable infrastructure market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the composable infrastructure market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for composable infrastructure market?
Answer: The global composable infrastructure market is expected to grow with a CAGR of 21.1% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the composable infrastructure market?
Answer: The major drivers for this market are growing adoption of automation, increase in business agility, and rising data processing need.
Q3. What are the major segments for composable infrastructure market?
Answer: The future of the composable infrastructure market looks promising with opportunities in the BFSI, it and telecom, government, healthcare, and manufacturing markets.
Q4. Who are the key composable infrastructure market companies?
Answer: Some of the key composable infrastructure companies are as follows:
• HGST
• HPE
• Dell EMC
• Lenovo
• Drivescale
• Tidalscale
• Liqid
Q5. Which composable infrastructure market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, hardware is expected to witness higher growth over the forecast period.
Q6. In composable infrastructure market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the composable infrastructure market by type (software and hardware), application (BFSI, it and telecom, government, healthcare, manufacturing, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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