Composable Infrastructure Market Size, Share & Trends Analysis Report By Component (Software, Hardware), By Vertical (BFSI, IT & Telecom, Healthcare, Retail & Consumer Goods), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global composable infrastructure market size was valued at USD 3.29 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 19.7% from 2021 to 2028. Composable infrastructure allows an organization’s data center to utilize its own hardware devices and software solutions-based infrastructure and reduces the time required to deploy any other application for similar purposes. Composable infrastructure offers value addition to the businesses, delivering increased competencies in infrastructure operations. It reduces Capex by supporting the fluid pools of vibrant assets by reducing the cost incurred for overprovisioning of stranded resources. Additionally, it also lowers OPEX by reducing disparate administration tools, which require a high level of proficiency and learning.

The COVID-19 pandemic and nationwide lockdown in different countries such as the U.S., the U.K., India, China, and Germany have impelled employees to work from home or remote locations. The data required by employees at remote locations can be easily accessed via public cloud. Thus, the public cloud storage and on-premise storage systems have played a significant role in making the tasks easier and work synchronized. Most companies have extended work from home for certain durations, which have increased the need to adopt composable infrastructure.

Composable infrastructure allows the storage of sensitive information on-premise, thereby reducing security concerns. It also decreases the high costs related to the public cloud while reducing the problems and issues related to cybersecurity. However, the emergence of hybrid cloud is aiding the integration of on-premise and cloud deployment and offering an opportunity for the overall market growth across the world. For instance, Lenovo has partnered with Cloudistics to develop a hybrid cloud solution in the ThinkAgile CP series for enterprises. Other factors such as data center consolidation and DevOps agility are expected to contribute to the composable infrastructure market growth over the forecast period.

Virtual desktop infrastructure (VDI) allows desktop operating systems such as Microsoft Windows to run and is managed in a data center. In this case, a virtual image is sent to an endpoint device via a network. This device allows the end user to respond to the OS and its installed applications in real-time as if they are installed and working on the local system, computer, or laptop. Hence, VDI acts as an efficient solution to manage workspaces and related applications, storage, and concerns for a single user as well as multi-user groups.

Composable infrastructure eliminates the need for managing physical workload separately and offers solutions and support, without moving physical assets & systems, with remote reconfiguration through software. Additionally, CI enables the IT team to manage the physical workload driving the overall market growth.

Component Insights

The hardware segment accounted for the largest revenue share of around 94% in 2020. The segment includes platforms and related equipment necessary to develop IT infrastructure. The related equipment includes all the on-premise systems such as in-house data centers/servers, software licenses, database software, and operating systems, racks, consoles, switches, keys, and other related hardware. The growing trends of enterprise applications and the increasing demand for effective hardware to develop an ideal IT infrastructure are expected to drive the segment growth over the forecast period.

The software segment is expected to register a CAGR of 24.3% from 2021 to 2028. Currently, many IT firms are moving toward adopting DevOps methodology for application development. This methodology requires an agile framework to maintain the evolving trends in any application. Hence, it uses infrastructure as code (IAC) to enhance resource allocation. IAC methodology allows the design and development of customized infrastructure for a user using software commands (either Graphic User Interface (GUI) or API). Companies such as Dell EMC and TidalScale offer customized software solutions. These factors are expected to contribute to the overall segment growth from 2021 to 2028.

Industry Vertical Insights

The IT and telecom segment accounted for the largest revenue share of around 35% of the overall market in 2020. The segment growth can be attributed to the presence of a large number of OTT providers such as Netflix and Amazon Prime. Data security is a critical concern for these OTT providers as they handle large terabytes of data regularly. Additionally, these OTT providers need to maintain data quality and ensure business continuity. Therefore, they develop a data quality framework to align the data quality as per the existing policies and adopt composable infrastructure for unified integration.

The BFSI segment is expected to expand at a CAGR of 20.5% from 2021 to 2028. Digital transformation has been a key factor fueling the segment growth. Banks and other financial institutions gather large amounts of consumer data, which is pivotal to the success of these firms. This data needs to be managed with accuracy for making efficient business decisions. Additionally, the information needs to be stored on a practical and user-friendly storage system.

Regional Insights

North America accounted for the largest revenue share of around 34% in 2020. The increased adoption of virtualization and reduced OPEX and CAPEX due to the adoption of composable infrastructure is the factors driving the regional market growth. Several companies are involved in mergers and acquisitions with VDI-offering companies to enhance their presence in the region. For instance, in April 2020, NetApp (U.S.) acquired CloudJumper (U.S.), a VDI provider. This acquisition is expected to resolve the issues related to virtual desktop services.

The Asia Pacific market for composable infrastructure is anticipated to expand at the highest CAGR of 21.0% from 2021 to 2028. The regional market growth can be attributed to the increased spending on smart city initiatives in the region. Growing industrialization has resulted in the production of several data sets, therefore driving the need for data storage management in the region.

Key Companies & Market Share Insights

Some of the key players that dominated the global market in 2020 include HGST, Inc.; Dell; DriveScale, Inc.; TidalScale, Inc.; Liqid; Nutanix; Western Digital; and NetApp. These players offer a wide range of hardware and software solutions for composable infrastructures. These companies offer their hardware and software solutions to retail, BFSI, healthcare, and manufacturing end-use industries. New software launches and upgrades of the existing platforms have continued to be the key strategies of these players. For instance, TidalScale, one of the key players, announced the third generation of its software-defined server technology in September 2019. This software-defined server technology-enhanced real-time machine learning, increased performance and scalability and delivered up to 10X faster performance compared to a traditional server. In April 2019, DriveScale launched its DriveScale Composable Platform, which now includes support for NVMe over TCP. Some of the prominent players operating in the global composable infrastructure market are:

• DriveScale, Inc.

• HGST, Inc.

• Liqid

• NetApp

• Nutanix

• TidalScale, Inc.

• Western Digital

Composable Infrastructure Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global composable infrastructure market report by component, industry vertical, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2028)

  • Software

  • Hardware

• Industry Vertical Outlook (Revenue, USD Million, 2018 - 2028)

  • BFSI

  • IT & Telecom

  • Retail & Consumer Goods

  • Healthcare

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • South America

    • Brazil

  • Middle East & Africa