High Performance Computing Market Trends and Analysis by Region, Component, Deployment, Application and Segment Forecast to 2026
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High Performance Computing Market Overview
The high performance computing market size will be valued at $ 43.6 billion in 2023 and expected to grow at a compound annual growth rate (CAGR) of 7.5% over the forecast period. HPC systems’ ability to expedite computation of large volumes of data makes them a preferred option for solving problems in science, academia, technology, and businesses. As cutting-edge technologies like Machine Learning (ML), Internet of Things (IoT), and Artificial Intelligence (AI) evolve, they require large volumes of data. Growing use of such technologies is anticipated to be a key driving factor for high-performance computing demand over the forecast period.
High Performance Computing Market Outlook, 2019-2026 ($ Billion)
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Until recently, HPC systems ran in local data centers, but new solutions are emerging. Among them, HPC deployed in the cloud is the most prominent. Market trends suggest that cloud is the fastest-growing segment within HPC, which is itself one of their fastest-growing business units. Like everything else, HPC is moving to the cloud because of the flexibility that cloud solutions offer. Cloud computing can be used in two ways: to increase the capacity of in-house infrastructure or to increase the agility of a company that shares data across more than one site. The cloud represents a more agile approach to operating an IT architecture, particularly supporting modernizing enterprise applications. Benefits such as flexibility, cost effectiveness, scalability, and democratization of access are expected to augment HPC cloud systems’ demand.
Despite all its advantages, not everything can be done in the cloud. Some clients who had moved their HPC operations to the cloud have later moved some or all operations back on-premise. Security, regulations, and latency & performance issues are posing a challenge to cloud adoption. To make the most of the cloud benefits while also addressing its shortcomings, vendors have started offering hybrid solutions where HPC operations are split between on-premise and cloud.
High-performance edge computing could potentially address the shortcomings of both local HPC data centers and HPC deployed in the cloud. Edge computing refers to the deployment and use of computer processing close to where data is collected. The benefits of edge computing include improved performance and cost savings that can be achieved when developing, hosting, and powering applications nearer to consumption points. HPC deployed at the edge can bring high-performing processing power to sectors such as retail, live entertainment, and gaming, where data must be processed close to where it is generated to minimize latency.
Technological advancements such as HPC as a Service (HPCaaS), edge computing, and computational requirements for large volumes of data are factors anticipated to augment market growth over the next five years. Additionally, progress at a microarchitectural level such as faster interconnections, higher computing densities, scalable storage, and efficient infrastructure is expected to promote the adoption of modern solutions.
High Performance Computing Market Segmentation by Component
Servers dominated the market in 2022 with a revenue share of more than 40% and is expected to continue its domination over the forecast period. HPC servers use a combination of CPUs, MEMS, and AI chips. CPUs have been at the heart of powering data centers for decades, but their architectures are not best suited for new types of workloads driven by technologies such as AI and the IoT. GPUs are more powerful than CPUs, but the two chips are used in combination in HPC clusters as they complement each other. Thus, the imperative nature of servers in HPC clusters is expected to drive segmental growth.
Asia Pacific High Performance Computing Market Share by Component, 2023 (%)
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In addition to servers, the component segment also includes storage, network equipment, software, services, and cloud. With a compounded annual growth rate of 3.6% from 2022 to 2026, the services segment is projected to record a modest growth. Services include maintenance & repair, system engineering, system integration, training, programming, and other services. The advent of HPC cloud led to a rise in service requirements, especially training and programming services. However, since major players have established their cloud services, the services segment is expected to record a flat growth over the forecast period.
High Performance Computing Market Segmentation by Deployment
On-premise high performance computing systems are traditionally used and are still a preferred among major market players. Security concerns over sharing private information with cloud service providers pushes companies towards adopting on-premise systems. Increasing awareness of data protection, is expected to upkeep the demand for on-premise high-performance computing systems in the coming years.
US High Performance Computing Market Share by Deployment, 2023 (%)
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Cloud based HPC systems is projected to record fastest growth with a CAGR exceeding 15% in the next four years. Cloud represents a more agile approach to operating an IT architecture, particularly supporting modernizing enterprise applications. Many vendors have moved from selling equipment to providing HPC as a service (HPCaaS). HPCaaS’s rise is linked to the emergence of the cloud as an HPC solution. HPCaaS can be a compelling option for end-users. It puts intense data processing and workloads that require high-performance within reach of companies that lack the necessary capital to hire skilled staff and invest in hardware. HPCaaS brings HPC capabilities to those companies that cannot afford to develop HPC knowledge and infrastructure in-house
High Performance Computing Market Segmentation by Application
Based on applications, HPC market is categorized into academic, government, manufacturing, bio-sciences, financial services, and others. Bio-Science related applications prominently used HPC solutions resulting in the segments’ healthy growth, accounting 9.0% over the next five years. The segment includes genomics, bioinformatics, pharmaceutical research, drug discovery, and proteomics related applications. Research remains one of the leading HPC use cases. Today’s most powerful computers are used in medicine and biosciences. During the COVID-19 pandemic, powerful computing clusters have run models helping scientists understand the virus and how it spreads, make advancements in therapeutics, and even produce vaccines.
Europe High Performance Computing Market Share by Application, 2023 (%)
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In the private sector, financial services are one of the most important users of HPC. Investment firms use the technology to predict stock trends and trade with millisecond timing. Banks also use HPC to improve fraud detection. With a centralized system of fraud detection, information is gathered from all the available sources. Such systems can help detect and prevent cyberattacks, improve data privacy, enhance data protection, and support investigations. The system that is installed must have the capability to detect anomalies.
High Performance Computing Market Analysis by Region
Asia Pacific is anticipated to record a compound annual growth rate of more than 8% over the forecast period. The regional demand was led by rapid adoption of HPC solutions in China, India, and Japan. Possessing powerful supercomputers has always been a way for nation-states to demonstrate their technical capabilities. It also has implications for their security. According to statistics, China has more than 225 computers in the list of the top 500 supercomputers in the world. Some of the leading commercial HPC players hail from China, including Huawei, Lenovo, and Inspur. The Chinese government regards leadership in supercomputing as vital to its national security and the future of its defense, aerospace, energy, materials, biotech, and pharmaceuticals industries.
Global High Performance Computing Market Share by Region, 2023 (%)
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North America is characterized by early adoption of technology that helps companies to market newer products in the region. Led by the US, the region held a sizeable revenue share of the high performance computing market in 2022. The region is also characterized by presence of large volume of data center, which makes it conducive for HPC adoption as well.
High Performance Computing Market – Competitive Landscape
Competition in the HPC industry is characterized by the presence of multiple vendors operating across different layers of value chain. Companies operating in the market have strong hold in their respective solution offerings. For instance, Hewlett Packard Enterprise Co and Dell Technologies Inc have a strong hold across all the components of an HPC cluster. Companies such as DataDirect Networks Inc, Juniper Networks Inc, and Seagate Technology Holdings PLC focus on specific hardware equipment.
Leading Players in the High Performance Computing Market
- Hewlett Packard Enterprise Co
- Dell Technologies Inc
- Lenovo Group Ltd
- Inspur Software Co Ltd
- Atos SE
- International Business Machines Corp
- Fujitsu Ltd
Other High Performance Computing Market Vendors Mentioned
Inspur Software Co Ltd, Atos SE, NEC Corp, DataDirect Networks Inc, Seagate Technology Holdings PLC, NetApp Inc, Google LLC, Huawei Investment & Holding Co Ltd, Amazon Web Services Inc, Cisco Systems Inc, Oracle Corp, VMware Inc, and Juniper Networks Inc
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High Performance Computing Market Research Scope
| Market Size in 2023 | $43.6 billion |
| Market Size in 2026 | $54.0 billion |
| CAGR | 7.5% from 2022-2026 |
| Forecast Period | 2022-2026 |
| Historic Data | 2019-2021 |
| Report Scope & Coverage | Revenue Forecast, Company Market Share, and Growth Trends, Technology Trends, Macroeconomic Trends |
| Component Segment | Server, Storage, Network, Software, Services, and Cloud |
| Deployment Segment | On-Premise and Cloud |
| Application Segment | Academic, Government, Manufacturing, Bio-Sciences, Financial Services, and Others |
| Key Companies | Hewlett Packard Enterprise Co, Lenovo Group Ltd, International Business Machines Corp, Dell Technologies Inc, Huawei Investment & Holding Co Ltd, Fujitsu Ltd, Intel Corp, Advanced Micro Devices Inc, NVIDIA Corp, STMicroelectronics NV |
High Performance Computing Market Segments and Scope
GlobalData Plc has segmented the high performance computing market report by component, deployment, application, and region:
High Performance Computing (HPC) Component Outlook (Revenue, USD Million, 2019-2026)
- Server
- Storage
- Network
- Software
- Services
- Cloud
High Performance Computing (HPC) Deployment Outlook (Revenue, USD Million, 2019-2026)
- On-Premise
- Cloud
High Performance Computing (HPC) Application Outlook (Revenue, USD Million, 2019-2026)
- Academic
- Government
- Manufacturing
- Bio-Sciences
- Financial Services
- Others
High Performance Computing (HPC) Regional Outlook (Revenue, USD Million, 2019-2026)
- North America
- US
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Switzerland
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Singapore
- Rest of Asia Pacific
- South & Central America
- Brazil
- Mexico
- Rest of South & Central America
- Middle East & Africa
- United Arab Emirates (UAE)
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- High performance computing market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the component, deployment, and application segments.
- The competitive landscape: an examination of the positioning of leading players in the high performance computing market.
- Company snapshots: analysis of the market position of leading service providers in the HPC market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Scope
This report provides overview and service addressable market for High Performance Computing (HPC).
It identifies the key trends impacting growth of the market over the next 12 to 24 months, split into four categories: technology trends and macroeconomic trends
It includes global market forecasts for the High Performance Computing (HPC) industry and analysis of patents, company filings, and hiring trends.
It contains details of M&A and VF deals in the big data space.
The detailed value chain consists of five main aspects: component, equipment, data center solutions, and end users.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the HPC market, components, application, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in high performance computing market.
- The report also highlights key component segments (Server, Storage, Networking, Software, Services, and Cloud)
- The report also highlights key deployment segments (On-Premise and Cloud)
- The report also highlights key application segments (Academic, Government, Manufacturing, Bio-Sciences, Financial Services, and Others)
- With more than 100 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in High Performance Computing (HPC)
- The broad perspective of the report coupled with comprehensive, actionable detail will help high performance computing stakeholders, service providers, and other high performance computing players succeed in growing of the high performance computing market globally.
Key Players
Hewlett Packard Enterprise CoLenovo Group Ltd
International Business Machines Corp
Dell Technologies Inc
Huawei Investment & Holding Co Ltd
Fujitsu Ltd
Intel Corp
Advanced Micro Devices Inc
NVIDIA Corp
STMicroelectronics NV
Table of Contents
Table
Figures
Frequently asked questions
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What will be the high performance computing market size in 2023?
The high performance computing market size was valued at $43.6 billion in 2023.
-
What is the high performance computing market growth rate?
The HPC market is expected to grow at a CAGR of 7.5% during the forecast period (2022-2026).
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What are the key high performance computing market drivers?
Increasing adoption of AI, IoT, and Machine Learning (ML) resulting in the need for computing large volume of data is expected to drive the HPC systems’ demand to compute.
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What are the key high performance computing market segments?
Component Segments: Server, Storage, Network, Software, Services, and Cloud
Deployment Segments: On-Premise and Cloud
Application Segments: Academic, Government, Manufacturing, Bio-Sciences, Financial Services, and Others
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Which are the leading high performance computing companies globally?
Some of the leading HPC companies are Hewlett Packard Enterprise Co, Lenovo Group Ltd, International Business Machines Corp, Dell Technologies Inc, Huawei Investment & Holding Co Ltd, Fujitsu Ltd, Intel Corp, Advanced Micro Devices Inc, NVIDIA Corp, and STMicroelectronics NV, among others.
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Is there a third level of segmentation in the report?
GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy. However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.
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