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Composable Infrastructure Market Expansion Outlook: What Revenue Opportunities Lie Ahead?
The composable infrastructure market has experienced substantial growth in its size over recent years. This market is anticipated to expand from $10.66 billion in 2025 to $14.09 billion by 2026, exhibiting a compound annual growth rate (CAGR) of 32.1%. The historical expansion of this market can be attributed to several factors, including the increasing adoption of software-defined infrastructure, the growing deployment of modular hardware components, its broader use in BFSI, IT & Telecom, and government sectors, its integration into healthcare and manufacturing industries, and a heightened focus on scalable IT solutions.
The composable infrastructure market size is anticipated to undergo substantial growth in the upcoming years. This market is forecasted to expand to $42.81 billion by 2030, achieving a compound annual growth rate (CAGR) of 32.0%. The projected expansion during this period stems from factors such as increased AI-driven infrastructure management, growing adoption of cloud orchestration software, advancements in automated provisioning and analytics, the widespread implementation of hybrid and multi-cloud solutions, and a rise in predictive resource optimization and monitoring. Significant trends for the forecast period encompass AI-based resource orchestration, cloud-enabled composable infrastructure management, IoT-connected monitoring, automated provisioning and deployment, and predictive analytics tailored for IT resource optimization.
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Composable Infrastructure Market Opportunity Drivers: What Is Creating New Revenue Potential?
The expansion of the composable infrastructure market is anticipated to be spurred by the increasing requirement for cloud services. These services encompass a wide array of computing resources and applications accessible on-demand via the internet. Typically housed on distant servers, frequently within data centers, they are available for use by individuals, enterprises, and organizations online. Their application in composable infrastructure is growing to improve adaptability, scalability, and general operational effectiveness, thereby fostering an IT environment that is highly responsive, efficient, and nimble, capable of quickly adjusting to evolving business needs. For illustration, an assessment from January 2025 by AAG IT Services, a UK-based non-government organization, indicated that in 2022, 57% of SMB workloads and 56% of SMB data were situated in public clouds, with an additional 6% of both expected to transition to the cloud within the subsequent 12 months. As a result, by 2023, roughly 63% of SMB workloads and 62% of SMB data are forecasted to be cloud-based. Thus, the rising need for cloud services is anticipated to significantly advance the composable infrastructure market’s expansion.
Composable Infrastructure Market Segments: Where Are The Largest Growth Opportunities?
The composable infrastructure market covered in this report is segmented –
1) By Component Outlook: Software, Hardware
2) By Cloud: Public, Private, Hybrid
3) By Vertical: BFSI, IT & Telecom, Government, Healthcare, Manufacturing, Other Verticals
Subsegments:
1) By Software: Infrastructure Management Software, Resource Orchestration Software, Monitoring and Analytics Software, Automation and Provisioning Software
2) By Hardware: Compute, Storage, Network, Chassis and Enclosures
#Composable Infrastructure Market Growth Trends: What Is Influencing The Future Outlook?
Major entities active in the composable infrastructure market are prioritizing the creation of novel products like vertical solutions and energy-efficient innovations, with the goal of optimizing data center performance, decreasing power consumption, and enabling scalable AI-driven operations. These vertical solutions and energy-efficient innovations encompass industry-specific technologies and sustainable designs engineered to boost operational efficiency, cut energy usage, and customize infrastructure performance to specific business needs. For instance, in October 2024, Lenovo Group Limited, a China-based technology company, introduced its cutting-edge business-ready AI solutions and advanced liquid cooling technologies. These advancements are crafted to more effectively power AI workloads, enhance thermal management in high-performance computing environments, and empower enterprises to construct sustainable, intelligent infrastructure for the AI era.
Composable Infrastructure Market Major Participants And Competitive Dynamics
Major companies operating in the composable infrastructure market are Lenovo Group Limited, One Stop Systems Inc., Dolphin Interconnect Solutions, Liqid Inc., Inspur Group Co. Ltd., Hewlett Packard Enterprise Company, NetApp Inc., Dell Inc., Nutanix Inc., Juniper Networks Inc., TidalScale Inc., Quanta Cloud Technology LLC, Cloudistics Inc., DriveScale Inc., Cisco Systems Inc., Fungible Inc., Pure Storage Inc., Super Micro Computer Inc., Fujitsu Limited, NEC Corporation, Huawei Technologies Co. Ltd., Hitachi Ltd., International Business Machines Corporation, Oracle Corporation, Microsoft Corporation, Amazon Web Services Inc., Google LLC
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#Composable Infrastructure Market Largest Region: Which Geography Holds The Highest Market Share?
North America was the largest region in the composable infrastructure market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the composable infrastructure market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.