By 2033, the sector is expected to consistently expand at a 19.1% CAGR. According to FMI, the revenue share of the next generation computing market is predicted to rise from USD 136.46 billion in 2023 to USD 783.64 billion in 2033.
Key factors supporting the market are rising research and development expenditures by technology businesses, and the rising need for processing and managing enormous volumes of data. Additionally, there is tremendous development potential due to the increasing usage of technologies like 5G, AI, and ML.
Industry conglomerates like Goldman Sachs Group, Lockheed Martin, NASA, and other governmental organizations are investing in the research and development. Increase in endeavors by industry behemoths and governmental organizations in new businesses leads to high demand for next generation computing.
For instance, in order to provide the quality quantum processing administration on the globe in October 2019, Google LLC worked with NASA and Oak Ridge National Laboratory. Sandia National Laboratories is receiving USD 42 million in funding from the Advanced Scientific Computing Research Programs of the United States Branch of Energy.
| Attributes | Details |
|---|---|
| Next Generation Computing Market CAGR (2023 to 2033) | 19.1% |
| Next Generation Computing Market Size (2023) | USD 136.46 billion |
| Next Generation Computing Market Size (2033) | USD 783.64 billion |
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When compared to the 8.2% CAGR recorded between 2018 and 2022, the next generation computing industry is predicted to expand at a 19.1% CAGR between 2023 and 2033. The average growth of the market is expected to be around 1.19x between 2022 and 2023.
| Market Statistics | Details |
|---|---|
| Market Share (2018) | USD 56.94 billion |
| Market Share (2021) | USD 96.2 billion |
| Market Share (2022) | USD 114.57 billion |
The pandemic accelerated the cloud's uptake, since businesses could conduct operations safely from the cloud. Additionally, businesses from many sectors hastened their digital transformation in order to prepare for operational responsiveness and adjust to disturbances.
Short-term Growth (2023 to 2026): Vendors in the industry are constantly creating scalable and efficient data storage infrastructure due to the exponential growth of data produced by the business sector.
Medium-term Growth (2027 to 2029): Rapid AI adoption in many nations has increased the amount of digital data produced by different, increasing the need for large amounts of data storage. This leads to high adoption of next generation computing services.
Long-term Growth (2030 to 2033): The deployment of next generation storage to strengthen general databases for future use and optimize databases in verticals like BFSI, is likely to propel the global demand.
Current Challenges
There has been an increase in demand for information capacity to handle the massive amount of data created during this time. However, many small and medium-sized businesses have started to close, either permanently or temporarily. It has hampered revenue growth in the next generation computing sector.
The industry also faces difficulties due to a skilled labor shortage. The development of next generation computing technologies, like quantum and neuromorphic, is still in its infancy. Therefore, a trained workforce is required for the research and development of the goods and solutions for next generation computing in order to scale these technologies.
Emerging Opportunities
The IoT, the recent innovation to emerge, generates enormous amounts of data from related devices like home automation devices, GPS beacons, and virtual entertainment.
It fuels growing interest in next generation computing to store and manage the massive amounts of data generated from these channels. A few companies are embracing IoT innovation for contemporary applications.
This includes predicting hardware failure, assessing the temperature, and enabling autonomous driving, which is generating volumes of sensitive data and igniting interest in next generation computing.
Companies including Hewlett Packard Enterprise, Huawei, Hitachi, IBM, and Dell Technologies are investing heavily in next generation computing innovation. Companies are attempting to capture a sizable portion of the thriving information storage business.
Principal Consultant
In 2021, the hardware component category led the market and accounted for revenue share of more than 50.0%. The availability of different next generation computing hardware goods, including high-performance Central Processing Units (CPUs), memory & storage, and networking components, can be credited with this market segment's expansion.
During the forecast period, the services segment component is expected to expand at a CAGR of 8.2%. Deployment and end-to-end support services, for example, are becoming necessary and readily available. For instance, the France-based Atos SE company offers advisory services from quantum experts.
The cloud-based offering segment is likely to dominate the market with a CAGR of 21.5% by 2033. The benefits of cloud computing, including its affordability, adaptability, and security, support the expansion of this market.
Due to advantages like remote access and practical storage for massive data quantities, businesses across all industries are increasingly using cloud services. However, security, direct control, and physical accessibility of the information are responsible for expanding the on-premise segment.
The BFSI end-use segment is likely to lead the market with a CAGR of 9.3% by 2033. The segment's expansion can be ascribed to the BFSI sector's expanding use of next generation computing technology in areas like risk management and portfolio optimization.
On the other hand, the manufacturing sector is anticipated to increase at a quick rate during the projection period. Manufacturers benefit from market technology at various stages of the product development process. Applications include predicting maintenance problems and executing sophisticated design simulations.
The United States is a leading market with an expected CAGR of 7.2% by 2033 due to its early adoption of modern data-storage technologies. Both consumers and multinational corporations are heavily concentrated in the United States.
Hyperscale data centers have also proliferated quickly, and they are mostly employed by cloud computing providers and social network service providers. The United States market is anticipated to be primarily driven by the rising demand for cloud computing services.
A cost-effective and efficient way to access and store data, as well as scale up computing resources as necessary, is provided by cloud computing for businesses. An increasing number of businesses are considering moving their data and apps to the cloud to have great market share by 2033.
The United Kingdom was expanding with a market size of USD 31.2 billion in 2022. It is expected to increase at a CAGR of 8.2% by 2033.
Due to its well-established IT infrastructure, robust digital ecosystem, and top-tier talent pool, the United Kingdom is well-positioned to benefit from this growth. Additionally, the United Kingdom government has made large investments in the digital sector through programs like the Digital Economy Act and the Digital Britain agenda.
The rising need for cloud computing services, big data analytics, and artificial intelligence is what fuels the adoption. The need for businesses to cut costs and increase efficiency, the growing use of digital technology, and the introduction of blockchain, encourages global sales.
The next generation computing sector is likely to expand, with a share of USD 9.72 billion in 2023, due to India's growing AI and machine learning industries. Systems that are highly effective and intelligent are developed using AI and machine learning technology.
To automate procedures and enhance decision-making, these technologies are used in many Indian sectors. The adoption of next generation computer technologies is another area of priority for the Indian government.
To encourage the expansion of the digital economy, the government has created a number of programs, including Startup India, Make in India, and Digital India.
Due to government backing, the next generation computing industry is predicted to grow, with a share of USD 233.3 billion in 2023. The government in China has also started a number of initiatives to encourage the development of cutting-edge computer technology.
This includes the establishment of specialized funds and the provision of tax advantages to companies engaged in the industry. These programs encourage innovation and increase the ability of companies in China to compete globally.
The market is expected to experience intense rivalry due to various foreign companies, such as Microsoft, IBM, and Huawei, who are striving for market supremacy. Huawei Cloud is a cloud computing service provider that specializes in providing business cloud services. It is the sole Chinese cloud provider and one of the top five cloud service providers worldwide.
Among the services offered by Huawei Cloud are public, private, hybrid, and edge clouds. However, it is projected that regional rivals like Lenovo, Baidu, and Alibaba would continue to be aggressive.
From 2023 to 2033, the Japan market for next generation computing is anticipated to expand at a CAGR of 5.4%. The market is expanding due to the rising demand for high-performance computing (HPC) and data-driven applications.
The Japan government's initiatives to promote the development of next generation computer technologies and the rising acceptance of advanced technology are both contributing to the market's growth.
The demand for better computing performance, access to bigger data sets, and complex analytics is fueling the expansion of the next generation computing start-ups. Start-ups are starting to emerge with innovative solutions that help organizations become nimble, efficient, and competitive as corporations look to exploit the recent advancements.
Government subsidies, venture capital investments, and corporate alliances all contribute to the expansion of these start-ups. Startups are investigating quantum computing, a novel form of computation that makes use of quantum-mechanical events to process data and address challenging issues. The vendors of next generation computing could benefit financially from this.
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The top vendors in the next generation computing market are making investments in cutting-edge technology that keeps them one step ahead of the competition. This entails investigating cutting-edge technologies like cloud computing, AI, and machine learning.
Vendors ought to make investments in cutting-edge technologies like blockchain and quantum computing. To grow their market share, service providers make use of their current clientele.
Vendors, for instance, can collaborate with businesses to develop new products or services that their current consumers can utilize or offer discounts to them on new products or services.
Latest Developments
The next generation computing market CAGR for 2033 is 19.1%.
The market is valued at USD 136.46 billion in 2023.
The forecast market value of the market for 2033 is USD 783.64 billion.
The current trend in the next generation computing market is quantum computing.
IBM, Google, and Amazon Web Services are key market players.
1. Executive Summary 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 5.2. Software 5.3. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Offering 6.1. Cloud Based 6.2. On Premise 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 7.1. High Performance Computing 7.2. Quantum Computing 7.3. Brain Type Computing 7.4. Approximate and Probabilistic Computing 7.5. Energy Efficiency Computing 7.6. Thermodynamic Computing 7.7. Memory Based Computing 7.8. Optical Computing 7.9. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size 8.1. SMEs 8.2. Large Enterprises 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use Industry 9.1. BFSI 9.2. Healthcare 9.3. Space and Defence 9.4. Energy and Power 9.5. Transportation and Logistics 9.6. Chemicals 9.7. Academia 9.8. Government 9.9. Telecom 9.10. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. MEA 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Asia Pacific 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. Amazon Web Services 18.2. IBM Corporation 18.3. Alibaba Group Holding Limited 18.4. Cisco Systems Inc 18.5. Google Inc 18.6. HPE 18.7. Intel Corporation 18.8. Oracle Corporation 18.9. Atos SE 18.10. Microsoft Corporation 19. Assumptions & Acronyms Used 20. Research Methodology
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Next Generation Computing Market
