Composable Infrastructure Market Size, Share, Growth, and Industry Analysis, By Types (Hardware, Software), By Applications (BFSI, IT and Telecom, Government, Healthcare, Manufacturing, Others) , and Regional Insights and Forecast to 2035

Composable Infrastructure Market Size

The Global Composable Infrastructure Market size was USD 48.68 billion in 2025 and is projected to reach USD 72.27 billion in 2026, USD 107.31 billion in 2027, and USD 2535.09 billion by 2035, exhibiting a growth rate of 48.48% during the forecast period (2026–2035). The market is witnessing exponential growth driven by rising demand for software-defined infrastructure, automation, and flexible IT architectures. Over 63% of enterprises globally are adopting composable solutions to improve workload management and operational efficiency.

The US Composable Infrastructure Market is growing rapidly, with approximately 59% of large enterprises integrating composable frameworks into their data centers. Around 52% of US-based IT companies are prioritizing automation and hybrid cloud deployments. Additionally, 48% of enterprises report a reduction in operational downtime through composable adoption. The country remains a key innovation hub, with nearly 42% of global R&D activities focused on enhancing composable infrastructure scalability and AI integration.

Key Findings

• Market Size: USD 48.68 billion (2025), USD 72.27 billion (2026), and USD 2535.09 billion (2035) with a growth rate of 48.48%.
• Growth Drivers: Over 58% of enterprises focus on hybrid cloud adoption and 46% increase investments in automation-driven IT infrastructure modernization.
• Trends: Around 61% of organizations emphasize composable software adoption, while 49% integrate AI-based orchestration to optimize IT resource utilization.
• Key Players: HPE, Dell EMC, Lenovo, Liqid, DriveScale & more.
• Regional Insights: North America holds 38% of the market driven by automation and cloud expansion, Europe follows with 27% supported by sustainability and IT modernization, Asia-Pacific captures 24% fueled by digital transformation and smart infrastructure, while the Middle East & Africa accounts for 11% with growing adoption in government and telecom sectors.
• Challenges: Around 44% of enterprises face integration issues, and 39% report limited skilled workforce availability, impacting composable infrastructure deployment efficiency.
• Industry Impact: Over 62% of businesses achieve faster workload deployment and 36% experience improved resource optimization through composable infrastructure implementation.
• Recent Developments: Nearly 47% of vendors introduced AI-enhanced orchestration platforms and 42% launched modular hardware systems for high-performance computing.

The Composable Infrastructure Market is evolving as a core enabler of digital transformation, driven by the convergence of AI, automation, and hybrid cloud technologies. Nearly 57% of enterprises are re-engineering legacy IT frameworks using composable solutions, enabling modular scalability and reduced provisioning time. Adoption among telecom, BFSI, and healthcare sectors continues to accelerate, with over 40% integrating advanced composable frameworks for seamless workload orchestration and data center modernization. The market reflects a dynamic shift toward software-defined, flexible, and intelligent infrastructure ecosystems.

Composable Infrastructure Market Trends

The Composable Infrastructure Market is rapidly evolving with growing adoption across data centers, cloud service providers, and large enterprises. Over 64% of enterprises are now integrating composable infrastructure solutions to optimize IT resource utilization and enhance scalability. The shift towards software-defined infrastructure has accelerated as 58% of organizations prioritize flexibility in deploying workloads.

Additionally, around 46% of global IT leaders have reported improved data center efficiency through composable architecture integration. The market is also witnessing a 40% rise in demand for automation-driven resource allocation, reducing operational downtime by nearly 32%. Hybrid cloud adoption has surged by more than 51%, creating strong synergy with composable platforms for unified management.

Furthermore, 49% of enterprises have cited enhanced agility and reduced provisioning times as primary benefits. With nearly 43% of businesses implementing artificial intelligence and analytics-driven orchestration tools, composable infrastructure is becoming a strategic enabler of digital transformation. The growing focus on modular infrastructure, sustainability, and reduced hardware dependency continues to shape market trends, making composable solutions vital for future-ready IT ecosystems.

Composable Infrastructure Market Dynamics

OPPORTUNITY

Rising shift toward hybrid and multi-cloud environments

Nearly 57% of enterprises are transitioning toward hybrid cloud models, driving the need for composable infrastructure to unify resource management. Around 45% of organizations have identified multi-cloud integration as a key operational challenge that composable architecture can resolve. With 52% of IT teams emphasizing workload portability and dynamic provisioning, the opportunity for composable systems continues to expand. The technology also enables up to 38% faster application deployment and reduces hardware utilization inefficiency by 33%, offering significant operational advantages.

DRIVERS

Growing demand for automation and efficient IT operations

More than 61% of IT departments are focusing on automation to streamline operations and reduce manual intervention. Composable infrastructure allows automated resource allocation, leading to nearly 47% improvement in workload efficiency. Around 42% of organizations reported reduced infrastructure costs due to composable solutions, while 36% achieved faster provisioning cycles. With a 50% rise in the adoption of software-defined systems, the need for automation-driven composable architectures is becoming a major driver in enterprise IT transformation.

RESTRAINTS

"High complexity in integration and deployment"

Approximately 48% of organizations face challenges in integrating composable infrastructure with legacy IT systems. The lack of skilled professionals in composable architecture affects nearly 37% of deployments globally. Moreover, 42% of enterprises report increased setup complexity due to diverse hardware ecosystems. Vendor interoperability issues and dependency on proprietary software frameworks limit adoption in around 33% of mid-sized enterprises, posing a restraint on the market’s broader scalability potential.

CHALLENGE

"Security and compliance concerns"

Security remains a major challenge as 56% of enterprises express concerns over data integrity within composable environments. Roughly 44% of businesses highlight compliance risks when automating infrastructure provisioning. Additionally, 39% of IT leaders cite difficulty in monitoring distributed components across composable frameworks. Managing shared resources securely across hybrid and multi-cloud architectures is a key challenge for 41% of organizations, emphasizing the need for stronger governance and integrated security models.

Segmentation Analysis

The Global Composable Infrastructure Market, valued at USD 48.68 Billion in 2025 and projected to reach USD 72.27 Billion in 2026, is expected to achieve USD 2535.09 Billion by 2035, growing at a CAGR of 48.48% during the forecast period. The market is segmented by type into Hardware and Software, and by application into BFSI, IT & Telecom, Government, Healthcare, Manufacturing, and Others. Hardware leads due to high integration in data centers, while Software is rapidly expanding with automation and orchestration tools. In applications, IT & Telecom dominates with growing cloud usage, whereas Healthcare and BFSI are emerging strongly with increasing digital transformation initiatives. Each segment contributes uniquely, supported by scalability, modular design, and demand for flexible infrastructure.

By Type

Hardware

Hardware components form the backbone of composable infrastructure, comprising servers, storage arrays, and networking modules designed for dynamic reconfiguration. Nearly 62% of enterprises deploy hardware-based composable setups for enhanced data center performance and workload optimization. Hardware adoption has also increased by 47% among large enterprises seeking faster provisioning and reduced energy consumption.

The Hardware segment held a market size of USD 28.35 Billion in 2025, representing 58.2% of the total Composable Infrastructure Market. It is projected to grow at a CAGR of 45.66% from 2025 to 2035, driven by growing demand for modular server architecture, higher compute density, and flexible deployment models across cloud environments.

Software

Software solutions in composable infrastructure enable automation, orchestration, and resource pooling across distributed systems. Around 54% of enterprises have adopted composable software platforms for workload management, while 48% have reported enhanced operational visibility. Integration with AI-based orchestration tools has boosted productivity and reduced IT administration costs by 36%.

The Software segment accounted for USD 20.33 Billion in 2025, capturing a 41.8% market share. It is anticipated to witness a CAGR of 52.92% through 2035, fueled by the rising implementation of virtualization tools, DevOps integration, and AI-driven infrastructure management solutions across hybrid and multi-cloud environments.

By Application

BFSI

The BFSI sector is embracing composable infrastructure to streamline core banking operations, strengthen security, and improve data processing efficiency. Approximately 51% of financial institutions are investing in composable systems to modernize legacy infrastructure and enhance scalability. Digital payment platforms have recorded a 46% improvement in performance efficiency with composable deployment.

The BFSI segment had a market size of USD 7.81 Billion in 2025, representing 16.1% of the total market, with a projected CAGR of 47.89% from 2025 to 2035 due to rising fintech innovation and adoption of AI-powered cloud systems.

IT and Telecom

IT and Telecom are the primary adopters of composable infrastructure, leveraging dynamic resource allocation for 5G network expansion and data analytics. About 66% of telecom providers have implemented composable solutions to optimize virtualized environments. The segment has seen a 53% improvement in resource scalability and 39% reduction in operational downtime.

The IT and Telecom segment was valued at USD 14.72 Billion in 2025, contributing 30.2% share, and is expected to grow at a CAGR of 49.12% through 2035, driven by edge computing expansion, cloud-native network functions, and automation adoption.

Government

Government organizations are increasingly adopting composable infrastructure for secure, scalable, and efficient public service delivery. Nearly 43% of public agencies have shifted to composable frameworks to support e-governance and data analytics. Adoption has led to a 40% improvement in interoperability across departments.

The Government segment held USD 5.22 Billion in 2025, accounting for 10.7% of market share, with a forecasted CAGR of 45.55% from 2025 to 2035, supported by investments in digital infrastructure modernization and cloud transformation initiatives.

Healthcare

Composable infrastructure in healthcare enables real-time patient data processing, interoperability, and telemedicine expansion. Around 49% of healthcare providers report improved data management efficiency and 35% faster analytics performance with composable deployment. Adoption in clinical research and hospital systems continues to rise.

The Healthcare segment reached USD 8.27 Billion in 2025, holding a 17% market share, with a projected CAGR of 50.34% during 2025–2035 due to growing healthcare digitization and AI-driven diagnostic solutions.

Manufacturing

Manufacturers are implementing composable infrastructure to support Industry 4.0 transformations, predictive maintenance, and IoT-based production control. Approximately 58% of manufacturing firms utilize composable architectures for smart factory management, achieving 42% better data flow between systems.

The Manufacturing segment recorded USD 6.12 Billion in 2025, with a 12.6% share and an expected CAGR of 48.05% through 2035, driven by automation, robotics integration, and industrial data optimization.

Others

The “Others” category, which includes retail, education, and energy sectors, is steadily adopting composable infrastructure for flexibility, cost optimization, and scalability. Around 37% of enterprises in these domains have transitioned from static infrastructure to composable setups, reporting a 31% improvement in operational agility.

The Others segment stood at USD 6.49 Billion in 2025, accounting for 13.4% of the total market, and is expected to expand at a CAGR of 46.78% from 2025 to 2035, driven by rapid digitization, smart energy management, and e-commerce modernization.

Composable Infrastructure Market Regional Outlook

The Global Composable Infrastructure Market, valued at USD 48.68 Billion in 2025 and projected to reach USD 72.27 Billion in 2026, is estimated to grow to USD 2535.09 Billion by 2035, registering a CAGR of 48.48% during 2026–2035. Regionally, North America dominates with a 38% market share, followed by Europe at 27%, Asia-Pacific at 24%, and the Middle East & Africa contributing 11%. Each region exhibits unique growth patterns driven by digital transformation, cloud infrastructure investments, and enterprise modernization initiatives. Advancements in automation, hybrid cloud strategies, and data center optimization are fueling composable infrastructure deployment across these geographies, with all regions demonstrating strong momentum toward IT agility and scalability.

North America

North America leads the global Composable Infrastructure Market with high adoption among enterprises and cloud service providers. Nearly 63% of large-scale data centers in the region are transitioning to composable infrastructure to optimize hardware utilization and reduce operational costs. The U.S. accounts for the majority of demand, while Canada shows strong growth in AI-based IT orchestration. The increasing focus on hybrid cloud deployment and DevOps automation continues to strengthen the regional landscape.

North America held a market size of USD 18.49 Billion in 2025, representing 38% of the total market. The region is expected to grow at a CAGR of 47.85% from 2026 to 2035, driven by rapid data center modernization, demand for workload flexibility, and high digital transformation rates across enterprises.

Europe

Europe’s composable infrastructure market is growing rapidly as enterprises emphasize sustainability, resource efficiency, and modular data centers. Around 57% of European organizations are investing in composable systems to enhance scalability and reduce hardware redundancy. Germany, the UK, and France are major contributors, with significant adoption in manufacturing, BFSI, and government sectors. The region’s focus on green IT and energy-efficient computing also fuels demand for composable architectures.

Europe accounted for USD 13.14 Billion in 2025, representing 27% of the global market. It is projected to expand at a CAGR of 48.12% from 2026 to 2035, driven by increased automation, cloud migration, and enterprise IT modernization initiatives.

Asia-Pacific

Asia-Pacific is witnessing exponential growth in the composable infrastructure market due to expanding cloud ecosystems and digital transformation projects. Approximately 61% of enterprises in the region have adopted composable solutions to enhance flexibility and optimize IT resources. Countries like China, India, and Japan are at the forefront, investing heavily in modular data centers and AI-driven cloud frameworks. Rising investments in telecom infrastructure and smart city programs further boost market expansion.

Asia-Pacific was valued at USD 11.68 Billion in 2025, representing 24% of the total market. The region is estimated to grow at a CAGR of 49.55% through 2035, propelled by increasing digital adoption, IoT integration, and cloud-native enterprise models.

Middle East & Africa

The Middle East & Africa region is gradually adopting composable infrastructure to enhance data center resilience and scalability. Around 39% of enterprises in the region have initiated composable deployment, particularly within government, telecom, and energy sectors. The UAE, Saudi Arabia, and South Africa are emerging as key adopters, driven by smart infrastructure projects and national digital transformation strategies.

The Middle East & Africa market reached USD 5.37 Billion in 2025, representing 11% of the global market. It is anticipated to grow at a CAGR of 47.92% from 2026 to 2035, fueled by rising cloud investments, expanding hyperscale data centers, and growing emphasis on IT automation.

List of Key Composable Infrastructure Market Companies Profiled

Investment Analysis and Opportunities in Composable Infrastructure Market

Investments in the Composable Infrastructure Market have increased significantly as 68% of enterprises allocate budgets toward infrastructure modernization. Around 55% of global venture capital funds are now focusing on software-defined infrastructure startups. Private sector investment has surged by 49% as organizations pursue automation and AI integration within composable systems. Data center operators are expected to allocate 46% of their IT budget to modular composable solutions by the next decade. Additionally, 58% of cloud service providers are planning to expand their composable deployments to reduce provisioning time by 32%. These trends demonstrate strong investment opportunities in automation, orchestration software, and hybrid IT architecture solutions globally.

New Products Development

Continuous innovation is reshaping the Composable Infrastructure Market, with more than 42% of vendors introducing AI-driven orchestration features in their latest offerings. About 37% of new products emphasize enhanced scalability and dynamic workload management. Hardware developers are focusing on modular components that improve energy efficiency by up to 28%. Software vendors are integrating predictive analytics, reducing resource wastage by 31%. Cloud-based composable platforms are being developed by 45% of emerging players to support hybrid deployments. These innovations are expected to increase automation levels by over 52%, boosting agility and reducing downtime for enterprises globally.

Recent Developments

• HPE: Introduced an updated version of its Synergy composable system with 38% improved automation speed and 29% enhanced storage management features, focusing on large-scale enterprise workloads.
• Dell EMC: Launched a new composable infrastructure module that integrates AI-based orchestration tools, improving operational efficiency by 41% across hybrid data centers.
• Lenovo: Announced strategic upgrades to its ThinkAgile portfolio with a 36% performance boost and reduced latency by 27%, targeting cloud service providers and data-driven enterprises.
• Liqid: Expanded its composable software stack, enabling 48% faster provisioning of GPU resources for AI and HPC workloads, enhancing scalability for research institutions.
• TidalScale: Partnered with multiple hyperscale data centers to deploy composable memory infrastructure, achieving a 33% improvement in real-time data processing efficiency in 2024.

Report Coverage

The Composable Infrastructure Market report provides an extensive analysis of the industry landscape, highlighting growth drivers, restraints, opportunities, and challenges influencing global adoption. The report includes a detailed SWOT analysis, showing strengths such as high scalability and agility (64%), weaknesses related to integration complexity (39%), opportunities from hybrid cloud growth (57%), and threats due to security vulnerabilities (43%). It covers market segmentation by type, application, and region, providing insights into the 48.48% growth rate expected between 2026 and 2035. The study evaluates the competitive landscape, where key players like HPE, Dell EMC, and Lenovo collectively control over 50% of the market. Additionally, 62% of enterprises report operational benefits such as faster workload deployment and reduced resource wastage. The coverage also includes technological assessments on automation, orchestration tools, and AI integration trends driving next-generation data centers. The analysis emphasizes strategic collaborations, R&D investments, and emerging innovations shaping the future of composable IT infrastructure across industries worldwide.