Composable Infrastructure Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Composable Infrastructure Market is Segmented by Component (Hardware and Software), Deployment (On Premise, Cloud), Organization Size (Large Enterprise, Small and Medium Enterprise), End User (IT and Telecom, BFSI, and More), Application/Workload Type (AI/ML and HPC, Devops, and CI/CD, and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Composable Infrastructure Market Size and Share

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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.

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.

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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.

Composable Infrastructure Market
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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.

Composable Infrastructure Marke
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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

  1. Hewlett Packard Enterprise Co.

  2. Dell Technologies Inc.

  3. Cisco Systems Inc.

  4. Lenovo Group Ltd.

  5. NetApp Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Composable Infrastructure Market Concentration
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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.

Table of Contents for Composable Infrastructure Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 AI/ML GPU-Pooling Demand
    • 4.2.2 Cloud-Native and Micro-services Scalability Needs
    • 4.2.3 Data-center Consolidation and CapEx Optimisation
    • 4.2.4 Edge-Computing Deployment Acceleration
    • 4.2.5 CXL-enabled Memory Composability
    • 4.2.6 Sovereign-Cloud Compliance Boosting On-prem Builds
  • 4.3 Market Restraints
    • 4.3.1 Legacy Integration Complexity
    • 4.3.2 High Up-front CapEx and Vendor Lock-in
    • 4.3.3 PCIe Gen5 Switch Supply-Chain Bottlenecks
    • 4.3.4 Limited Persistent-Memory Orchestration Skills
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Force Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Bargaining Power of Buyers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry
  • 4.8 Assessment of Macro-Economic Impact on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Hardware
    • 5.1.2 Software
  • 5.2 By Deployment Model
    • 5.2.1 On-premises
    • 5.2.2 Cloud
  • 5.3 By Organisation Size
    • 5.3.1 Large Enterprises
    • 5.3.2 Small and Medium Enterprises (SMEs)
  • 5.4 By End-User Vertical
    • 5.4.1 IT and Telecom
    • 5.4.2 BFSI
    • 5.4.3 Healthcare
    • 5.4.4 Industrial Manufacturing
    • 5.4.5 Government and Public Sector
    • 5.4.6 Other Verticals
  • 5.5 By Application / Workload Type
    • 5.5.1 AI/ML and HPC
    • 5.5.2 DevOps and CI/CD
    • 5.5.3 Databases and Analytics
    • 5.5.4 VDI and Cloud Gaming
    • 5.5.5 Other Workloads
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Rest of Europe
    • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 Japan
    • 5.6.4.3 India
    • 5.6.4.4 South Korea
    • 5.6.4.5 Australia
    • 5.6.4.6 Rest of Asia-Pacific
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Middle East
    • 5.6.5.1.1 Saudi Arabia
    • 5.6.5.1.2 United Arab Emirates
    • 5.6.5.1.3 Turkey
    • 5.6.5.1.4 Rest of Middle East
    • 5.6.5.2 Africa
    • 5.6.5.2.1 South Africa
    • 5.6.5.2.2 Nigeria
    • 5.6.5.2.3 Egypt
    • 5.6.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Hewlett Packard Enterprise Co.
    • 6.4.2 Dell Technologies Inc.
    • 6.4.3 Cisco Systems Inc.
    • 6.4.4 Lenovo Group Ltd.
    • 6.4.5 NetApp Inc.
    • 6.4.6 Nutanix Inc.
    • 6.4.7 Western Digital Corp.
    • 6.4.8 Juniper Networks Inc.
    • 6.4.9 GigaIO Networks Inc.
    • 6.4.10 One Stop Systems Inc.
    • 6.4.11 Liqid Inc.
    • 6.4.12 IBM Corp.
    • 6.4.13 Microsoft Corp.
    • 6.4.14 Huawei Technologies Co. Ltd.
    • 6.4.15 Nvidia Corp.
    • 6.4.16 Inspur Group
    • 6.4.17 Super Micro Computer Inc.
    • 6.4.18 Fungible Inc.
    • 6.4.19 Seagate Technology Holdings plc
    • 6.4.20 Atos SE
    • 6.4.21 Broadcom Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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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
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
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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.

Composable Infrastructure Market Report Snapshots