SUPERCOMPUTERS MARKET ANALYSIS

The global supercomputers market size was valued at USD 7,060 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 9.75% from 2023 to 2030.  The increase in public awareness about economic competitiveness is also expected to drive the supercomputer market. The rising public awareness about the economic competitiveness of businesses is expected to drive the demand for supercomputers. Similarly, the increasing prevalence of cyberattacks is driving the focus on cybersecurity and this in turn is expected to propel the market growth.  

Global Supercomputers Market: Regional Insights

Among regions, North America is anticipated to witness substantial growth in the global supercomputers market over the forecast period. North America is known to be one of the biggest markets for technology-based solutions. The amount of data generated is increasing massively and along with it the need for quickly analyzing this large amount of data for multiple purposes has also increased. This is leading to adoption of novel and advanced systems, which in terns is driving deployment of supercomputers. Moreover, rise in investments in research and development activities is also expected to support growth of the market in the region.

Moreover, Asia Pacific is also anticipated to witness strong growth in the global supercomputers market over the forecast period. This growth can be attributed to availability of well-developed supercomputing landscapes in countries such as China and Japan, along with major investments as compared to other countries in the region. For instance, as per Top500.org, in June 2021, China had 188 of world’s 500 most powerful supercomputers in China, which is a third more than its nearest competitor in the U.S. Thus, the region is likely to witness strong growth in the global supercomputers market in the near future.

Figure 1. Global Supercomputers Market Share (%), By Region, 2022

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Global Supercomputers Market Drivers:

Rise in demand for higher processing power to propel the market growth

The need for analyzing data is increasing among enterprises with vast amounts of data to process and manage, to aid decision making processes. Moreover, the demand for this is also increasing among end users for maintaining a competitive edge. For instance, a pharmaceutical organization that offers faster services will surely witness profits. Several enterprises lack higher processing power as well as tools for analyzing this huge amount of data. Thus, companies that highly data-driven are going through major improvements in decision-making compared to those who rely less on data. Thus, these factors are creating demand for supercomputers to run this amount of data, which in turn is expected to propel growth of the global supercomputers market over the forecast period.

Growing investments in R&D to fuel the market pace

Several countries are increasingly investing in the research and development activities for military and defense research. Countries such as the U.S. have completed major amount of work on supercomputers that mainly support a joint urgent operational request from the U.S. Transportation Command. The project of the U.S. Department of Defense examines the techniques for mitigating the risk for aircrews and medical attendant’s potential airlift of Covid-19 passengers with the use of air force. Such investment initiatives in research and developments are expected to fuel growth of the global supercomputers market over the forecast period.

Global Supercomputers Market Opportunities:

Growing developments in supercomputers are expected to create several growth opportunities in the global supercomputers market over the forecast period. The advancements in supercomputers are driving the digital transformation in different fields such as oil and gas exploration, weather forecasting and climate studies, manufacturing and engineering, and precision medicine, as they are boosting the scalability, productivity, ease of use, and helping companies operate more cost-effectively. For instance, in August 2021, the Academy of Finland announced plans to reveal a special funding call to increase research and support the use of EuroHPC supercomputing infrastructure.

Moreover, growing applications of supercomputers in healthcare industry is also expected to offer various growth opportunities in the global supercomputers market over the forecast period. Capabilities of supercomputers facilitate life science companies to redefine their approaches in patient diagnosis, care delivery, and treatment. Out of these applications, cloud-based supercomputing simulations are leading to a major shift in precision medicine, abandonment of one-size-fits-all approach for more effective model of patient-centric research to healthcare. Thus, many players would be targeting to healthcare industry, such as NVIDIA for addressing the rise in demand in healthcare. This in turn is expected to create several growth opportunities in the global supercomputers market over the forecast period.

Global Supercomputers Market Trends:

Growing applications of supercomputers in space explorations is a major trend

Space exploration through supercomputers is becoming one of the multifaceted and most exciting fields of research. For instance, NASA and Hewlett Packard Enterprise (HPE) partnered for the launch of the first supercomputer into space, with a mission called Spaceborne Computer. NASA uses leading-edge technologies for collecting, analyzing, and transmitting huge quantities of data and rapidly derive intelligent insights. For executing such critical workload, high-performance computing capabilities are must. Thus, this trend is expected to continue in the market during the forecast period.

Many emerging countries likely to emerge as major curve-benders is a growing trend in the market

Many emerging will become curve-benders in the supercomputers market. For instance, India is an emerging market player. The continuously expanding supercomputing network of the country is encouraging various private competitors and startups to pave the way for supercomputers in compute-intensive sectors including flood protection, oil exploration, genomics, weather accuracy, and drug discovery. Thus, this in turn is becoming a growing trend in the global supercomputers market.

Global Supercomputers Market Restraints:

High cost of setup of supercomputer to impede the market pace

Supercomputers offer various benefits, however, high cost setting up this technology creates challenges in the global supercomputers market. This cost depends on capabilities of supercomputers and it can reach over US$ 5 million or higher. For instance, the cost of constructing the Fugaku supercomputer developed by Fujitsu along with the National Research Institute Riken of Japan was US$ 1 billion with the time period of six years. Thus, the user are charge large amounts to reach break-even and recover the infrastructural price of the supercomputer. Thus, this factor is expected to hamper growth of the global supercomputers market over the forecast period.

Need for large installation space to hinder the market growth

Along with the cost constraints, supercomputers need dedicated regions for installation, due to which it becomes difficult in accommodating in critical environments even when the demand exists there. Moreover, the space of installation is coupled with need of high computing power to support the operation of supercomputer. Supercomputers need highly powerful cooling systems and huge amount of space, which can be as big as a football ground. Thus, these factors act as challenges in the global supercomputers market.

Figure 2. Global Supercomputers Market Share (%), By End User Industry, 2022

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Global Supercomputers Market Segmentation:

The global supercomputers market report is segmented into End User Industry and Region.

Based on End User Industry, the market is segmented into Commercial Industries, Government Entities, and Research Institutions. Out of which, Commercial Industries is expected to dominate the global market over the forecast period and this is attributed to the growing demand for supercomputers in various commercial sectors. Manufacturers around the globe are recognizing and understanding the potential of these computers in optimizing the design and manufacturing of their products while boosting the bottom line. Thus, this facto will support growth of the market in commercial sector.

Government Entities segment is also expected to witness significant growth in the near future and this is owing to the growing activities in defense industry needing high computing power machines. The number activities in his area including satellite image processing, signal processing, and video analytics are increasing in government sectors around the world. This in turn is expected to push growth of the segment in the coming future.

Global Supercomputers Market: Key Developments

In November 2021, Atos SE, entered into partnership with NVIDIA for advancing healthcare and climate research computing with Exascale Super Computing under the name Excellence AI Lab (EXAIL). This partnership is said to be including researchers operating novel AI and deep learning models on fastest supercomputer of Europe at the Jülich Supercomputing Center.

In June 2021, Intel Corporation announced partnership with Microsoft for deep co-engineering and collaboration for advance computing, in order to provide a complete reimagined computing experience with the upcoming Windows 11, with Intel Bridge Technology.

In October 2021, Hewlett Packard Enterprise Co. revealed that it has built a novel supercomputer for the National Center of Meteorology (NCM) for advancing weather forecasting and overall climate research for the UAE.

In November 2020, the Covid-19 high-performance computing (HPC) consortium revealed that IBM Corporation has entered into new phase of operation focused on helping scientists in identifying potential near-term therapies for patients affected by Covid-19.

Global Supercomputers Market: Key Companies Insights

The global supercomputers 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 supercomputers market are NEC Corporation, Atos SE, Lenovo Inc., Intel Corporation, IBM Corporation, Hewlett Packard Enterprise Co., FUJITSU Corporation, and Dell EMC (Dell Technologies Inc.).

*Definition: Supercomputers are machines that have the capacity to perform enormous amounts of calculations at once. They are used to solve complicated problems. Many researchers and scientists use them to model solar systems and analyze particle interactions.