High Performance Computing Global Market Opportunities and Strategies to 2032

This report describes and explains the high performance computing market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global high performance computing market reached a value of nearly $47.08 billion in 2022, having grown at a compound annual growth rate (CAGR) of 9.0% since 2017. The market is expected to grow from $47.08 billion in 2022 to $69.17 billion in 2027 at a rate of 8.0%. The market is then expected to grow at a CAGR of 11.2% from 2027 and reach $117.84 billion in 2032.

Growth in the historic period resulted from the emerging market growth, increase in the number of data centers, increasing government investments. Factors that negatively affected growth in the historic period was the rise in cyber threats.

Going forward, growing adoption of cloud computing, increasing focus on big data analytics, rapid urbanization and growing utilization of IoT will drive the growth. Factor that could hinder the growth of the high performance computing market in the future include shortage of skilled professionals.

The high performance computing market is segmented by data type into structured, unstructured, semi structured. The unstructured market was the largest segment of the high performance computing market segmented by data type, accounting for 79.5% or $37.43 billion of the total in 2022. Going forward, the unstructured segment is expected to be the fastest growing segment in the high performance computing market segmented by data type, at a CAGR of 8.3% during 2022-2027.

The high performance computing market is segmented by component into software, hardware, services. The hardware market was the largest segment of the high performance computing market segmented by component, accounting for 63.6% or $29.92 billion of the total in 2022. Going forward, the services segment is expected to be the fastest growing segment in the high performance computing market segmented by component, at a CAGR of 9.1% during 2022-2027.

The high performance computing market is segmented by organization size into large enterprises and small and medium-sized enterprises. The small and medium-sized enterprises (SMEs) market was the largest segment of the high performance computing market segmented by organization size, accounting for 70.3% or $33.08 billion of the total in 2022. Going forward, the small and medium-sized enterprises (SMEs) segment is expected to be the fastest growing segment in the high performance computing market segmented by organization size, at a CAGR of 8.1% during 2022-2027.

The high performance computing market is segmented by industry vertical into education and research, government and defense, IT and telecom, banking and finance, transportation and logistics, retail and consumer goods, media and entertainment and other industry verticals. The government and defense market was the largest segment of the high performance computing market segmented by industry vertical, accounting for 24.4% or $11.50 billion of the total in 2022. Going forward, the healthcare segment is expected to be the fastest growing segment in the high performance computing market segmented by industry vertical, at a CAGR of 13.5% during 2022-2027.

The high performance computing market is segmented by deployment type into cloud, on-premises. The on-premises market was the largest segment of the high performance computing market segmented by deployment type, accounting for 59.4% or $27.97 billion of the total in 2022. Going forward, the cloud segment is expected to be the fastest growing segment in the high performance computing market segmented by component, at a CAGR of 10.1% during 2022-2027.

North America was the largest region in the high performance computing market, accounting for 40.6% or $19.12 billion of the total in 2022. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the high performance computing market will be Asia-Pacific and Western Europe, where growth will be at CAGRs of 10.0% and 8.1% respectively. These will be followed by North America and Eastern Europe, where the markets are expected to grow at CAGRs of 7.4% and 6.8% respectively.

The global high performance computing market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 43.7% of the total market in 2022. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. Dell Inc. was the largest competitor with a 7.3% share of the market, followed by Intel Corporation with 7.1%, NVIDIA Corporation with 5.1%, International Business Machines Corporation (IBM) with 4.8%, Hewlett Packard Enterprise Company with 3.7%, Fujitsu Limited with 3.7%, Advanced Micro Devices Inc. with 3.2%, Atos SE with 3.1%, NEC Corporation with 2.9% and Lenovo Group Limited with 2.8%.

The top opportunities in the high performance computing market segmented by data type will arise in the unstructured segment, which will gain $18.42 billion of global annual sales by 2027. The top opportunities in the high performance computing market segmented by component will arise in the hardware segment, which will gain $13.32 billion of global annual sales by 2027. The top opportunities in the high performance computing market segmented by organization size will arise in the small and medium sized enterprises segment, which will gain $15.86 billion of global annual sales by 2027. The top opportunities in the high performance computing market segmented by deployment type will arise in the cloud segment, which will gain $11.83 billion of global annual sales by 2027. The top opportunities in the high performance computing market segmented by industry vertical will arise in the government and defense segment, which will gain $5.86 billion of global annual sales by 2027. The high performance computing market size will gain the most in the USA at $7.98 billion.

Market-trend-based strategies for the high performance computing market include introduction of artificial intelligence (AI) to optimize HPC systems, focus on hybrid GPU computing infrastructure for energy optimization, supercomputer integration into technical computation environments, high-performance cloud solutions for AI development, open-source industrial IoT solutions with micro PLCs and strategic partnerships and collaborations for new product development.

Player-adopted strategies in the high performance computing market include focus on launching new product offerings through collaborations and partnerships and focus on enhancing operational capabilities through the launch of new product solutions.

To take advantage of the opportunities, the analyst recommends the high performance computing companies to focus on hybrid GPU computing infrastructure for energy optimization, focus on high performance cloud solutions for AI development, focus on using artificial intelligence (AI) to optimize HPC systems, expand in emerging markets, continue to focus on developed markets, focus on mergers and acquisitions, provide competitively priced offerings, continue to use B2B promotions, participate in trade shows and events and continue to target fast-growing end-use industries.