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Composable Infrastructure Market Analysis & Forecast: 2025-2032

Composable Infrastructure Market, By Type (Software and Hardware), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By Industry Vertical (BFSI, IT & Telecom, Retail & Consumer Goods, Healthcare, Manufacturing, and Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

  • Published In : 01 Sep, 2025
  • Code : CMI5080
  • Pages :178
  • Formats :
      Excel and PDF
  • Industry : Smart Technologies
  • Historical Range: 2020 - 2024
  • Forecast Period: 2025 - 2032

Composable Infrastructure Market Size and Forecast – 2025 to 2032

The composable infrastructure market is estimated to be valued at USD 8,299.4 Mn in 2025 and is expected to reach USD 39,366.6 Mn by 2032, growing at a compound annual growth rate (CAGR) of 24.9% from 2025 to 2032.

Key Takeaways

  • In terms of enterprise size, Large enterprises are expected to contribute 67.6% of the market share in 2025 due to their complex and demanding IT infrastructure needs.
  • In terms of component, Hardware dominates the market share in 2025 owing to rapid technological advancements making hardware solutions more powerful and cost-effective.
  • By end use, The IT & Telecommunication segment dominates the composable infrastructure market. This is due to its massive data generation, real-time service requirements, and constant need for scalable, agile infrastructure.
  • North America has established itself as the dominant region in the global composable infrastructure market. This region is expected to account for 36.67% market share in 2025. The presence of major tech giants and cloud service providers has propelled composable adoption in the region.

Market Overview

Enterprises are increasingly adopting composable infrastructure solutions to reduce capital expenditure and improve infrastructure utilization. Composable infrastructure allows dynamically assembling and disassembling infrastructure resources based on application demands. This enables optimized allocation of pooled resources and improves infrastructure efficiency. Further, composable infrastructure aids flexibility and agility by rapidly provisioning, re-provisioning and upgrading infrastructure. The ability to integrate existing hardware with software-defined infrastructure is also driving adoption. The market is expected to be positively impacted by the rapid growth in data volumes and infrastructure virtualization across industries.

Current Events and Its Impact

Current Events

Description and its impact

Geopolitical and Regulatory Trends

  • Description: Rapid growth of data sovereignty and localization laws
  • Impact: Accelerates the adoption of composable infrastructure so organizations can flexibly localize data processing throughout hybrid and multi-cloud environments.
  • Description: Cybersecurity and Compliance Regulations (e.g., NIS2, CCPA)
  • Impact: Supports organizations' efforts to modernize their infrastructure with secure and modular layers of technology, bringing composable infrastructure use cases to the front.

Economic and digital infrastructure trends

  • Description: Rising demand for ai and edge workloads across all industries.
  • Impact: - Encourages the need for flexible, painless, scalable compute and storage capabilities, significantly growing the market for composable infrastructure.
  • Description: Increasing investment in private and hybrid cloud infrastructure by hyperscale’s.
  • Impact: Supports an expansion of composable platforms where hyperscalers can optimize their resource usage, eliminate unnecessary costs, and become more agile in delivering services.

Technology Trends and Enterprise Demands

  • Description:  Increasing complexity of multi-cloud and hybrid environments.
  • Impact: Creates a natural use case for the deployment of composable infrastructure that will enhance orchestration, flexibility and reduce management overhead on IT resources.
  • Description: Focus on green it and sustainability goals
  • Impact: Increases the adoption of composable infrastructure solutions that can help organizations optimize their use of hardware, reduce energy costs and help meet ESG goals.

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Role of Artificial Intelligence

Artificial Intelligence is fundamentally redefining composable infrastructure—delivering greater automation, flexibility, and operational resilience. AI-powered agents autonomously manage compute, storage and network resources, autonomously detect, diagnose and remediate issues, and constantly enhance infrastructure resources usage and performance.

In June 2025, Cerio, a leader in software-defined composable infrastructure, partnered with Cloudiogram to launch turnkey AI factory services for enterprises across the Arab world. The solution combines Cerio’s advanced CDI platform with Cloudiogram’s regional presence and deployment expertise.

Segmental Insights

Composable Infrastructure Market By Enterprise Size

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Composable Infrastructure Market Insights, By Enterprise Size: Large Enterprises Lead Adoption Due to Complex IT Requirements

In terms of enterprise size, large enterprises are expected to contribute 67.6% of the market share in 2025 due to their complex and demanding IT infrastructure needs. Large multinational corporations operate at a massive global scale with thousands of users, petabytes of data, and mission-critical workloads. Traditional rigid infrastructure silos struggle to keep pace with the pace of business for large enterprises, hindering agility and elasticity. With composable infrastructure, large enterprises gain unprecedented operational flexibility through shared pools of disaggregated hardware and software resources. This approach streamlines procurement and maintenance activities while supporting continuous experimentation, rapid service provisioning, and round-the-clock availability required by global operations.

Large enterprises also benefit from the cost-effectiveness of composable infrastructure which right-sizes resources utilization and lowers overall IT capital and operational expenses proportionately to demand. The dynamic scalability and advanced automation of composable solutions are particularly well-suited to address the escalating complexities faced by large enterprises. In 2024, IBM deployed its Vela (cloud-native) and Blue Vela (on‑premises supercomputing) infrastructure to support large-scale generative AI workloads. These platforms offer dynamic, disaggregated pools of compute and storage that can be composed on-demand—meeting the massive scale, agility, and availability requirements of global enterprises. Such instances are proliferating the composable infrastructure market demand.

Composable Infrastructure Market Insights, By Component: Technology Advancements Drive Hardware Adoption

In terms of component, hardware dominates the market share in 2025 owing to rapid technological advancements making hardware solutions more powerful and cost-effective. Continued improvements to processor efficiency and data storage density have significantly increased the capabilities of servers, storage arrays, and networking equipment while driving down costs. Leveraging modern chip architectures and distributed computing approaches, today's hardware delivers unprecedented levels of scale, performance, and flexibility to organizations. Composable infrastructure in particular aggregates hardware building blocks into shared pools of resources that can be accessed on-demand. This innovative approach streamlines procurement and maintenance while enabling practically limitless experimentation and adaptation as business needs evolve.

In October 2024, HPE expanded its GreenLake platform to include new composable infrastructure hardware designed for hybrid and AI-driven workloads. The modular servers and storage arrays allow enterprises to dynamically allocate resources based on real-time demand. This reduces overprovisioning and simplifies IT operations. HPE’s open architecture also supports seamless integration with popular orchestration tools like Kubernetes.

Composable Infrastructure Market Insights, By End User: IT & Telecom Drives Adoption Due to Data Explosion

The IT & Telecommunication segment dominates the composable infrastructure market. This is due to its massive data generation, real-time service requirements, and constant need for scalable, agile infrastructure. Telecom providers, cloud service operators, and data center companies increasingly adopt composable systems to manage dynamic workloads efficiently. The flexibility to scale resources on-demand supports high availability and performance-critical operations. Additionally, AI, 5G, and edge computing growth further accelerate composable adoption in this sector.

In 2024, Bluestone PIM launched its Telco Accelerator built on composable IT principles like microservices and API-first architecture. This modular solution allows telecom operators to dynamically assemble services such as pricing, bundling, and campaign management without replacing legacy systems. It enables rapid scalability to meet rising data and service demands across fragmented infrastructure.

Regional Insights

Composable Infrastructure Market Regional Insights

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North America Composable Infrastructure Market Trends

North America has established itself as the dominant region in the global composable infrastructure market. This region is expected to account for 36.67% market share in 2025. The presence of major tech giants and cloud service providers has propelled composable adoption in the region. The U.S. accounts for the largest share due to growing infrastructure modernization projects among enterprises. The demand for efficient management of rapidly increasing data workloads is fueling the need for composable infrastructure. Moreover, organizations across domains are implementing composable platforms to build agile, cost-effective solutions.

In 2024, Dell EMC introduced AI‑driven orchestration enhancements for its composable infrastructure portfolio, significantly strengthening its market position in North America. These upgrades enabled hyper-scalers and large enterprises to more dynamically allocate resources across compute, storage, and networking, enhancing agility, scalability, and cost-efficiency.

Asia Pacific Composable Infrastructure Market Trends

Asia Pacific, on the other hand, has emerged as the fastest growing regional market with 34.10% market share. The digital shift across industries has accelerated infrastructure investments. Countries such as China, India, South Korea, and Australia are actively engaged in large-scale digital initiatives that involve modernizing legacy systems. This presents a huge opportunity for composable infrastructure providers.

In October 2024, Web Werks partnered with Iron Mountain Data Centers and Lightstorm to bolster interconnection and network capabilities in India, especially in metropolitan areas like Chennai. This collaboration was designed to meet escalating demand for low-latency, high-performance digital services, a need that aligns seamlessly with the principles of composable infrastructure—such as modular scaling, agile resource allocation, and efficient infrastructure disaggregation.

United States Composable Infrastructure Market Trends

The U.S. leads the composable infrastructure market with a 26.5% share, driven by its concentration of tech giants and advanced cloud service providers. Enterprises across industries prioritize infrastructure modernization to handle growing data demands efficiently. The country's strong innovation ecosystem accelerates adoption of composable solutions that enhance agility and reduce costs. Additionally, extensive investments by hyperscale’s in private cloud composability reinforce the U.S. as a dominant market player.

In December 2024, Amazon Web Services unveiled modular data center components engineered for enhanced energy efficiency and support for AI workloads. These flexible, modular designs provide up to 12% more compute power, significantly boosting infrastructure agility and resilience.

China Composable Infrastructure Market Trends

China holds a 7.5% share of the composable infrastructure market, reflecting its rapid digital transformation and large-scale modernization initiatives. The country’s focus on building smart cities, 5G networks, and AI-driven industries drives demand for flexible, scalable infrastructure. Domestic tech companies and cloud providers are investing heavily in composable solutions to support these ambitions. This growing adoption positions China as a key emerging player in the global composable infrastructure landscape.

In 2024, China Telecom's showcases at MWC demonstrated composable infrastructure in practice—through integrated hardware–software stacks such as ezStack and Ling Ze, designed to support flexible deployment of AI, edge, and cloud workloads. This illustrates how Chinese telecom leaders are actively leveraging modular infrastructure to power growth in smart cities, AI innovation, and digital transformation across industries.

Market Report Scope

Composable Infrastructure Market Report Coverage

Report Coverage Details
Base Year: 2024 Market Size in 2025: USD 8,299.4 Mn
Historical Data for: 2020 To 2024 Forecast Period: 2025 To 2032
Forecast Period 2025 to 2032 CAGR: 24.9% 2032 Value Projection: USD 39,366.6 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Component: (Hardware (Modular Servers, Fabric Interconnects, Storage Systems, Network Switches, and Others), Software (On-premise and Cloud-based), and services)
  • By Enterprise Size: Large Enterprises and Small & Medium Enterprises (SMEs)
  • By End Users: BFSI, Healthcare, IT & Telecommunication, Manufacturing, Government, and Others (Media and Entertainment, Retail, etc.))
Companies covered:

Hewlett Packard Enterprise Development LP, Liqid Inc, Cisco System Inc, Nutanix, Super Micro Computer Inc.

Growth Drivers:
  • AI and Automation Spur Need for Composability
  • Evolving Enterprise Digitalization Strategies
Restraints & Challenges:
  • High Initial Investment
  • Lack of Technical Expertise

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Market Drivers

  • AI and Automation Spur Need for Composability

Over the past decade, organizations have invested heavily in adopting new technologies like artificial intelligence, machine learning, automation, and others to enhance their operations. While these technologies promise benefits, they have also created new challenges for businesses. As organizations deploy disparate systems and applications to gain specific capabilities, their existing IT infrastructure has become complex with many isolated silos housing different workloads. This makes the management of the infrastructure inefficient and costly. It also impacts the ability of businesses to leverage these new technologies together and extract further value. In February 2024, Uber’s MLOps team presented their internal machine learning platform, Michelangelo, during a conference focused on AI in production. This platform is responsible for powering a broad range of Uber’s mission-critical AI applications, from ETA (estimated time of arrival) and food delivery timing to fraud detection and customer service bots utilizing large language models.

Market Opportunities

  • Edge & 5G network expansion

As organizations shift to scale applications up or down on demand, composable solutions allow for optimal resource utilization and efficiency. This improves capabilities for rapid application development and deployment. Composable infrastructure facilitates innovation through agility, enabling IT to keep pace with business needs.

Composable Infrastructure Industry News

  • In August 2025, Aave Labs launched Horizon, an institutional lending platform that allows stablecoin borrowing backed by tokenized real-world assets (RWAs). Horizon bridges DeFi and traditional finance by offering regulated institutions compliant access to on-chain liquidity, combining regulatory standards with Aave’s decentralized infrastructure.
  • In May 2025, Tetra Trust unveiled Tetra Unity, an institutional-grade platform designed to help financial institutions, payment providers, asset managers, and corporations seamlessly integrate top-tier digital asset services, including custody, execution, settlement, compliance, and risk management.
  • In February 2024, Accenture agreed to acquire Mindcurv, a cloud-native digital experience and data analytics company specializing in composable software, digital engineering, and commerce services. This acquisition enhances Accenture's capabilities in delivering composable infrastructure solutions to its global client base.
  • In January 2024, Hitachi Vantara and Cisco announced a managed hybrid cloud partnership, integrating Cisco UCS servers and Nexus networking products with Hitachi Vantara’s VSP storage arrays. This collaboration introduced the Hitachi EverFlex with Cisco Powered Hybrid Cloud, offering a comprehensive portfolio that includes infrastructure, IT services, storage solutions, container services, and data protection.

Analyst View

  • The Composable Infrastructure Market is quickly emerging as an essential building block in enterprises’ digital transformation. By enabling dynamic, scalable, and cost-efficient IT architectures, composable infrastructure moves organizations beyond rigid infrastructure, and consolidates compute, storage, and networking resources as needed.
  • This trend fuels innovation in cloud-native applications, edge computing, and a variety of AI workloads. This movement is being led by technology vendors and system integrators who are delivering modular, software-defined infrastructure that enables rapid service deployment and operational flexibility. The explosive growth of this market matches organizations’ urgent needs for digital agility and sustainability—especially in industries with pressing requirements to improve resource utilization and lower IT energy consumption.
  • The impact of composable infrastructure, especially in the IT & Telecom sector, is even more notable. Large-scale cloud providers and telecommunications companies utilize composable infrastructure platforms to efficiently manage massive and aspiring workloads, with less latency. For example, massive hyperscale data centers are able to integrate composable technology to deliver strict SLAs, further reduce their CAPEX/OPEX using pay-as-you-grow consumption models, and to support the critical edge deployments required for 5G networks and IoT services where rapid scale and resource orchestration is required for performance and innovation.
  • Despite global supply chain issues, and data demand increasing, the supply ecosystem surrounding composable infrastructure has remained strong.

Market Segmentation

  • Type Insights (Revenue, USD Mn, 2020 - 2032)
    • Software
    • Hardware
  • Enterprise Size Insights (Revenue, USD Mn, 2020 - 2032)
    • Large Enterprises
    • Small & Medium Enterprises
  • End User Insights (Revenue, USD Mn, 2020 - 2032)
    • BFSI
    • IT & Telecom
    • Retail & Consumer Goods
    • Healthcare
    • Manufacturing
    • Others
  • Regional Insights (Revenue, USD Mn, 2020 - 2032)
    • North America
      • U.S.
      • Canada
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Europe
      • Germany
      • U.K.
      • France
      • Italy
      • Russia
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
    • Middle East & Africa
      • GCC Countries
      • South Africa
      • Rest of Middle East & Africa
  • Key Players
    • Hewlett Packard Enterprise Development LP
    • Liqid Inc.
    • Cisco System Inc.
    • Nutanix
    • Super Micro Computer Inc.

Sources

Primary Research Interviews

  • Chief Technology Officers from leading cloud service providers
  • IT Infrastructure Managers from Fortune 500 companies
  • Product Managers from composable infrastructure solution vendors
  • Enterprise Architects from multinational corporations
  • Others

Databases

  • Gartner IT Infrastructure Database
  • IDC Infrastructure Solutions Database
  • Bloomberg Technology Database
  • Forrester Research Database
  • Others

Magazines

  • Data Center Knowledge
  • Network World
  • CIO Magazine
  • InformationWeek
  • Others

Journals

  • IEEE Computer Society Digital Library
  • ACM Computing Surveys
  • Journal of Cloud Computing
  • Others

Newspapers

  • The Wall Street Journal (Technology Section)
  • Financial Times (Digital Business)
  • Reuters Technology News
  • TechCrunch
  • Others

Associations

  • Open Compute Project Foundation
  • Storage Networking Industry Association (SNIA)
  • Data Center & Cloud Infrastructure Association
  • Infrastructure Masons
  • Others

Public Domain Sources

  • U.S. Securities and Exchange Commission (SEC) filings
  • Company annual reports and investor presentations
  • Government technology procurement databases
  • Open source project repositories
  • Others

Proprietary Elements

  • CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years

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About Author

Ankur Rai is a Research Consultant with over 5 years of experience in handling consulting and syndicated reports across diverse sectors.  He manages consulting and market research projects centered on go-to-market strategy, opportunity analysis, competitive landscape, and market size estimation and forecasting. He also advises clients on identifying and targeting absolute opportunities to penetrate untapped markets.

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Frequently Asked Questions

The Composable Infrastructure Market is estimated to be valued at USD 8,299.4 Mn in 2025, and is expected to reach USD 39,366.6 Mn by 2032.

The CAGR of the Composable Infrastructure Market is projected to be 24.9% from 2025 to 2032.

AI and automation spur need for composability and evolving enterprise digitalization strategies are the major factors driving the growth of the composable infrastructure market.

High initial investment and lack of technical expertise are the major factors hampering the growth of the composable infrastructure market.

In terms of type, software is estimated to dominate the market revenue share in 2025.

Hewlett Packard Enterprise Development LP, Liqid Inc, Cisco System Inc, Nutanix, Super Micro Computer Inc. are the major players.

North America is expected to lead the composable infrastructure market in 2025.

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