High-Performance Computing (HPC) Market Growth at 7.1% CAGR | Technavio Analysis 2022-2027

New York, October 30, 2023 – The high-performance computing (HPC) market is on an upward trajectory, set to grow by USD 16.62 billion from 2022 to 2027. This represents a remarkable Compound Annual Growth Rate (CAGR) of 7.1% during the forecast period. Technavio, a leading market research firm, presents a comprehensive analysis of the current global market scenario, the latest trends, and the overall market environment in their latest report.

Driving Forces:

The key driver behind this market growth is the increasing utilization of big data analytics. The rise of big data analytics has led to a significant uptick in clustered supercomputers. This is due to the expanded usage of big data analytics across various industries, which has accelerated the adoption of supercomputers. The handling of large volumes of data requires computing systems that can efficiently manage data-intensive tasks. Companies are shifting their focus from data management to extracting value from data, enabling quicker and more informed decision-making. Many organizations are adopting this strategy to enhance their decision-making capabilities and gain a competitive edge in the market.

Market Dynamics:

Major Trends: The growing use of the cloud is a significant trend shaping the HPC market. Cloud computing services from major players like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform have become more accessible and affordable. These cloud providers offer high-performance computing (HPC) services, including powerful virtual machines and storage solutions. Cloud-based HPC offers improved flexibility, agility, and enhanced collaboration and data-sharing capabilities. The demand for compute-intensive tasks in research, engineering, and finance further contributes to the expansion of cloud-based HPC.

Significant Challenges: One major challenge for the HPC market is the short lifecycle of supercomputers. Supercomputers need frequent upgrades to maintain high processing speeds and computing capability. Typically, they have a three-year lifespan before requiring upgrades, which can be costly due to factors like heat generation, power consumption, and component depreciation. However, companies can easily acquire new systems with the latest hardware and upgraded components, limiting the growth of the market.

Market Segmentation:

The high-performance computing market is segmented by components, including server, storage, application, services, and middleware, and by deployment, encompassing on-premises and cloud solutions. The server segment is expected to witness significant growth during the forecast period. This growth is driven by the increased adoption of supercomputers and the advantages of cluster computing.

Geographical Overview:

The market is geographically segmented into regions such as APAC, North America, Europe, South America, and the Middle East and Africa. APAC is projected to contribute significantly to market growth, with countries like China, Japan, and South Korea leading the way. Government support for supercomputing initiatives and technological advancements in these countries are driving the regional HPC market. For example, India is using supercomputing systems for applications like weather forecasting and earthquake analysis, further boosting market growth.

In Conclusion:

The High-Performance Computing (HPC) market is poised for substantial growth, driven by the increasing utilization of big data analytics and the growing trend of cloud-based HPC. However, the market faces challenges due to the short lifecycle of supercomputers. To learn more about the HPC market’s dynamics, segmentation, and regional trends, consider downloading Technavio’s comprehensive report.

What’s New? – This report provides special coverage on the Russia-Ukraine war, global inflation, recovery analysis from COVID-19, supply chain disruptions, global trade tensions, and the risk of recession. It also offers insights into global competitiveness and key competitor positions. Gain valuable market presence insights across multiple geographical footprints – Strong/Active/Niche/Trivial – by purchasing the report.

Companies Mentioned: Advanced Micro Devices Inc., Alphabet Inc., Amazon.com Inc., Atos SE, Cisco Systems Inc., Dassault Systemes SE, DataDirect Networks Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., Landsea Group Co. Ltd., Lenovo Group Ltd., Microsoft Corp., NEC Corp., NetApp Inc., NVIDIA Corp., Oracle Corp., Super Micro Computer Inc., Dell Technologies Inc.

Vendor Offering Highlights:

  • Advanced Micro Devices Inc.: Offers HPC solutions with AMD EPYC processors, AMD 3D VCache technology, and AMD Instinct MI200 series accelerators.
  • Atos SE: Provides HPC solutions like BullSequana XH3000, Nimbix Supercomputing Suite, ThinkAI, and JARVICE XE HPC Enterprise Software.
  • Dassault Systemes SE: Offers cloud-based High-Performance Computing solutions called the 3DEXPERIENCE platform.

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