January 2021
BWC20274

177
global high performance computing (hpc) market
Global High-Performance Computing (HPC) Market Size – Industry Trends & Forecast Report 2027
The global high-performance computing market is estimated to have reached USD 37.1 billion in 2020 and is further projected to reach USD 54.4 billion by 2027, growing at a CAGR of 5.6% during 2021-2027 (forecast period). The growing need for high-efficiency computing, continued diversification, and expansion of the IT industry, advances in virtualization, and rising preference for hybrid High-Performance Computing (HPC) solutions are some of the factors expected to fuel the growth of the market. The ability of HPC systems to process large volumes of data at higher speeds is prompting government agencies, defense agencies, academic institutions, energy companies, and utilities to adopt HPC systems, which also bodes well for the growth of the HPC market.
Source: BlueWeave Consulting
Global High Performance Computing (HPC) Market Overview:
The data around enterprises is bulging up and therefore requires
a high number of mathematical calculations and computational capabilities to
resolve business issues. High-performance computing was earlier used for
training and simulation, a navigation system, and mostly in defense and
aerospace. This industrial vertical required hpc capabilities, resulting in
high-performance computing. This scenario is changed in recent times as there
is huge demand from the industrial, and government. These sectors are using the
data to churn out specific insights helpful for their organizations to carry
out. The technology is emerging prominently in government for national defense
and security requirements. HPC is proving beneficial for the development of
advanced vehicles, weapons, high-resolution image processing, satellite
mapping, and cryptographic analysis.
Global High-Performance Computing (HPC)
Market Forecast and Trends
Growth Drivers
Emerging need for high-speed data processing with accuracy
The main factor driving the growth of the HPC market is the
ability of HPC solutions to process large volumes of data with speed and
accuracy. The industry verticals where applications are encountering slow and
inefficient data processing issues include finance, medical, research, seismic
exploration, and government and defense. The quick-paced nature of the
financial market makes vitality crucial so that the derivative valuations are
processed faster and more accurately. In the medical field, applications such
as Computed Tomography (CT) scanning and Magnetic Resonance Imaging (MRI)
require quick, accurate results from the processing of complex algorithms. HPC
helps them in reducing the compute time considerably and processes the CT and
MRI data quickly and with accuracy.
Increasing focus on hybrid HPC solutions
With the growing demand for HPC solutions and increasing
advancements in technology, organizations today are focusing on hybrid HPC
solutions. IT teams are fiercely working on establishing a balance between
cloud and on-premises HPC solutions. Enterprises are scaling out on-premises
HPC resources as needed. Simultaneously, Cloud Service Providers (CSPs) have
also started to offer turn-key HPC solution environments that are tailored to
the specific workload needs of enterprises. A hybrid HPC solution results in
better efficiencies. Apart from this, it also resolves security and privacy
concerns as well as lowers the maintenance cost. Therefore, the increasing
focus on hybrid HPC solutions is expected to provide tremendous opportunities
for the growth of the HPC market.
Restraints
High CAPEX and OPEX
One of the major factors restraining the growth of the HPC
market is the high Capital Expenditure (CAPEX) and OPEX involved. The cost of
setting up an HPC and maintaining it is high. There is a huge CAPEX involved,
including the hardware and software costs. The OPEX for HPC involves energy
costs, human resources, and maintenance and repair costs. This high cost of
initial investment, as well as maintenance, restricts startups, and SMEs from
adopting HPC. Furthermore, there is an increasing expenditure involved when
enterprises transition from on-premises to the cloud infrastructure. Both these
factors are expected to severely restrain the HPC market from moving forward.
Lack of knowledge and limited budget
among SMEs
The potential users in many SMEs lack awareness about the benefits of HPC and do not the budget to set up such systems. SMEs in many developing nations are still skeptical about adopting HPC, due to the high investment costs involved. Many of them are unaware of the various advantages that HPC offers, such as better performance and customizable delivery. These enterprises also lack the technical expertise needed to establish and run an HPC system. However, cloud computing can boost the use of HPC among SMEs, as it will considerably cut down the costs for them.
Impact of COVID-19 in the industry
In the current scenario, the sudden shutdown of offices,
schools, colleges, and physical retail stores has massively disrupted
operations; this has led to an increase in the demand for digital workplace
tools and services. As the COVID-19 pandemic has been spreading all over the
globe, most of the people prefer to work from home rather than from a local
office, head office, or global branch of an organization and therefore require
mobility in terms of access to office resources and data. The demands the
additional demand for cloud technology and cloud services. Covid-19 impacted
the HPC market positively as a huge workforce of enterprises across the world
are working from home. This demands improved HPC.
Global High-Performance Computing (HPC)
Market: By Component
Based on components, the high-performance computing market is categorized into servers, storage, networking devices, software, services, cloud & others. Of these, the servers segment held the largest revenue share in 2019. This is attributed to a rise in the number of data centers as various mid-size enterprises and businesses are in the process of investing in colocation and on-premises infrastructure to support the growing demand for public cloud services. Additionally, the market is marked by the presence of key HPC server manufacturing companies, such as Fujitsu Limited, IBM Corporation, Dell Inc., and Lenovo. HPC vendors provide various services, including maintenance, support, and management. Support is particularly required while implementing HPC systems and start using them.
Source: BlueWeave Consulting
Global High Performance Computing (HPC)Market:
By End-Use
Based on end-use, the high-performance computing market is
categorized into banking, financial services, and insurance (BFSI), gaming,
media & entertainment, retail, transportation, government & defense,
education & research, manufacturing, healthcare & bioscience &
others. Of these, the government and defense held the largest revenue share in
2019. This is attributed to government and defense agencies aggressively
adopting cutting-edge IT solutions to enhance computing efficiency. Government
agencies are expected to adopt HPC systems to support digitization initiatives
and contribute to economic development. For instance, according to Hewlett
Packard Enterprise Development LP, the company is engaged in providing HPC and
AI solutions to fight against the pandemic.
Global High-Performance Computing (HPC)
Market: Regional insights
The global high-performance computing (HPC) market is segmented into five regions including North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. North America held the largest market share in 2019. This is attributed to the region being the largest regional market for technology-based solutions. Additionally, it is anticipated to be a strong player in the global economy, especially in the implementation and development of new technologies. While the need to process large volumes of raw data is growing, having robust security measures in place is of paramount importance. This is driving the need to implement the latest technologies, which, in turn, is encouraging the adoption of HPC systems.
Source: BlueWeave Consulting
Recent Development
·
In November
2020, AMD launched the AMD Ryzen Embedded V2000 series processor developed
using 7nm process technology. The processor is used for embedded applications,
such as Thin Client, MiniPC, and Edge systems.
·
In November
2020, Intel collaborated with HPE, an American multinational enterprise
information technology company, and Argonne, a science and engineering research
national laboratory operated by UChicago Argonne for Department of Energy, US.
These companies collaborated to develop Aurora, an exascale computer system to
drive scientific breakthroughs, innovation, and discovery.
·
In July 2020,
HPE partnered with University of Edinburgh, EPCC, in Scotland. HPE offers
end-to-end infrastructure, such as HPE and AI solutions, powered by HPE Apollo
Systems and HPE Superdome Flex Servers.
Competitive landscape
Key players for the global high performance computingmarket includeLenovo, Cray, Nvidia, Atos SE, Advanced Micro Devices, Inc., Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Dell Technologies Inc., Fujitsu, Intel Corporation, IBM Corporation, Sugon, Dassault Systems, Microsoft Corporation, Hitachi Ltd, Oracle Corporation & Other prominent players.Cloud computing is one of the potential factors responsible for the growth and rising adoption of HPC systems. Owing to this, various key players are focusing on acquisitions, mergers, and collaborations with major pioneers in the cloud computing market to introduce cloud computing or to provide cloud computing solutions in order to gain a competitive edge and enhance their product portfolio.
Scope of the Report
Attribute |
Details |
Years Considered |
Historical
data – 2017-2020 Base
Year – 2020 Forecast
– 2021 – 2027 |
Facts
Covered |
Revenue
in USD Billion |
Market
Coverage |
U.S,
Canada, UK, Spain, Germany, Italy, France,United Kingdom, China, India,
Japan, South-Korea, Saudi Arabia, UAE, South Africa |
Product/Service
Segmentation |
By component,
deployment & end-use |
Key Players |
Key
players for global high performance computingmarket include:Lenovo, Cray, Nvidia, Atos SE, Advanced Micro Devices, Inc., Hewlett
Packard Enterprise Development LP, Cisco Systems, Inc., Dell Technologies
Inc., Fujitsu, Intel Corporation, IBM Corporation, Sugon, Dassault Systems,
Microsoft Corporation, Hitachi Ltd, Oracle Corporation & Other prominent
players. |
Scope of the Report
By Component
Ø Servers
Ø Storage
Ø Networking Devices
Ø Software
Ø Services
Ø Cloud
Ø Others
By Deployment
Ø On-premise
Ø Cloud
By End-use
Ø Banking, Financial Services, and Insurance (BFSI)
Ø Gaming
Ø Media & Entertainment
Ø Retail
Ø Transportation
Ø Government & Defense
Ø Education & Research
Ø Manufacturing
Ø Healthcare & Bioscience
Ø Others
By Region
Ø Asia Pacific
Ø North America
Ø Europe
Ø Middle East & Africa
Ø Latin America
We've been tracking the direct impact of COVID-19 on this market, and wherever required we will be considering covid19 footprints for a better analysis of markets and industries. Contact our sales team for more details at
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