Composable Infrastructure Market Size and Share
Composable Infrastructure Market Analysis by Mordor Intelligence
The composable infrastructure market size stood at USD 8.40 billion in 2025 and is on track to reach USD 20.86 billion by 2030, reflecting a 19.96% CAGR over the forecast period. Rapid demand for software-defined resource pooling, tighter GPU utilization, and edge-to-cloud orchestration are steering this momentum. Enterprises are prioritizing dynamic allocation of compute, storage, and networking to support AI, machine-learning, and data-intensive workloads in real time. Hardware remains the foundation, but growth is tilting toward intelligent software layers that automate placement, energy use, and predictive maintenance. Deployment choices increasingly balance on-premises sovereignty with cloud scalability, while skills shortages in PCIe Gen5 switches and persistent-memory orchestration temper near-term rollouts. Competitive intensity is rising as traditional OEMs partner with specialized fabric innovators to capture expanding white-space opportunities across data center, edge, and industry-specific solutions.
Key Report Takeaways
- By component, hardware captured 58.2% of composable infrastructure market share in 2024; software is forecast to grow at 20.1% CAGR to 2030.
- By deployment model, on-premises held 55.7% share of the composable infrastructure market size in 2024, while cloud implementations are advancing at 22.3% CAGR through 2030.
- By organization size, large enterprises accounted for 65.2% share in 2024; SMEs are projected to expand at 21.7% CAGR through 2030.
- By vertical, IT and telecom led with 25.9% revenue share in 2024; healthcare is pacing fastest at 20.4% CAGR to 2030.
- By workload, AI/ML and HPC commanded 23.9% of the composable infrastructure market size in 2024 and is growing at 21.1% CAGR through 2030.
- By geography, North America dominated with 24.1% share in 2024; Asia-Pacific is the fastest-growing region at 21.3% CAGR to 2030.
Global Composable Infrastructure Market Trends and Insights
Drivers Impact Analysis
Driver | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
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AI/ML GPU-Pooling Demand | +4.20% | Global, concentrated in North America and Asia-Pacific | Short term (≤ 2 years) |
Cloud-Native and Micro-services Scalability Needs | +3.80% | Global, led by North America and Europe | Medium term (2-4 years) |
Data-center Consolidation and CapEx Optimisation | +3.10% | Global, particularly North America and Europe | Medium term (2-4 years) |
Edge-Computing Deployment Acceleration | +2.70% | Global, with strong growth in Asia-Pacific | Long term (≥ 4 years) |
CXL-enabled Memory Composability | +2.40% | North America and Europe early adoption | Long term (≥ 4 years) |
Sovereign-Cloud Compliance Boosting On-prem Builds | +1.90% | Europe, Asia-Pacific, selective North America | Medium term (2-4 years) |
Source: Mordor Intelligence
AI/ML GPU-Pooling Demand
Enterprises are re-architecting data centers to pool GPUs dynamically, lifting utilization from 30-40% in fixed servers to well above 80% when GPUs are decoupled from compute nodes. Northwestern Medicine used Dell PowerEdge XE9680 systems with NVIDIA H100 GPUs to boost radiology inference by 40% while shifting GPUs among concurrent AI models.[1]Dell Technologies, “PowerEdge XE9680 for AI,” dell.com GigaIO’s SuperNODE links up to 30 GPUs over a fabric that a single server can address, illustrating how composability unleashes burst capacity for training large models. This adaptability keeps the composable infrastructure market aligned with surging model complexity and unpredictable workload peaks. As GenAI proliferates, dynamic GPU orchestration is becoming table stakes for performance, energy efficiency, and cost control across industries
Cloud-Native and Micro-services Scalability Needs
Containerized applications cycle quickly, demanding granular resources that match ephemeral lifecycles. Composable infrastructure abstracts compute, storage, and networking into programmable pools that Kubernetes or OpenShift can draw on instantly.[2]Red Hat, “Emirates NBD Private Cloud Case Study,” redhat.com Emirates NBD cut application launch times from months to hours by running 1,000+ containers and 500 APIs on a private cloud built atop composable platform. Credit Europe Bank shortened customer onboarding from two weeks to 15 minutes through similar micro-services migration. These cases demonstrate how elastic provisioning bolsters DevOps velocity, making the composable infrastructure market a natural fit for cloud-native strategies. As enterprises scale platform engineering teams, the push for infrastructure-as-code amplifies demand for composable resource frameworks.
Data-Center Consolidation and CapEx Optimisation
Rising real-estate costs and sustainability mandates are forcing organizations to do more within smaller footprints. VMware Cloud Foundation studies show a 564% three-year ROI, 34% lower capital spend, and 42% reduced operations costs when composable resource pools replace static servers.[3]VMware, “The Economic Impact of VMware Cloud Foundation,” vmware.com Innovaccer Health Cloud saved USD 5.7 million annually and slashed IT costs 70% by consolidating vendors onto a SaaS composable platform. By acquiring only baseline capacity and scaling on demand, businesses reduce stranded assets and extend hardware life cycles, an economic advantage
Edge-Computing Deployment Acceleration
Manufacturing, telco, and retail firms need enterprise-grade compute in space-constrained, distributed sites. Dell Manufacturing Edge Solutions converge IT and OT while enabling zero-touch rollouts and AI analytics at hundreds of factories. Cisco AI PODs deliver plug-and-play stacks that replicate data-center-class capabilities in remote hubs. Standardized composable blocks simplify scaling from single racks to multicloud fabrics, making it feasible to manage thousands of edge endpoints as one logical environment. This long-term driver enlarges the addressable composable infrastructure market as Industry 4.0 matures.
Restraints Impact Analysis
Restraint | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Legacy Integration Complexity | -2.80% | Global, particularly enterprises with established infrastructure | Short term (≤ 2 years) |
High Up-front CapEx and Vendor Lock-in | -2.10% | Global, affecting SME adoption rates | Medium term (2-4 years) |
PCIe Gen5 Switch Supply-Chain Bottlenecks | -1.60% | Global, concentrated in Asia-Pacific manufacturing | Short term (≤ 2 years) |
Limited Persistent-Memory Orchestration Skills | -1.30% | North America and Europe skill shortage | Medium term (2-4 years) |
Source: Mordor Intelligence
Legacy Integration Complexity
Sectors with heavy technical debt find it hard to mesh legacy hardware with software-defined pools. Up to 60% of enterprises identify heritage platforms as top barriers, with migration delays running months to years. IDFC FIRST Bank needed phased moves for 800+ applications before realizing USD 5 million yearly savings via DevSecOps. Custom middleware, API layers, and prolonged validation can slow broader composable
High Up-front CapEx and Vendor Lock-in
Fabric enclosures, optical retimers, and orchestration suites carry premium pricing that challenges SME budgets. Proprietary stacks raise switching costs, feeding caution around long-term flexibility. Yet VMware Cloud Foundation still demonstrated 171% ROI and USD 6 million net present value in three years, underscoring latent value once scale is reached. Ongoing open-standards work on CXL and PCIe 6.0 aims to curb lock-in, but cost hurdles will persist through 2027, capping the composable infrastructure market’s near-term penetration among cash-constrained buyers.
Segment Analysis
By Component: Hardware Foundations Drive Software Innovation
Hardware elements led the composable infrastructure market with 58.2% share in 2024, enabled by PCIe Gen5 switches, CXL-enabled memory modules, and fabric-attached storage that physically separate resources. Broadcom’s PCIe 6.0 silicon doubles lane rates to 64 GT/s, proof that hardware roadmaps keep stretching bandwidth ceilings. The hardware footprint underpins disaggregation, yet intelligent orchestration differentiates value. Software grew at 20.1% CAGR and increasingly embeds AI algorithms that learn workload patterns to boost utilization and cut energy. HPE Compute Ops Management predicts failures, while Cisco Intersight offers single-pane visibility across mixed resources. The symbiosis of both layers ensures the composable infrastructure market stays innovation-driven rather than commoditized.
Across 2025-2030, AI-infused schedulers will automate policies once handled manually, enhancing uptime and reliability. Marketplace add-ons for cybersecurity, chargeback, and sustainability reporting widen software revenue streams. As open-source projects mature, vendor ecosystems will pivot from monolithic releases to modular plug-ins, making orchestration platforms extensible. Hardware makers adapt by packaging reference designs with prevalidated software to shorten proof-of-concept cycles. This co-evolution keeps customers focused on outcomes rather than technology silos, expanding the composable infrastructure industry’s total accessible value pool.
By Deployment Model: On-Premises Security Meets Cloud Scalability
On-premises estates commanded 55.7% of the composable infrastructure market size in 2024 thanks to data residency rules in finance, healthcare, and public sector. Singapore’s sovereign cloud program selected Microsoft Azure while mandating local control, highlighting how compliance cements on-prem investment. Yet cloud deployments are accelerating at 22.3% CAGR to 2030 as pay-as-you-use economics resonate. HPE GreenLake packages composable infrastructure as a service, freeing teams from fabric purchasing and lifecycle tasks.
Hybrid tactics will dominate: sensitive workloads run in-house, whereas development, testing, and seasonal peaks burst to cloud. Fabric-agnostic management consoles already federate on-prem racks with cloud nodes so operators can drag-and-drop resources between zones. Over time, standard APIs for telemetry and security posture will erase perceptual divides, making location an implementation detail rather than a strategic constraint across the composable infrastructure market.
By Organization Size: Enterprise Scale Enables SME Agility
Large enterprises captured 65.2% composable infrastructure market share in 2024, using disaggregation to consolidate sprawling data centers and support multi-tenant environments. Kaleida Health saved millions by modernizing with Cisco, setting up an innovation lab for new healthcare apps. Volume discounts, global support contracts, and skilled teams let big firms absorb CapEx. Conversely, SMEs adopt at 21.7% CAGR because managed service providers democratize access. Consumption-based models shield them from hefty upfront bills while granting the same elasticity Fortune 500 peers enjoy.
Cloud marketplaces now list composable offerings pre-integrated with DevOps toolchains, so lean IT staffs spin up GPU clusters in minutes. As reference architectures become turnkey, SMEs will pilot specialized edge scenarios—computer vision in retail, AI-driven quality control in medium-sized factories—without recruiting niche engineers. This trickle-down effect broadens the composable infrastructure market’s future customer base far beyond early adopters.
By End-User Vertical: IT Leadership Spurs Healthcare Innovation
IT and telecom players led in 2024 with 25.9% share, aligning with their history of software-defined networking and need for rapid service rollout. Telcos leverage composability for network function virtualization and 5G edge nodes that scale on demand. Healthcare follows as the fastest riser at 20.4% CAGR as imaging, genomics, and real-time patient analytics strain legacy systems. Northwestern Medicine’s GenAI deployment shows radiology speed gains and dynamic GPU reuse, reducing capital waste.
Financial services adopt to unify thousands of transaction systems, exemplified by Banque Saudi Fransi’s platform that reorganized 150 standalone apps into one composable hub. Manufacturing taps the architecture for Industry 4.0, pushing predictive maintenance at edge sites. Government entities modernize citizen services with secure, on-prem clouds. This sectoral diversity underlines how the composable infrastructure market solves a common pain point: aligning ever-shifting digital workloads with limited physical resources.

Note: Segment shares of all individual segments available upon report purchase
By Application / Workload Type: AI/ML Dominance Drives Evolution
AI/ML and HPC workloads held 23.9% of the composable infrastructure market size in 2024 and are rising 21.1% CAGR, a testament to the fit between GPU pooling and deep-learning bursts. Resource managers now monitor tensor-core saturation, reassigning accelerators among training jobs to keep utilization high. DevOps pipelines gain from instant-clone environments; database clustering benefits from transient flash pools optimized per query; VDI and cloud gaming share high-end GPUs without user-visible latency. GigaIO’s suitcase-sized supercomputer proves how composability enables portable AI stacks for tactical or edge deployments.
Looking ahead, multi-tenant AI factories will provision models as services, billing per inference while infrastructure invisibly reconfigures every second. Such elasticity cements the composable infrastructure market as a backbone for next-generation digital economies.
Geography Analysis
North America retained 24.1% leadership in 2024 on the back of hyperscale data-center builds and sovereign-cloud mandates that favor local control of sensitive workloads. IBM’s USD 150 billion commitment to U.S. quantum and mainframe research shows continued appetite for advanced infrastructure. Federal and state regulations encourage agencies and banks to keep data resident, steering budgets toward on-prem composable architectures that still deliver cloud-like agility.
Asia-Pacific is the fastest-growing region, expanding at 21.3% CAGR through 2030 as emerging economies digitize and invest heavily in domestic data-center capacity. AWS’s USD 6 billion pledge in Malaysia and NTT’s USD 90 million Bangkok build illustrate capital inflows that raise regional demand for disaggregated, energy-efficient systems. Semiconductor fabrication hubs in Taiwan and South Korea bolster supply, yet component shortages in PCIe switches underscore risk exposure during demand spikes.
Europe remains opportunity-rich owing to GDPR, DORA, and a tightening focus on digital sovereignty. Hybrid models that align with compliance while sustaining competitiveness accelerate composable uptake, especially in financial services and critical infrastructure. Sustainability regulations further favor resource pooling to shrink idle capacity. Smaller regions—Middle East and Africa, and South America—progress as telecom expansion and cloud availability improve, but economic headwinds and talent gaps keep share growth gradual. Collectively, regional dynamics ensure the composable infrastructure market evolves through a patchwork of regulatory and economic forces rather than a one-size-fits-all trajectory.

Competitive Landscape
The composable infrastructure market is moderately fragmented, with legacy OEMs and niche innovators cohabiting. HPE, Dell, and Cisco leverage installed bases and global channels, layering composable fabrics atop server portfolios. Pure-plays such as Liqid and GigaIO specialize in GPU and NVMe disaggregation, often partnering with Tier 1 vendors for go-to-market scale. Nutanix and VMware embed orchestration logic into hyperconverged stacks, blurring lines between composable and converged offerings.
Strategic alliances dominate 2025 headlines. HPE deepened NVIDIA integration, merging AI software with Alletra Storage for turnkey private-cloud AI. Cisco collaborated with Nutanix to simplify hybrid multicloud, while IBM absorbed HashiCorp to secure infrastructure-as-code talent. Vendors differentiate through software-defined intelligence: predictive analytics that shift workloads pre-emptively, carbon-footprint dashboards, and zero-trust micro-segmentation baked into fabric controllers. As CXL 2.0 and PCIe 6.0 mature, hardware barriers lower and competition refocuses on management ecosystems, making partner breadth a decisive advantage across the composable infrastructure market.
Edge and verticalized solutions represent white-space arenas. Manufacturing, healthcare, and telco packages tuned for industry regulations and latency demands allow newcomers to outflank incumbents. The most successful players combine silicon roadmaps, open-API software, and consumption pricing, supporting customers that want enterprise agility without multi-year lock-ins. This balance sustains healthy rivalry while preventing monopolistic consolidation.
Composable Infrastructure Industry Leaders
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Hewlett Packard Enterprise Co.
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Dell Technologies Inc.
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Cisco Systems Inc.
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Lenovo Group Ltd.
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NetApp Inc.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: Hewlett Packard Enterprise deepened integration with NVIDIA across its AI Factory portfolio, adding Alletra Storage MP X10000 support for NVIDIA AI Data Platform.
- May 2025: Nutanix released its Enterprise AI suite with NVIDIA AI Enterprise integration for shared model endpoints.
- May 2025: IBM outlined a USD 150 billion investment into U.S. quantum and mainframe research and development over five years.
- March 2025: Dell Technologies launched Dell Pro Max AI PCs and revamped PowerEdge servers one year after debuting the Dell AI Factory.
Global Composable Infrastructure Market Report Scope
Composable infrastructure offers value to continue business operations and development by providing increased efficiencies in the system infrastructure operations. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the market in terms of drivers and restraints. The study’s scope tracks the adoption of composable infrastructure solutions used by various end-user verticals in multiple geographies, including their shares, based on inputs received from the industry stakeholders covering both software and hardware.
The composable infrastructure market is segmented by type (software, hardware), by end-user verticals (IT and telecom, BFSI, healthcare, industrial manufacturing, and other end-user verticals), and by geography (North America, Europe, Asia Pacific, Rest of the World). The report offers market forecasts and size in value (USD) for all the above segments.
By Component | Hardware | |||
Software | ||||
By Deployment Model | On-premises | |||
Cloud | ||||
By Organisation Size | Large Enterprises | |||
Small and Medium Enterprises (SMEs) | ||||
By End-User Vertical | IT and Telecom | |||
BFSI | ||||
Healthcare | ||||
Industrial Manufacturing | ||||
Government and Public Sector | ||||
Other Verticals | ||||
By Application / Workload Type | AI/ML and HPC | |||
DevOps and CI/CD | ||||
Databases and Analytics | ||||
VDI and Cloud Gaming | ||||
Other Workloads | ||||
By Geography | North America | United States | ||
Canada | ||||
Mexico | ||||
South America | Brazil | |||
Argentina | ||||
Rest of South America | ||||
Europe | Germany | |||
United Kingdom | ||||
France | ||||
Italy | ||||
Spain | ||||
Rest of Europe | ||||
Asia-Pacific | China | |||
Japan | ||||
India | ||||
South Korea | ||||
Australia | ||||
Rest of Asia-Pacific | ||||
Middle East and Africa | Middle East | Saudi Arabia | ||
United Arab Emirates | ||||
Turkey | ||||
Rest of Middle East | ||||
Africa | South Africa | |||
Nigeria | ||||
Egypt | ||||
Rest of Africa |
Hardware |
Software |
On-premises |
Cloud |
Large Enterprises |
Small and Medium Enterprises (SMEs) |
IT and Telecom |
BFSI |
Healthcare |
Industrial Manufacturing |
Government and Public Sector |
Other Verticals |
AI/ML and HPC |
DevOps and CI/CD |
Databases and Analytics |
VDI and Cloud Gaming |
Other Workloads |
North America | United States | ||
Canada | |||
Mexico | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Australia | |||
Rest of Asia-Pacific | |||
Middle East and Africa | Middle East | Saudi Arabia | |
United Arab Emirates | |||
Turkey | |||
Rest of Middle East | |||
Africa | South Africa | ||
Nigeria | |||
Egypt | |||
Rest of Africa |
Key Questions Answered in the Report
What is the projected size of the composable infrastructure market by 2030?
The composable infrastructure market size is forecast to reach USD 20.86 billion by 2030, growing at a 19.96% CAGR from 2025.
Which component segment is expanding fastest?
Software orchestration platforms are advancing at 20.1% CAGR through 2030 as AI-driven scheduling and predictive maintenance become core features.
Why are enterprises adopting composable architectures for AI workloads?
Dynamic GPU pooling lifts utilization above 80%, accelerates model training, and cuts capital outlays compared with fixed server configurations.
How does regulatory compliance influence deployment choices?
Data-sovereignty rules in finance, healthcare, and government push organizations toward on-premises or sovereign-cloud options that still deliver cloud-like agility.
What restrains small and medium enterprises from faster adoption?
High up-front CapEx and concerns over vendor lock-in slow uptake, though consumption-based cloud offerings are reducing these barriers.