HIGH PERFORMANCE COMPUTING MARKET ANALYSIS

The global high performance computing market size was valued at US$ 31.92 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.5% from 2023 to 2030. The major factors driving growth include increasing adoption of hybrid HPC solutions, expanding IT industry, and technological advancements in virtualization. Growing need for faster data processing with high accuracy is expected to boost revenue of the global market. This trend is fueled by government-led digitalization programs and rising acceptance of cloud technology. Moreover, rising automation in various industries is further boosting the growth of the market.

Global High Performance Computing Market: Regional Insights

Among regions, North America is anticipated to gain major share in the global high performance computing market during the forecast period. This can be attributed to increasing development and implementation of novel technologies. The growing implementation of these novel technologies is due to constantly increasing amount of data, need for security, leading to rise in use of HPC systems in the region. Moreover, increasing investments by governments at national level in research and development activities in the region is also expected to drive growth of the market in North America region.

Asia Pacific is also expected to show substantial growth in the global high performance computing market during the forecast period. Countries such as Japan and China are majorly contributing to the growth of HPC systems in the region. This is due to increasing investment in HPC systems compared to other countries. For instance, as per a Top500 report, China accounted for 42.8% share in the global supercomputers with the country having 214 supercomputers in November 2020. The government of Xi Jinping, China announced that it will build a US$ 10 billion National Laboratory for Quantum Information Sciences as its investment in the field. Thus, such initiatives by governments in the region is driving growth of the market in Asia Pacific region.

Figure 1. Global High Performance Computing Market Share (%), By Region, 2023

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Global High Performance Computing Market Drivers:

Growing need of processing large amount of data with high speed to boost the market growth

Enterprises with large amount of data required to be managed and processed are focusing on analyzing this data to support decision-making process. End-users are also looking for this in order to gain a competitive edge in the market. For instance, a pharmaceutical firm arriving early in the market will gain profits in the market.  Several enterprises don’t have tools for analyzing such large amounts of data, and organization that are highly data driven are observing major improvements in decision-making compared to organization relying less on data. Thus, need for data processing with high speed is increasing among several organization, which in turn is driving the demand for HPC systems. This in turn is expected to augment growth of the global high performance computing market over the forecast period.

Growing adoption of HPC in the cloud to fuel the market pace

The use of cloud in HPC in terms of storage is increasing significantly, which is further driving research firms and enterprises to adopt a ‘cloud-first’ policy, which helps them with cost benefits with the use of cloud instead of expansion of their data centers with expenditures, such as data and cluster management, cooling, and requirements for certification. Due to this increasing use of HPC in the cloud, the number of compute infrastructure on-premise is reducing significantly. HPC is known to be one of the key expenses among businesses; however, with the cloud innovation, the cost of technology is being reduced and expansion of the technology reach is increasing due to the availability of the solution. These factors in turn are thus expected to boost growth of the global high performance computing market over the forecast period.

Global High Performance Computing Market Opportunities:

Growing advancements in HPC driving the digital transformation across several sectors is likely to bring multiple growth opportunities in the global high performance computing market during the forecast period. Fields, such as climate studies and weather forecasting, precision medicine, oil and gas exploration, and manufacturing and engineering are digitally being transformed by increased scalability, productivity, ease of use, and offering support to companies in operating more cost-effectively. All this can be attributed to increasing advancements in HPC. For instance, the Academy of Finland revealed its plans to conduct a funding call in August 2021 to increase research in HPC and quantum computers, in order to increase the use of EuroHPC supercomputing infrastructure. Thus, this in turn will bring growth opportunities in the global high performance computing market during the forecast period.  

Increasing use of HPC systems in life science organization is anticipated to create lucrative environment for growth opportunities in the global high performance computing market during the forecast period. Several life science companies are redefining their approach to diagnosis, treatment, and care delivery for patients, owing to high-performance computing capabilities. Among these applications, HPC-driven simulations are leading to an increasing shift in precision medicine, as companies are leaving a one-size-fits-all approach to healthcare for a more effective and faster model of patient-centric research. These factors in turn are bring several lucrative opportunities in the global high performance computing market.

Global High Performance Computing Market Trends:

Growing popularity of space exploration through HPC is a growing trend in the market

Space exploration through high performance computing has become a multifaceted and exciting research field, which is currently trending. For instance, NASA partnered with Hewlett Packard Enterprise (HPE) for launching the first HPC system into space, with a mission called Spaceborne Computer. NASA makes use of leading-edge technology for collecting, analyzing, and transmitting large amount of data and derive intelligence insights rapidly. To execute these tasks, HPC capabilities are essential. In June 2021, Fujitsu exhibited the feasibility of its high-performance analyses with commercial applications utilized widely in the industrial space for including fluid dynamics. This trend is likely to continue in the market in the coming years.

Growing smart cities development is a recent trend

Increasing development of smart cities is driving the collaborative nature between companies in the tech world, for the demand for HPC in urban spaces. For instance, in June 2021, Nvidia partnered with Google Cloud for establishing an Ai-on-5G innovation lab for boosting the deployment and development of AI-based solution for enterprises, smart factories, and smart cities among others. This trend is likely to grow in the market over the forecast period, which in turn is likely to support the market growth in the near future.

Global High Performance Computing Market Restraints:

Security concerns of data to impede the market growth

High performance computing systems are growing majorly due to the Big Data analytics field, as the HPC techniques are being used as a major paradigm for facilitating significant data processing. However, the increasing concerns linked to safety and legitimate utilization of this data is a key restrain in the market growth. The concerns regarding use of sensitive among businesses are growing, while government and public regulations are also increasing. These factors are expected to hinder the global high performance computing market over the forecast period.

Lack of budgets among SMEs to hinder the market pace

The lack of awareness regarding benefits of HPC, and limited budgets among potential SME users is a major factor hinder growth of the global high performance computing market. SMEs in several emerging nations face hesitancy to adopt high performance computing systems due to requirement of high capital for installation of these systems. Several of these enterprises lack awareness regarding benefits of HPC systems, such as customizable delivery and high performance. Thus, these factors in turn are likely to hinder growth of the market. However, the use of HPC among SMEs is likely to grow due to cloud computing, which is likely to support the market growth in the near future.

Figure 2. Global High Performance Computing Market Share (%), By End User Industry, 2023

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Global High Performance Computing Market Segmentation:

The global high performance computing market report is segmented into Component, Deployment Type, and Industrial Application

Based on Component, the market is segmented into Hardware, and Software and Services. Out of which, Hardware is expected to dominate the global market over the forecast period and this is attributed to the recent technological advancement and growing manufacturing of hardware components leading to development of integrated and energy-efficient server systems. The hardware segment mainly includes Storage, Servers, and other hardware components including networking and processors modules used heavily in the HPC clusters. The increasing development of integrated and energy-efficient server systems is expected to support growth of the segment in the coming future.

Software and Services segment is also expected to witness significant growth in the near future and this is owing to the growing demand for software solutions of HPC among several industries. Software solutions are combination of various tools, such as cluster management tools, workload schedulers, and other runtime libraries. These tools can decrease the installation time significantly, and optimize the use of resource. Due to such advantages of software and services of HPC, the demand for this segment is increasing rapidly, which is expected to drive growth of the market in the near future.

Based on Deployment Type, the market is segmented into On-premise, and Cloud. Out of which, On-Premise is expected to dominate the global market over the forecast period and this is attributed to the advantages of on-premise models, such as their ability of tapping into the full capacity of HPC systems, without having to face any blockages arising from connectivity issues. Along with this, the increasing complexity of operations and rising capabilities of the systems is driving the demand for On-premise deployment of HPC systems. Thus, the segment is likely to show strong growth in coming years.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the rising use of cloud deployment module in various applications. The number of incorporation of HPC systems to host public cloud is increasing rapidly. Thus, demand for cloud deployment is increasing in various industries, which is anticipated to support the market growth in the near future.

Based on Industrial Application, the market is segmented into Aerospace and Defense, Energy and Utilities, BFSI, Media and Entertainment, Manufacturing, Life Science and Healthcare, and Other Industrial Applications. Out of which, Aerospace and Defense is expected to dominate the global market over the forecast period and this is attributed to the increasing product development for aerospace applications by market players. HPC plays a significant role in simulation and training, on-board systems for surveillance, intelligence, navigation, reconnaissance, and communications and command over control purposes. The defense sector has various requirements among which immediate data processing is a key requirement. Key players in the market are increasingly introducing products to cater these needs of aerospace and defense sector. Thus, the sector is expected to show substantial growth during the forecast future.

Energy and Utilities segment is also expected to witness significant growth in the near future and this is owing to the growing industrialization in emerging countries leading to demand for oil. Several companies are using HPS systems for processing complicated data, such as seismic surveys and 3D imaging, which have to be processed with proper algorithms for analyzing and visualization of the data generated. Thus, demand for HPC solutions is increasing energy and utilities industries, which is driving growth of this segment in the global high performance computing market.

Global High Performance Computing Market: Key Developments

In June 2021, Google announced to use the 3^rd Gen EPYC Processors of AMD to introduce its first ever Tau Virtual Machines instance, T2. With this collaboration between AMD and Google, the cloud customers of google will be able to leverage enhanced performance for scale-out applications offered by the greater price-performance, without having to compromise x86 compatibility.

In March 2020, Hewlett Packard Enterprise introduced its novel solution HPE 5G Core Stack. The novel product is an open, cloud-based 5G core network solution for accelerating the company’s journey to new 5G revenue streams.

In June 2021, Fujitsu Ltd. and XTREME-D, an HPC Cloud leader in Japan, formed a technical alliance for conducting verification tests on PRIMEHPC FX700 of Fujitsu on the high-speed infrastructure as a Service (IaaS) environment of XTREME-D.

In June 2021, Intel Corporation entered into partnership with Microsoft for collaboration and co-engineering of advance computing, in order to offer a whole reimagined computing experience with the soon to be launched Windows 11, with Intel Bridge Technology.

Global High Performance Computing Market: Key Companies Insights

The global high performance computing market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global high performance computing market are NVIDIA Corporation, Advanced Micro Devices Inc., Amazon Web Series, NEC Corporation, Lenovo Group Ltd., Hewlett Packard Enterprise, Dassault Systemes SE, Sugon Information Industry Co. Ltd., Dell Technologies Inc., Fujistu Ltd., Microsoft Corporation, Intel Corporation, and International Business Machines Corporation.

*Definition: High performance computing is a powerful technique that allows researchers, engineers and scientists to perform complex data-intensive tasks faster than they can with a traditional desktop computer. It enables advancements in science, engineering, business and other fields that are vital to the economy and society at large.