Composable Infrastructure Market Opportunities and Strategies to 2034

This report describes and explains the composable infrastructure market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global composable infrastructure market reached a value of nearly $8.09 billion in 2024, having grown at a compound annual growth rate (CAGR) of 36.40% since 2019. The market is expected to grow from $8.09 billion in 2024 to $32.97 billion in 2029 at a rate of 32.44%. The market is then expected to grow at a CAGR of 31.98% from 2029 and reach $132.06 billion in 2034.

Growth in the historic period resulted from the rising adoption of AI and automation, increasing adoption of digital transformation, demand for enhanced security and compliance and expansion of edge computing. Factors that negatively affected growth in the historic period were lack of standardized infrastructure facilities and stringent regulations and compliance.

Going forward, the adoption of 5G networks, increase in cloud adoption, rise in remote work and rising volume of data generation will drive the growth. Factor that could hinder the growth of the composable infrastructure market in the future include data security challenges and risk of single point of failure.

North America was the largest region in the composable infrastructure market, accounting for 39.47% or $4.12 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the composable infrastructure market will be Asia-Pacific and South America where growth will be at CAGRs of 41.69% and 33.75% respectively. These will be followed by Middle East and North America where the markets are expected to grow at CAGRs of 32.47% and 28.86% respectively.

The global composable infrastructure markets is fragmented, with large number of players operating in the market. The top 10 competitors in the market made up 5.54% of the total market in 2023. Hewlett Packard Enterprise Development LP was the largest competitor with a 1.10% share of the market, followed by Dell Technologies Inc. with 0.69%, Cisco Systems Inc. with 0.60%, Lenovo Group Limited with 0.52%, Huawei Technologies Co. Ltd. with 0.51%, Nutanix Inc. with 0.51%, NetApp Inc. with 0.50%, International Business Machines Corporation with 0.48%, NTT Data Corp. with 0.32% and Supermicro (Super Micro Computer, Inc.) with 0.31%.

The composable infrastructure market is segmented by component outlook into software and hardware. The hardware market was the largest segment of the composable infrastructure market segmented by component outlook, accounting for 75.71% or $6.12 billion of the total in 2024. Going forward, the software segment is expected to be the fastest growing segment in the composable infrastructure market segmented by component outlook, at a CAGR of 40.38% during 2024-2029.

The composable infrastructure market is segmented by cloud into public, private and hybrid. The public market was the largest segment of the composable infrastructure market segmented by cloud, accounting for 43.25% or $3.49 billion of the total in 2024. Going forward, the hybrid segment is expected to be the fastest growing segment in the composable infrastructure market segmented by cloud, at a CAGR of 37.07% during 2024-2029.

The composable infrastructure market is segmented by vertical into BFSI (banking, financial services and insurance), IT (information technology) & telecom, government, healthcare, manufacturing and other verticals. The IT (information technology) & telecom market was the largest segment of the composable infrastructure market segmented by vertical, accounting for 33.25% or $2.69 billion of the total in 2024. Going forward, the BFSI segment is expected to be the fastest growing segment in the composable infrastructure market segmented by vertical, at a CAGR of 38.69% during 2024-2029.

The top opportunities in the composable infrastructure market segmented by component outlook will arise in the hardware segment, which will gain $16.13 billion of global annual sales by 2029. The top opportunities in the composable infrastructure market segmented by cloud will arise in the hybrid segment, which will gain $9.52 billion of global annual sales by 2029. The top opportunities in the composable infrastructure market segmented by vertical will arise in the IT & telecom segment, which will gain $8.77 billion of global annual sales by 2029. The composable infrastructure market size will gain the most in the USA at $7.28 billion.

Market-trend-based strategies for the composable infrastructure market include focus on developing technologically innovative solutions, focus on concentrating on creating innovative technological solutions, such as Data Infrastructure as a Service (DIaaS) platform, focus on prioritizing the development of technologically advanced solutions and focus on development of advanced AI and HPC-driven solutions to enhance resource utilization, improve workload scalability and optimize computing efficiency.

Player-adopted strategies in the composable infrastructure market include focus on expanding business capabilities through partnership to expand operational capabilities and focus on business capabilities through innovative product launch to expand its operational capabilities.

To take advantage of the opportunities, the analyst recommends the composable infrastructure to focus on developing composable data activation platforms, focus on advancing data infrastructure as a service (DIaaS) solutions, focus on advancing composable disaggregated infrastructure (CDI), focus on developing AI and HPC-driven composable solution, focus on the fast-growing software market segment, focus on the fast-growing hybrid cloud market segment, expand in emerging markets, focus on expanding distribution channels through strategic partnerships, focus on competitive and value-based pricing strategies, implement targeted, data-driven promotional strategies, leverage co-marketing partnerships to expand promotional reach and focus on the fast-growing BFSI market segment.

Major Market Trends

• Innovation in Composable Data Activation and Engagement Platforms
• Composable Diaas Platform to Optimize Cloud Performance and Cost Efficiency
• Advancing Composable Disaggregated Infrastructure (CDI) for Scalable Data Centers
• Advanced AI and HPC Solutions Enhance Composable Infrastructure Efficiency

Key Mergers and Acquisitions

• Contentstack Acquired Lytics Inc.
• Uniphore Acquired ActionIQ Inc.
• Alchemy Insights Inc. Acquired Bware Labs AG
• Orium Acquired Gluo
• Accenture plc. Acquired Mindcurv GmbH
• Microsoft Acquires Fungible Inc.