Composable Infrastructure Market By Component (Hardware, Software, Services); By Deployment Model (On-Premises, Cloud-Based/Hybrid); By End User (IT & Telecom, BFSI, Healthcare & Life Sciences, Government & Defense, Manufacturing & Others); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Composable Infrastructure Market is projected to expand at an estimated CAGR of 18.5%, growing from USD 8.5 billion in 2024 to reach nearly USD 23.54 billion by 2030, confirms Strategic Market Research.

 

Composable infrastructure represents a next-generation data center architecture where compute, storage, and networking resources are abstracted from physical hardware and dynamically assembled through software-defined tools. In simple terms, it lets IT teams “compose” infrastructure on demand, much like spinning up virtual machines, but at hardware-level performance.

 

This market’s strategic relevance is accelerating for several reasons. Organizations are under pressure to modernize data centers without overcommitting to costly proprietary systems. Enterprises also want cloud-like agility within on-premises environments, which is driving adoption of composable models that bridge traditional infrastructure and hybrid cloud.

 

Macro drivers are clear:

• Cloud-native workloads and containerization need flexible back-end resources.

• Edge computing is rising, requiring scalable and easily reconfigurable infrastructure closer to data sources.

• AI and high-performance computing workloads demand dynamic allocation of GPU and storage-intensive resources.

• IT cost pressures are pushing CIOs toward automation, resource pooling, and reduced over-provisioning.

Regulators and governments are indirectly influencing adoption as well. For example, in regions with strict data sovereignty laws, enterprises are keeping sensitive workloads on local infrastructure but want the efficiency of cloud operations. Composable platforms provide that balance.

 

The stakeholder map spans OEMs (HPE, Dell, Lenovo, Cisco), software innovators building orchestration layers, enterprises across BFSI, healthcare, and telecom deploying scalable systems, cloud service providers offering hybrid bundles, and investors eyeing the transition from rigid hardware sales to recurring revenue models.

 

Composable infrastructure is no longer a niche experiment. It’s quickly becoming a foundational piece of enterprise IT modernization strategies, especially for firms looking to future-proof against unpredictable workload shifts.

 

Market Segmentation And Forecast Scope

The composable infrastructure market is best understood through four core lenses: Component, Deployment Model, End User, and Region. Each dimension reveals how enterprises and providers are adopting modular infrastructure for different operational priorities.

By Component

• Hardware: Covers servers, storage arrays, and networking elements that can be disaggregated and recomposed. In 2024, hardware holds the largest revenue share, accounting for nearly 57% of the market, since enterprises still rely on OEM-provided physical systems as the backbone.

• Software: Orchestration and management layers that allow dynamic resource composition. This segment is projected to grow the fastest, as software-defined automation becomes central to hybrid and multi-cloud strategies.

• Services: Includes consulting, integration, and support. Adoption here is steady, especially among enterprises with limited in-house expertise in transitioning from legacy to composable setups.

 

By Deployment Model

• On-Premises: Dominates in regulated industries such as banking and healthcare, where data control is paramount.

• Cloud-Based/Hybrid: Expanding rapidly, driven by enterprises wanting cloud-like agility without vendor lock-in. Hybrid models in particular are seeing double-digit growth, as they allow organizations to keep sensitive workloads local while scaling others into public cloud.

 

By End User

• IT & Telecom: The largest adopter group, given their reliance on scalable infrastructure for both internal and client workloads.

• BFSI: Banking and financial institutions use composable setups to manage fluctuating transaction volumes and AI-driven fraud analytics.

• Healthcare & Life Sciences: Adopting for genomics, imaging, and EHR systems that require elastic computing power.

• Government & Defense: Leveraging composable solutions for secure, mission-critical applications where hardware agility is as important as compliance.

• Manufacturing & Others: Demand emerging in smart factories, where IoT devices generate unpredictable workloads requiring fast reallocation of compute and storage.

Among these, IT & Telecom is the largest segment today, but Healthcare is projected to grow at the fastest CAGR through 2030, as digital health adoption and AI-powered diagnostics put new pressure on legacy infrastructure.

 

By Region

• North America: Currently leads adoption, thanks to hyperscaler presence and early enterprise investments.

• Europe: Growth shaped by GDPR and strong demand for hybrid models in financial and healthcare sectors.

• Asia Pacific: The fastest-growing region, fueled by 5G rollout, edge computing investments, and rapid digital transformation in China and India.

• Latin America and Middle East & Africa (LAMEA): Early-stage but rising adoption, often tied to government modernization programs and private telecom expansions.

Scope note: While segmentation seems technology-heavy, it’s becoming more commercial. Vendors now market bundled hardware–software offerings under subscription models, transforming what used to be one-time infrastructure purchases into flexible service-oriented deals.

 

Market Trends And Innovation Landscape

Composable infrastructure is evolving from a buzzword into a strategic pillar of enterprise IT. The innovation landscape shows how quickly vendors are moving beyond proof-of-concept toward mainstream deployment. A few trends stand out.

Software-Defined Everything

The shift toward software-defined orchestration is unmistakable. Instead of buying fixed racks of hardware, enterprises are increasingly looking for management platforms that can carve up compute, storage, and networking into pools of resources available on demand. These software control planes are also starting to integrate with Kubernetes and other container orchestration tools, so that infrastructure can be composed directly in line with cloud-native workloads. In short, infrastructure is becoming as programmable as applications themselves.

 

AI and Automation Integration

Artificial intelligence is finding its way into resource management. Vendors are embedding AI-driven algorithms to predict workload spikes, rebalance resources in real time, and minimize idle capacity. For example, in financial services, where trading workloads can fluctuate dramatically, AI-led orchestration can reduce over-provisioning by 20–30%. Automation is no longer just a cost saver — it’s becoming the foundation for performance optimization.

 

GPU and High-Performance Workload Support

With the rise of AI/ML and large-scale analytics, enterprises need dynamic access to GPU clusters and high-bandwidth storage. Composable infrastructure now supports GPU disaggregation, meaning GPUs can be assigned to workloads as easily as CPUs or memory. This is especially relevant for healthcare genomics, real-time video analytics, and autonomous vehicle R&D.

 

Ecosystem Partnerships and Open Standards

A major trend is the rise of open APIs and consortium-led initiatives. Vendors are joining forces to avoid proprietary silos, ensuring composable systems can plug into existing IT landscapes. This includes partnerships between OEMs and open-source communities working on composability standards. The effect is a faster innovation cycle and reduced fear of vendor lock-in.

 

Convergence with Edge and Hybrid Cloud

Composable infrastructure is increasingly being tested at the edge — in telecom networks, factories, and retail. Edge nodes often face unpredictable workloads (think: video processing in a store during peak hours vs. downtime). Composability lets them scale without costly overbuilding. At the same time, hybrid models are blurring the line between on-prem and cloud, giving CIOs flexibility to choose where workloads run without redesigning infrastructure.

 

Sustainability and Energy Efficiency

Sustainability has quietly become a driver. Composable setups reduce idle hardware, lowering power and cooling requirements in data centers. In regions like Europe, where carbon reporting is tightening, this capability is marketed as a compliance and ESG tool. Reducing waste through dynamic resource allocation isn’t just operationally smart — it’s becoming a board-level talking point.

 

Recent Innovation Highlights

• Vendors are releasing AI-powered composability dashboards that show real-time resource utilization and recommend optimal configurations.

• Hyperscalers are experimenting with Composable-as-a-Service offerings, bundling infrastructure and orchestration in subscription formats.

• Edge-focused startups are building lightweight composable nodes that can run on minimal power but scale up with modular add-ons.

The innovation picture is clear: composable infrastructure is not about building faster servers, but about making every component flexible, responsive, and intelligent.

 

Competitive Intelligence And Benchmarking

The competitive landscape in composable infrastructure is still consolidating, but the strategies of leading players are becoming sharper. Unlike traditional hardware markets where differentiation was largely about speed and capacity, here it’s about ecosystem depth, orchestration intelligence, and integration flexibility.

Key Players

Hewlett Packard Enterprise (HPE)

HPE is arguably the front-runner with its early bet on composable infrastructure. Its solutions focus on blending hardware and software orchestration, targeting enterprises modernizing legacy data centers. The company positions itself as a one-stop provider — hardware, software-defined controls, and integration services. Its strength lies in aggressive partnerships with cloud providers, which helps HPE bridge the gap between on-prem and hybrid deployments.

 

Dell Technologies

Dell leverages its massive hardware footprint and customer relationships. The company is integrating composability into its broader PowerEdge and VxRail ecosystems, emphasizing scalability for hybrid workloads. Dell’s go-to-market pitch often highlights cost optimization — making composable infrastructure accessible not just to Fortune 500 companies, but also mid-sized enterprises exploring hybrid IT.

 

Cisco Systems

Cisco plays a networking-first strategy, bringing composability into networking and security orchestration. Its Unified Computing System (UCS) platform underpins much of its composable vision, with strong hooks into enterprise cloud environments. Cisco also differentiates with automation and policy-driven control layers, making it attractive to telecom and large IT operators.

 

Lenovo

Lenovo has been building momentum in Asia-Pacific and Europe with cost-efficient, modular systems that appeal to enterprises upgrading in phases rather than through wholesale replacements. Its approach centers on affordability and modular design, especially appealing in emerging markets. Lenovo’s global reach and growing partnerships with local system integrators give it a strategic edge in underpenetrated regions.

 

Liqid

A rising startup, Liqid specializes in software-defined composability. It disaggregates GPUs, FPGAs, and NVMe storage, making it highly relevant for AI and HPC workloads. Its niche focus — extreme flexibility for compute-intensive industries — allows Liqid to punch above its weight compared to traditional OEMs.

 

Supermicro

Supermicro leans into customization and white-box infrastructure, targeting hyperscale data centers and enterprises seeking flexible, lower-cost options. While not as dominant in orchestration software, its ability to rapidly configure hardware for composable environments makes it a strong challenger in price-sensitive segments.

 

Competitive Dynamics

• Incumbents (HPE, Dell, Cisco) are using their installed base and bundled solutions to lock in enterprise customers.

• Challengers ( Liqid , Supermicro) are focusing on innovation speed and workload-specific customization to gain traction.

• Regional strengths matter: Lenovo is advancing in Asia-Pacific, while Dell and HPE dominate North America and Europe.

• The real differentiator isn’t just hardware — it’s the orchestration software that decides how well resources are pooled and delivered. Vendors investing in AI-driven management are gaining competitive credibility.

To be candid, this isn’t yet a winner-takes-all market. Buyers are experimenting, often deploying composable infrastructure alongside legacy setups. Vendors that can prove real ROI — faster deployment times, lower idle capacity, and seamless hybrid integration — will shape the competitive balance through 2030.

 

Regional Landscape And Adoption Outlook

Adoption of composable infrastructure varies sharply across regions, shaped by enterprise IT maturity, regulatory environments, and digital transformation priorities. While North America currently leads, Asia Pacific is catching up fast, and Europe is carving a distinctive role with hybrid and compliance-focused deployments.

North America

North America holds the largest share of the market in 2024, supported by early vendor activity (HPE, Dell, Cisco) and a high concentration of hyperscalers and cloud service providers. U.S. enterprises are especially aggressive in adopting composable infrastructure for AI, financial services, and telecom workloads. Government regulations on data sovereignty are pushing many organizations toward hybrid models, where composability makes local deployments cloud-like in agility.

Canada is emerging as a growth hotspot due to federal digital transformation programs and strong adoption in healthcare IT. One notable trend is the integration of composable infrastructure into edge computing pilots, such as smart city and industrial IoT initiatives.

 

Europe

Europe is the second-largest market, driven by strict data protection regulations (GDPR) and a push toward digital sovereignty. Enterprises prefer hybrid models where composable infrastructure helps them keep critical workloads on local servers while maintaining flexibility.

Germany, France, and the UK lead in adoption, particularly in BFSI and healthcare sectors. In Scandinavia, sustainability goals are fueling interest in composable setups for their reduced energy waste. Eastern Europe is slower to adopt, but modernization of telecom infrastructure is beginning to create demand for modular deployments.

 

Asia Pacific

This is the fastest-growing region, expected to register the highest CAGR through 2030. The region’s growth is driven by 5G rollouts, large-scale digital transformation, and AI/ML adoption. China and India dominate volume demand, while Japan and South Korea push innovation through edge and AI-heavy workloads.

Enterprises in China are adopting composable infrastructure to support massive e-commerce and fintech platforms, where workload surges are common. In India, adoption is tied to healthcare digitization and the expansion of public cloud providers partnering with local data centers.

The growth story isn’t uniform — Tier 2 and Tier 3 cities still lack advanced infrastructure, but partnerships between global OEMs and local system integrators are beginning to close the gap.

 

Latin America, Middle East & Africa (LAMEA)

LAMEA is still an emerging market for composable infrastructure but holds long-term promise. In Latin America, Brazil and Mexico are leading with adoption in telecom and financial services, largely supported by cloud modernization projects.

In the Middle East, countries like Saudi Arabia and the UAE are investing heavily in smart city initiatives and defense applications, both of which require scalable, flexible IT infrastructure. Africa is slower, with most activity limited to telecom and government modernization projects, though growing mobile penetration is expected to accelerate regional adoption.

 

Key Regional Dynamics

• North America: Mature market, enterprise-heavy, hybrid adoption focus.

• Europe: Compliance-driven adoption with emphasis on sustainability and hybrid sovereignty.

• Asia Pacific: Fastest growth, led by China, India, Japan, and South Korea — heavily tied to 5G and AI expansion.

• LAMEA: Early-stage, led by government-led modernization and telecom investments.

To be honest, regional adoption reflects different priorities: North America seeks agility, Europe seeks compliance, Asia Pacific seeks scale, and LAMEA seeks modernization. Vendors that tailor strategies to these regional nuances will capture disproportionate value by 2030.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• HPE expanded its composable infrastructure portfolio in 2023 with AI-powered orchestration features to optimize GPU allocation for machine learning workloads.

• Dell Technologies introduced new composable nodes in 2024 that integrate with its PowerEdge line, targeting hybrid cloud customers.

• Cisco Systems partnered with Red Hat in 2023 to build open composability frameworks that align with containerized workloads.

• Liqid raised significant funding in 2024 to accelerate development of GPU and FPGA disaggregation for AI-heavy industries.

• Lenovo rolled out modular composable infrastructure solutions in Asia Pacific in 2023, focusing on cost-sensitive enterprises in China and India.

 

Opportunities

• AI and High-Performance Workloads: Rising demand for AI/ML training and data-intensive analytics is accelerating adoption of GPU-centric composability.

• Hybrid and Multi-Cloud Expansion: Enterprises are increasingly deploying composable infrastructure to gain cloud-like agility in regulated industries without sacrificing data control.

• Edge Computing Growth: Telecom, manufacturing, and retail are turning to composable setups to handle unpredictable edge workloads with minimal overbuilding.

 

Restraints

• High Capital Expenditure: Initial setup costs for composable systems remain high, particularly for mid-sized enterprises.

• Integration Complexity: Legacy IT environments often lack compatibility with composable architectures, slowing down adoption.

• Skills Gap: A shortage of IT teams trained in software-defined orchestration and composability limits scalability in some regions.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 8.5 Billion
Revenue Forecast in 2030	USD 23.54 Billion
Overall Growth Rate	CAGR of 18.5% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Component, Deployment Model, End User, Region
By Component	Hardware, Software, Services
By Deployment Model	On-Premises, Cloud-Based/Hybrid
By End User	IT & Telecom, BFSI, Healthcare & Life Sciences, Government & Defense, Manufacturing & Others
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, Germany, UK, France, China, India, Japan, Brazil, Saudi Arabia, etc.
Market Drivers	- Rising AI/ML and GPU-intensive workloads - Strong demand for hybrid cloud and edge scalability - Efficiency gains from software-defined automation
Customization Option	Available upon request