by Composable infrastructure allows disaggregation of resources and pooling of compute, storage, networking, and other functionality, which enable organizations to right size and deploy resources on demand in a dynamically composed infrastructure. Composable infrastructure allows maximum flexibility and scalability by pooling shared physical resources and composing them together through software intelligence as needed. This allows enterprises to deploy optimal technology solutions that meet their current and future business demands.
The global Composable Infrastructure Market is estimated to be valued at US$2.6 billion in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the composable infrastructure market is the increased adoption across small and medium enterprises owing to scalability and flexibility benefits. Traditionally, composable infrastructure solutions were adopted by large enterprises primarily owing to high infrastructure costs. However, with the introduction of more affordable hybrid cloud composable solutions targeted at SMBs, the adoption is witnessing strong growth among small businesses. This trend is expected to further gain momentum over the forecast period. Another noteworthy trend is the integration of AI and composable infrastructure. Major composable infrastructure providers are focusing on developing solutions with integrated AI capabilities for application modernization, resource allocation optimization, and autonomous infrastructure management. This helps automate infrastructure management and right sizing, thereby enhancing operational efficiency. Such AI-driven solutions are witnessing strong uptake in digital transformation initiatives of enterprises across industries.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as it requires high initial capital investments to compete with existing market leaders. However, large technology companies can enter this market more easily.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of various solution providers offering composable infrastructure services. Buyers can negotiate on better pricing and customized solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are multiple component providers for composable infrastructure solutions. However, switching costs for buyers are low.
Threat of new substitutes: The threat of new substitutes is low as there are limited alternatives available currently that can provide the agility and flexibility of composable infrastructure solutions.
Competitive rivalry: The competitive rivalry is high among existing market players like HPE, Cisco, Dell Technologies given their focus on expanding portfolio and target new customer segments.
Key Takeaways
The Global Composable Infrastructure Market Size is expected to witness high growth over the forecast period supported by increasing demand for agile and flexible IT infrastructure solutions.
North America is expected to dominate the market over the forecast period owing to early technological adoption and presence of major solution providers in the region. Growing inclination towards scalable infrastructure is expected to drive Asia Pacific market at fastest pace during the forecast period.
Key players operating in the composable infrastructure market includes HPE, Cisco, Dell Technologies, DriveScale, Lenovo, Cloudistics, Liqid Inc., oneis, HGST, and QCT. These players are focusing on portfolio expansion and targeting large enterprises and telecom operators to drive revenue growth. They are innovating and introducing solutions catering to varied industry verticals for sustained market share.
