The global high-performance computing market is likely to bring in USD 52.15 billion in 2023, with a 7.5% CAGR from 2023 to 2033. The high-performance computing (HPC) market is forecasted to value USD 107.48 billion by 2033.
The increasing use of big data analytics is fueling industry expansion, although obstacles like expensive investments and associated costs may limit the market growth. The causes that may propel the growth include:
The ability of HPC systems to process enormous volumes of data quickly is motivating academic institutions, defense agencies, energy corporations, government agencies, and the utility sector to adopt HPC systems, which supports the growth of the high-performance computing industry.
| Attributes | Details |
|---|---|
| High-performance computing Market CAGR (2023 to 2033) | 7.5% |
| High-performance computing Market Size (2022) | USD 48.51 billion |
| High-performance computing Market Size (2023) | USD 52.15 billion |
| High-performance computing Market Size (2033) | USD 107.48 billion |
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With a CAGR of 12.28% from 2018 to 2022, the global high-performance computing market increased in value from USD 32.98 billion in 2018 to USD 52.41 billion in 2022. It is necessary to create powerful HPC systems, implement them across academic, commercial, and governmental institutions, and use them to tackle social issues, including public safety, weather forecasting, climate change, and environmental preservation.
Many advantages are offered by computing technology advancements, including quick processing speeds, improved performance effectiveness, smart operation, and management. These advantages may help the market grow during the anticipated period. Whereas, from 2023 to 2033, the high-performance computing market is to register at a 7.5% CAGR.
The factor propelling the HPC market expansion is the rise in high-performance computing demand in genomics research. The high-performance computing demand for improved scalability, dependable storage, IT expansion, rising computing, and virtualization advancement enhance the market growth.
As high-performance computing systems can process enormous volumes of data swiftly and are widely used in industries, there is an increase in high-performance computing adoption, which has an impact on the market.
Principal Consultant
Enhanced adoption of Big Data Analytics is a Critical Enabler Influencing the Adoption of the High-performance Computing Market
In light of the growing use of big data analytics, the demand for supercomputers has skyrocketed. The extraction of insights from large data is becoming popular. This necessitates the development of improved computing infrastructure. Supercomputers are perfect for processing massive volumes of data available on the market due to their ample storage and strong processing capabilities.
This is evident in the financial services business, where corporations like PayPal have purchased cluster supercomputers in the previous two to three years. The introduction of additional sophisticated analytics methods and tools is gaining traction among organizations to maximize the intelligence obtained from big data analytics. Over the projected period, all these factors may drive the high-performance computing (HPC) market expansion.
A Significant High-performance Computing Market Trend Fostering Market Expansion is Evolving Adoption of Cloud
Some customers require the elasticity and flexibility of the cloud to fulfill their computational and data needs.
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Factor Impeding the High-performance Computing Market Growth is Expensive Investments and Associated Costs
The energy needs for these improved HPC systems may go up because of the regular updates made to increase processing power. Cost increases can impede the expansion of the HPC sector.
Lack of experience and the high cost of high-performance computing upkeep are impediments to the industry's expansion. The absence of developments in high-performance workstations is one of the industry's stumbling blocks.
Concerns related to cyber security are growing as the use of HPC systems expands. Data security is a serious concern because HPC systems are accessed by various entities. As a result, the high-performance computing industry's expansion is projected to be hindered by security concerns.
Services Segment:
| CAGR (2023 to 2033) | Around 5.0% |
|---|---|
| Market Share - 2023 | >9.0% |
| Market Size | USD 7,000 million |
Servers Segment:
| Market Share - 2023 | 41% |
|---|
The component segment has been further subdivided into servers, networking devices, storage, software, cloud, services, and others. The servers segment held the dominant share of the high-performance computing industry in 2023 and is scheduled to thrive at a substantial rate during the forecast period.
The growing amount of data centers can be linked to the proliferation of small and medium-sized businesses (SMEs). Several firms are investing in on-premises and colocation infrastructure to meet the increased high-performance computing demand.
The services sector made for more than 9.0% of the HPC market in 2023, and it is anticipated to register a CAGR of around 5.0% between 2023 and 2033. The HPC manufacturers offer a variety of services, such as maintenance, support, and management.
Assistance is especially important during the installation and first use of HPC systems. Maintenance services, on the other hand, include system upgrades and troubleshooting. In conclusion, it is predicted that the services segment's market can prosper to be large than USD 7,000 million over the forecast year.
On-Premise Segment:
| Market Share - 2023 | 80% |
|---|---|
| Market Size | USD 32,592.7 million |
Cloud Segment:
| Market CAGR | 8.5% |
|---|
In 2023, the on-premise category held the dominant share of the high-performance computing industry and is to rise significantly throughout the forecast period. While governments are focused on securing sensitive data relating to national security and citizens' personal information, businesses are concerned about the security of their own organizational data. As a result, on-premise infrastructure continues to be chosen over cloud technology.
To ensure national security, the Mexican government, for example, claims that all citizen-related information and information used by government agencies should remain within the country's jurisdiction. Such elements are projected to promote the on-premise segment's growth.
Throughout the projection period, the cloud segment is to develop at a significant CAGR of 8.5% in the high-performance computing business. Since no additional in-house computing resources are required, cloud implementation allows enterprises to cut their operational costs. Additional benefits, such as enhanced efficiency and cost-effectiveness, are likely to accelerate the rise of the cloud segment.
Government and Defence Segment:
| Market CAGR | 9.0% |
|---|
The manufacturing segment is to witness a significant HPC market share during the predicted period. Industrial operations are typically computationally intensive and time-consuming. Manufacturing companies frequently use simulation and CAD software in conjunction with HPC systems.
HPC systems can be very beneficial in the manufacturing industry for computational fluid dynamics, computational structural mechanics, and computational electromagnetics. These characteristics boost performance, increase computational speeds, and assure quick data access.
The government and defense segment is to increase at a CAGR of 9.0% in the high-performance computing business. While defense organizations may actively acquire cutting-edge IT solutions to boost computing efficiency, government agencies may likely need to employ HPC systems to support digitalization projects and contribute to economic development.
| Attributes | Details |
|---|---|
| Market Share | 40% |
In 2023, North America continued to hold 40.0% of the entire high-performance computing market share. North America is the most important market for technological solutions. Its goal is to be a global economic player, particularly in the development and application of innovative technologies. Since the need to process large amounts of raw data grows, so does the need to have strong security measures in place. This is pushing the need to apply cutting-edge technology, which is encouraging the use of HPC systems.
Several of the top businesses in the sector are based in North America that are quickly adopting HPC systems to help them get over technical limitations. As a result, the adoption of HPC systems is ramping up throughout North America.
| Attributes | Details |
|---|---|
| Market CAGR | 8.9% |
Due to the increasing HPC systems adoption for scientific research and weather forecasting, the Asia Pacific region is expected to develop at a considerable CAGR of about 8.9% throughout the forecast period. At the same time, China is one of the top ten countries in the high-performance computing business.
Supercomputers such as Sunway TaihuLight and Tianhe-2 (Milkyway-2) can be found in China. Tianhe-2 (Milkyway-2) was developed by China's National University of Defence Technology and supported by the governments of Guangzhou and Guangdong provinces.
The global high-performance computing business is a highly concentrated and competitive market dominated by a few significant firms. Various governments encourage research and academic institutions to implement modern information technology systems and contribute to economic development.
Acquisition - January 2022
Acquisition - July 2021
Partnership - November 2020
Collaboration - 2018
The high-performance computing market is worth USD 52.15 billion in 2023.
The market is anticipated to thrive at a 7.5% CAGR from 2023 to 2033.
The servers segment holds nearly 41% of the market share in 2023.
The cloud segment is predicted to rise at an 8.5% CAGR through 2033.
Asia Pacific is anticipated to rise at an 8.9% CAGR from 2023 to 2033.
1. Executive Summary | High-Performance Computing Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Hardware 5.1.1. Servers 5.1.2. Storage 5.1.3. Devices 5.1.4. Systems 5.1.5. Networking Devices 5.2. Software 5.3. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment 6.1. On-Premise 6.2. Cloud 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-use 7.1. Banking, Financial Services, and Insurance 7.2. Gaming 7.3. Media & Entertainment 7.4. Retail 7.5. Transportation 7.6. Government & Defence 7.7. Education & Research 7.8. Manufacturing 7.9. Healthcare & Bioscience 7.10. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Atos SE 18.2. Advanced Micro Devices, Inc. 18.3. Hewlett Packard Enterprises 18.4. Dell Inc. 18.5. Cisco Systems, Inc. 18.6. Fujitsu 18.7. Intel Corporation 18.8. IBM 18.9. Microsoft 18.10. Amazon Web Services, Inc. 19. Assumptions & Acronyms Used 20. Research Methodology
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High-Performance Computing Market
