Composable-Disaggregated Infrastructure Market

Key Points Covered

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Composable-Disaggregated Infrastructure market and how to Navigate
• Recommendation on Key Winning Strategies

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2016-2020 Composable-Disaggregated Infrastructure Demand Outlook Compared to 2021-2031 Forecast

Enterprises are generating more data than ever, but they also need applications that can make sense of all this information. Many are turning to AI, big data analytics and other advanced technologies that can derive meaningful insights from the data. Such applications require adequate IT infrastructure to support them.

Infrastructure alone is seldom enough. Requirements can vary significantly from one application to the next and even fluctuate within the same application. These changing application requirements make it difficult for traditional infrastructure to meet the demands of the advanced workloads. For this reason, many organizations are now looking to composable disaggregated infrastructure.

The sales for composable-disaggregated infrastructure solutions is estimated to rise at 26.3% CAGR between 2021 and 2031 in comparison with 22.2% CAGR registered during 2016-2020.  

Integration with automation software assembling components dynamically into a complete solution for the workload is one of the primary growth factors for the market. Increasing number of IT enterprises are shifting to DevOps methodology for application development is also expected to contribute significantly to the composable disaggregated infrastructure market. Overall, dynamic applications of composable disaggregated infrastructure, and the growing awareness of them, is what drives the overall industry growth.

The global composable-disaggregated infrastructure growth scenario is anticipated to witness an increase in revenue from US$ 2.2 Bn in 2021 to US$ 39.5 Bn by 2031.

How Demand for New Memory-Centric Infrastructure Shaping the Market Growth?

Data-hungry applications will create demand for new infrastructure architectures that can provide cloudlike agility and scale but with the on-premises security. Such infrastructure will need to shed the compute-centric design and be built using newer (radical) memory-centric principles. Composable-disaggregated infrastructure is an avenue to achieving that reality. Memory-centric infrastructure platforms built with low-latency, high-bandwidth fabrics have the potential to indelibly change the server and storage market dynamics.

Furthermore, the traditional siloed datacenter architectures are unable to provide flexibility required by business critical applications of modern world. Additionally, increasing number of IT enterprises are shifting to DevOps methodology for application development, which requires an agile infrastructure to keep up with the rapidly evolving application demands and often uses an “infrastructure as code” approach to optimize allocation of resources.

What Is the Impact of COVID-19 Crisis on Composable-Disaggregated Infrastructure Solutions Demand?

The rapid spread of COVID-19 has disrupted the world’s economy. IT service companies have also experienced significant slowdown in growth during this period. However, IT infrastructure still remains the backbone of smooth business operations.

There has been significant increase in demand for IT infrastructure monitoring tools as a result of COVID-19 lockdown measures, as most employees are working remotely. Companies are making their IT departments ensure that all applications that are required for business operations are running smoothly for all the employees. Thus, during the pandemic period, demand for IT infrastructure monitoring tools has surged.

Over the past few years, there is increasing demand for data globally. Although the digital transformation has been underway for some time, the COVID-19 pandemic has accelerated the transition. Enterprises of all sizes are expanding rapidly, driving demand for robust regional IT infrastructure. Countries has experienced intensified data demand during the pandemic and underscored the importance of digital technology and data centers. Thus, all the major countries have experienced an increase in demand for data centers during the pandemic.

Thus, the demand for composable-disaggregated infrastructure is estimated to witness a noteworthy growth from around 21.7% to 24.5% Y-o-Y from 2019 to 2021.

Country-wise Insights

How Big is the Opportunity in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for more than 79% of the North America share through 2031.

Presence of well-established players, such as HPE, Dell, DriveScale, and Liqid Inc. is the major factor driving the market growth in the U.S. Growing demand for enterprise applications and simplification of existing IT with the advent of new technologies are also improving the demand.

Furthermore, surging demand for scalability in solutions, reduction in operational expenditure, and low total ownership cost on IT infrastructure are the prime factors driving the growth of the composable-disaggregated infrastructure demand in the U.S.

The economy of the U.S. comprises a better infrastructure and hence can provide better internet penetration. This helps in faster implementation of new technologies, which is driving the adoption of composable-disaggregated infrastructure in the U.S.

How will the Growth of Composable-Disaggregated Infrastructure Unfold in India?

Sales in India is estimated to exhibit tremendous growth at  35% CAGR between 2021 & 2031. Demand for composable-disaggregated infrastructure has increased rapidly in major economies of South Asia and Pacific, including India, Australia and New Zealand, which has created lucrative growth opportunities for market participants. 

Government in India has implemented a number of ICT initiatives under the National e-Governance Plan (NeGP), including creation of ICT infrastructure both at the centre and state levels.

The infrastructure thus created will provide the basis for adoption of cloud computing for the government with the objective of making optimum use of existing infrastructure, reuse of applications, efficient service delivery to the citizens, and increasing the number of e-transactions in the country, thus helping achieve the ultimate goal of NeGP.

Consequently, demand for composable-disaggregated infrastructure solutions is projected to rise at an impressive rate as enterprises seek cost-efficient solutions. 

How is China Contributing Towards the Composable-Disaggregated Infrastructure Sales?

Demand for composable-disaggregated infrastructure in China is estimated to account for a total sale of US$ 210.5 Mn by 2021-end. Small- and medium-sized businesses in China are adopting public and private cloud offerings for their digital transformation strategies, while enterprises are adopting a multi-cloud, hybrid approach.

For all these scenarios, both, IT and DevOps teams are tasked with managing the ever-increasing complexity of the infrastructure to provide a better user experience.

Furthermore, China's growing adoption and optimization of digital services emphasizes the need to deliver top-notch user experience to customers. Companies are actively engaged in bridging the operational gap for DevOps and IT teams with their deep monitoring insights that provide better visibility into performance trends and user impact, reducing time to repair and refine.

Categorywise Insights

Why is the Demand for Disaggregated Hardware Continuously Rising?

Based on component, disaggregated hardware is expected to contribute for nearly 63% of the overall share in 2021. Initial disaggregation of subsystems within physical servers begins with the decoupling of the storage and networking from the CPU and memory.

Networking is shared by all resources, CPU and memory are housed on distinct nodes/trays from storage trays/nodes, and latency complications still prevent the separation of CPU from the memory.

The disaggregation of the components provides ample flexibility in the architecture to achieve the best ratio of compute to I/O to storage for a wide range of workloads and provides the ability to compose optimal configurations to address compute-intensive, data-intensive, and/or balanced workloads based on the unique requirements of specific applications.

Why Enterprises Mostly Prefer the Composable-Disaggregated Infrastructure?

The enterprises segment, among end users, is projected to register a massive demand, exhibiting  noteworthy growth at a CAGR of 28.6% over the coming years. In today's enterprise, data can come from transactional systems, IoT devices, social media sites, web logs, user devices, monitored IT systems and a variety of other sources.

By deriving insights from this data, organizations can realize multiple benefits. For example, they might use this information to optimize IT operations or increase employee productivity. Alternatively, they might use it to improve customer services or gain competitive edge.

Resources become elastic building blocks for delivering an optimal environment that's provisioned and configured to support a specific workload without having to wait on lengthy IT allocation processes.

With composable-disaggregated infrastructure, enterprises can enhance configurations as workload requirements change, assembling and reassembling resources in response to evolving application and business requirements.

When the application no longer needs those resources, they're returned to the resource pool and are ready for use by other applications. Thus, enterprises are likely to witness tremendous growth over the forecast period.

What are the Prospects for Sales of Composable-Disaggregated Infrastructure Solutions for SMEs?

In terms of enterprise size, the market is segmented into small & medium enterprises (SMEs) and large enterprises. The SMEs segment is expected to register astounding growth at a CAGR of 27.9%, while also creating an incremental opportunity of US$ 9.7 Bn through 2031.

With today’s cutting-edge technologies, the IT landscapes of small- and mid-sized organizations tend to be just as complex as those of larger counterparts, just on a much smaller scale.

A sound IT infrastructure, including the company network, is just as important to small- and mid-sized companies as it is to larger businesses. However, smaller companies often have small IT teams or even a single administrator.

Hence, auxiliary tools such as composable-disaggregated infrastructure solutions are gaining immense popularity among  smaller businesses.

Composable-disaggregated infrastructure has the potential to deliver incalculable value to mid-sized companies. Consequently, paving a way for lucrative opportunities within small- and mid-sized enterprises. Thereby propelling market growth.

Competitive Landscape

The composable-disaggregated infrastructure industry is highly concentrated and controlled by dominant players, like Hewlett Packard Enterprise, Cisco Systems Inc., Dell EMC, and Ericsson.

Key companies are focusing on introduction of new solutions and strategic partnerships to increase their business revenue. However, with product innovations and technological advancements, midsize to smaller firms are growing their market presence by securing new contracts and tapping new markets.

• For instance, in February 2021, Dell Technologies announced an investment of US$ 50 million over three years since 2019 in the establishment of a Global Innovation Hub (GIH) in Singapore. The GIH will focus on advancing multiple growth areas for digital transformation including augmented/mixed reality, data analytics, cloud-native, cybersecurity and edge computing. It will also be the home to a specialized team responsible for enhancing user experiences through innovation.

Scope of Report

Key Highlights from Report

• Which region is expected to showcase significant growth in composable-disaggregated infrastructure solutions demand?

  South Asia & Pacific are expected to register strong growth in the market at 32.8% CAGR between 2021 & 2031. However, North America currently leads the market, with share of ~29% in 2021.  

• Which is the most attractive component in the composable-disaggregated infrastructure market?

  Disaggregated hardware is currently the most attractive, accounting for over 62% of revenue generated in 2020. Moreover, the segment is expected to witness robust growth at a CAGR of 27% throughout the forecast period.

• Which are some of the leading companies offering composable-disaggregated infrastructure solutions?

  Some of the leading market players are Hewlett Packard Enterprise, Cisco Systems, and DriveScale, among others. Nearly 75% of the market share is currently covered by the top 9 players.

• Who are the leading end users of composable-disaggregated infrastructure solutions? 

  Cloud providers segment is expected to dominate over the forecast period, generating revenue of US$ 10.1 Bn by 2031. However, enterprises segment is likely to expand with a CAGR of ~28% through 2031.

• How much is the global composable-disaggregated infrastructure demand worth?

  The market was valued at ~US$ 1.8 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 26.3% to reach ~US$ 22.7 Bn in 2031.

• What will be the demand outlook/ sales forecast for Composable-Disaggregated infrastructure?

  Sales of composable-disaggregated infrastructure solutions is expected to be valued at ~US$ 2.2 Bn by the end of 2021, and is likely to reach ~US$ 22.7 Bn by 2031.

• At what rate did the composable-disaggregated infrastructure market grow during 2016-2020?

  The market in last 5 years (2016 – 2020) grew at a CAGR of 22.2%.

• What is driving demand of composable-disaggregated infrastructure?

  Increase in business analytics workload, implementation of methodologies such as DevOps, increased customer expectations, rise of automation and standardization tools and emergence of hybrid cloud are the key factors driving the market growth.

• Which countries are key providers of Composable-Disaggregated infrastructure solutions?

  Countries involved in providing Composable-Disaggregated Infrastructure solutions include the U.S., India, U.K., and Japan.

• What is the current composable-disaggregated infrastructure market value?

  The global composable-disaggregated infrastructure market is expected to register growth at 24.5% CAGR in 2021.

• What are the top 5 countries driving demand?

  Top 5 countries driving demand for composable-disaggregated infrastructure include the U.S., Japan, India, Germany, and U.K.

• What is the North America Market Outlook?

  North America is predicted to remain most attractive markets during the forecast period, according to FMI. The U.S. is expected to account for over 79% of the North America market through 2031.

• How will the Europe composable-disaggregated infrastructure industry growth unfold?

  The composable-disaggregated infrastructure industry in Europe is estimated to expand at a CAGR of 22.2% over the forecast period.

• What is the key market statistics in South Korea and Japan?

  The demand in Japan and South Korea was valued at US$ 102.5 Mn and US$ 59.5 Mn in 2020, respectively, and is projected to register CAGR of 27.3% and 29.3% through 2031.

Composable-Disaggregated Infrastructure Outlook by Category

By Component:

• Disaggregated Hardware
• Composable Software
• Services

By End Users:

• Cloud Providers
• Colocation Providers
• Enterprises

By Enterprise Size:

• Small and Medium Enterprises (SMEs)
• Large Enterprises

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa (MEA)