Global High Performance Computing Market

Executive Summary

In recent years, the global High Performance Computing (HPC) market has experienced notable advancement. The widespread adoption of data-intensive applications, such as artificial intelligence, machine learning, and big data analytics, has increased the demand for robust computing resources. In addition, ongoing digital transformation initiatives, particularly in industries such as healthcare for genomic research and financial services for algorithmic trading, have increased the adoption of HPC solutions.

The market is competitive, with key participants continually innovating to provide powerful and energy-efficient supercomputing systems. Also growing traction are cloud-based HPC services, which offer scalability and accessibility to a wider spectrum of users. On the other hand, obstacles such as the high cost of HPC infrastructure, concerns regarding power consumption, and the need for competent workers remain. However, investments in exascale computing initiatives and collaborations between governments, academic institutions, and industry participants are addressing these obstacles. As HPC continues to evolve, with an emphasis on energy efficiency and the convergence of HPC with artificial intelligence, quantum computing, and edge computing, the global market is anticipated to grow steadily, with a strong emphasis on driving innovation and resolving complex problems across multiple domains. The global high performance computing market was valued at $46.2 billion in 2022. It is estimated that the revenue will grow to $107.8 billion during the forecast period.

The global high performance computing market is segmented based on component, deployment, organization size, industry, and geography. The component segment has been categorized into hardware, software, and services. Of the components, the hardware segment dominates the global HPC market and was valued at $23.8 billion in 2022. Hardware represents the largest upfront investment cost for HPC capacity and tends to evolve rapidly, creating frequent upgrade cycles. HPC hardware vendors have specialized expertise and experience to serve the market's demanding needs. The crucial role of robust, optimized hardware infrastructure underpinning HPC software and applications enables the hardware segment to maintain its leading position. The hardware segment is expected to grow at a CAGR of 15.5%, and it is forecast to reach $55.1 billion by 2028.

Based on deployment, the HPC market has been segmented into cloud and on-premises. The on-premises segment holds the largest global market value of around $32.7 billion in 2022 and will grow at a CAGR of 14.3%. Many organizations already have on-premises HPC infrastructure and prefer the increased control, security, customization, and reduced latency that on-premises deployment offers. Upgrading on-premises data centers generates more upfront revenue for vendors than the pay-as-you-go model of the cloud. In addition to performance and migration issues, some HPC workloads remain on premises. However, cloud-based HPC is expanding significantly due to its adaptability and scalability.

By geography, the HPC market has been segmented into North America, Europe, Asia-Pacific, and Rest of World (RoW). North America is currently the most dominant region in the global high performance computing market. In 2022, total revenue from the North American HPC market reached $16.7 billion with 36.1% of total global revenue share. The presence of leading global companies, robust technology infrastructure, and high adoption of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are key factors driving the North American market. Following North America, the European market for HPC was valued at $14.1 billion in 2022, and it is projected to grow at a CAGR of 14.8% to reach $31.6 billion by 2028.