High Performance Computing (HPC) Market Size, Share & Trends Analysis Report By Component (Servers, Storage), By Deployment, By End Use (Gaming, Government & Defense), And Segment Forecasts, 2018 - 2025

Industry Insights

The global High Performance Computing (HPC) market size was valued at USD 34.62 billion in 2017. It is expected to expand at a CAGR of 7.2% from 2018 to 2025. The growing need for high-efficiency computing, continued diversification and expansion of the IT industry, advances in virtualization, and rising preference for hybrid HPC solutions are some of the factors expected to drive the market growth. The ability of HPC systems to process large volumes of data at higher speeds is prompting government agencies, defense agencies, academic institutions, energy companies, and utilities to adopt HPC systems. This is also anticipated to bode well for the HPC market growth in the forthcoming years.

Rising popularity of cloud computing coupled with the digitization initiatives being adopted by several governments would play a decisive role in catapulting the market over the forecast period. For instance, the Government of United Arab Emirates (UAE) has launched digital transformation projects, such as Smart Abu Dhabi and Smart Dubai. Such projects would encourage adoption of cloud computing and trigger the demand for HPC systems.

HPC, which is also referred to as supercomputing; envisages the use of parallel processing to process data at higher speeds and accuracies and to provide outputs efficiently. Parallel processing is achieved by distributing the program instructions among several processors so that the time taken to run the algorithms can be reduced drastically. HPC often involve a cluster of computers, whose aggregate power can offer high computational capabilities. In other words, HPC can potentially simplify complex business procedures. The demand for high performance computing is expected to rise as a result, which is projected to propel market growth.

The emergence of exascale computing is expected to open new opportunities in the high performance computing market over the forecast period. Exascale is the ability of computing systems to perform billion calculations per second. It also provides advanced simulation and modeling solutions that can potentially address the key challenges in natural security, energy, economic competitiveness, and scientific discovery, among others. HPC requires higher performance bandwidth and memory capacity to process large volumes of data efficiently and exascale computing can address both these challenges.

Meanwhile, the National Nuclear Security Administration (NNSA) and the Office of Science, both of which fall under the U.S. Department of Energy, have embarked upon a collaborative effort called the Exascale Computing Project. Such projects are anticipated to fuel growth of the high performance computing market.

Incumbents of the manufacturing industry, defense agencies, government agencies, educational institutes, and research institutions often have to perform complicated calculations and solve complex problems. Applications, such as space exploration and weather forecasting, among others, also involve complex calculations and processing of large volumes of data. High processing power and processing efficiency are crucial in such cases and high performance computing can be very useful for these applications.

Component Insights

The component segment has been categorized into servers, storage, networking devices, software, services, cloud, and others. The servers segment held the largest market share in 2017 and is expected to exhibit a significant CAGR over the forecast period. The growth is attributed to the rise in the number of data centers, as various mid-size enterprises and businesses are in the process of investing in colocation and on-premises infrastructure to support the growing demand for public cloud services.

The services segment accounted for over 10.0% of the market share in 2017 and is expected to expand at a CAGR exceeding 4.0% from 2018 to 2025. HPC vendors provide various services, including maintenance, support, and management. Support is particularly required while implementing high performance computing and start using the same. On the other hand, maintenance services involve upgrading existing systems and troubleshooting. Owing to this, the market size of the services segment is expected to surpass USD 5,000 million over the forecast period.

Deployment Insights

The deployment segment has been bifurcated into on-premise and cloud. The on-premise segment held the largest market share in 2017 and is expected to experience a significant CAGR over the forecast period. While governments remain keen on securing the sensitive data related to the national security and personal data of the citizens, enterprises are concerned about the protection of their respective organizational data. As a result, an on-premise infrastructure is still being preferred over a cloud-based infrastructure. For instance, in Mexico, although the Data Protection Laws, which came into force in 2010, allow the distribution of data assets across Mexico; the government is still of the opinion that all the sensitive data be maintained by government agencies and personal data of citizens should remain within the Mexican jurisdiction to maintain the national security. Such factors are expected to drive growth of the on-premise segment in the forthcoming years.

The cloud segment is expected to expand at the highest CAGR of over 10.0% over the forecast period. Cloud deployment helps organizations in minimizing their operational costs, as they do not have to invest in any additional computing resource. Other benefits, such as enhanced efficiency and cost-effectiveness, are also expected to fuel the segment growth.

End-use Insights

The market has been divided on the basis of end use into Banking, Financial Services, and Insurance (BFSI); gaming; media and entertainment; retail; transportation; government and defense; education and research; manufacturing; healthcare and bioscience; and others. The manufacturing segment is anticipated to grow significantly over the forecast period. Manufacturing processes tend to be computation-intensive and time-consuming. Hence, incumbents of the manufacturing industry often adopt simulation and CAD software along with high performance computing. In the manufacturing industry, HPC systems can be particularly used for computational fluid dynamics, computational structural mechanics, and computational electromagnetics to enhance the performance, improve the computational speed, and to ensure rapid access to data.

Meanwhile, government and defense segment is expected to expand at the highest CAGR exceeding 8.0% over the forecast period. While defense agencies are expected to aggressively adopt cutting-edge IT solutions to enhance the efficiency; government agencies are expected to implement high performance computing to support digitization initiatives and to contribute towards the overall economic development.

Regional Insights

The North America accounted for more than 30.0% market share in 2017. North America happens to be the largest market for technology-based solutions. Additionally, it is also anticipated to be a strong player in the global economy, especially, in the implementation and development of new technologies. While the need to process large volumes of raw data is growing, having robust security measures in place is also gaining importance. This is driving the need to implement the latest technologies, which, in turn, is encouraging adoption of high performance computing. Moreover, North America is home to some of the large enterprises, such as Boeing and General Motors, which along with other SMEs, are aggressively adopting HPC to overcome the technical restraints. This factor is anticipated to boost the adoption North America.

Asia Pacific is projected to expand at the highest CAGR of over 8.0% over the forecast period owing to rising adoption of HPC for scientific research and weather forecasting, among others. At the same time, China happens to be among the top 10 countries leading the High Performance Computing (HPC) market. China is also home to supercomputers, such as Tianhe-2 (Milkyway-2) and Sunway TaihuLight. Tianhe-2 (Milkyway-2), which was developed by developed by the National University of Defense Technology of China and was funded by the government of Guangzhou city and the government of Guangdong province.

High Performance Computing (HPC) Market Share Insights

The global HPC market can be described as a highly consolidated and competitive market dominated by major players, such as Atos SE; Advanced Micro Devices, Inc. (AMD); Cray Research, Inc.; Dell Technologies, Inc.; and Cisco Systems, Inc.; among others. While various governments are encouraging research and academic institutions to introduce advanced IT systems and to boost the economic development; vendors are leveraging the situation by offering their solutions to the research and academic institutions and trying to cement their market position. For instance, in August 2018, the Garvan Institute of Medicine partnered with Dell Technologies, Inc. to use HPC in genomics research.

Cloud computing is one of the potential factors responsible for the growth and rising adoption of HPC systems. Owing to this, various key players such as Cray Research Inc.; Cisco Systems, Inc.; Dell Technologies, Inc.; HP, Inc.; and Intel Corporation, among others focus on acquisitions, mergers, collaborations, and partnerships with major pioneers in the cloud computing to provide cloud computing solutions to gain a competitive edge and enhance their product portfolio. For instance, in April 2018, Atos SE entered into a partnership with Google Cloud to provide enterprises secure cloud solutions, thereby, enhancing digital transformation. Furthermore, through this partnership Atos SE expects to thrive in cloud computing technology and enable companies to enhance their businesses by providing access to advance cloud infrastructure.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global High Performance Computing market report based on component, deployment, end use, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Servers

  • Storage

  • Networking Devices

  • Software

  • Services

  • Cloud

  • Others

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • On-Premise

  • Cloud

• End Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Banking, Financial Services, and Insurance (BFSI)

  • Gaming

  • Media & Entertainment

  • Retail

  • Transportation

  • Government & Defense

  • Education & Research

  • Manufacturing

  • Healthcare & Bioscience

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa