Composable Infrastructure Market - Forecast(2024 - 2030)

Composable Infrastructure Market size is expected to be valued at $18.6 billion by 2030 and is set to grow at a CAGR of 19.6% during the forecast period from 2024-2030. Composable infrastructure is a dynamic approach to IT infrastructure management that involves pooling and allocating computing, storage, and networking resources based on specific application or workload requirements. Growing demand of digital transformation in IT and telecom industries along with the demand for agility and flexibility in IT infrastructure is the primary driver propelling the composable infrastructure market. As organizations adopt the cloud, composable infrastructure emerges as a strategic solution. By enabling dynamic resource allocation and orchestration, this technology empowers businesses to optimize operations, reduce costs, and accelerate innovation.

The integration of AI and machine learning capabilities is a pivotal trend shaping the composable infrastructure market. By harnessing the power of these technologies, platforms can gain predictive capabilities, enabling them to anticipate resource requirements and optimize allocation accordingly. Machine learning algorithms can analyse vast amounts of data to identify patterns and trends, leading to improved workload placement, fault detection, and performance optimization. This intelligent automation not only enhances operational efficiency but also unlocks new possibilities for innovation and business growth. Also, there is a growing emphasis on security enhancement. Safeguarding sensitive data and maintaining system integrity becomes increasingly complex due to the frequent changes in resource allocation and configuration. To address these challenges, robust security measures such as zero-trust architecture, advanced threat detection and micro-segmentation are being implemented to protect against cyber threats and ensure compliance with data privacy regulations.

COVID-19 / Ukraine Crisis - Impact Analysis: ?

• The COVID-19 pandemic accelerated the adoption of composable infrastructure as organizations sought to adapt to rapidly changing business needs and remote work environments. The ability to dynamically provision and configure IT resources on demand became crucial for maintaining business continuity and optimizing costs. Composable infrastructure provided the flexibility and scalability required to support remote workforces and handle fluctuating workloads.
• The Russia-Ukraine war indirectly affected the composable infrastructure market. As countries increase their military budgets other sectors such as technology might experience budget cuts. Additionally, inflation and rising energy prices during the war has increased the cost of running data centers.

Key Takeaways

Software is the Leading Segment

Software is the leading segment by type in the composable infrastructure market. The software layer is brain that orchestrates and manages the entire system and is responsible for managing and coordinating the composition along with the decomposition of hardware resources. Software-driven automation is essential for efficient resource allocation and optimization. On other hand, Software-defined infrastructure provides greater agility and adaptability compared to traditional hardware-centric approaches. In October 2023 VMware announced a partnership with FutureSkills Prime, a digital upskilling initiative supported by the Indian government, to enhance digital skill development for students and recent graduates.

IT and Telecom is the Largest Segment

Composable Infrastructure Market is led majorly by the IT and telecom industry. These industries require highly dynamic, scalable and efficient IT environments to support their core operations. Due to rapid growth of data traffic and the deployment of 5G networks, the network infrastructure is becoming increasingly complex. The industry's need to manage complex networks coupled with the increasing demand for data-intensive services makes composable infrastructure a critical tool for optimizing resource utilization and improving service delivery. Companies offering IT services such as cloud service providers and managed service providers, heavily rely on composable infrastructure to deliver flexible and scalable solutions to their clients. In May 2024, Wipro deepened its collaboration with Nutanix by establishing a new Nutanix business unit that aims to accelerate digital transformation initiatives for mutual clients.

North America Dominates the Market

North America stands out as the dominant region in the composable infrastructure market, holding approximately 39% of the global market share. This leadership is driven by the region's significant investments in technology and advanced IT infrastructure. forefront of adopting and deploying composable infrastructure. The high demand for scalable and flexible solutions to support cloud computing, data-intensive applications and digital transformation initiatives further solidifies North America's position. The region’s mature IT ecosystem coupled with a strong focus on operational efficiency and cost management and is supported by substantial investments in IT infrastructure and significant contributions from the technology sector to the GDP. For instance, AWS’s $30 billion investment in cloud infrastructure and Hewlett Packard Enterprise Co.’s $1 billion in R&D demonstrate the region’s commitment to advancing composable infrastructure. Additionally, the technology sector’s 9.6% contribution to the U.S. GDP highlights the economic importance of technology investments.

Digital Transformation Drives the Market

The rapid adoption of digital technologies across industries is driving the need for flexible and adaptable IT infrastructure. It requires organizations to rethink their business models, processes and customer interactions. IT departments need the most comprehensive digital integration solutions to overcome challenges such as user interaction, application connectivity and fully integrated and accessible data availability. Composable infrastructure addresses this need by enabling organizations to rapidly provision and de-provision resources to support new applications and workloads. By providing flexibility, scalability and agility, it allows organizations to rapidly adapt to changing business needs and deploy new applications and services. ?In May 2024 Cisco Systems Inc. and Cisco has announced a strategic partnership to simplify path to AI Innovation. ?This partnership for integrated infrastructure and networking solutions, aimed at accelerating digital transformation across businesses worldwide

Cloud Adoption to Boost the Market

The increasing prevalence of hybrid and multi-cloud environments drives the demand for infrastructure that can seamlessly integrate with different cloud platforms. It involves a strategic shift from owning and managing IT resources to consuming them as a service. It makes it easier to allocate network resources for traditional business applications such as system and network management, data file transfer, virtual desktop infrastructure (VDI) and security systems. The cloud adoption is cost effective as it offers pay-as-you-go pricing models, eliminating the need for upfront capital expenditures and offers robust disaster recovery capabilities safeguarding critical data and applications. Composable infrastructure offers the flexibility and agility required to manage workloads across multiple cloud environment. Dell and Databricks announced Multicloud Analytics and AI Solution in May 2023 which will bring customers cloud-based analytics and AI using Databricks with data stored in Dell Object Storage

Complexity and Management in Implementation is a Challenge ?

?One of the primary challenges in implementing composable infrastructure is the increased complexity involved in managing and orchestrating diverse resources. Lack of sophisticated orchestration, automation tools, network topology brings such complexities. Also ensuring data security and compliance in a dynamic environment where resources are constantly changing poses such challenges. To address these challenges, as components can be dynamically combined and reconfigured, organizations need to invest in robust management tools, develop skilled teams, and adopt best practices for security, performance and cost optimization.

Composable Infrastructure Market Outlook

Key strategies in the composable infrastructure market include technological advancements, strategic partnerships and R&D activities. Major players in the sector include: 1.?? ?Cisco Systems Inc. 2.?? ?Intel Corporation 3.?? ?NVIDIA 4.?? ?Dell? 5.?? ?Microsoft Corporation 6.?? ?Western Digital 7.?? ?Lenovo Group 8.?? ?GigaIO Networks, Inc. 9.?? ?Hewlett Packard Enterprise 10.?? ?Liqid Inc.

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Hewlett Packard Enterprise |Cisco|Dell Technologies.|Huawei Technologies Lanka Co., (Pvt) Ltd.|Inspur Group |Lenovo|NEC Corporation|NTT.|SAP |TidalScale, |Intel Corporation|NVIDIA|Microsoft |Western Digital|GigaIO|Liqid|Nutanix|Juniper Networks |Dell Technologies

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