Composable Network Market

Market Definition

The Composable Network Market size was valued at XXX in 2023 and is predicted to reach YYY by 2030 with a CAGR of Z% from 2024-2030.

A Composable Network is an advanced networking architecture that enables organizations to dynamically and flexibly provision, configure, and manage network resources according to the specific needs of applications and workloads. Unlike traditional networking approaches, which are often rigid and static, a Composable Network allows for the disaggregation and abstraction of network services and resources, making them programmable and software-defined.

This enables organizations to create, modify, and scale network infrastructures in real-time, optimizing performance, agility, and resource utilization. Composable Networks are designed to support the evolving requirements of modern applications, such as cloud-native, microservices-based, and edge computing environments, by providing a highly adaptable and responsive networking framework.

Market Dynamics and Trends

The demand for the composable network market is increasing due to the growing demand for automation and programmability. As the number of connected devices and applications continues to increase, there is a growing need for network infrastructure that can be easily automated and programmed to adapt to changing demands. Composable networks enable a more automated and programmable network, which is driving the growth of the composable network market.

Also, the rising adoption of software-defined principles such as SDN (Software-Defined Networking) and SDDC (Software-Defined Data Center) is closely aligned with the modular and programmable characteristics of composable networks, thus boosting the market growth. SDN and SDDC technologies abstract network and data center resources into software, enabling centralized management, automation, and flexibility.

Similarly, composable networks leverage a modular architecture that allows for the dynamic allocation and reallocation of network resources based on application requirements, optimizing performance and efficiency. The synergy between these software-defined principles and composable networks enables organizations to achieve greater agility, scalability, and cost-effectiveness in managing their IT infrastructure.

Moreover, the growing adoption of 5G network along with the evolving network requirements is further boosting the growth of the composable network market. The deployment of 5G networks has increased the demand for network infrastructure that can support high-speed and low-latency communications.

As per a GSMA report, it is anticipated that by 2025, 5G networks will encompass approximately one-third of the global population. This widespread adoption is expected to have a significant impact on both the mobile industry and its users. Composable networks can help to meet these requirements by providing the flexibility to reconfigure network resources as needed.

However, the sharing of data between different components of a composable network can raise privacy concerns and may require strict security measures, which is restraining the growth of the composable network market.

On the other hand, the integration of AI techniques in the composable network, such as reinforcement learning and evolutionary algorithms, can be used to optimize and automate the composition of networks. This it is expected to create ample growth opportunities for the market in the future.

Market Segmentation and Scope of Study

The global composable network market is segmented on the basis of component, application, industry vertical, and geography. Based on component, the market is classified into hardware and software. Hardware is further subdivided into network switches, router, and servers. Software is further sub-segmented into network operating system, virtualization software, and management software. Based on the application, the market is segmented into data centers, cloud, and edge computing. On the basis of industry vertical, the market is categorized into IT, telecommunications, BFSI, healthcare, and transportation. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the global composable network market and is expected to remain dominant in the market throughout the forecast period. This is attributed to factors such as the developed healthcare industries and the growing adoption of cloud solutions to store patient data in the cloud in this region.

In 2022, healthcare expenditure in the United States, as reported by the Center for Medicare and Medicaid Services, increased by 4.1 percent, reaching a total of USD 4.5 trillion, equivalent to USD 13,493 per individual. This spending constituted 17.3 percent of the nation's Gross Domestic Product. 

Also, the availability of developed IT infrastructure along with rising investment in cutting-edge technology such as artificial intelligence, cloud computing, and others are further boosting the growth of the composable network market. The United States is significantly investing in AI, with recent legislation allocating USD 29 billion for emerging AI technology research and innovation from 2022 to 2026.

Additionally, existing initiatives will receive USD 52 billion for AI and machine learning, with an additional USD 1.5 billion designated for 5G R&D. In 2022, the Pentagon announced to allocate USD 874 million towards AI and machine learning technologies, marking a 50 percent increase from previous levels.

On the other hand, the Asia Pacific region is witnessing significant growth in the global composable network market, driven by the growing telecommunications industry and the increasing adoption of 5G networks. The deployment of 5G networks necessitates advanced network automation and programmability, areas where composable networks excel. 

Additionally, telecom operators in 2023 announced investments totaling USD 259 billion in network infrastructure from 2023 to 2030, with a primary focus on 5G deployments in the region. This investment surge is spurred by the escalating data traffic fueled by the widespread adoption of broadband services, further underscoring the demand for agile and adaptable network solutions including composable networks.

Moreover, the escalating adoption of mobile devices, particularly smartphones, across the Asia Pacific region is driving substantial growth in the market. As per the Indian Ministry of Information and Broadcasting, the mobile user base in India alone reached 1.2 billion in 2022, underscoring the magnitude of the demand for robust network solutions. The prevalent use of smartphones has resulted in a notable surge in mobile data traffic, placing strain on existing network infrastructure. Consequently, there is an increasing need for network infrastructure capable of accommodating this rising traffic while delivering enhanced performance and reliability.

Competitive Landscape

Various market players operating in the composable network market include Dell EMC (Dell Technologies Inc), Nutanix Inc, Juniper Networks, Inc., TidalScale, Inc., Liqid Inc., Lenovo Group Limited, NetApp Inc., Western Digital Corp, Hewlett Packard Enterprise Co, DriveScale, Inc. These market players are adopting various strategies such as collaboration and product launch to maintain their dominance in the global composable network market.

For instance, in June 2023, Dizzion acquired Frame from Nutanix, a global leader in cloud computing. This strategic move is intended to bolster Dizzion's position in the rapidly growing DaaS market by integrating Frame's innovative technology and expertise. The acquisition is expected to enhance Dizzion's capabilities in delivering secure, scalable, and high-performance virtual desktop solutions to businesses worldwide.

Also, in March 2022, Liqid, collaborated with MemVerge and Intel to deliver composable memory solutions for big memory computing. The collaboration helped MemVerge and Liqid to pool and orchestrate Dynamic Random Access Memory (DRAM) and Storage-Class Memory (SCM).

Moreover, in October 2021, NetApp launched new additions and enhanced capabilities across hybrid cloud portfolio to help organizations modernize their IT infrastructures and accelerate digital transformation.

Key Benefits

• The composable network market report provides the quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the composable network market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the composable network market is provided in the report.

• The competitive analysis of the market players along with their market share in the composable network market

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments

By Component   

• Hardware

  • Network switches

  • Router

  • Servers 

• Software

  • Network Operating System

  • Virtualization Software

  • Management Software

By Application  

• Data centers

• Cloud

• Edge Computing

By Industry Vertical 

• IT

• Telecommunications

• BFSI

• Healthcare 

• Transportation 

By Region

• North America

  • The U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

KEY PLAYERS

• Dell EMC (Dell Technologies Inc)

• Nutanix Inc.

• Juniper Networks Inc.

• TidalScale Inc. 

• Liqid Inc.

• Lenovo Group Limited

• NetApp Inc.

• Western Digital Corp

• Hewlett Packard Enterprise Co.

• DriveScale Inc.