Next Generation Computing Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The next generation computing market size has grown rapidly in recent years. It will grow from $277.04 billion in 2024 to $327.17 billion in 2025 at a compound annual growth rate (CAGR) of 18.1%. The growth in the historic period can be attributed to consumer electronics evolution, cybersecurity concerns, mobile computing, demand for high-performance computing, networking infrastructure advances.

The next generation computing market size is expected to see rapid growth in the next few years. It will grow to $667.19 billion in 2029 at a compound annual growth rate (CAGR) of 19.5%. The growth in the forecast period can be attributed to increasing complexity of workloads, focus on sustainable computing, government investments in research, human augmentation. Major trends in the forecast period include ai and machine learning integration, neuromorphic computing, in-memory computing, hybrid cloud and multi-cloud computing, robust data analytics and visualization.

The projected surge in the application of artificial intelligence (AI) is anticipated to act as a driving force behind the growth of the next-generation computing market. This upsurge refers to the integration of AI technologies into various sectors and functionalities, aiming to improve operational efficiency, automate tasks, and enable advanced decision-making processes. The increasing reliance on AI techniques, particularly machine learning and deep learning, necessitates robust computational capabilities. Hence, there's a growing demand for next-gen computing technologies such as quantum and neuromorphic computing. These advancements aim to significantly enhance the efficiency and speed of complex AI operations compared to traditional computing methods. An example of this trend is observed in the findings of the International Business Machines Corporation, revealing a 4% increase in AI adoption among businesses in 2022 compared to the previous year, with a further 13% increase projected for 2022. This uptick in AI adoption is expected to propel the expansion of the next-generation computing market.

The upsurge in manufacturing activities is anticipated to be a key factor driving the growth of the next-generation computing market. Manufacturing industries rely on processes that transform raw materials or components into finished products through machinery, labor, and various technical processes. The integration of next-generation computing technologies within manufacturing operations plays a pivotal role in enhancing overall efficiency, precision, and flexibility across the production cycle. A noteworthy instance of this correlation is evident in the statistics shared by Statistics Canada in February 2023, reporting a remarkable 17.9% increase in the Canadian manufacturing industry's total sales, which soared to $850.9 billion in 2022. This substantial growth in manufacturing activities signifies an increasing reliance on advanced computing technologies, thereby fueling the growth of the next-generation computing market.

Key players within the next-generation computing market are proactively innovating technologies such as integrated hybrids to cater to the escalating demand for more robust, energy-efficient, and adaptable computing solutions. Integrated Hybrid is a feature within Azure Quantum, designed by Microsoft Corporation, that seamlessly merges classical and quantum computing resources for researchers. Launched in March 2023, this cutting-edge technology simplifies the development and deployment of hybrid quantum computing applications. The interface provides a seamless amalgamation of classical and quantum computing resources, abstracting away the underlying complexity of different hardware platforms. This abstraction empowers researchers to concentrate on application development without grappling with the intricacies of diverse hardware, thereby enhancing their efficiency and focus in quantum computing research.

In August 2023, Sidus Space Inc., a prominent US-based engineering services firm renowned for its expertise in space mission engineering and exploration solutions, completed the acquisition of Exo-Space Inc. This strategic acquisition is intended to enable Sidus to venture into the burgeoning field of artificial intelligence (AI) while simultaneously expanding its offerings in the domain of earth and space observation services. Exo-Space Inc., the acquired company, is recognized for its specialized edge AI computing services and solutions.

Major companies operating in the next generation computing market report are Amazon Web Services Inc., Alphabet Inc., Google LLC, Microsoft Corporation, Alibaba Group Holding Limited, Dell Inc., Lenovo Group Ltd., Intel Corp., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Honeywell International Inc., Broadcom Inc., SAP SE, Micron Technology Inc., Hewlett Packard Enterprise Development LP, NVIDIA Corp., Salesforce, NEC Corporation, Advanced Micro Device Inc., Infosys Limited, VMware Inc., Atos SE, Equinix Inc., NetApp Inc., Juniper Networks Inc., Citrix Systems Inc., Splunk Inc., Pure Storage Inc., Nutanix Inc., ISM Corporation.

North America was the largest region in the next generation computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the next generation computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the next generation computing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The next-generation computing market consists of revenues earned by entities by providing services such as cybersecurity services, consulting services, cloud services, software development, prototyping services, and big data services. The market value includes the value of related goods sold by the service provider or included within the service offering. The next-generation computing market also includes sales of AI accelerators, supercomputers, next-generation processors, qubit systems, neuromorphic systems, edge servers, and hardware accelerators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Next-generation computing pertains to the development of both hardware and software solutions designed to tackle challenges associated with data processing, transfer rates, and energy efficiency. This cutting-edge technology finds application across diverse domains and industries, leveraging its advanced capabilities to address complex problems.

The primary categories of next-generation computing include high-performance computing, quantum computing, brain-inspired computing, approximate and probabilistic computing, energy-efficient computing, thermodynamic computing, memory-based computing, optical computing, edge computing, and others. High-performance computing (HPC) involves the utilization of advanced computer systems for intricate calculations, employing a range of hardware, software, and solutions. These are deployed through cloud and on-premise setups, catering to both small and medium-sized enterprises (SMEs) as well as large enterprises. Major end-users span across sectors such as banking, financial services and insurance (BFSI), energy and power, transportation and logistics, chemicals, academia, government, information technology and telecommunications, healthcare, space and defense, and manufacturing.

The next-generation computing market research report is one of a series of new reports that provides next-generation computing market statistics, including next-generation computing industry global market size, regional shares, competitors with a next-generation computing market share, detailed next-generation computing market segments, market trends and opportunities, and any further data you may need to thrive in the next-generation computing industry. This next-generation computing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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