Composable Infrastructure Market Report Scope & Overview:

The Composable Infrastructure Market size was valued at USD 7.62 billion in 2024 and is expected to reach USD 165.80 billion by 2032, growing at a CAGR of 47% over the forecast period of 2025-2032.

This expansion is fueled by growing need for flexible, scalable IT environments to support cloud-native, hybrid, and edge computing deployments. Organizations are moving away from inflexible legacy architectures towards software-defined, modular infrastructures to improve efficiency and lower operational costs. The advent of AI, IoT, and big data analytics fuels this shift as well. The Composable Infrastructure Market growth is fueled by the rising need for flexible, scalable IT environments to support cloud-native, hybrid, and edge computing deployments.

According to research, Industry forecasts indicate significant trends supporting the adoption of composable infrastructure. By 2024, nearly 40% of enterprise workloads are anticipated to run on cloud infrastructure, reflecting the need for scalable, flexible IT systems. Additionally, around 75% of large organizations are projected to use container management, with 40% of teams implementing AIOps for automated risk analysis—emphasizing a shift to modular, software-driven architectures.

The U.S Composable Infrastructure Market Size reached USD 1.30 billion in 2024 and is expected to reach USD 23.90 billion by the end of 2032 at a CAGR of 43.92 % from 2024 to 2032.

This is due to extensive hybrid and multi-cloud strategies adoption, agile and scalable IT environments demand, and robust digital maturity. U.S. businesses are making a transition from conventional infrastructure to modular, software-defined infrastructure in order to streamline compute, storage, and networking. The growth of AI, big data, edge computing, and automation is further fueling adoption. Also, government digitalization initiatives and industry-wide digitalization are energizing the market's fast growth and technological innovation.

Composable Infrastructure Market Dynamics

Drivers

• Growing Demand for Agile and Scalable IT Infrastructure Drives Market Expansion

Growing demand for agile, scalable, and cost-effective IT infrastructure is the key driver in the composable infrastructure market. Companies in industry verticals such as IT, telecommunications, and financial services are embracing solutions providing dynamic resource allocation depending on the workload needs. Composable infrastructure helps companies tear down hardware silos, and with software-defined methods, allocate computing, storage, and network resources to streamline computing, enhancing responsiveness to new demands.

Nearly 40% of new data centers are being built with modular or composable components to ensure adaptability.

Restraints

• Integration Complexities and Skill Gaps Hinder Adoption Across Enterprises

Although it has benefits, composable infrastructure is hampered by integration complexity and the availability of highly skilled IT experts. Composable infrastructure integration within legacy traditional IT systems can be difficult, demanding massive architecture and management practice overhauls. Also, a lack of available expertise to maintain and run such complex systems creates an impediment to mass uptake.

Opportunities

• Expansion of Hybrid Cloud and Edge Computing Opens New Avenues for Growth

The growth of hybrid cloud and edge computing offers huge opportunities for the composable infrastructure market. As more organizations embrace hybrid IT environments, the requirement for scalable and flexible infrastructure solutions becomes critical. Composable infrastructure's capability to blend on-premise and cloud resources in a seamless manner matches this trend, allowing organizations to maximize resource utilization, enhance performance, and minimize costs. This adaptability is especially helpful for SMEs who want to expand operations without having to make significant initial investments.

Challenges

• Vendor Lock-In and Interoperability Issues Pose Challenges to Implementation

One major issue with composable infrastructure is vendor lock-in and interoperability. Organizations might find themselves locked into the ecosystem of a single vendor, which reduces flexibility and can result in increased costs. Additionally, combining components from several vendors can lead to compatibility problems, making it harder to manage and scale the infrastructure

Composable Infrastructure Market Segment Analysis

By Component

In 2024, the hardware segment had a leadership share in the composable infrastructure market, and it generated 76.49% of revenue. This is due to growing requirements for high-performance servers, storage systems and networking hardware that can be flexibly built and reconfigured in response to workload demands. The top players, including Hewlett-Packard Enterprise, Dell Technologies, and Cisco Systems, have released sophisticated hardware products to respond to this need. Leading Composable Infrastructure Market companies are continuously innovating to address the demand for modular, software-defined IT systems. The hardware segment led the market in 2024 due to rising demand for composable infrastructure hardware like reconfigurable servers and high-performance network components.

For example, Dell PowerEdge MX7000 and HPE Synergy platforms provide composable hardware, enabling effective use of resources, thus enabling organizations to optimize their data centre operations through scaling computing, memory, and storage independently.

The services segment is anticipated to witness the fastest CAGR of 48.47% over the forecast period. This is due to the growing demand for software-defined solutions that improve flexibility and management of resources. Companies are spending on services that help in detaching hardware from software and enable dynamic provisioning of computer, storage, and networking resources. Firms such as SAP SE and TidalScale, Inc. are creating composable infrastructure software platforms that facilitate increased agility and management of IT environments.

By Organization Size

Large enterprises dominated the Composable Infrastructure Market in 2024, holding a 61.99% revenue share. Large organizations have large data centers, handle immense volumes of data, and serve numerous business-critical applications. Composable infrastructure provides large organizations with a means to distribute computing, storage, and networking resources in an efficient way, maximizing their use of infrastructure to meet changing workloads.

SMEs is the fastest-growing segment with the fastest CAGR of 47.59%. The high adoption of cloud and hybrid IT environments by SMEs is fueling this growth. Composable infrastructure follows the trend by allowing on-premise and cloud resources to be integrated smoothly, enabling SMEs to dynamically reconfigure their IT environments for cloud-native applications and hybrid workloads. Such adaptability allows SMEs to adopt sophisticated tools and technologies without investing heavily in them, fostering scalability and efficiency.

By End Use

The IT and telecommunication industry maintained the largest revenue of 30.58% in the composable infrastructure market in 2024. The reason behind this leadership is the increasing adoption of edge computing and network function virtualization (NFV) across the telecom sector. Telecom operators are shifting to decentralized architecture for supporting edge devices, lowering latency, and enhancing service delivery. A comprehensive Composable Infrastructure Market analysis reveals the sector's rapid evolution driven by technological advancements and changing enterprise IT needs. The healthcare industry is expected to have the fastest CAGR of 47.80%. The growing amount of healthcare data being generated due to EHRs, medical imaging, wearables, and telemedicine requires an elastic and scalable IT infrastructure. Composable infrastructure enables healthcare organizations to dynamically scale resources as per the workload, so they can process large amounts of data without impacting performance. This ability is indispensable for real-time data processing and analytics, and improving patient care and operational efficiency.

Regional analysis

North America contributes a large Composable Infrastructure Market share of 35.70% due to its mature IT ecosystem, early technology adoption, and high vendor presence. Sustained high demand for scalable and agile infrastructure in industries such as BFSI, telecom, and healthcare continues to drive regional growth.

The United States dominates the North American market because it is highly digitally mature, possesses a robust cloud infrastructure, and is at the forefront of AI and big data integration.

Europe is experiencing gradual growth in composable infrastructure take-up fueled by growing cloud take-up, data security regulatory pressures, and call for sustainable IT solutions. Organisations are refreshing legacy infrastructure to increase agility and address changing business requirements.

Germany dominates the European market due to its robust industry base, aggressive digitalisation, and government-sponsored smart infrastructure drives.

Asia Pacific is witnessing fastest growth with CAGR 47.43% in the composable infrastructure market because of growing digitalization, increased investments in cloud and edge computing, and growing demand from large enterprises and SMEs. Nations are modernizing IT infrastructure to facilitate economic growth and technological innovation.

China is the leading nation in this region, led by government-sponsored digital infrastructure initiatives and a thriving tech ecosystem.

Middle East & Africa and Latin America regions are gradually adopting composable infrastructure as organizations pursue modernization of IT systems, lowering operating expenses, and facilitating digital transformation. Increasing interest is fueled by needs for IT agility, lower CAPEX, and hybrid cloud adoption in industries such as telecom, oil & gas, government, and enterprise services.

Key Players

The major key players for Composable Infrastructure Market are, 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. and others.

Recent Developments

• In June 2024, Cisco announced the Cisco Compute Hyperconverged X-Series System, including the X210c M7 All NVMe Nodes, designed to support hybrid cloud environments with enhanced orchestration and AI capabilities.

• In December 2024, Lenovo introduced a next-generation composable cloud platform with the ThinkAgile CP Series, featuring integrated high availability, backup, and multitenant security for private cloud environments.