Global Market Size, Forecast and Trend Highlights Over 2025-2037
Composable Applications Market size was valued at USD 6.7 billion in 2024 and is expected to secure a valuation of USD 58.9 billion in 2037, expanding at a CAGR of 18.2% during the forecast period, i.e. 2025-2037. In 2025, the industry size of composable applications is assessed at USD 7.9 billion.
Integration of composable applications with DevOps principles enables development teams to work effectively with operations teams for improved application deployment while producing higher-quality software. The modular system of composable applications allows development teams to work independently on each component which matches the methodologies of DevOps principles. Application modularity enables rapid delivery through continuous integration along with quick market change responses.
Teams that decouple their application components achieve better system performance, as they can make changes to singular components without disrupting the entire system. This results in decreased deployment risks along with shorter system downtime. The structured application approach enhances operational efficiency and supports a team-based environment for continuous improvement across organizations. Businesses retain high agility levels while delivering quality software products with the use of composable applications combined with DevOps practices, enabling them to compete effectively in digital markets.
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Composable Applications Market: Growth Drivers and Challenges
Growth Drivers
- Modularity enhances innovations: Composable application systems provide superior innovation capabilities through their modular structure that permits development teams to enact quick changes to new features along with testing and development iterations. The modular structure enables developers to make changes to system components keeping the entire system operational by allowing individual updates or scaling. Companies are investing in solutions that enable retailers to build personalized shopping interfaces through modular tools such as product management and payment processing interfaces and customer management elements. By using a modular system, implementation runs faster while enabling organizations to adapt their operations according to changing composable applications market conditions and consumer choices.
- Digital transformation: Enterprises have been accelerating the digital transformation, leading to an increased need for flexible applications that scale smoothly and react immediately to changes. The rise of composable applications serves organizations as a strategic capability for turning their digital structure into modular components for quick development methodologies, system integration capabilities, and improved operational performance. Companies are joining forces and are coming up with advanced composable solutions for various verticals. For instance, the collaboration between EPAM Systems and Google Cloud in January 2024, introduced a retail media accelerator suite that allows enterprises to create independent advertising systems, operating without ties to single-entity solutions. Retailers are gaining API-based modular tools through this collaboration which is helping them improve media monetization capability while optimizing advertisement placement decisions based on data.
Challenges
- Latency and performance: Due to the microservices and API integrations, there are performance delays in composable applications as the multiple service connections create intricate challenges to communication quality. The execution of multiple independent services through network connections is affected by API response times and network congestion alongside dependency system failures. Industries that require immediate operations with quick data processing such as financial services and healthcare might struggle due to the performance restrictions.
- Limited awareness and adoption: Traditional industries including manufacturing, healthcare, and government entities resist adopting composable applications due to lack of awareness and natural caution toward logical risks. The majority of business sectors operate with legacy systems that demand expensive and difficult migration to cloud-native deployments.
Composable Applications Market: Key Insights
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
18.2% |
Base Year Market Size (2024) |
USD 6.7 billion |
Forecast Year Market Size (2037) |
USD 58.9 billion |
Regional Scope |
|
Composable Applications Segmentation
Offering (Platform, Service)
The platform segment is poised to capture over 73.3% composable applications market share by 2037, during the assessment period attributed to the requirements of adjustable and versatile solutions by businesses. Organizations are seeking agility in market competition alongside competitive advantage to use composable platforms that enable service and functional integration according to the business requirements. The modular framework helps businesses respond quickly to market fluctuations and client demands particularly in the e-commerce and financial sectors. These platforms include multi-cloud functionalities that let businesses implement applications through different cloud platforms while maintaining freedom from a single cloud framework. Companies are adopting modular and flexible solutions that let them adapt rapidly to market changes and achieve better operational efficiency.
Vertical (BFSI, Retail and E-Commerce, Government, Healthcare and Life Sciences, Manufacturing, IT and IteS, Energy and Utilities)
The BFSI segment in composable applications market is expected to account for a significant revenue during the forecast period owing to the adoption of composable applications by the BFSI sector to boost operational success and customer expectation fulfillment. Efficient product development and deployment time are the leading factors for this segment. Financial institutions benefit from better service deployment for their digital wallets and personalized investment platforms through composable applications, that grant them better market positioning. Many financial institutions are leveraging composable applications to embed AI and ML features that enable them to deliver advanced services including analytical credit scoring and customized financial counseling. The integrated system improves operational efficiency and customer experience, enabling BFSI organizations to boost client satisfaction in their changing digital business environment.
Our in-depth analysis of the global composable applications market includes the following segments:
Offering |
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Vertical |
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Customize this ReportComposable Applications Industry - Regional Scope
North America Market
North America composable applications market is expected to hold revenue share of more than 48.1% by 2037. The growth is attributed to the rapid adoption of cloud-native solutions in the region, as organizations search for adaptable systems which offer scalability and affordable operation. Companies are adopting composable applications, as these applications offer seamless integration capabilities for multiple cloud platforms within hybrid and multi-cloud settings.
Organizations in the region are expected to prioritize delivering personalized user-centered experiences to their customers. With composable applications, organizations are set to receive quick abilities to customize features that enhance their capability to adapt to changing customer expectations. Composable platforms are also anticipated to help businesses from the retail sector along with banking institutions and entertainment companies improve their customer relations. Companies have been introducing various solutions so that customers can benefit from them, and have better online shopping experiences. In January 2023, Shopify introduced its composable commerce solution that offers fast adaptability of their e-commerce platforms to the retailers, for personalized shopping experiences, leading to increased demand throughout the region.
The U.S. composable applications market is rapidly increasing owing to the dependence of businesses on data analytics for making operational business choices. Composable applications provide organizations, the capability to unite multiple services with data sources to generate customized solutions that produce time-sensitive insights. The adaptable framework appeals strongly to financial organizations along with healthcare providers and retailers. Cloud-native technologies keep expanding throughout the country, which drives organizations to use composable applications faster. With cloud infrastructure, businesses can smoothly deploy and scale composable solutions throughout cloud environments without being bound by on-site system limitations. Businesses benefit from the cloud-native ecosystem for developing flexible modular applications that enhance performance outcomes and reduce costs and scalability requirements.
The composable applications market in Canada is significantly growing due to the financial services sector in the country as it requires legacy modernization while implementing flexible scalable platforms. Financial institutions throughout the country leverage composable solutions to customize their services and merge multiple third-party platform configurations smoothly. The financial services industry in Canada is one of the key adopters of composable applications, especially as it seeks to modernize legacy systems and integrate more flexible, scalable platforms. Composable solutions allow financial institutions to customize services and integrate various third-party offerings seamlessly. The healthcare providers in the country are also adopting composable applications to achieve operational efficiency and better patient healthcare results as well as system cross-data interoperability.
Asia Pacific Market Analysis
The Asia Pacific composable applications market is expected to witness a rapid expansion between 2025 and 2037 owing to the rapid digital transformation programs in the region. Public organizations and corporate entities are focusing on digital solutions to update their economic systems, therefore propelling the composable applications industry for improved operational performance. The rising tendency to implement hybrid and multi-cloud approaches by businesses leads to greater composable application adoption, as these applications enable simple connectivity between different cloud systems, improve IT infrastructure management, and afford flexibility in various local regulations throughout the region.
The China composable applications market is expected to propel due to the rising dependence on digital ecosystems. The rapid technological changes are encouraging businesses across different industries, including e-commerce and manufacturing to adopt modular and flexible IT infrastructure systems. Companies are keeping pace with transformation to handle enormous data volumes while integrating contemporary technological solutions including AI big data and IoT into their current work processes.
The local government is also stimulating technological progress and innovation while speeding up the adoption of composable application software, due to its benefits for performance enhancement and global competitiveness. Alibaba Group and Baidu lead innovation in cloud computing by developing composable architecture, that enables their business customers to complete fast and efficient platform integration. The country’s market is experiencing growth, owing to the expanding smart production technologies including automation methods. Manufacturing facilities find great value in modular applications, as these can rapidly connect new capabilities while maintaining continued system functionality.
The composable applications market in India is rapidly expanding as the country stands as one of the world’s fastest-expanding startup areas with enhanced development in fintech and e-commerce along with SaaS sectors. Startups operate best with composable applications as these solutions easily accommodate their rapid expansion requirements and need to combine new features with experimental solutions. Startups can successfully deploy modular budget-friendly solutions that match their operational requirements, owing to enhanced venture capital funding along with accessible cloud infrastructure. For instance, BetterCommerce, a leading Indian fintech startup introduced its composable platform in March 2023 to enable fast integration with financial services offerings as the composable applications market moves towards dealing with modular cloud-based solutions.
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Companies Dominating the Composable Applications Market
- Salesforce
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Dell Boomi
- MuleSoft
- Informatica
- Software AG
- TIBCO Software
- Mendix
- OutSystems
- SnapLogic
- OpenLegacy
- AgilePoint
- IBM
- Shopify
- Akinon
- Infosys Equinox
- Contentstack
- WaveMaker
- Virtusa
- SymphonyAI
- L7 Informatics
- Scheer PAS
- Michaels, Ross, and Cole
The competitive landscape of the composable applications market is rapidly evolving, attributed to the integration of advanced technologies in energy management systems by key players. They are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global composable applications market:
In the News
- In April 2024, LTIMindtree introduced the composable storefront quick launch, a solution that enables retailers to translate their expectations into elevated customer experiences with eCommerce components, that suit their demands.
- In August 2022, Salesforce launched a fully-customized, headless digital composable storefront, that enables the users to make changes on eCommerce websites with speed and flexibility.
Author Credits: Abhishek Verma
- Report ID: 7166
- Published Date: Feb 18, 2025
- Report Format: PDF, PPT