High-Performance Computing (HPC) Chipset Market Size [2031]

Report Description

High-Performance Computing (HPC) Chipset Market Outlook 2031

The global high-performance computing (HPC) chipset market size was valued at USD 5.6 Billion in 2022 and is likely to reach USD 24.28 Billion by 2031, expanding at a CAGR of 5.6% during 2023 – 2031. The market's growth is attributed to increasing adoption of Android devices and rising demand for PCs and laptops.

Growing demand for PCs and laptops is estimated to drive the market. High-performance computing chipsets are utilized in PCs and laptops to manage the flow of data between components and motherboards. These chipsets act as the brain of a computer or laptop, that process input, store data, and output results. Therefore, increasing adoption of PCs and laptops is projected to enhance the market. For instance, approximately 286 million PCs were shipped around the world in 2022.

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A high-performance computing (HPC) chipset is a cutting-edge computing system that delivers exceptional processing power and computational capabilities. These chipsets are designed to cater to the demanding requirements of complex computational and data-intensive tasks.

Central processing units, graphics processing units, field programmable gate arrays, and application-specific integrated circuits are the types of high-performance computing chipset. Increasing adoption of Android devices is expected to boost the demand for high-performance computing chipsets.

These chipsets are used in Android systems to free up resources and reduce the load on the system. GPU chipsets in mobile Android devices offer improved battery life as they handle the intensive graphical tasks of devices. This increases the demand for HPC chipsets in Android devices.

The COVID-19 pandemic propelled the demand for high-performance computing chipsets. The abrupt rise in COVID-19 infection encouraged governments to take preventive measures such as lockdowns and social distancing, which increased the demand for online education and remote working culture.

The increase in demand for online education and remote working propelled the need for laptops and desktops, which boosted the adoption of high-performance computing chipsets. HPCs are utilized in desktops and laptops to help improve system responsiveness and reduce bottlenecks by processing input, storing data, and performing output results. For instance,

• PC shipments in 2020 reached 309 million compared to 263 million in 2019 an increase of 18% from the previous year.

Impact of Artificial Intelligence on High-Performance Computing (HPC) Chipset

The growing technology is implementing artificial intelligence in high-performance computing chipsets, creating a lucrative opportunity in the market. AI-powered chipsets complete more computations per unit by incorporating huge numbers of smaller transistors.

Companies such as Intel, AMD, and NVIDIA are utilizing AI algorithms to monitor and analyze real-time data during the production process. AI is also used in designing high-performance computing chipsets to meet performance requirements, maximizing efficiency while minimizing power consumption.

High-Performance Computing (HPC) Chipset Market Dynamics

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Major Drivers

Increasing spending on data centers is expected to boost the demand for high-performance computing chipsets. These computing chipsets are required in data centers to store, process, and disseminate data and applications. It also handles all the tasks required for software on the server to run correctly. Therefore, rising spending on data centers is propelling the market. For instance,

• According to a report, spending on data center systems increased by 11.1% from the previous year amounting to USD 212 billion in 2022.

Rising adoption of autonomous vehicles is projected to drive the market. GPU a type of HPC chipset serves as a backbone for autonomous driving functions as they carry out millions of calculations simultaneously. GPU in autonomous vehicles processes huge amounts of data quickly, ensuring real-time decision-making. This increases the demand for HPC chipsets in autonomous vehicles.

Existing Restraints

High initial and maintenance costs of high-performance computing chipsets encourage startups and small and medium-sized enterprises to lessen their adoption, which is expected to restrict the market. Moreover, the limitation involved with CPU is projected to hamper the market. CPU is not fine for parallel processing and is not compatible with all systems or software.

Emerging Opportunities

Growing cloud computing infrastructure creates an immense opportunity in the market. HPC chipsets are utilized in cloud computing to receive instructions, execute tasks, and communicate with other virtual components. It also stores programs and data on the cloud, which increases its adoption.

Moreover, key companies in the market are heavily investing in R&D activities to develop and introduce new high-performance computing chipsets, which creates a lucrative opportunity in the market. For instance,

• On May 22, 2023, Intel Corporation a manufacturer of graphic chips, flash memory, motherboard chipsets, and other computing devices announced the launch of a new field programmable gate array, Agilex7 with the R-Tile. Agilex7 delivers leading technology capabilities with 2 times faster PCIe 5.0 bandwidth as well as 4 times higher CXL bandwidth per port.

Scope of High-Performance Computing (HPC) Chipset Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

High-Performance Computing (HPC) Chipset Market Segment Insights

Chip Type Segment Analysis

Based on chip type, the high-performance computing (HPC) chipset market is categorized into central processing units, graphics processing units, field programmable gate arrays, and application-specific integrated circuits.

The central processing units (CPU) and graphics processing units (GPU) segment registered a significant pace of growth in 2022 due to growing demand for consumer electronics, automobiles, IT & telecom, and media and entertainment.

CPU and GPU are interrelated to each other, the CPU handles all the main functions of a computer while the GPU executes graphics-related work like graphics, effects, and videos.

The field programmable gate arrays segment is estimated to grow at a quick pace during the assessment year owing to rising number of data centers around the world. Field programmable gate arrays (FPGA) are widely used in data centers to enhance performance, efficiency, and flexibility across various tasks. FPGA allows feature upgrades and bug fixes to be performed in situ, which encourages its demand in data centers.

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Industry Vertical Segment Analysis

In terms of industry verticals, the global market is segregated into IT & telecom, automotive, and BFSI. The IT & telecom segment held a large share of the market in 2022 due to increasing demand for online retailing, cloud computing, and advanced network optimizations.

HPC chipsets are used in telecom to allow access to Wi-Fi services as they are utilized in computers and internet routers. The IT industry needs computers to conduct the work and computers are pre-installed with HPC chipsets as they allow electronic security, storage, and handling of complex tasks such as large data transfers with ease, which increases its adoption in the IT sector.

The BFSI segment is anticipated to grow at a rapid pace during the projected period owing to growing industrialization and increasing income levels. Banks and financial institution are shifting their focus from papers to computers, which increases the demand for high-performance computing chipsets as these chipsets are used in computers to process complex data by using several algorithms.

Regional Outlook

Based on region, the high-performance computing (HPC) chipset market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022 due to growing technological advancements in cloud computing and the presence of major market players such as Intel Corporation, Alphabet Inc., Advanced Micro Devices, Inc., and International Business Machines Corporation.

Moreover, increasing number of data centers and rising development and adoption of supercomputers in the region are propelling the need for high-performance computing chipsets as these chipsets are utilized in supercomputers to interpret large program instructions and execute arithmetic and logic operations in proper sequence. For instance,

• On May 30, 2022, Hewlett Packard Enterprise a global edge-to-cloud company announced the launch of a newly developed supercomputer, Frontier. Frontier was developed specifically for the Oak Ridge National Laboratory (ORNL) in the U.S. Department of Energy.

The market in Asia Pacific is projected to expand at a high CAGR in the coming years owing to increasing digitalization and rising disposable income. Moreover, growing IT industry in the region is estimated to boost the demand for HPC chipsets as these chipsets are used in the IT industry to process complex and large data to complete tasks. For instance,

• Revenue from the IT industry in India is expected to grow at a CAGR of 13.97%, resulting in a market value to reach USD 43.09 billion by 2028.

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