Report Overview

Global High-Performance Computing (HPC) Market- Industry Trends & Forecast Report 2027

The global high-performance computing (HPC) market was worth USD 37.1 billion in 2020 and is further projected to reach USD 54.4 billion by the year 2027, growing at the CAGR of 5.6% in the 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 global high-performance computing (HPC) market in the forecast period.

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 refers to the process of computing data and complex calculations at high speeds. It was earlier used for training and simulation, a navigation system, and mostly in defense and aerospace. This scenario has changed in recent times as there is huge demand from the industrial, and government sectors. 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

The 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. HPC assists them in significantly decreasing computation time and processing CT and MRI data rapidly and accurately. As a result, the need for high-performance computing (HPC) is increasing rapidly.

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. Additionally, 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. What’s more, a hybrid HPC solution also results in better efficiencies.

Restraints

High CAPEX and OPEX

With the increasing need for HPC solutions and technological breakthroughs, enterprises are focused on hybrid HPC solutions. IT teams are working hard to strike a balance between cloud and on-premises HPC solutions. On-premises HPC resources are being scaled out as needed by enterprises. Simultaneously, Cloud Service Providers (CSPs) have begun to offer turn-key HPC solution settings geared to organizations’ specific workload needs. A hybrid HPC solution improves efficiencies.

Impact of COVID-19 on Global High-Performance Computing (HPC) Market

In the current COVID-19 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. People prefer to work from home in these times of COVID-19 rather than a local office, corporate headquarters, or a global branch of an organization, which calls for mobility to access resources and data. As a result, there is an increased demand for cloud technology and cloud services. Covid-19 positively impacted HPC markets by empowering enterprises worldwide to have a remote workforce. This demand fueled the growth of the HPC market.

Global High-Performance Computing (HPC) Market - By Deployment

Based on deployment, the global high-performance computing (HPC) market is segmented into on-premises and cloud. The on-premise segment held the largest market share in the year 2020 because of the prominent use of HPC in the government sector. The government operations include highly classified data of natural security as well as crucial and sensitive data of its citizens. Therefore, on-premise deployment is preferred to prevent this data from a potential hack or data theft. However, the cloud is expected to grow with the highest CAGR during the forecast period.

Global High-Performance Computing (HPC) Market - By End-User

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, and others. The government and defense held the largest revenue share in 2020. The growth of this sector is attributable to government and defense agencies aggressively adopting cutting-edge IT solutions to enhance computing efficiency. Moreover, government agencies are expected to adopt HPC systems to support digitization initiatives and contribute to economic development.

Global High-Performance Computing (HPC) Market - Regional Insights

Geographically, the global high-performance computing (HPC) market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. It is the North American region that dominates the global high-performance computing (HPC) market. This growth of this region is attributable 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 in North America, 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

Competitive Landscape

Key players in the global high-performance computing (HPC) market are 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. Cloud computing is one of the potential factors responsible for the growth and rising adoption of HPC systems. Thus, 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 to gain a competitive edge and enhance their product portfolio.

Recent Developments

• In September 2021, Luxembourg inaugurated national HPC centers which offer access to both the digital infrastructure and to processes customized specifically to promote innovation.
• In September 2021, AMD, an American multinational semiconductor company, announced its plans to bring thirty times more efficiency for its EPYC CPUs and Instinct accelerators for AI training and HPC.

Scope of the Report

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 (APAC)
• Latin America (LATAM)
• Middle-East & Africa (MEA)

1. Research Framework

1. Research Objective
2. Product Overview
3. Market Segmentation

2. Research Methodology

1. Qualitative Research
1. Primary & Secondary Research
2. Quantitative Research
3. Market Breakdown & Data Triangulation
1. Secondary Research
2. Primary Research
4. Breakdown of Primary Research Respondents, By Region
5. Assumption & Limitation

3. Executive Summary

4. Global High-Performance Computing (HPC) Market Insights

1. DROC Analysis
1. Growth Drivers
2. Restraints
3. Opportunities
4. Challenges
2. Recent Development
3. Porter’s Five Forces Analysis
1. Bargaining Power of Suppliers
2. Bargaining Power of Buyers
3. Threat of New Entrants
4. Threat of Substitutes
5. Intensity of Rivalry
4. Impact of Covid-19 on High Performance Computing (HPC) Industry

5. Global High-Performance Computing (HPC) Market Overview

1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Billion)
2. Market Share & Forecast
1. By Component
1. Servers
2. Storage
3. Networking Devices
4. Software
5. Services
6. Cloud
7. Others
2. By End-use
1. Banking, Financial Services, and Insurance (BFSI)
2. Gaming
3. Media & Entertainment
4. Retail
5. Transportation
6. Government & Defense
7. Education & Research
8. Manufacturing
9. Healthcare & Bioscience
10. Others
3. By Deployment
1. On-premise
2. Cloud
4. By Region
1. North America
2. Europe
3. Asia Pacific
4. Latin America
5. Middle East & Africa

6. North America High Performance Computing (HPC)Market

1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Billion)
2. Market Share & Forecast
1. By Component
2. By End-use
3. By Deployment
4. By Vehicle Type
5. By Country
1. United States
2. Canada

7. Europe High Performance Computing (HPC)Market

1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Billion)
2. Market Share & Forecast
1. By Component
2. By End-use
3. By Deployment
4. By Country
1. Germany
2. Italy
3. France
4. United Kingdom
5. Rest of Europe

8. Asia Pacific High Performance Computing (HPC)Market

1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Billion)
2. Market Share & Forecast
1. By Component
2. By End-use
3. By Deployment
4. By Country
1. China
2. India
3. Japan
4. South Korea
5. Rest of Asia Pacific

9. Latin America High Performance Computing (HPC)Market

1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Billion)
2. Market Share & Forecast
1. By Component
2. By End-use
3. By Deployment
4. By Country
1. Brazil
2. Mexico
3. Rest of Latin America

10. Middle East & Africa High Performance Computing (HPC)Market

1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Billion)

10.2. Market Share & Forecast

10.2.1. By Component

10.2.2. By End-use

10.2.3. By Deployment

10.2.4. By Country

1. Saudi Arabia
2. UAE
3. South Africa
4. Rest of Middle East & Africa

11. Competitive Landscape

11.1. List of Key Players and Their Offerings

11.2. Market/Ranking Share Analysis

11.3. Competitive Benchmarking, By Operating Parameters

12. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

12.1. Lenovo

12.2. Cray

12.3. Nvidia

12.4. Atos SE

12.5. Advanced Micro Devices, Inc.

12.6. Hewlett Packard Enterprise Development LP

12.7. Cisco Systems, Inc.

12.8. Dell Technologies Inc.

12.9. Fujitsu

10. Intel Corporation
11. IBM Corporation
12. Sugon
13. Dassault Systems
14. Microsoft Corporation
15. Hitachi Ltd.
16. Oracle Corporation
17. Other prominent players

13. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable.