High Performance Computing Market Size and Share Analysis by Component (Server, Storage, Networking Devices, Software, Services), Deployment (On-Premises, Cloud), Enterprise Size (SMEs, Large Enterprises), Vertical (BFSI, Media and Entertainment, Retail, Transportation, Government and Defense, Education and Research, Manufacturing, Healthcare and Lifescience) – Global Industry Growth Forecast to 2030

Market Overview

The global high performance computing market revenue stood at $39,153.9 million in 2021, and it is set to increase to $74,101.0 million by 2030, advancing at a CAGR of 7.3% during 2021–2030. This is ascribed to the rising use of high performance computing technology by research and academic, government and defense, and healthcare and life sciences organizations, due to the emergence of cloud HPC solutions, increasing need for high-speed data processing with accuracy, and growing strategic initiatives and support from governments.

Use of Cloud Solutions Is Growing at a Higher Pace

The cloud category is expected to witness higher growth, advancing at a CAGR of around 8%, during 2021–2030. This can be because it covers public, private, and hybrid cloud technologies and offers flexibility & remote access. Moreover, this mode of deployment is widely preferred by organizations because the software is hosted on a vendor's server and can be accessed via a web browser. This feature eliminates the need to upgrade systems on a regular basis and allows users to access data from any location without difficulty.

Moreover, cloud technology is alluring to companies because it requires less capital and can be easily implemented. As a pay-per-use subscription model, cloud-based software provides multiple plans to choose from based on needs and budget. Furthermore, the software’s popularity is high, due to its scalability, affordability, and ease of use. This software also improves the efficiency of daily operations, lowers operating costs, and increases employee productivity. Thus, these features are expected to boost the market growth in this category.

On the other hand, the on-premise category held a larger revenue share, of around 55%, in the high performance computing market, in 2021. This is due to the governments’ high focus on the safekeeping of sensitive information related to national security and citizens' data, and companies’ concerns about the security of their respective organizational data. As a result, on-premise infrastructure persists to be preferred over cloud infrastructure.

For instance, in India, The Personal Data Protection Bill 2019 was introduced for the protection of personal data of individuals, and established a Data Protection Authority for the same. Moreover, the government has opinions that all the critical data related to an individual will be processed and stored in India. Such factors are expected to lift the growth of the market in this category.

Servers Dominate the Market

The server category held the largest market share, of around 35%, in 2021. This is due to the increase in the number of data centers, as several medium-sized companies are investing in the development of data centers to support the surging need for public cloud services.

Small and Medium-Sized Enterprises Captured Majority of the Industry Share

The small and medium-sized enterprises captured more than 55% of the high performance computing market share, based on enterprise size, in 2021. This is attributed to the surging number of small & medium companies, which are increasingly using supercomputers. Furthermore, attributed to the lower implementation, upgrade, and maintenance costs, smaller organizations have started adopting cloud technology. This allows easy access to data stored from any place, and easy integration with old legacy systems with improved efficiency. This saves time and operational costs for SMEs.

Moreover, skills, capital, and scalability are a few of the critical challenges for SMEs. To address these challenges, smaller companies are turning to cloud-based solutions, which allow them to scale their IT structure as needed. These companies face strong rivalry from large organizations; as a result, in order to gain a viable advantage, they are progressively adopting HPC solutions that help them raise productivity, and this trend is projected to continue in the coming years as well.

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Rising Usage of HPC Solutions in Government and Defense Vertical

Based on vertical, the government and defense category held the largest share in the market in 2021. This is because government and defense organizations increasingly deploying cutting-edge IT solutions to improve computing efficiency. Also, HPC systems are likely to be adopted by government agencies to achieve digitization goals and boost economic development.

In addition, several governments were leaning toward using HPC to combat the COVID-19 pandemic. As per a source, HPC solutions assisted COVID-19 researchers and organizations in accelerating basic science, therapeutics development, and patient care. For instance, HPC solutions have been used by the Argonne National Laboratory, National Center for Scientific Research, Lawrence Livermore National Laboratory, GENCI, and other organizations to discover vaccines for the virus.

Moreover, the BFSI category held the second-largest revenue share in the high performance computing market in 2021. This is because BFSI companies provide banking services such as core banking, retail, corporate, hedge funds, and investment banking; financial services including mutual funds, payment gateways, and stockbroking; and insurance services such as general and life risks. Insurance companies, for example, involve advanced IT solutions to attain sustainable growth, achieve operational risks, and deliver ideal performance. Furthermore, the rise in high-frequency trading has led to advancements in data access, connectivity, and computational power systems utilized by these companies.

For instance, SambaNova announced the launch of an HPC-based offering, SambaNova GPT Banking, in February 2022, for language translation, entity recognition, and performing sentiment analysis in banking services. Thus, companies are progressively deploying robust, secured, and reliable HPC solutions capable of offering high-end computing outputs.

Regional Insights

North America has the largest high performance computing market size, accounting for a revenue share of around 40% in 2021. This is because the region is the largest market for IT solutions, the presence of major industry players, and the development and implementation of new technologies. Also, the requirement to process large amounts of raw data is increasing, which creates a high demand for strong security measures. Thus, this is boosting the need to adopt cutting-edge technologies, which, in turn, is enhancing the use of HPC solutions.

Furthermore, Europe held the second-largest share in the market in 2021. This is because market players have been actively focusing on launching new products in the region. For instance, in February 2022, Atos SE launched the new exascale-class BullSequana supercomputer, for digital and economic sovereignty. This helps researchers and scientists to advance research in new drug discovery, forecasting climate change, and genomics.

Market Players’ Recent Strategic Activities

Key players in the high performance computing industry have been involved in mergers and acquisitions to boost their revenue share. For instance:

In July 2021, Atos SE announced to acquire Nimbix. Under this agreement, the company strengthened its HPC offering and enhanced its existing capabilities and position.

In February 2021, Cisco Systems Inc. announced to acquire IMImobile Limited, a cloud communications software & service provider. Under this acquisition, the company continued investment in building a technology stack to deliver on the CXaaS vision.

Top Producers of High Performance Computing Solutions Are:

• Atos SE
• Hewlett Packard Enterprise Development LP
• Advanced Micro Devices Inc.
• Dell Technologies Inc.
• Cisco Systems Inc.
• Fujitsu Limited
• IBM Corporation
• Intel Corporation
• Amazon Web Services Inc.
• Lenovo Group

Market Size by Segments

The research offers market sizing of the global high-performance computing for the period 2017–2030.

Based on Component

• Server
• Storage
• Networking Devices
• Software
• Services

Based on Deployment

• On-Premises
• Cloud

Based on Enterprise Size

• Small and Medium-Sized Enterprises
• Large Enterprises

Based on Vertical

• BFSI
• Media and Entertainment
• Retail
• Transportation
• Government and Defense
• Education and Research
• Manufacturing
• Healthcare and Lifescience

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • Singapore
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa