Coherent Market Insights

Composable Infrastructure Market to surpass US$ 19.00 Bn by 2031

Composable Infrastructure Market to surpass US$ 19.00 Bn by 2031 - Coherent Market Insights

Publish In: May 10, 2024

The composable infrastructure market is estimated to be valued at US$ 5.39 Bn in 2024, growing at a CAGR of 19.7% over the forecast period (2024-2031). The rising demand for agility and flexibility in data centers is a key driver promoting the market growth. Furthermore, the increasing trends of cloud transformation across industries is also contributing to market expansion.

Market Dynamics:

The composable infrastructure market is primarily driven by the rising demand for agility and flexibility in data center infrastructure. Traditionally, data centers were built with rigid architecture wherein infrastructure resources such as storage, servers and networks were dedicated for specific applications. However, with increasing demand for scaling operations up or down as per business needs, legacy data centers are unable to provide the required level of flexibility. Composable infrastructure solves this issue by disaggregating and pooling infrastructure resources which can then be composed and recomposed on demand through simple abstractions. This brings agility to respond quickly to changing business needs.

Another key driver is the increasing cloud transformation initiatives undertaken by organizations. Cloud services offer benefits such as scalability, pay-per-use model, and access to advanced technologies. However, many organizations continue to struggle with issues related to siloed infrastructure, vendor lock-ins, and complex integrations while modernizing existing applications for

Market Drivers: Increased Agility and Scalability Driving Adoption

Composable infrastructure allows IT teams to quickly scale resources up or down on demand to match changing business needs. This level of agility is driving more organizations to adopt composable solutions as it helps them be more responsive to the business. Composable platforms enable resources like compute, storage, and networking to be disaggregated and composed into any configuration needed by applications. This removes the limitations of fixed infrastructure systems and gives organizations flexibility to optimize their infrastructure continuously. The ability to quickly scale resources both up and down as per usage also helps save costs compared to traditional solutions.

Market Driver: Higher Infrastructure Utilization Rates

Composable infrastructure solutions are designed to maximize the utilization of hardware resources. With separate pooling of compute, storage, and networking capabilities, these resources can be allocated optimally across different workloads. Underutilized resources from one workload can be recomposed for other applications as needed. This improves overall infrastructure utilization rates for organizations compared to legacy rigid systems. Higher utilization means organizations can get more value from their existing IT investments. It also delays needs for hardware refreshes and incremental capacity additions. This optimization of infrastructure spending is a key driver for adoption of composable platforms.

Market Restraints: Resistance to Operational Changes

Some IT teams have reservations about completely overhauling their infrastructure management processes with composable platforms. Composable solutions require agile operational models and dynamic resource allocation practices compared to static systems used traditionally. This transition necessitates upskilling of staff as well as changes to existing workflows and tools. There is reluctance from teams comfortable with current methods to undertake these operational transformations. This initial resistance acts as a restraint for newer customers evaluating composable options.

Market Restraints: Interoperability Challenges

Composable infrastructure solutions today are provided by various vendors who may use different implementation approaches. Ensuring interoperability between components sourced from multiple suppliers is still a challenge that limits broader adoption. While open standards are being developed, lack of seamless interoperability can create integration complexities. Organizations hesitate deploying composable systems that do not allow for flexible multi-vendor configurations. Addressing these interoperability issues will be key to overcoming this market restraint.

Market Opportunities: Edge and 5G Infrastructure Modernization

Rollouts of 5G networks and proliferation of edge computing are driving demands for new infrastructure paradigms. Legacy fixed systems are not well-suited for dynamic edge environments with stringent latency and reliability requirements. Composable platforms designed for agility, flexibility, and optimized resource pooling cater very well to use cases across 5G networks and edge locations. This creates a big market expansion opportunity for composable solutions to modernize telecom and edge infrastructure over the coming years.

Market Opportunities: Hybrid Cloud Enablement

As businesses increasingly adopt hybrid cloud models, there is a growing need for unified infrastructure platforms that can seamlessly extend on-premise capabilities to multiple public clouds. Composable solutions allow disaggregated resources to be orchestrated across on-premises and public cloud infrastructures based on application needs. This gives organizations a consistent composable experience regardless of workload location. Vendors offering integrated on-premises/public cloud composable platforms are well positioned to tap into the large market potential around hybrid cloud enablement in the coming years.


Market Developments:

  • In October 2022, Huawei Technologies is a global technology company that specializes in telecommunications equipment, consumer electronics, and enterprise solutions. introduced a new network architecture tailored for oil field operations during the Huawei Connect event. This architecture enables users to efficiently manage and secure networks, offering access to multiple services through a single physical network. This streamlined approach reduces investment costs for businesses. Additionally, retail oil companies can now remotely oversee station data using this solution, which includes a comprehensive analysis and presentation platform.
  • In October 2022, UBS Group, a leading financial services company based in Switzerland, teamed up with Microsoft is a multinational technology company known for its software products and services. to migrate more than half of its applications to the Microsoft Azure Cloud. By leveraging Azure, UBS Group aims to advance its sustainability efforts, enhance operational efficiency, and uphold rigorous standards for compliance and security. This partnership will accelerate the pace at which UBS delivers and enhances digital experiences for both clients and employees.
  • In November 2022, Deloitte is a global professional services firm that provides audit, tax, consulting, and advisory services to clients around the world. joined forces with Amazon Web Services (AWS) to introduce a Cloud-based Banking as a Service (BaaS) platform. This platform empowers organizations to offer tailored digital banking services, enabling smaller banks to compete effectively in the evolving banking landscape and drive business growth.

Key Players:

Cloudistics, Dell EMC, Drivescale, HGST, HPE, Lenovo, Liqid, One Stop Systems, QCT, Tidalscale, DriveScale, TidalScale, OSS, Dolphin ICS, Inspur, Western Digital Corporation, Hewlett Packard Enterprise Development LP, Quanta Computer Inc., and Kaminario Flex.

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