Global High-Performance Computing (HPC) Market, By Component (Servers, Storage, Networking Devices, Software, Services, Cloud & Others), By Deployment (On-premise & Cloud), By End-Use (Banking, Financial Services, and Insurance (BFSI), Gaming, Media & Entertainment, Retail, Transportation, Government & Defense, Education & Research, Manufacturing, Healthcare & Bioscience & Others), By Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America); Trend Analysis, Competitive Market Share & Forecast, 2020-2026

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

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