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US Composable Infrastructure Market

ID: MRFR/ICT/13458-HCR
100 Pages
Garvit Vyas
October 2025

US Composable Infrastructure Market Size, Share and Trends Analysis Report By Cloud Type (Public, Private, Hybrid), By Type (Hardware, Software), By Organization Size (SMEs, Large Enterprises) and By Vertical (IT and Telecommunication, BFSI, Government, Healthcare, Manufacturing) - Forecast to 2035

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US Composable Infrastructure Market Summary

As per Market Research Future analysis, the US composable infrastructure market size was estimated at 1570.0 USD Million in 2024.. The US composable infrastructure market is projected to grow from 1987.46 USD Million in 2025 to 21000.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 26.5% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US composable infrastructure market is experiencing robust growth driven by evolving technological demands.

  • The largest segment in the US composable infrastructure market is hybrid cloud solutions, which are witnessing increased adoption across various industries.
  • Automation and orchestration are becoming focal points for organizations seeking to enhance operational efficiency and reduce manual intervention.
  • Edge computing integration is emerging as a critical trend, reflecting the growing need for real-time data processing and analytics.
  • Key market drivers include the rising need for scalability and the shift towards software-defined solutions, which are shaping the future of composable infrastructure.

Market Size & Forecast

2024 Market Size 1570.0 (USD Million)
2035 Market Size 21000.0 (USD Million)
CAGR (2025 - 2035) 26.59%

Major Players

Hewlett Packard Enterprise (US), Dell Technologies (US), Cisco Systems (US), Lenovo (CN), IBM (US), Supermicro (US), Fujitsu (JP), Oracle (US), NetApp (US)

US Composable Infrastructure Market Trends

The composable infrastructure market is currently experiencing a transformative phase. This is driven by the increasing demand for flexible and efficient IT resources.. Organizations are recognizing the need for adaptable infrastructure that can respond swiftly to changing business requirements. This shift is largely influenced by the growing trend of digital transformation, where companies seek to optimize their operations and enhance their service delivery. As a result, the composable infrastructure market is becoming a focal point for enterprises aiming to streamline their IT environments and improve overall performance. Moreover, advancements in technology are propelling the adoption of composable infrastructure solutions. Innovations in software-defined networking and storage are enabling organizations to create a more agile and responsive infrastructure. This evolution is not merely a trend but appears to be a fundamental change in how IT resources are managed and utilized. the composable infrastructure market is expected to continue expanding as businesses increasingly prioritize scalability and efficiency in their operations.. The emphasis on automation and orchestration further supports this growth, suggesting a promising future for this sector.

Increased Adoption of Hybrid Cloud Solutions

Organizations are increasingly integrating composable infrastructure with hybrid cloud environments. This trend allows businesses to leverage both on-premises and cloud resources, enhancing flexibility and scalability. By adopting hybrid models, companies can optimize their workloads and improve resource allocation, which is crucial for meeting dynamic business needs.

Focus on Automation and Orchestration

The composable infrastructure market is witnessing a heightened emphasis on automation and orchestration tools. These technologies streamline resource management, enabling organizations to deploy and manage their IT resources more efficiently. Automation reduces manual intervention, minimizes errors, and accelerates deployment times, which is essential for maintaining competitive advantage.

Growing Demand for Edge Computing Integration

As the need for real-time data processing increases, the integration of composable infrastructure with edge computing is becoming more prevalent. This trend allows organizations to process data closer to the source, reducing latency and improving performance. The synergy between composable infrastructure and edge computing is likely to enhance operational efficiency and support innovative applications.

US Composable Infrastructure Market Drivers

Rising Need for Scalability

The composable infrastructure market is experiencing a notable surge in demand for scalable solutions. Organizations are increasingly seeking infrastructure that can adapt to fluctuating workloads and business requirements. This need for scalability is driven by the rapid growth of data and the necessity for efficient resource allocation. According to recent data, the market is projected to grow at a CAGR of 25% over the next five years. Companies are recognizing that traditional infrastructure models may not suffice in meeting their dynamic needs, thus propelling the adoption of composable infrastructure. This trend is particularly evident in sectors such as finance and healthcare, where agility and responsiveness are paramount. As businesses strive to enhance operational efficiency, the composable infrastructure market is likely to play a pivotal role in enabling organizations to scale their resources effectively.

Enhanced Resource Utilization

In the composable infrastructure market, the emphasis on maximizing resource utilization is becoming increasingly pronounced. Organizations are striving to eliminate resource wastage and optimize their IT investments. Composable infrastructure allows for the dynamic allocation of resources, ensuring that computing power, storage, and networking capabilities are utilized efficiently. This approach not only reduces operational costs but also enhances overall performance. Recent studies indicate that companies adopting composable infrastructure can achieve up to 30% improvement in resource utilization rates. As businesses continue to seek cost-effective solutions, the composable infrastructure market is positioned to benefit from this growing focus on resource optimization. The ability to allocate resources on-demand aligns with the evolving needs of modern enterprises, making composable infrastructure an attractive option for organizations aiming to streamline their operations.

Demand for Improved Security Posture

In the composable infrastructure market, the demand for enhanced security measures is becoming a critical driver. As organizations increasingly migrate to digital platforms, the need to protect sensitive data and maintain compliance with regulations is paramount. Composable infrastructure offers the potential for improved security through its modular architecture, allowing for the implementation of robust security protocols at various layers. Recent surveys indicate that 70% of IT leaders prioritize security when considering infrastructure solutions. This heightened focus on security is likely to propel the adoption of composable infrastructure, as organizations seek to mitigate risks associated with data breaches and cyber threats. The ability to integrate security seamlessly into the infrastructure design aligns with the evolving landscape of cybersecurity, making composable infrastructure an appealing choice for businesses aiming to bolster their security posture.

Shift Towards Software-Defined Solutions

The composable infrastructure market is witnessing a significant shift towards software-defined solutions. Organizations are increasingly recognizing the advantages of software-defined networking and storage, which offer greater flexibility and control over their infrastructure. This trend is indicative of a broader movement towards virtualization and automation in IT environments. By leveraging software-defined technologies, businesses can achieve faster deployment times and improved agility. The market for software-defined solutions is expected to reach $100 billion by 2026, highlighting the growing interest in these technologies. As companies seek to modernize their IT infrastructure, the composable infrastructure market is likely to see increased adoption of software-defined components, enabling organizations to respond swiftly to changing business demands and enhance their competitive edge.

Growing Interest in Multi-Cloud Strategies

The composable infrastructure market is benefiting from the increasing interest in multi-cloud strategies among organizations. As businesses seek to leverage the strengths of various cloud providers, the need for a flexible and adaptable infrastructure becomes evident. Composable infrastructure enables organizations to integrate multiple cloud environments seamlessly, allowing for optimized performance and cost management. Recent data suggests that 60% of enterprises are adopting multi-cloud strategies to enhance their operational resilience. This trend is likely to drive the growth of the composable infrastructure market, as organizations require solutions that can support diverse cloud environments. The ability to manage resources across multiple clouds effectively positions composable infrastructure as a key enabler for businesses aiming to achieve greater agility and innovation in their operations.

Market Segment Insights

By Cloud Type: Public (Largest) vs. Hybrid (Fastest-Growing)

In the US composable infrastructure market, the cloud type segment is marked by distinct distribution patterns. The public cloud is the largest segment, capturing a significant share due to its scalability and cost-effectiveness. It serves a broad spectrum of industries seeking to leverage cloud resources for enhanced operational efficiency. Conversely, private clouds are preferred by organizations with stringent data security and compliance requirements, though they hold a smaller share. Growth trends indicate that hybrid cloud solutions are emerging rapidly, driven by the need for flexible infrastructure that combines the advantages of both public and private clouds. Organizations are increasingly adopting hybrid models as they look to balance cost with security and compliance. Factors such as digital transformation and the rise of remote work are propelling this trend, suggesting a bright future for hybrid solutions in the market.

Public (Dominant) vs. Hybrid (Emerging)

The public cloud represents the dominant force in the US composable infrastructure market, catering to a wide range of customers with its ease of access and flexibility. Businesses, from startups to large enterprises, are drawn to its cost-effective nature and the ability to rapidly scale resources without significant upfront investment. On the other hand, hybrid clouds are recognized as an emerging solution, as they allow organizations to maintain critical data on private servers while leveraging the public cloud for less sensitive operations. This hybrid approach is increasingly appealing to businesses seeking to innovate without compromising on security. The strategic combination of both cloud types offers firms a competitive edge, as they can optimize their IT environments while reducing costs.

By Type: Hardware (Largest) vs. Software (Fastest-Growing)

In the US composable infrastructure market, hardware maintains a significant market share, enabling robust physical setups essential for various applications. This segment continues to cater to enterprises seeking reliable performance and scalability, driving its status as the largest component. Conversely, the software segment is experiencing rapid growth, attributed to increasing demand for automation and efficiency. Organizations are transitioning towards software solutions that allow flexibility and seamless integration with existing systems. The growth trends in this sector reveal a strong migration towards cloud-based solutions, with software playing a crucial role in enabling digital transformation. The expansion of DevOps practices is further propelling the software segment, as businesses require agile and responsive infrastructure solutions. The need for improved resource management and orchestration is enriching the market presence of software, signifying a pivotal shift in infrastructure strategy.

Hardware (Dominant) vs. Software (Emerging)

Hardware remains the dominant force in the US composable infrastructure market, characterized by its essential role in supporting physical and virtual workloads. This segment offers diverse solutions that enhance system performance and reliability while addressing the necessary infrastructural demands. On the other hand, the software segment is increasingly emerging as a core component of composable infrastructures. Software solutions provide agility and the ability to rapidly adapt to changing business requirements, supporting innovation and faster deployment of applications. The evolution of software, focusing on microservices and containerization, has positioned it as a vital player for organizations aiming for operational excellence. Together, these segments are shaping a versatile infrastructure landscape that meets modern enterprise needs.

By Organization Size: Large Enterprises (Largest) vs. SMEs (Fastest-Growing)

In the US composable infrastructure market, the distribution of market share among organization sizes reveals a significant preference for large enterprises, which dominate the landscape due to their extensive resource availability and complex infrastructure needs. These organizations typically drive innovation and scalability, constituting a major portion of the market as they seek to enhance efficiency and reduce operational costs through advanced composable solutions. On the other hand, small and medium enterprises (SMEs) are emerging as the fastest-growing segment. The surge of digital transformation initiatives and the increasing accessibility of advanced IT resources enable these organizations to adopt composable infrastructure strategies more readily. Factors like cloud adoption and a growing focus on agility are propelling SMEs into a more significant role in the market, highlighting a shift in infrastructure capabilities and preferences.

Large Enterprises (Dominant) vs. SMEs (Emerging)

Large enterprises are characterized by their robust infrastructure capabilities, extensive budgets, and a focus on strategic IT investments that foster long-term growth and operational excellence. These organizations tend to prioritize comprehensive composable solutions that can integrate with existing legacy systems while enabling flexibility and scalability. In contrast, SMEs are increasingly adopting composable infrastructure as they look to modernize their IT ecosystems. This shift allows them to compete more effectively in a rapidly evolving market landscape by leveraging technology without the substantial financial outlay typically associated with large systems. SMEs benefit from more affordable and scalable solutions, driving their rapid growth and positioning them as key players in transforming how organizations utilize composable infrastructure.

By Vertical: IT and Telecommunication (Largest) vs. Healthcare (Fastest-Growing)

The US composable infrastructure market shows a significant distribution among various verticals, with IT and Telecommunication dominating the market share due to an increasing demand for agile and scalable IT solutions. Following closely are the BFSI and Government sectors, which also showcase substantial contributions to overall market dynamics. Healthcare is increasingly capturing attention due to the critical need for digital transformation, driven by regulatory pressures and evolving patient care requirements. Growth trends indicate a robust expansion trajectory for Healthcare, largely fueled by the rising adoption of telemedicine and health IT systems. Additionally, IT and Telecommunication remain pivotal, underpinned by rapid advancements in cloud computing and network infrastructure. The Government sector is embracing composable infrastructures for enhanced operational efficiency, while Manufacturing is gradually leveraging these technologies to innovate processes and boost productivity, setting the stage for transformative growth across the board.

IT and Telecommunication (Dominant) vs. Healthcare (Emerging)

The IT and Telecommunication sector is a dominant force in the US composable infrastructure market, characterized by its extensive infrastructure that supports high volumes of data and applications. This segment benefits from an unwavering push for network optimization, allowing organizations to provide scalable and flexible solutions to a diverse clientele. The rapid digitization trend creates further opportunities, as enterprises increasingly seek platforms that enhance connectivity and performance. On the other hand, Healthcare is emerging as a vital segment, propelled by the necessity for digital health initiatives and data management solutions. The increasing focus on patient-centered care and the integration of advanced technologies like AI and IoT in healthcare systems signify a transformative journey. As this sector rapidly evolves, service providers are positioned to capture new market opportunities, harnessing composable infrastructures to drive efficiencies and improve healthcare outcomes.

Get more detailed insights about US Composable Infrastructure Market

Key Players and Competitive Insights

The composable infrastructure market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for flexible and scalable IT solutions. Key players such as Hewlett Packard Enterprise (US), Dell Technologies (US), and Cisco Systems (US) are actively shaping the market through strategic innovations and partnerships. Hewlett Packard Enterprise (US) has positioned itself as a leader in composable infrastructure by focusing on hybrid cloud solutions and enhancing its software-defined capabilities. Meanwhile, Dell Technologies (US) emphasizes its commitment to edge computing and data center optimization, which aligns with the growing trend of digital transformation across various sectors. Cisco Systems (US) is leveraging its networking expertise to integrate composable infrastructure with advanced security features, thereby enhancing its competitive edge. Collectively, these strategies contribute to a robust competitive environment, where innovation and adaptability are paramount.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several key players exerting influence over specific segments. This fragmentation allows for diverse offerings, yet the collective impact of major companies like IBM (US) and Oracle (US) cannot be overlooked, as they continue to drive advancements in composable infrastructure through strategic acquisitions and technological enhancements.

In October 2025, IBM (US) announced a significant partnership with a leading cloud service provider to enhance its composable infrastructure offerings. This collaboration aims to integrate AI-driven analytics into their solutions, thereby enabling clients to optimize resource allocation and improve operational efficiency. The strategic importance of this partnership lies in IBM's ability to leverage AI capabilities, which could potentially redefine how businesses approach infrastructure management.

In September 2025, Dell Technologies (US) unveiled a new line of composable infrastructure solutions designed specifically for edge computing environments. This launch reflects Dell's strategic focus on addressing the unique challenges posed by edge deployments, such as latency and data processing requirements. By catering to this niche market, Dell is likely to strengthen its position and attract a broader customer base seeking tailored solutions.

In August 2025, Cisco Systems (US) introduced an innovative security framework for its composable infrastructure, aimed at enhancing data protection across hybrid environments. This move underscores Cisco's commitment to integrating security into the core of its infrastructure offerings, which is increasingly vital as cyber threats evolve. The strategic importance of this initiative lies in its potential to build customer trust and loyalty, as organizations prioritize security in their infrastructure decisions.

As of November 2025, current trends in the composable infrastructure market are heavily influenced by digitalization, sustainability, and AI integration. Strategic alliances are becoming increasingly pivotal, as companies recognize the need to collaborate to enhance their technological capabilities. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition suggests that companies that prioritize these aspects will likely emerge as leaders in the composable infrastructure market.

Key Companies in the US Composable Infrastructure Market include

Industry Developments

The US Composable Infrastructure Market has seen notable activity recently, particularly among major players like VMware, Dell Technologies, Netapp, and Oracle. Throughout 2023, there has been a focus on enhancing hybrid cloud solutions and services as businesses increasingly transition to flexible IT environments. Specifically, VMware announced collaborations aimed at integrating its platform with leading cloud providers in June 2023, emphasizing a focus on composable solutions. The market is also reflecting growth, driven by the rising demand for scalable and efficient infrastructure solutions, with Pure Storage and Nutanix showing significant revenue increases in Q2 2023.

On the mergers and acquisitions front, in August 2023, Dell Technologies acquired a key startup to bolster its composable infrastructure offerings, enhancing its competitive stance in the market. Major happenings include IBM's acquisition of Red Hat in July 2019, which strengthened its cloud-native capabilities, illustrating the trend of companies seeking to diversify services within composable infrastructures. Overall, investment in composable infrastructure aligns with the growing need for adaptable IT solutions within the dynamic landscape of US enterprises.

Future Outlook

US Composable Infrastructure Market Future Outlook

The Composable Infrastructure Market is projected to grow at a 26.59% CAGR from 2024 to 2035, driven by increasing demand for flexible IT resources and enhanced operational efficiency.

New opportunities lie in:

  • Development of modular data center solutions for rapid deployment.
  • Integration of AI-driven management tools for resource optimization.
  • Expansion into edge computing solutions to enhance performance and scalability.

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in IT infrastructure solutions.

Market Segmentation

US Composable Infrastructure Market Type Outlook

  • Hardware
  • Software

US Composable Infrastructure Market Vertical Outlook

  • IT and Telecommunication
  • BFSI
  • Government
  • Healthcare
  • Manufacturing

US Composable Infrastructure Market Cloud Type Outlook

  • Public
  • Private
  • Hybrid

US Composable Infrastructure Market Organization Size Outlook

  • Large Enterprises
  • SMEs

Report Scope

MARKET SIZE 2024 1570.0(USD Million)
MARKET SIZE 2025 1987.46(USD Million)
MARKET SIZE 2035 21000.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 26.59% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Hewlett Packard Enterprise (US), Dell Technologies (US), Cisco Systems (US), Lenovo (CN), IBM (US), Supermicro (US), Fujitsu (JP), Oracle (US), NetApp (US)
Segments Covered Cloud Type, Type, Organization Size, Vertical
Key Market Opportunities Integration of artificial intelligence in composable infrastructure enhances resource allocation and operational efficiency.
Key Market Dynamics Rising demand for flexible IT resources drives innovation and competition in the composable infrastructure market.
Countries Covered US

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FAQs

What is the estimated market size of the US Composable Infrastructure Market in 2024?

The US Composable Infrastructure Market is expected to be valued at 1.7 billion USD in 2024.

What will be the anticipated market value of the US Composable Infrastructure Market by 2035?

By 2035, the US Composable Infrastructure Market is expected to reach a valuation of 90.0 billion USD.

What is the expected CAGR for the US Composable Infrastructure Market from 2025 to 2035?

The expected compound annual growth rate (CAGR) for the US Composable Infrastructure Market from 2025 to 2035 is 43.453%.

Which cloud type is projected to be the largest segment in the US Composable Infrastructure Market by 2035?

The Public cloud type is projected to be the largest segment, expected to reach 37.5 billion USD by 2035.

What is the projected value of the Private cloud segment in the US Composable Infrastructure Market for 2035?

The Private cloud segment is anticipated to reach a value of 24.0 billion USD by 2035.

How much is the Hybrid cloud segment valued at in 2024 in the US Composable Infrastructure Market?

The Hybrid cloud segment is valued at 0.5 billion USD in 2024.

Who are the key players in the US Composable Infrastructure Market?

Major players include VMware, Dell Technologies, Netapp, Oracle, and Amazon Web Services, among others.

What challenges might impact the US Composable Infrastructure Market during its growth phase?

Potential challenges include technological integration and competition from traditional infrastructure solutions.

What opportunities exist for growth in the US Composable Infrastructure Market?

Opportunities for growth are largely driven by the increasing demand for flexible IT infrastructure solutions.

What are the key applications of composable infrastructure in businesses today?

Key applications include data center optimization, agile resource management, and reducing IT operational costs.

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