Composable Infrastructure Market Size, Share & Trends Analysis Report By Component, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global composable infrastructure market size was valued at USD 2,678.6 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 50.4% from 2022 to 2030. The increasing demand for efficient application performance and business analytics workload is expected to contribute to the growth of this market. Due to the outbreak of the COVID-19 pandemic, organizations have struggled to keep up with their regular infrastructure needs. Enterprises of all sizes have expanded rapidly, thus driving the demand for robust IT infrastructure. Countries have experienced intensified data demand during the pandemic and underscored the importance of data centers.

Furthermore, during this period, composable infrastructures helped firms in virtualizing their entire Information Technology (IT) infrastructure by allowing them to adapt to flexible and adaptive infrastructure. These benefits of composable infrastructure during the pandemic period will further boost the growth of the market.

Organizations rely on composable infrastructure to synchronize tasks and improve overall efficiency to support the remote working culture. For instance, in May 2020, Hewlett Packard Enterprise (HPE) introduced HPE SimpliVity 325 Gen 10 Hyper-Converged Infrastructure (HCI) solution, to enable the remote workforce and deliver a 50% lower cost per virtual desktop.

Another important factor that accelerated the growth of the market was that composable infrastructure reduces complexity by offering a single infrastructure model across the enterprise. Furthermore, with the help of automatic integration and seamless operations, organizations could support a more open learning environment and had to invest less in staff training. These factors will fuel the market growth during the forecast period.

The rise in data security concerns has pushed organizations to implement composable infrastructure solutions, as confidential data remains on-premise, thus offering better data protection. The need to fill the IT productivity gap and manage available resources more efficiently contributes to the market demand. Organizations are interested in pooling their resources without making any changes to the existing IT infrastructure.

This can be attained with the help of composable infrastructure as developers can programmatically control it. They offer a single interface to configure, search, discover, update, and diagnose. These benefits provided by composable infrastructure solutions will supplement the growth of the market during the projection period.

Composable infrastructure eliminates the need for managing physical workload separately; instead, it allows managing the physical assets and systems with remote reconfiguration. In recent times, an increase in data center consolidation and DevOps agility has also supported the demand for composable infrastructure. The market is expected to grow considerably during the forecast period, as composable infrastructure provides organizations with a unified management interface that integrates previously siloed systems and operations and allows them to be delivered as a service.

Several IT & telecom enterprises are accelerating their process, data, and innovation, which cannot be achieved with conventional bare-metal and virtualization apps. Hence, many firms take the help of composable infrastructure solutions to support containerized applications with software-driven automation and a fluid pool of resources to fit the firm’s specific needs. 

For instance, Liqid Inc., a composable infrastructure provider, offers cloud-like agility from the data center at any scale and allows new levels of resource utilization. Furthermore, features such as infrastructure on demand, ease of use, nimbleness, and built-in automation and orchestration are expected to support the market growth during the assessment period.

Component Insights

The hardware segment accounted for the largest market share of 83.6% in 2021. The segment includes platforms and equipment such as operating systems, racks, consoles, switches, and keys. The hardware segment has witnessed high demand due to the growth of enterprise applications and the need for sound IT infrastructure. The companies are investing in cloud IT infrastructure hardware, as enterprises across several verticals have realized the emergence of big data and analytics.

Furthermore, with the help of effective hardware, businesses can develop an ideal IT infrastructure to streamline their workflows and reduce the burden on networks. These benefits and growing trends are expected to drive the segment over the forecast period. The software segment is expected to advance at a CAGR of 53.7% during the forecast period in the composable infrastructure market. One of the key factors responsible for such rapid growth is that several enterprises are adopting the DevOps methodology, which demands an agile framework.

This agile framework can easily be attained with the implementation of infrastructure as code to enhance resource allocation. Additionally, the software allows enterprises to exchange and pair hardware components at will. Several other benefits, such as reusing code across various projects and breaking core applications into specialized microservices, are expected to drive the growth of the segment.

End-use Insights

The IT & telecommunication segment accounted for a substantial revenue share of 33% of the overall market in 2021. The segment growth can be attributed to the presence of multiple over-the-top (OTT) service providers, including YouTube, Netflix, and Amazon Prime.  These OTT providers need to keep up with data quality and guarantee business coherence as they routinely handle numerous terabytes of information.

Data security becomes a prime concern for OTT vendors; thus, they rely on composable infrastructure solutions to have a better grip on their data. According to recent guidelines, they allow organizations to develop a data quality framework to align the data quality. These benefits will supplement the growth of the segment during the forecast period.

The BFSI segment is anticipated to expand at a significant growth rate of 51.0% during the forecast period. The composable infrastructure solutions help financial institutions increase their operational efficiency and productivity, provide low operational expenditure, and reduce management overheads.  To protect this data against cybercrimes, banks and other financial institutions rely on composable infrastructure solutions.

The data remains on-premise which assures better data security. Moreover, with the rise in digital transactions around the world and increased customer expectations, organizations cannot afford application downtime. With the help of composable infrastructure, banks can reduce downtime in case of network failure. These benefits will supplement the demand growth of composable infrastructure in the BFSI sector.

Regional Insights

The North American regional market dominated the composable infrastructure industry in 2021 and accounted for 38.4% revenue share, aided by the region’s well-established IT infrastructure, which supports the growth of the composable infrastructure space. Additionally, the companies in this region are shifting from static infrastructure to a more dynamic infrastructure as it helps organizations in utilizing resources more efficiently.

Besides, the customers in this region are not only aware of the latest services in the market but also expect the customer experience to be top-notch, which forces organizations to reduce downtime and enhance their operational efficiency. These factors have been constantly supporting the growth of the regional market for composable infrastructure.

Asia Pacific is anticipated to emerge as the fastest developing regional market at a CAGR of 54.8% during the forecast period, due to the rapidly expanding IT sector and simplification of IT infrastructures with the advent of new technologies. The companies in this region are evolving their strategies to acquire more customers and improve the overall experience by offering personalized services.

To offer a personalized experience, firms are quickly deploying new applications that make the company progress to the next level with composable systems. Additionally, organizations around this region are observed to transmute the core business applications and make the environment more agile due to rapid changes in the marketplace, which is fueling the growth of composable infrastructure in this region.

Key Companies & Market Share Insights

Market players have been observed to invest significant resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in March 2022, Liqid, a software company offering data center composability, announced a collaboration with MemVerge and Intel to deliver composable memory solutions for big memory computing. The collaboration helped MemVerge and Liqid to pool and orchestrate Dynamic Random Access Memory (DRAM) and Storage-Class Memory (SCM). Prominent players operating in the global composable infrastructure market include:

• HGST, Inc.

• DriveScale, Inc.

• TidalScale, Inc.

• Dell

• Liqid

• NetApp

• Nutanix

• Western Digital

• Hewlett Packard Enterprise (HPE)

• Cloudistics

Recent Development

• In October 2022, Dell Technologies launched the Project Frontier, an edge operations software platform. The Project Frontier securely manages and orchestrates edge applications and infrastructure at a global scale.

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 2017 to 2030. For this study, Grand View Research has segmented the global composable infrastructure market report based on component, end-use, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • IT & Telecommunication

  • Retail & Consumer Goods

  • Healthcare

  • Manufacturing

  • Others (Energy & Utilities, Government, and Media & Entertainment, among others)

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • South America

    • Brazil

  • Middle East & Africa