Industry Overview

Composable infrastructure market was valued at $8.8 billion in 2025 and is projected to reach $47.7 billion by 2035, growing at a CAGR of 18.5% during the forecast Period (2026-2035). The market is experiencing steady growth, driven by increasing demand for flexible, scalable, and software-defined IT environments. Organizations are adopting composable solutions to optimize resource utilization, improve operational efficiency, and support dynamic workloads. The integration of cloud computing, virtualization, and automation technologies is further enhancing adoption across industries. Key sectors such as IT & telecommunications, BFSI, and healthcare are contributing significantly to market expansion, as enterprises seek agile infrastructure to manage evolving digital transformation requirements.

Market Dynamics

Rising Demand for Agile, Scalable, and Efficient IT Infrastructure

One of the primary drivers of the global composable infrastructure market is the increasing need for agility, scalability, and operational efficiency within enterprise IT environments. Traditional static hardware architectures struggle to adapt to dynamic workloads, whereas composable infrastructure allows compute, storage, and networking resources to be pooled and provisioned on?demand. This flexibility helps enterprises respond quickly to changing business needs, optimize resource utilization, and reduce unnecessary capital expenditure. As digital transformation accelerates across sectors, organizations are prioritizing infrastructure that can scale seamlessly while supporting modern applications and services.

Adoption of Hybrid/Multi?Cloud and Cloud?Native Technologies

The shift towards hybrid and multi?cloud environments is another major catalyst for market growth. Enterprises are increasingly deploying workloads across on?premises, private cloud, and public cloud infrastructures to balance cost, performance, and data control. Composable infrastructure aligns well with these hybrid strategies by offering unified management and orchestration across different platforms. Additionally, the surge in cloud?native technologies, virtualization, and DevOps practices further boosts demand, since composability supports rapid provisioning, continuous delivery, and automation crucial for modern application lifecycles.

Growth in Data?Intensive Workloads and Digital Transformation Initiatives

The proliferation of data?intensive use cases such as artificial intelligence (AI), machine learning (ML), big data analytics, 5G?driven applications, and edge computing is driving enterprises to adopt more flexible and high?performance infrastructure models. These workloads require dynamic allocation of computing power and storage to meet peak performance demands without overprovisioning. Composable infrastructure enables on?demand resource composition, improved throughput, and better support for analytics workflows, which is increasingly critical as organizations pursue digital transformation goals across industries like IT & telecom, BFSI, healthcare, and manufacturing.

Market Segmentation

• Based on the component, the market is segmented into hardware and software.
• Based on the organization size, the market is segmented into large enterprises and small and medium-sized enterprises (SMEs).
• Based on the deployment model, the market is segmented into on?premises and cloud?
• Based on the end-user, the market is segmented into IT & telecommunications, banking, financial services & insurance (BFSI), healthcare, manufacturing, government & public sector, retail & consumer goods, and others.

Hardware Segment to Grow at a Considerable Market Share

The Hardware segment is the largest and leading segment in the Global Composable Infrastructure Market. Hardware forms the backbone of composable infrastructure, providing the physical compute, storage, and networking resources that can be dynamically allocated and reconfigured based on workload requirements. Enterprises investing in composable infrastructure prioritize high-performance servers, storage arrays, and networking components to ensure scalability, reliability, and low-latency operations. The growing demand for data-intensive applications, such as AI/ML workloads, big data analytics, and high-performance computing, is driving hardware adoption, as these applications require robust and flexible physical infrastructure to deliver optimal performance. Additionally, hardware advancements, such as disaggregated compute-storage architectures and NVMe-based storage solutions, are further fueling the adoption of hardware-centric composable systems.

Large enterprises, particularly in IT, telecommunications, and BFSI sectors, prefer hardware-driven composable solutions for their ability to handle critical workloads and maintain high uptime. While software and cloud-based deployments complement the infrastructure, the tangible nature of hardware ensures performance consistency and operational control, making it indispensable for organizations adopting composable frameworks. Therefore, across all segments, component, organization size, deployment model, and end-user, the hardware segment consistently holds the largest share. It is expected to lead the market through 2035, driven by its fundamental role in enabling scalable, high-performance, and flexible IT environments.

Cloud?Based: A Key Segment in Market Growth

Cloud-Based deployment emerges as the key driver of market growth due to its scalability, flexibility, and cost-efficiency advantages. Organizations across industries are increasingly shifting from traditional on-premises infrastructure to cloud environments to support dynamic workloads, remote accessibility, and rapid digital transformation initiatives. Cloud-based solutions enable businesses to deploy and scale composable infrastructure components on demand, reducing upfront capital expenditure while improving operational efficiency. This model is particularly attractive for small and medium-sized enterprises (SMEs), which benefit from lower entry barriers and reduced IT maintenance costs.

Furthermore, the growing adoption of hybrid and multi-cloud strategies, along with advancements in virtualization, containerization, and software-defined technologies, is accelerating demand for cloud-based deployments. Industries such as IT & telecommunications, BFSI, and healthcare are leveraging cloud infrastructure to enhance data processing capabilities, ensure business continuity, and support real-time analytics. Additionally, the increasing emphasis on agility and faster time-to-market is encouraging enterprises to adopt cloud-native architectures, further strengthening this segment’s dominance. As organizations continue to prioritize digital resilience and innovation, the cloud-based deployment segment is expected to witness sustained growth, making it the most influential contributor to the overall market expansion.

Regional Outlook

The global composable infrastructure market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).

North America Region to Hold a Substantial Growth Rate

In North America, the US dominates the global Composable Infrastructure market, holding a major share due to its highly advanced IT ecosystem and early adoption of next-generation data center technologies. The country is home to major technology giants such as Hewlett Packard Enterprise (HPE), Dell Technologies, Cisco Systems, and emerging cloud-native innovators, all of which actively invest in composable and software-defined infrastructure solutions. Strong demand from hyperscale data centers, cloud service providers, and enterprises undergoing digital transformation significantly contributes to market growth.

Additionally, the widespread adoption of hybrid and multi-cloud strategies across industries such as BFSI, healthcare, retail, and IT & telecommunications has accelerated the deployment of composable infrastructure in the US. The presence of robust digital infrastructure, high IT spending, and continuous innovation in AI, edge computing, and virtualization technologies further strengthens the country’s leading position. Government initiatives supporting digital modernization and cybersecurity also play a vital role in driving adoption. Moreover, enterprises in the US are increasingly focusing on agile, scalable, and efficient infrastructure solutions to manage complex workloads and data-intensive applications. This combination of technological leadership, strong vendor presence, and high enterprise demand firmly establishes the US as the dominant country in the global composable infrastructure market.

Market Players Outlook

The major companies operating in the global composable infrastructure market include Cisco Systems,Dell Technologies, Hewlett Packard Enterprise (HPE), Lenovo Group Ltd., Liqid Inc., among others. Market players are leveraging partnerships, collaborations, mergers, and acquisitions to expand their businesses and develop innovative products to maintain their market positioning.

Recent Development

• In March 2026, Marvell Technology, Inc. launched the Structera S 30260, a 260-lane CXL switch that facilitates rack-level memory pooling, enhancing memory bandwidth and capacity for data centers. This switch, in conjunction with Marvell's near-memory accelerators and memory-expansion controllers, addresses the limitations of traditional CPU architectures and supports the growing demands of AI workloads. As large language models and AI systems become increasingly complex, the need for disaggregated memory resources is pivotal to overcoming the memory capacity constraints that hinder performance and efficiency.
• In March 2026, Hewlett Packard Enterprise (HPE) introduced advanced security innovations, including new hybrid mesh firewall architecture and AI-driven security capabilities, to strengthen enterprise resiliency across distributed, cloud, and edge environments supporting composable and software-defined infrastructure adoption.
• In March 2026, Mirantis launched support for the NVIDIA NCX Infra Controller, enhancing AI cloud infrastructure with open-source technology for next-gen platforms. With over a decade of experience, Mirantis is leading the shift to AI-native platforms using expertise in k0rdent, Kubernetes, and OpenStack. The k0rdent AI initiative makes NVIDIA’s AI infrastructure production-ready as multi-tenant cloud platforms, featuring a unified control plane that integrates NVIDIA's complete portfolio, including Ampere, Hopper, Blackwell, and Quantum InfiniBand.
• In January 2026, NEC Corp. introduced its NEC Composable Disaggregated Infrastructure Solution in Japan, aimed at providing flexible deployment of computing resources such as servers and GPUs. This initiative is intended to reduce capital and operational costs for data centers and research institutions while improving energy efficiency, leveraging NEC's ExpEther technology for low-latency signal transmission. With the rising demand for AI applications, this approach addresses issues of over-provisioning by enabling the separation and distribution of CPUs and GPUs across data center networks, thereby enhancing utilization efficiency.
• In October 2025, HPE unveiled next-generation Cray supercomputing and storage systems designed to enhance high-performance computing and AI infrastructure efficiency, supporting composable and modular data center architectures.

The Report Covers

• Market value data analysis for 2025 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global composable infrastructure market. Based on the availability of data, information related to new products and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.