A component team is an Agile Team whose primary area of concern is focused on a specific component, or set of components, of the system. They leverage their technical skills and interest and focus on building robust components that provide for reliability, separation of concerns, foster re-use, and improve testability. Component teams are typically used when the system has complex, nonfunctional requirements that require deep technical expertise and specialization, such as performance, security, scalability, etc. Component teams can also enable high reuse of components across multiple solutions, reducing duplication and waste. However, component teams also introduce challenges, such as increased dependencies, coordination, and integration efforts with other teams, as well as reduced end-to-end value delivery and customer feedback. Therefore, component teams should be used sparingly and only when the benefits outweigh the costs. References: Organizing Agile Teams and ARTs: Team Topologies at Scale, Agile Teams, Feature Teams vs Component Teams, System Team, Feature Team vs Component Team in Agile