High Performance Computing Market Size & Share, by Components [Solutions (Servers, Storage), Services (Design & Consulting, Integration & Deployment)]; Deployment (Cloud, On-Premises); Organization Size (Small, Medium, Large); Server Price Band (USD 250,000 to 500,000 & Above, USD 250,000 to 100,000 & Below); Application (BFSI, Earth Science, Education & Research) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5786
  • Published Date: Mar 01, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

High Performance Computing Market size is expected to reach USD 89 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of high performance computing was over USD 42 Billion. This growth of the market is poised to be dominated by the growing amount of data generated. Over 327 million terabytes of data are generated every day. Hence, in order to process this huge amount of data the need for high performance computing is growing.  

Furthermore, genetic variants linked to different diseases and their reactions to treatment can be analyzed and identified by researchers owing to genomics research. Throughout the entire genome, genomic sequencing aids in the detection of all kinds of genetic variants. Since HPC computers are capable of analyzing a lot of sequencing data quickly and accurately, they have improved the speed, precision, and dependability of genomic research. Additionally, the development of Next-Generation Sequencing (NGS) technologies has made it possible to use several omics approaches to investigate various aspects of human health. 


High Performance Computing Market
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High Performance Computing Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Investment in IIoT - Industry IoT has grown much popular recently owing to its various functionality. Businesses are able to optimize their processes by utilizing industrial IoT apps, which provide previously unheard-of visibility into operations. Devices and sensors may maintain an eye on a variety of things, including production output, energy usage, and machine performance. Moreover, productivity gains are being fueled by IIoT applications. Proactive maintenance is rendered possible by real-time data, which also reduces waste and downtime. Since predictive analytics may predict problems before they arise, prompt interventions are made possible. Routine tasks may be automated to increase employee productivity and free up staff time for more strategic, value-adding work. As a result, there has been surge in investment in industry IoT. However, the Internet of Things generates massive amounts of data every second, making it difficult for businesses to collect and process this data efficiently. Therefore, the need for high performance computing is surging.
  • Surge in Prevalence of Covid19 Cases - Surge in cases of Covid19 though had negative impact on other industries, it showed positive response for the high performance computing market to grow. This was caused by the rise in the need for computer resources in drug development, biomedical research, and epidemiological modelling. Great-scale dataset analysis and the simulation of complex biological processes associated with the coronavirus were made possible in a significant manner by HPC. To meet the needs of data-intensive research, the pandemic also accelerated the development of enhanced software tools and cutting-edge high speed computing architecture.
  • Rising Need for High Computing in Automotive - High-performance computing (HPC) for cars is an optimized version of HPC designed in order to meet the computational power and software compatibility requirements of the manufacturing industry for automobile. A significant amount of computational performance is needed for the software-enabled precise engineering that goes into making a modern car. HPC can provide the necessary processing capacity at any level of the process, from feature testing to safety simulation and design. Additionally, when used effectively, high-performance computing (HPC) may significantly speed up the design phase of automobile manufacture. This allows for more iterations to optimize the car and minimizes the requirement for testing physical models and prototypes. Therefore, with the growing demand for automotive the high performance computing market is estimated to observe growth. The number of cars sold worldwide increased from roughly 65 million in 2021 to approximately 66 million in 2022.

Challenges

  • High Cost of High Performance Computing - The costs involved in developing, maintaining, and implementing advanced HPC systems are significantly higher. This has been noted as the adoption of these systems is often constrained by their high upfront costs, which might include costs for software, hardware, and infrastructure.
  • Surge in Risk of Cyber Attack - Concerns about cyber security are also increasing as more organizations employ HPC systems, which presents serious issues with data security. Due to its nature, HPC is vulnerable to a variety of security risks. For instance, if HPC is a key component of the security system in an airport, it also becomes a major target for cyberattacks. Moreover, since HPC environments are clustered, numerous security risks might affect them. Multiple management systems are necessary for the operation of clustered HPC systems due to their heterogeneity. Vulnerabilities remain unresolved as a result of the adoption of security rules and security management procedures being slowed down. Therefore, it is anticipated that security concerns will limit the market growth.
  • Lack of Skilled Workers to Manage High Performance Computing  .

High Performance Computing Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~8%

Base Year Market Size (2023)

~ USD 42 Billion

Forecast Year Market Size (2036)

~ USD 89 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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High Performance Computing Segmentation

Deployment (Cloud, On-Premises)

The on-premises segment in the high performance computing market is set to generate the highest revenue share of over 60% during the forecast period. This is because it enables the full potential of the HPC system without being limited by connectivity issues. Furthermore, large-scale firms that have previously implemented storage and legacy systems typically favor the on-premise deployment of HPC solutions, which is expected to drive the market throughout the projection period. Hence, the growing number of large-scale organizations is also projected to dominate segment growth. In comparison to over 337,522 in 2020, there were predicted to be about 351,519 large firms globally in 2021 that employed 250 people or more. The protection of personal information is another key motivator for this paradigm. Businesses and government organizations utilize this method of combating database assaults, especially in the military industry. The security and integrity of the system, application, and data are significantly impacted by the physical presence requirement.

Components [Solutions (Servers, Storage, Networking Devices, Software), Services (Design & Consulting, Integration & Deployment, Support & Maintenance, & Management)]

The solutions segment in the high performance computing market is expected to observe the highest growth out of which the servers segment is predicted to gather the largest share in the market of about 40% over the forecast period. The increasing interest in cluster computing is the primary driver of divisional server growth. Divisional systems make extensive use of clusters and large-scale clusters owing to their many advantages, including cheap beginning costs and quick processing rates. Departments within the company may utilize it as a consequence, which lowers total expenditures. During the projected period, these factors are anticipated to propel the expansion of the server category, which in turn is anticipated to propel the growth of the market.

Our in-depth analysis of the global high performance computing market includes the following segments:

          Components

  • Solutions
    • Servers
    • Storage
    • Networking Devices
    • Software
  • Services
    • Design & Consulting
    • Integration & Deployment
    • Support & Maintenance, & Management

          Deployment

  • Cloud
  • On-Premises

          Organization Size

  • Small & Medium Enterprises
  • Large Enterprises

          Server Price Band

  • USD 250,000 to 500,000 and Above
  • USD 250,000 to 100,000 and Below

          Application

  • BFSI
  • Earth Science
  • Education & Research, Energy & Utilities
  • Government & Defense
  • Healthcare & Lifesciences
  • Manufacturing
  • Media & Entertainment
  • Retail
  • Gaming

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High Performance Computing Industry- Regional Synopsis

North American Market Forecast

The North America high performance computing market is projected to capture the largest share of over 35% over the forecast period. This growth of the industry in this region is set to be dominated by the rising presence of key players utilizing high-performance computing. Additionally, there has been a surge in data centers in this region which is also boosting the market share. The United States has the highest number of data centers globally as of September 2023, with a reported approximately 5,374. Additionally, in order to address the manufacturing issues and support the nation's ambitions for a clean energy future for all Americans, the US government launched the High-Performance Computing for Manufacturing program. This program aims to strengthen the nation's capabilities in high computing processing.

APAC Market Analysis

The Asia Pacific high performance computing market is also estimated to have notable growth in the market over the coming years. Some of the major global tech hubs, including South Korea, Japan, China, and India, are located in this region and draw investments from both domestic and foreign sources. Additionally, cloud adoption has also surged in this region. Therefore, both factors are projected to dominate the market expansion in this region.    

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High Performance Computing Market size
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Companies Dominating the High Performance Computing Landscape

top-features-companies
    • Atos SE
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Intel Corporation
    • Cray, Inc.
    • Dell Inc.
    • Lenovo
    • Microsoft
    • NEC Corporation
    • NVIDIA
    • Nutanix
    • Oracle 

In-the-news

In The News

  • A three-year Memorandum of Understanding (MoU) in high-performance computing (HPC) has been signed between ETRI, the Electronics and Telecommunications Research Institute in South Korea, and Eviden, the leading Atos firm in advanced computing. 
  • Cardinal, a state-of-the-art high-performance computing (HPC) cluster, is the result of a partnership between Intel Corporation, Dell Technologies, Nvidia, and the Ohio Supercomputer Centre (OSC). constructed with the intention of satisfying Ohio's growing need for high-performance computing (HPC) capabilities for research, teaching, and business innovation, especially in the field of artificial intelligence (AI).

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5786
  • Published Date: Mar 01, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are growing investment in IIoT, surge in prevalence of covid19 cases, and rising need for high computing in automotive.

The market size of high performance computing is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2024 – 2036.

The major players in the market are Atos SE, Intel Corporation, Cray, Inc., Dell Inc., and others.

The on-premises segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
High Performance Computing Market Report Scope
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