High Performance Computing Market

The global high performance computing market size is anticipated to expand at a high CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the rising inclination for hybrid high performance computing solutions and increasing demand for high-efficiency computing.

The use of parallel processing to run advanced application programs consistently, efficiently, and swiftly is known as High Performance Computing (HPC). Furthermore, it is a method of accumulating computing resources to achieve high performance in solving a large number of problems in science, industry, or engineering.

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Moreover, all forms of servers and micro-servers are utilized for highly computational or data-intensive tasks through HPC systems. On the other hand, HPC systems can process more than a teraflop of data per second that is 1012 floating-point operations per second. Additionally, HPC is well-suited for applications such as autonomous vehicles, high-frequency trading, genomics-based customized medicine, deep learning, computer-aided design, and high-performance data computing and analysis.

According to IBM Corp., the COVID-19 High Performance Computing Consortium, an initiative to provide supercomputing power to researchers working on COVID-19 related projects. It focuses on enabling researchers to identify therapies for patients infected with the coronavirus. Furthermore, well-established manufacturers all around the world are partnering with key players and taking steps to encourage the use of HPC to combat COVID-19 with the help of technology.

Moreover, the search for COVID-19 therapies is being aided by supercomputers. The improved access to HPC resources has helped in sophisticated calculations and forecasts along with the simulation research for vaccine development in order to control the pandemic across the globe.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing need for HPC solutions to process large volumes of data with high speed and accuracy is one of the key factors propelling the market growth during the forecast period.
• Rising demand for high-efficiency computing in different industries, such as finance, research, medical, geological exploration & analysis, and government & defense is expected to fuel the market expansion in the coming years.
• Growing adoption of cloud computing along with the digitization initiatives implemented by several governments across globe is estimated to boost the market growth.
• Lack of a trained technician and increasing security concerns are key restraining factors challenging the market growth.
• High capital expenditure involved in setting up organization’s on-premises or cloud infrastructure is anticipated to hinder the market expansion.
• Ongoing technological advancements in hybrid HPC solutions in order to gain better efficiency is estimated to offer lucrative opportunity for market growth in the coming years.

Scope of the Report

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

Market Segment Insights

Servers segment is estimated to grow at a rapid pace

Based on components, the global cloud high performance computing market is segregated as storage, software, servers, networking devices, cloud, services, and others. The servers segment is estimated to grow at a rapid pace during the forecast period due to the increasing number of data centers as many mid-size enterprises and businesses are in the process of capitalizing in colocation and on-premises infrastructure to support the rising need for public cloud services.

However, the service segment is projected to gain a large market share in the coming years, owing to the various services offered by high performance computing, such as maintenance, support, and management. Furthermore, support is especially important while setting up HPC systems and getting them up and running. On the other hand, maintenance services include system upgrades and troubleshooting.

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On-premise segment is projected to expand at a considerable CAGR

On the basis of deployments, the market is bifurcated into cloud and on- premise. The on- premise segment is projected to expand at a considerable CAGR during the forecast period due to the increasing concerns related to the security of sensitive data connected to national security and individuals' personal data along with the organizational data.

For example, in Mexico, the Data Protection Laws went into effect in 2010, allow for the distribution of data assets across the country. Furthermore, the government believes that in order to maintain national security, all sensitive data maintained by various government agencies along with the personal data of citizens should remain within Mexican jurisdiction. Thus, all these factors are estimated to propel the segment growth in the coming years.

However, the cloud segment is expected to register a key market share during the forecast period due to the increasing efficiency and cost-effectiveness as the organizations need not to invest in extra computing sources.

Government & defense segment is estimated to gain a large revenue share

Based on end- users, the global high performance computing market is segmented into healthcare & bioscience, banking financial services and insurance (BFSI), manufacturing, gaming, education & research, media & entertainment, government & defense, transportation, retail, and others. The government & defense segment is estimated to gain a large revenue share during the forecast period, owing to the growing adoption of advanced IT solutions in order to improve the computing efficiency.

However, manufacturing segment is anticipated to expand at a considerable CAGR in the coming years. Manufacturing operations are typically time-consuming and computationally intensive. Furthermore, manufacturing companies frequently use simulation and CAD software, along with the HPC equipment. On the other hand, HPC systems can be utilized in the manufacturing industry for computational structural mechanics, fluid dynamics, and computational electromagnetics to improve performance, speed up computations, and assure quick access to data.

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North America is anticipated to constitute a key market share

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period, owing to the rapid implementation and development of new technology in several industries across the region.

Furthermore, some of the large corporations in the world, such as Boeing and General Motors along with the numerous small and medium enterprises are aggressively adopting HPC systems to assist them to overcome technical constraints. Thus, it is expected to boost the market growth in the region.

However, the market of Asia Pacific is estimated to gain a large revenue share in the coming years the increasing adoption of HPC systems for weather forecasting and scientific research. Furthermore, China is one of the top ten countries in the world for high performance computing market. Additionally, supercomputers such as Tianhe-2 (Milkyway-2) was built by China's National University of Defense Technology, funded by the city of Guangzhou and the province of Guangdong.

Segments

• Storage
• Software
• Servers
• Networking Devices
• Cloud
• Services
• Others

• Cloud
• On-premise

• Healthcare & Bioscience
• BFSI
• Manufacturing
• Gaming
• Education & Research
• Media & Entertainment
• Government & Defense
• Transportation
• Retail
• Others

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

• Atos SE
• IBM Corp.
• Advanced Micro Devices, Inc.
• Intel Corp.
• Hewlett Packard Enterprise Development LP
• FUJITSU
• Dell Technologies Inc.
• Cisco Systems, Inc.

Competitive Landscape

Some of the key players competing in the global high performance computing market are Atos SE; IBM Corp.; Advanced Micro Devices, Inc.; Intel Corp.; Hewlett Packard Enterprise Development LP; FUJITSU; Dell Technologies Inc.; and Cisco Systems, Inc. 

These key players are focusing on several marketing strategies, such as mergers & acquisition, partnerships & collaborations, R & D activities in order to sustain the revenue share in the industry.

Travelport has selected Amazon Web Services (AWS) as its preferred cloud partner in June 2021. It is further announcing plans to leverage the organization’s portfolio to improve the performance and scalability of its operations. AWS will employ other technology, such as HPC, security, storage, machine learning analytics, and databases along with cloud capabilities to provide Travelport with a faster, easier, and more personalized trip booking experience.

Dassault Systemes has finalized the acquisition of Medidata Solutions Inc. in November 2020, which helps the clinical knowledge and cloud-based solutions to enable smarter treatment development and commercialization. Furthermore, Dassault Systemes has a comprehensive offering that represents a thorough grasp of healthcare, its ecosystem, and market needs, allowing it to lead the digital transformation of life sciences in the age of customized treatment and patient-centric experience.

For example, in February 2020, Atos SE has announced the acquisition of Maven Wave, a technology and cloud consultancy firm based in the United States. Atos SE intends to use this acquisition to expand its machine learning, cloud-solutions, and data analytics business across multi-cloud platforms.