High Performance Computing Market Size, Share & Industry Analysis, By Component (Hardware, Software, and Services), By Deployment Mode (On-premise, Cloud, and Hybrid), By Enterprise Type (Small and Medium Enterprises (SMEs) and Large Enterprises), By Industry (Healthcare and Life Sciences, BFSI, Manufacturing, Energy and Utilities, Transportation, Government and Defense, Media and Entertainment, Education, and Others), and Regional Forecast, 2024-2032

The global high performance computing market size was valued at USD 50.02 billion in 2023 and is projected to grow from USD 54.39 billion in 2024 to USD 109.99 billion by 2032, exhibiting a CAGR of 9.2%. North America dominated the global market with a share of 40.78% in 2023.

High Performance Computing (HPC) refers to the use of advanced computational techniques and technologies to tackle complex and demanding computational problems that require significant processing power and data-handling capabilities. HPC systems leverage parallel processing architectures, high-speed interconnects, and specialized hardware components such as multi-core processors, Graphics Processing Units (GPUs), and accelerators. These systems can perform large-scale simulations, mathematical computations, scientific modeling, data analytics, and Artificial Intelligence (AI) tasks.

The market’s growth can be attributed to the increasing number of data centers and cloud services to reduce data complexity. The rising trend in the adoption of quantum computing also contributes to this growth. Increasing adoption of cloud-based high-performance and complex application management is fostering a growing potential for market share.

The COVID-19 pandemic created a positive impact on this market due to the increased demand for computational resources in epidemiological modeling, genomics, biomedical research, and drug discovery. In studying large datasets and simulating complex biological processes related to coronavirus, HPC has played an important role.

IMPACT OF GENERATIVE AI

Cutting-edge Capabilities of Generative AI for High-quality Training Data Fueled Market Growth

Generative AI stands at the forefront of revolutionizing high performance computing, offering a profound impact on algorithm development, quantum machine learning, and GPUs. A large amount of computing power is required to train gen AI training algorithms. By using parallel processing and high-speed interconnects, high-performance computing systems can significantly accelerate the training process. This innovation also leads to the formulation of more efficient algorithms, bolstering computer’s performance and expanding their capabilities.

Moreover, new applications of high performance computing, such as the creation of realistic synthetic environments for training autonomous systems, the creation of molecular structures for drug discovery, or the creation of realistic images and videos for entertainment and virtual reality applications, can be enabled by generative AI. Thus, generative AI's capability to create complex and massive data aids in simulating real-world applications and ensures that the HPCs are ideal for several scenarios and user interactions. Hence, various market players are introducing new offerings with generative AI to offer a better user experience. For instance,

• In January 2024, Adaptive Enterprises Computing, Inc. launched adaptive AI as a service offering that enables small and medium-sized businesses and large enterprises to use generative AI capabilities. This solution consists of an end-to-end platform for developing AI and ML using powerful management software that is accessible via a web browser with more than 120 HPC applications and tools and simplified GPU infrastructure deployment.

High Performance Computing Market Trends

Integration of AI in HPC Systems to Increase Technological Advancements is a Key Trend

Integrating AI and high performance computing is strongly linked to revolutionizing industries. HPC systems play an important role in enabling these advanced applications as AI algorithms become increasingly complex and require large amounts of computational capacity.

The integration of AI and HPC is leading significant advancements in several areas, including data processing and analysis, predictive modeling, and enhanced simulations.

High Performance Computing Market Growth Factors

Increasing Number of Data Centers and Cloud Services to Reduce Data Complexity is Driving the Adoption of HPC Systems

The need for effective and reliable storage technologies is becoming increasingly important as the digital landscape evolves and people and businesses create a huge amount of data. The supercomputers are given an advantageous environment for growth due to this data storage demand. The proliferation of large, complex datasets and the increasing number of data centers primarily drive the increasing demand for HPC systems.

Businesses realize the importance of data storage and redundancy and protecting themselves from loss as digital information grows in value. For instance,

• According to an industry analyst, in 2023 there were 209 data center transactions in the U.S. with a combined value of over USD 48.0 billion in 2021, up by 40% from 2020, when it was worth USD 34.0 billion. There were 87 transactions with an overall value of USD 24.2 billion in the first half of 2022.

Additionally, the HPC market is gaining momentum as a result of the shift to hybrid and multi-cloud services. To create a flexible and dynamic HPC infrastructure, organizations are using a combination of on-premises, public cloud, and private cloud resources. This approach facilitates optimal utilization of resources and cost-effectiveness.

RESTRAINING FACTORS

Insufficiency of Digital Infrastructure Capabilities to Hinder Market Growth

The insufficiency of digital infrastructure capabilities across emerging nations poses a significant challenge to the expansion of the HPC market. HPC requires advanced digital infrastructure, including high-speed internet, secure communication networks, and data centers, to operate efficiently. However, many emerging nations lack the necessary infrastructure, hindering the widespread adoption of computing technologies in this market. This digital divide could further exacerbate existing inequalities in access to cutting-edge technologies and impede the overall high performance computing market growth.

High Performance Computing Market Segmentation Analysis

By Component Analysis

Rapid Development of Integrated and Energy Efficient Server Systems Fueled Growth for Hardware Segment

Based on thecomponent, the market is segmented into hardware, software, and services. 

In terms of market share, the hardware segment dominated the market in 2023 due to the development of integrated and energy efficient server systems as a result of new technology developments and increased production of hardware components. Storage, servers, and other hardware components, including networking and processor modules used most in HPC clusters, are primarily included in the hardware segment.

The services segment is projected to record the highest CAGR during the forecast period. HPC vendors provide various services, such as maintenance, support, and administration. The support is particularly needed for the installation and early use of HPC systems. Maintenance services, however, involve the upgrading of existing systems and solving problems.

By Deployment Mode Analysis

Ease of Controllability and Accessibility Offered by On-Premise High Performance Computing Solutions Boosted Segment Growth

Based on deployment mode, the market is segmented into on-premise, cloud, and hybrid.

In terms of market share, the on-premise segment dominated the market in 2023. This is due to their ability to tap into the total capacity of high performance computing systems without having to deal with connectivity problems. In addition, the demand for on-premise deployment of HPC systems is driven by the increasing complexity of operations and the increasing capabilities of the systems.

The cloud segment is anticipated to register the highest CAGR during the forecast period. This is due to the increasing use in different applications of a module for deploying clouds. Moreover, organizations are seeking flexible solutions to balance compliance with the adaptability of cloud services due to the rise of data sovereignty and privacy legislation. There is a growing trend to incorporate HPC systems into public cloud hosting.

By Enterprise Type Analysis

Implementation of Effective Big Data Analysis in Large Enterprises by High Performance Computing Solutions Boosted Market Growth

Based on enterprise type, the market is segmented into Small and Medium Enterprises (SMEs) and large enterprises.

In terms of market share, the large enterprises segment dominated the market in 2023. Large enterprises often deal with data-intensive workloads and complex simulation tasks. HPC helps large enterprises run complicated simulations that increase innovation and better decision-making. Moreover, HPC helps large enterprises to implement effective big data analysis, and reveal hidden patterns and trends that are challenging to learn with conventional computing methods.

The Small and Medium Enterprises (SMEs) segment is anticipated to register the highest CAGR during the forecast period. As SMEs recognize the advantages of quicker processing and better data analysis, they are increasingly adopting advanced computer technologies. Moreover, through various initiatives, governments are increasingly encouraging SMEs to adopt HPC. European government support to SMEs in the adoption of high performance computing systems is offered by Supreme Headquarters Allied Powers Europe (SHAPE), a free initiative within Pan Europe.

By Industry Analysis

Government and Defense Segment Dominated Owing to the Rising Need of High-quality IT solutions for Digital Initiatives

Based on industry, the market is categorized into healthcare and life sciences, BFSI, manufacturing, energy and utilities, transportation, government and defense, media and entertainment, education, and others. 

In 2023, the government and defense segment held the largest high performance computing market share. While the defense sector has deployed cutting-edge IT solutions that improved its efficiency, governments have also invested in high performance computer systems for promoting digitization initiatives and contributing to growth.

The healthcare and life sciences segment is anticipated to grow at the highest CAGR during the forecast period. This growth is due to the rising adoption of HPC to accelerate drug discovery for various diseases. The healthcare and life sciences require very high computing power if it is to handle such a large amount of biological data, which conventional computer methods cannot provide. Therefore, healthcare organizations are increasingly using innovative technologies such as HPC to analyze vast amounts of raw human biological data.

REGIONAL INSIGHTS

Geographically, the market is studied across Asia Pacific, North America, Europe, South America, and the Middle East & Africa.

North America held a dominating high performance computing market share in 2023. The dominance of the region is attributed to a combination of technological innovation, strategic investments, and a mature ecosystem of cloud computing. Also, the region is at the forefront of developing advanced processors such as multi-core CPUs, GPU accelerators, and specialized AI accelerators, which form the backbone of high-performance computing systems. The region's technological expertise and robust infrastructure enable it to address complex computational challenges and drive innovation in areas such as climate modeling, financial analytics, genomics research, and AI-driven applications. For instance,

• In November 2023, AWS and NVIDIA expanded collaboration to deliver advanced infrastructure and software for customers' generative AI innovations. The collaboration empowers ML developers with the computing performance needed to advance AI technologies.

Asia Pacific is expected to experience the highest growth rate during the projected period with increasing number of data centers, heavy government investments, and enhanced infrastructure.

The Middle East & Africa is expected to register the second-highest growth rate as it focuses on digital transformation across various sectors, such as energy, finance, healthcare, and research, is driving the demand for advanced computational capabilities provided by HPC systems. These sectors require sophisticated data processing, simulation, and modeling tools offered by HPC to enhance operational efficiency, decision-making processes, and innovation.

List of Key Companies in High Performance Computing Market

Industry Leaders Expand Horizons with Strategic Partnerships and Product Innovations

Market participants leverage partnerships and product development tactics to broaden their business scope. Leading industry players in the market are delivering advanced HPC solutions to mitigate bias in ML models and enhance AI task efficiency. High performance computing firms focus on acquiring smaller and local companies to extend their market presence. Additionally, mergers, acquisitions, major investments, and strategic alliances drive increased demand for their products.

List of Key Companies Profiled:

• Atos SE (France)


• IBM Corporation (U.S.)


• NVIDIA Corporation (U.S.)


• Advanced Micro Devices, Inc (U.S.)


• Hewlett Packard Enterprise Development LP (U.S.)


• Microsoft Corporation (U.S.)


• Fujitsu (Japan)


• Intel Corporation (U.S.)


• Lenovo (China)


• Amazon Web Services, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: NVIDIA announced that Pawsey Supercomputing Research Centre in its National Quantum Computing and Supercomputing Innovation Hub, started using its CUDA Quantum platform powered by the Grace Hopper Superchips that advances its work in HPC.


• February 2024: Lenovo signed a contract with the University of Paderborn to build a new HPC cluster jointly. As part of the National High Performance Computing Network, a substantial part of the computing system will be made available to national research from 2025 to support, among other things, research in the area of atomic simulation.


• December 2023: Lenovo announced that the high performance computing system HPC LISE is being expanded at Zuse Institute Berlin, an interdisciplinary research center of data-intensive HPC and applied mathematics. This expansion gives researchers the means to perform compute-intensive applications such as AI and ML.


• October 2023: RIKEN and Fujitsu at the RIKEN RQC-Fujitsu Collaboration Center announced the creation of the latest 64-qubit superconducting quantum computer. This high performance computer is based on the technology created by RIKEN and some group of research partners, with Fujitsu for Japan's superconducting quantum computers.


• July 2023: HCLTech, a global technology company, expanded its collaboration with Microsoft to provide clients with HPC solutions in different sectors. This collaboration focused on providing clients with access to HPC resources, including advanced analytics, core infrastructure, ML, and simulation, allowing them to optimize operations, make better-informed decisions, and drive innovation.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies and leading Industry of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 9.2% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Component Hardware Software Services By Deployment Mode On-premise Cloud Hybrid By Enterprise Type Small and Medium Enterprises (SMEs) Large Enterprises By Industry Healthcare and Life Sciences BFSI Manufacturing Energy and Utilities Transportation Government and Defense Media and Entertainment Education Others (Retail) By Region North America (By Component, Deployment Mode, Enterprise Type, Industry, and Country) U.S. (By Industry) Canada (By Industry) Mexico (By Industry) South America (By Component, Deployment Mode, Enterprise Type, Industry, and Country) Brazil (By Industry) Argentina (By Industry) Rest of South America Europe (By Component, Deployment Mode, Enterprise Type, Industry, and Country) U.K. (By Industry) Germany (By Industry) France (By Industry) Italy (By Industry) Spain (By Industry) Russia (By Industry) Benelux (By Industry) Nordics (By Industry) Rest of Europe Middle East & Africa (By Component, Deployment Mode, Enterprise Type, Industry, and Country) Turkey (By Industry) Israel (By Industry) GCC (By Industry) North Africa (By Industry) South Africa (By Industry) Rest of the Middle East & Africa Asia Pacific (By Component, Deployment Mode, Enterprise Type, Industry, and Country) China (By Industry) Japan (By Industry) India (By Industry) South Korea (By Industry) Taiwan (By Industry) ASEAN (By Industry) Oceania (By Industry) Rest of Asia Pacific