Global Composable Infrastructure Market Report and Forecast 2024-2032

Global Composable Infrastructure Market Size

The global composable infrastructure market reached nearly USD 5.43 billion in 2023. The market is projected to grow at a CAGR of 43% between 2024 and 2032 to reach a value of around USD 135.86 billion by 2032.

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Composable Infrastructure Market Growth

Composable infrastructure refers to a framework that decouples different resources of devices in order to make them a proper service. This framework fulfils the IT requirements of various end-use sectors by automating the pooling of resources, which leads to the creation of a resource infrastructure as per the demand.

Increasing investments by IT and telecom companies to accelerate the innovation of data applications, data storage solutions, and software and hardware services are pivoting the growth of the composable infrastructure market. Organisations in the IT and telecom sectors are also attempting to enhance their efficiency and flexibility, which is surging the deployment of composable infrastructure.

Composable Infrastructure Market Trends

Growing demand for strong and efficient hardware systems from enterprises to scale up their businesses and bolster profitability is likely to aid the market for composable infrastructure in the forecast period. Moreover, increased adoption of composable infrastructure by businesses is a crucial trend in composable infrastructure market as it automates networking, storage, and computing while improving their operational efficiency.

Advancements in medical technology, along with the proliferation of the Internet of Medical Things (IOMT), are expected to generate the demand for composable infrastructure in healthcare organisations to improve access to patient data, lower data processing costs, and enhance computing capabilities for greater patient satisfaction.

Recent Developments

As per the composable infrastructure market dynamics and trends, Samsung announced the expansion of its Compute Express Link (CXL) memory module portfolio for scalable and composable infrastructure in March 2024. It possesses excellent memory capacity with high performance of up to 60 gigabytes-per-second (GB/s) bandwidth.

Industry Outlook

As per the composable infrastructure industry analysis, around 5.4 billion people or approximately 67% of the world’s population are internet users as per the ITU estimates, which is expected to boost the IT and telecommunications sector in the coming years. The 5G adoption across the world is expected to grow to 54% by 2030 with around 5.3 billion connections. Moreover, the average data usage per smartphone is expected to reach 56 GB in 2029, which will create lucrative opportunities for composable infrastructure as the companies can either pool or use provision on demand for their data centre resources.

Several market players are establishing partnerships and acquisitions to enhance the capabilities of computing and storage, which can boost the growth of the composable infrastructure industry. For instance, Microsoft announced that it had acquired Fungible, a provider of composable infrastructure, in January 2023. This acquisition offered the company the technological capabilities for improving data centre storage and networking performance.

The Growth of the Global Market Driven by Flexibility and Cost Efficiency

• Flexibility: Composable infrastructure provides flexibility in IT operations through dynamic resource allocation.

• Cost Efficiency: Reduces over-provisioning and underutilization of resources, leading to cost savings which aids composable infrastructure demand growth.

• Scalability: The infrastructure offers scalability for meeting the changing demands without making huge investments

• Improved Management: Centralised management and automation can simplify IT operations 

• Enhanced Performance: Optimisation of resources can enhance performance for various workloads.

Opportunities in the Global Market Driven by Digital Transformation and Cloud Integration

• Digital Transformation: The growing trend of digital transformation across industries driving demand for flexible and scalable IT solutions and boosting composable infrastructure demand.

• Cloud Integration: Increasing integration with cloud platforms enhances hybrid cloud capabilities and flexibility.

• Technological Advancements: Advancements in technology and automation tools can enhance the capabilities of composable infrastructure.

• Emerging Markets: There is a rise in expansion opportunities in emerging markets that require better IT infrastructure.

• Industry-Specific Solutions: Development of industry-specific composable infrastructure solutions for meeting specific requirements.

Challenges Impacting the Growth of the Global Market Include High Initial Costs and Integration Complexity

• High Initial Costs: Significant initial investment is required for setting up composable infrastructure.

• Integration Complexity: Challenges in integrating with existing legacy systems and infrastructure can affect composable infrastructure demand forecast.

• Market Awareness: Limited awareness and understanding of composable infrastructure benefits among potential users.

• Vendor Lock-In: Dependence on specific vendors for components and support can limit flexibility.

• Technical Expertise: Need for skilled personnel to manage and operate composable infrastructure.

• Market Competition: High levels of competition from traditional infrastructure solutions and other emerging technologies.

Key Price Indicators of the Global Composable Infrastructure Market:

• Prices of hardware components such as servers, storage, and networking equipment can hinder composable infrastructure market opportunities.

• Expenses related to software licenses, management tools, and automation platforms.

• Costs associated with energy consumption in data centres and IT operations.

• Expenses related to maintenance, support, and upgrades of infrastructure components.

• Costs associated with integrating composable infrastructure with existing systems and platforms.

• Investment in training and hiring skilled personnel to manage and operate the infrastructure.

• Costs associated with ensuring compliance with regulatory standards and security requirements.

• Fluctuations in demand from key sectors such as IT, healthcare, finance, and manufacturing can affect the demand of composable infrastructure market.

Use Cases of Composable Infrastructure

• Rapid Application Deployment: Composable infrastructure enables faster deployment of new applications and services by allowing businesses to provision and repurpose resources on demand. 

• Workload Optimization: Composable infrastructure dynamically allocates resources to meet the performance and capacity needs of various workloads.

• Disaster Recovery and High Availability: Composable infrastructure supports efficient and reliable disaster recovery solutions by allowing resources to be shifted or duplicated across data centers in real-time, which can boost the composable infrastructure market share.

• Hybrid Cloud Environments: By seamlessly integrating with cloud services, composable infrastructure enables hybrid deployments that combine the efficiency of on-premises systems with the scalability of cloud resources. 

• Data Center Consolidation: Composable infrastructure optimizes resource utilization, supporting data center consolidation. This leads to a reduced physical footprint, lower energy consumption, and decreased maintenance costs.

• Development and Testing: Developers can quickly provision and decommission environments for application development, testing, and staging, supporting agile development practices. 

• Performance-sensitive Applications: For applications requiring high computational power or low-latency networking, such as financial trading platforms or real-time data analytics, composable infrastructure provides the necessary resources on-demand, ensuring consistent performance.

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Composable Infrastructure Market Industry Segmentations

Based on component, the market is segmented into software and hardware. On the basis of end use, the market is classified into BFSI, retail and consumer goods, IT and telecommunication, manufacturing, and healthcare, among others. The major regional markets for composable infrastructure are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the global composable infrastructure industry, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Liqid Inc.

• NetApp, Inc.

• Nutanix group

• Advanced HPC.

• Dell Inc.

• Western Digital Corporation

• Hewlett Packard Enterprise Development LP

• Lenovo Group Ltd

• Others

Composable Infrastructure Market Share by End Use

The BFSI segment, based on end use, accounts for a major share of the composable infrastructure market. Its increased growth is due to the digital transformation of banks and financial institutions which fuels the demand for advanced technologies such as machine learning (ML), blockchain, and artificial intelligence (AI), among others.

The increased demand for composable solutions from financial institutions and banks to launch new services and products as well as offer personalised client experience also boosts the market growth in the forecast period.

Competitive Landscape

Liqid Inc. is a leading software company which provides composable infrastructure solutions to improve data performance, architectural optimisation, and hardware disaggregation, among others. It was founded in 2013 and is headquartered in Colorado, the United States.

NetApp, Inc. is a hybrid cloud data services and data management company in the composable infrastructure industry offering storage and other solutions to organisations for managing cloud environments. The company was established in 1992 and is headquartered in California, the United States.

Nutanix group is a cloud computing company founded in 2009 and headquartered in California, the United States. The company offers a single platform for enterprise and cloud-native apps, analytics, and machine learning.

Other market players include Advanced HPC., Dell Inc., Western Digital Corporation, Hewlett Packard Enterprise Development LP, and Lenovo Group Ltd, among others.

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Composable Infrastructure Market Regional Analysis

Based on region, North America holds a significant share of the composable infrastructure market and is expected to lead in the coming years as well. Well established presence of leading technology providers, along with heavy IT spending by American enterprises on cloud-based software and internet-enabled hardware, is favouring the market for composable infrastructure.

As per the composable infrastructure market analysis, the digitalised manufacturing infrastructure across the United States and Canada is anticipated to boost the adoption of composable infrastructure solutions to reduce the costs of data processing while improving real-time performance.

Key Highlights of the Report

Composable Infrastructure Market Report Snapshots

Composable Infrastructure Market Size

Composable Infrastructure Market Growth

Composable Infrastructure Market Trends

Composable Infrastructure Companies

Composable Infrastructure Market Regional Analysis