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The high performance computing (HPC) market size is forecast to increase by USD 16.63 billion, at a CAGR of 7.1% between 2023 and 2027. Market growth hinges on various factors, including the expanding utilization of big data analytics, heightened demand from the government sector due to national security imperatives, and the advancement of smart city initiatives leveraging supercomputing technologies. The increasing adoption of big data analytics drives insights and efficiency across diverse industries, fueling market expansion. Additionally, government entities' substantial investments in security-related technologies contribute to market growth, driven by the need to address evolving threats. Furthermore, the deployment of supercomputers in smart city development projects signifies a strategic shift towards data-driven urban planning and management, stimulating demand for high-performance computing solutions. These intertwined factors collectively shape market dynamics, driving innovation and opportunity in the realm of data analytics and computing technologies. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2017 - 2021.
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The market, propelled by advancements in cloud-based HPC and collaboration with industry leaders like NEC Corporation and SambaNova, reshapes industries from genomics research to media and entertainment. With a focus on next-generation sequencing and addressing cybersecurity concerns, HPC solutions like Frontier supercomputer and artificial intelligence supercomputer drive innovation. From industrial Internet of Things to electronic design automation, HPC meets diverse computational demands across use cases. As nations embrace initiatives like the Digital India Program, HPC fuels economic growth through cutting-edge hardware and software technologies, paving the way for exascale computing and beyond. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing utilization of big data analytics is the key factor driving the growth of the market growth. The advent of big data analytics has led to significant growth in clustered supercomputers. The increasing cross-industry application of big data analytics is accelerating the adoption of supercomputers. Big data requires computing systems capable of handling data-intensive workloads. Organizations want to shift their focus beyond data management to deriving value from data that enables faster and more informed decision-making. There is an increasing trend to gain insights from big data. This will require a better computing infrastructure.
Further, with their ample storage and high processing capabilities, supercomputers are ideal for processing large volumes of data available in the market. The growth of high-performance data analysis using cluster supercomputers is mainly driven by the need to achieve advanced analytics in real-time. Many companies are likely to adopt this strategy to improve their decision-making capabilities and market competitiveness. Such factors are expected to drive the growth of the global market during the forecast period.
The growing use of the cloud is one of the primary market trends shaping the growth. One of the main drivers of this trend is the increasing availability and affordability of cloud computing services, especially from large providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. These providers offer a variety of high-performance virtual machines and storage solutions. Another factor driving the growth of cloud-based HPC is the growing demand for compute-intensive workloads in various industries such as research, engineering, and finance. With cloud-based HPC, organizations can quickly and easily scale computing resources to meet these demands without having to build and maintain their own HPC infrastructure.
Additionally, cloud-based can offer increased flexibility and agility, as well as improved collaboration and data-sharing capabilities. This can be particularly beneficial for research organizations and other groups that require large-scale computing resources but may not have the resources or expertise to build and manage their own cloud infrastructure. Such factors are expected to drive the growth of the computing market growth and trends during the forecast period.
The short lifecycle of supercomputers is a major challenge to the growth of the global market. Supercomputers don't have a very long lifespan. It has a shorter lifespan than your average electronic product, such as a personal computer. Industry experts opine that this happens because supercomputers are built with cutting-edge technology to achieve high processing speeds and computational power. Also, supercomputers have a lifespan of about three years, after which they need to be upgraded. Factors such as heat generation and power consumption that reduce component life make supercomputers very expensive.
Consequently, it is not wise to keep a supercomputer system operational for a long time. Instead, a company can easily opt for a new system, which will have the latest hardware and other upgraded components. Therefore, the short lifespan of supercomputers may be a significant factor hindering the adoption of such systems, which, in turn, is expected to hinder the growth of the global market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advanced Micro Devices Inc.: The company offers solutions with AMD EPYC processors, AMD 3D VCache technology, and AMD Instinct MI200 series accelerators.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the server segment will be significant during the forecast period. The server industry is split into four segments, namely supercomputers, divisional systems, departmental systems, and workgroup systems. The major reason for the growth of the server segment is the substantial growth of the global supercomputer market.
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The server segment was valued at USD 14.81 billion in 2017. The major reason for the growth of the segment is the growing interest in divisional servers. The main reason for the growth of divisional servers is the growing interest in cluster computing. Clusters and largescale clusters are prominently used in divisional systems due to their features, such as lower initial cost, fast processing speeds, and several others. As a result, It can be used by departments within the enterprise, leading to lower overall costs. Such factors are expected to drive the growth of the server segment, which in turn is expected to drive the growth of the computing market during the forecast period.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The regional market is primarily driven by technology-oriented countries such as China, Japan, and South Korea. The Chinese government has made a concerted effort to support supercomputing and boost advances in all fields, from life science research to manufacturing designs for its companies based out of China.
Moreover, countries such as India, Taiwan, Singapore, and other emerging nations in the region are gaining ground in this market. For instance, India currently has 15 supercomputing systems. The country uses these systems for various applications such as weather forecasting and earthquake analysis. Some government agencies in the region are also focusing on developing supercomputers. Government initiatives are likely to lead to the development of new supercomputers that will impact the regional market growth during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023-2027, as well as historical data from 2017 - 2021 for the following segments.
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In the realm of High Performance Computing (HPC), innovation knows no bounds. With advancements like cloud and edge computing and collaboration with hardware providers like NVIDIA Corporation and Ampere Computing, industries across sectors experience a paradigm shift. From robotics in healthcare to financial modeling, HPC drives breakthroughs in machine learning and optimization. With a focus on cyber security concerns and edge computing capabilities, HPC solutions cater to diverse needs in healthcare, defense, and beyond. As investments surge and partnerships like the Intent for Cooperation agreement flourish, the HPC market embraces quantum technologies and bioscience, propelling industries towards a future powered by exascale computing and beyond.
Further, high Performance Computing (HPC) reshapes industries with innovations like cloud based HPC and advancements in physical simulation and life science simulation. Addressing cybersecurity concerns, HPC solutions bolster data breaching risk mitigation, crucial for the Defense and Healthcare sectors. Investments in HPC surge, fostering partnerships and driving the market towards exascale computing readiness. With offerings like the Bare Metal Cloud platform and exascale-ready systems, HPC consortium to diverse sectors, from transportation to education. Collaborations with organizations like the National Science Foundation and Leibniz Supercomputing Centre fuel innovation, propelling industries towards a future powered by artificial intelligence systems and cutting-edge computational demand solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.1% |
Market growth 2023-2027 |
USD 16.63 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.65 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Alphabet Inc., Amazon.com Inc., Atos SE, Cisco Systems Inc., Dassault Systemes SE, DataDirect Networks Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., Landsea Group Co. Ltd., Lenovo Group Ltd., Microsoft Corp., NEC Corp., NetApp Inc., NVIDIA Corp., Oracle Corp., Super Micro Computer Inc., and Dell Technologies Inc. |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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