High Performance Computing (HPC) Market

[134 Pages Report] The HPC market size is expected to grow from USD 37.8 billion in 2020 to USD 49.4 billion by 2025, at a CAGR of 5.5% during the forecast period. The demand for HPC is driven by the increasing need for efficient computing enhanced scalability, and reliable storage, emerging need for the high speed data processing with accuracy, adoption of HPC in the cloud.

To know about the assumptions considered for the study, Requesat for Free Sample Report

COVID -19 Impact on HPC Market

In the current scenario, the sudden shutdown of offices, schools, colleges, and physical retail stores has massively disrupted operations; this has led to an increase in the demand for digital workplace tools and services. As the COVID-19 pandemic has been spreading all over the globe, most of the people prefer to work from home rather than from a local office, head office, or global branch of an organization and therefore require mobility in terms of access to office resources and data. The demands the additional demand for the cloud technology and cloud services. The COVID-19 wave is expected to continue across the globe, and the impact will be seen till the end of Q4 2020. The impact on the market is expected to reduce as we enter the Q1 2021. Covid-19 impacted the HPC market positively as a huge workforce of enterprises across the world are working from home. This demands improved HPC. The covid-19 pandemic offers ample opportunities for vendors of the HPC market.

Market Dynamics

Driver: Emerging need for the high-speed data processing with accuracy

The main factor driving the growth of the HPC market is the ability of HPC solutions to process large volumes of data with speed and accuracy. The industry verticals where applications are encountering slow and inefficient data processing issues include finance, medical, research, seismic exploration, and government and defense. The quick-paced nature of the financial market makes vitality crucial so that the derivative valuations are processed faster and more accurately. In the medical field, applications such as Computed Tomography (CT) scanning and Magnetic Resonance Imaging (MRI) require quick, accurate results from the processing of complex algorithms. HPC helps them in reducing the compute time considerably and processes the CT and MRI data quickly and with accuracy. Therefore, the increasingly need in various fields for faster processing of data with high accuracy is one of the major factors driving the growth of the HPC market.

Restraint: High CAPEX and OPEX

One of the major factors restraining the growth of the HPC market is the high Capital Expenditure (CAPEX) and OPEX involved. The cost for setting up an HPC and maintaining it is high. There is a huge CAPEX involved, including the hardware and software costs. The OPEX for HPC involves energy costs, human resources, and maintenance and repair costs. This high cost of initial investment as well as maintenance restricts startups and SMEs from adopting HPC. Furthermore, there is an increasing expenditure involved when enterprises transition from on-premises to the cloud infrastructure. Both these factors are expected to severely restrain the HPC market from moving forward.

Opportunity Increasing focus on hybrid HPC solutions

With the growing demand for HPC solutions and increasing advancements in technology, organizations today are focusing on hybrid HPC solutions. IT teams are fiercely working on establishing a balance between cloud and on-premises HPC solutions. Enterprises are scaling out on-premises HPC resources as needed. Simultaneously, Cloud Service Provides (CSPs) have also started to offer turn-key HPC solution environments that are tailored to the specific workload needs of enterprises. A hybrid HPC solution results in better efficiencies. Apart from this, it also resolves security and privacy concerns as well as lowers the maintenance cost. Therefore, the increasing focus on hybrid HPC solutions is expected to provide tremendous opportunities for the growth of the HPC market.

Challenge: Lack of knowledge and limited budget among SMEs

The potential users in many SMEs lack awareness about the benefits of HPC and do not the budget to set up such systems. SMEs in many developing nations are still skeptical about adopting HPC, due to the high investment costs involved. Many of them are unaware about the various advantages that HPC offers, such as better performance and customizable delivery. These enterprises also lack the technical expertise needed to establish and run an HPC system. However, cloud computing can boost the use of HPC among SMEs, as it will considerably cut down the costs for them.

Services segment expected to grow with higher growth rate during the forecast period

The scope of the report covers the HPC market by component (Solutions and services), Deployment type, orbanization size, server price band, application areas, and region. Among these components is subsegmented as Solutions as services. Out of these, services segment is expected grow with higher CAGR during forecast period. HPC solutions are expected to be gaining traction among the industry verticals, owing to various advantages, such as performance and scalability. With increasing adoption of the HPC solutions demand for the HPC services is expected to increase.

By application area, Healthcare and Life Sciencesto register the largest market size during the forecast period

By application areas, The HPC market is subsegmented as government and defense, BFSI, Education and research, manufacturing, healthcare and life sciecnes, energy and utilities, earth sciences; and others (retail, transportation, travel and hospitality and real estate). Healthcare and life sciences application area is expected to grow at the significant CAGRs as HPC is being implemented widely in applications areas of healthcare and life sciences for simulation, data management, modeling, next generation sequencing, and various other applications. HPC solutions provide the necessary computational power for these applications and help in tackling challenges pertaining to the healthcare and life sciences industry.

North America to hold the largest market size during the forecast period

The North American HPC market is already mature for HPC, and a significant number of new installations of HPC and upgrade of the existing data center infrastructure systems have taken place to date. Currently, the United States (US) holds the highest share in the HPC market as it is home to large telecom giants, well-established suppliers, as well as end-user industries that continuously adapt to newer technologies for improved business productivity and work efficiency.

Market Players:

Market players profiled in this report include AMD (US), Intel (US), HPE (US), IBM (US), Dell (US), Lenovo (China), Fujitsu (Japan), Atos (US), Cisco (US), NVIDIA (US), Sugon (China), AWS (US), and Dassault Systems (France). These players offer various HPC solutions to cater to the demands and needs of the market. Major growth strategies adopted by the players include partnerships, acquisitions, collaborations and agreements, and new product launches/product enhancements.

Scope of the report

This research report categorizes the HPC market based on components (solutions and services), deployment type, enterprise size, server price band, application areas, and regions.

Based on Components, the HPC market has been segmented as follows:

• Solutions
  • Servers
  • Storage
  • Networking Devices
  • Software
• Services
  • Design and Consulting
  • Integration and Deployment
  • Support and Maintenance, and Management

Based on deployment type, the HPC market has been segmented as follows

• Cloud
• On-premises

Based on Organization size, the HPC market has been segmented as follows

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

Based on Server price band, the HPC market has been segmented as follows

• USD 250,000 to 500,000 and Above
• USD 250,000 to 100,000 and Below

Based on Application Areas, the HPC market has been segmented as follows

• Government and Defense
• BFSI
• Education and Research
• Manufacturing
• Media and entertainment
• Healthcare and Life Sciences
• Energy and Utilities
• Earth Sciences
• Others (retail, transportation, travel and hospitality and real estate)

Based on regions, the HPC market has been segmented as follows:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• APAC
  • China
  • ANZ
  • Japan
  • Rest of APAC
• MEA
  • KSA
  • South Africa
  • UAE
  • Rest of MEA
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In November 2020, AMD launched the AMD Ryzen Embedded V2000 series processor developed using 7nm process technology. The processor is used for embedded applications, such as Thin Client, MiniPC, and Edge systems.
• In November 2020, Intel collaborated with HPE, an American multinational enterprise information technology company, and Argonne, a science and engineering research national laboratory operated by UChicago Argonne for Department of Energy, US. These companies collaborated to develop Aurora, an exascale computer system to drive scientific breakthroughs, innovation, and discovery.
• In July 2020, HPE partnered with University of Edinburgh, EPCC, in Scotland. HPE offers end-to-end infrastructure, such as HPE and AI solutions, powered by HPE Apollo Systems and HPE Superdome Flex Servers.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst