High-Performance Computing (HPC) Market is Expected to Reach USD 54.4 Billion by 2027

Published | January 2021

According to BlueWeave Consulting, 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.


Life Science and healthcare is expected to witness significant growth


According to HPC Wire, advances in genomics, precision medicine, the widespread adoption of electronic health records (EHRs) and digital imaging, and the increasing proliferation of medical IoT and mobile devices have resulted in an explosive growth of structured and unstructured healthcare-related data. With the increased need for fast-paced data analysis in the healthcare system, healthcare has been at the forefront of technology adoption over the past two decades. Moreover, the need to expedite drug discovery study has been among the other factors that have complemented the adoption of high-performance solutions. The adoption of AI in the medical sector, to help the healthcare professionals in diagnostics, has been a massive enabler to the approval of these solutions in the industry application.


On-premises segment occupies the major share of the global high-performance computing market


Based on deployment, the high-performance computing market is categorized into on-premises& cloud. Of these, the on-premises segment held the largest revenue share in 2019. This is attributed to the fact that governments remain keen on securing the sensitive data related to the national security and personal data of the citizens and enterprises are concerned about the protection of their respective organizational data. As a result, on-premises infrastructure is still being preferred over a cloud-based infrastructure. Such factors are expected to fuel the growth of the on-premise segment. The Cloud deployment helps organizations in minimizing their operational costs as they do not have to invest in any additional computing resource. 


Emergence of Exascale computing


The emergence of exascale computing is expected to open new growth opportunities for the HPC market over the forecast period. Exascale computing is the ability of computing systems to perform a billion calculations per second. Exascale computing also provides advanced simulation and modeling solutions that can potentially address the key challenges in natural security, energy, economic competitiveness, and scientific discovery. HPC systems require higher performance bandwidth and memory capacity to process large volumes of data efficiently and exascale computing can address both these challenges.



Global High-Performance Computing (HPC) market: Regional insights


The North American HPC market is already mature for HPC systems, and a significant number of new installations of HPC and upgrade of the existing HPC solutions. Currently, the United States (US) holds the highest share in the HPC market as it is home to large telecom giants, well-established suppliers, as well as end-user industries that continuously adapt to newer technologies for improved business productivity and work efficiency. The North American region is known for its early adoption of advanced technologies driven by healthy technology development in the United States and Canada. Amid the ongoing outbreak of COVID-19, Forbes has mentioned high-performance computing as one of the most valuable weapons against the fight. 


The leading players” in the global high-performance computing market 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. The market has witnessed various inorganic growth strategies, such as acquisitions & mergers, partnerships, and collaborations, adopted by companies over the recent past. For instance, in February 2020, Atos SE announced the acquisition of Maven Wave, a U.S.-based technology and cloud consulting organization. With this acquisition, Atos SE aims to enhance its business in cloud-solutions, machine learning, and data analytics in multi-cloud platforms.


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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of global high performance computing market size & forecast. The report promises to provide recent technology trends of the high-performance computing market and industry insights that help decision-makers to make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.


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