High Performance Computing (HPC) Market

High Performance Computing (HPC) Market by Component (Solutions [Servers, Storage, Networking Devices, and Software] and Services), Deployment Type, Organization Size, Server Prices Band, Application Area, and Region - Global Forecast to 2025

Report Code: TC 2204 Dec, 2020, by marketsandmarkets.com

[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.

High Performance Computing (HPC) Market

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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.

High Performance Computing (HPC) Market  by Region

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

Report Metric

Details

Market size available for years

2018–2025

Base year considered

2019

Forecast period

2020–2025

Forecast units

Value (USD)

Segments covered

Components (Solutions [Servers, Storage, Networking Devices, Software] and Services[Design and Consulting, Integration and Deployment, Support, Maintenance and Management]), Deployment Type (Cloud and on-premises), Organization Size (SMEs and Large Enterprises), Server Price band, Application areas (government and defense, BFSI, Education and research, manufacturing, healthcare and life sciences, energy and utilities, earth sciences; and others [retail, transportation, travel and hospitality and real estate]), and Region

Geographies covered

North America, APAC, Europe, Latin America, and MEA

Companies covered

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)

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):

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TABLE OF CONTENTS

1 INTRODUCTION (Page No. - 14)
    1.1 OBJECTIVES OF THE STUDY
    1.2 MARKET DEFINITION
    1.3 MARKET SCOPE
    1.4 YEARS CONSIDERED FOR THE STUDY
    1.5 CURRENCY
    1.6 STAKEHOLDERS

2 RESEARCH METHODOLOGY (Page No. - 18)
    2.1 RESEARCH DATA
           2.1.1 SECONDARY DATA
           2.1.2 PRIMARY DATA
                    2.1.2.1 Breakdown of primaries
                    2.1.2.2 Key industry insights
    2.2 MARKET SIZE ESTIMATION
    2.3 RESEARCH ASSUMPTIONS
    2.4 LIMITATIONS

3 EXECUTIVE SUMMARY (Page No. - 24)

4 PREMIUM INSIGHTS (Page No. - 28)
    4.1 ATTRACTIVE MARKET OPPORTUNITIES IN THE HIGH PERFORMANCE COMPUTING MARKET
    4.2 MARKET, BY APPLICATION AREA AND REGION
    4.3 LIFE CYCLE ANALYSIS, BY REGION

5 MARKET OVERVIEW (Page No. - 31)
    5.1 INTRODUCTION
    5.2 MARKET DYNAMICS
           5.2.1 DRIVERS
                    5.2.1.1 Increasing need for efficient computing, enhanced scalability, and reliable storage
                    5.2.1.2 Need to process data with speed and accuracy
                    5.2.1.3 Adoption of HPC in the cloud
           5.2.2 RESTRAINTS
                    5.2.2.1 Data security concerns
                    5.2.2.2 High CAPEX and OPEX
           5.2.3 OPPORTUNITIES
                    5.2.3.1 Increasing focus on hybrid HPC solutions
                    5.2.3.2 Advent of exascale computing to maximize the benefits of HPC
           5.2.4 CHALLENGES
                    5.2.4.1 Lack of knowledge and limited budget among SMEs
    5.3 USE CASES
           5.3.1 FRAUD DETECTION SYSTEMS FOR FINANCIAL INSTITUTIONS
           5.3.2 NEED FOR MODELLING AND SIMULATION ANALYSIS AMONG AUTOMOTIVE COMPANIES
           5.3.3 ACCURATE PREDICTION CAPABILITIES FOR WEATHER AND CLIMATE MODELLING ORGANIZATIONS
           5.3.4 HIGH PERFORMANCE COMPUTING FOR ENTERPRISES DEVELOPING PRECISION MEDICINE
           5.3.5 HIGH PERFORMANCE COMPUTING SOLUTIONS FOR THE EDUCATION AND RESEARCH SECTOR
    5.4 REGULATORY FRAMEWORK
           5.4.1 EUROPEAN TECHNOLOGY PLATFORM FOR HIGH PERFORMANCE COMPUTING (ETP4HPC)
           5.4.2 HIGH PERFORMANCE COMPUTING ACT OF 1991 (HPCA)
           5.4.3 TELECOMMUNICATIONS INFRASTRUCTURE STANDARD FOR DATA CENTERS
           5.4.4 DISTRIBUTED MANAGEMENT TASK FORCE (DMTF)
           5.4.5 STORAGE NETWORKING INDUSTRY ASSOCIATION (SNIA) AND CLOUD DATA MANAGEMENT INTERFACE (CDMI)

6 HIGH PERFORMANCE COMPUTING MARKET, BY COMPONENT (Page No. - 38)
    6.2 INTRODUCTION
    6.3 SOLUTIONS
           6.3.1 SERVERS
                    6.3.1.1 Supercomputer and divisional systems
                    6.3.1.2 Departmental and workgroup systems
           6.3.2 STORAGE
           6.3.3 NETWORKING DEVICES
           6.3.4 SOFTWARE
    6.4 SERVICES
           6.4.1 DESIGN AND CONSULTING
           6.4.2 INTEGRATION AND DEPLOYMENT
           6.4.3 SUPPORT, MAINTENANCE, AND MANAGEMENT

7 HPC MARKET, BY DEPLOYMENT TYPE (Page No. - 47)
    7.1 INTRODUCTION
    7.2 ON-PREMISES
    7.3 CLOUD

8 HIGH PERFORMANCE COMPUTING MARKET,  BY ORGANIZATION SIZE (Page No. - 51)
    8.1 INTRODUCTION
    8.2 SMALL AND MEDIUM-SIZED ENTERPRISES
    8.3 LARGE ENTERPRISES

9 HPC MARKET,  BY SERVER PRICE BAND (Page No. - 55)
    9.1 INTRODUCTION
    9.2 USD 250,000–500,000 AND ABOVE
    9.3 USD 250,000–100,000 AND BELOW

10 HIGH PERFORMANCE COMPUTING MARKET,  BY APPLICATION AREA (Page No. - 58)
     10.1 INTRODUCTION
     10.2 GOVERNMENT AND DEFENSE
     10.3 BANKING, FINANCIAL SERVICES, AND INSURANCE
     10.4 EDUCATION AND RESEARCH
     10.5 MANUFACTURING
     10.6 MEDIA AND ENTERTAINMENT
     10.7 HEALTHCARE AND LIFE SCIENCES
     10.8 ENERGY AND UTILITIES
     10.9 EARTH SCIENCES
     10.1 OTHERS

11 HPC MARKET, BY REGION (Page No. - 67)
     11.1 INTRODUCTION
     11.2 NORTH AMERICA
     11.3 EUROPE
     11.4 ASIA PACIFIC
     11.5 MIDDLE EAST AND AFRICA
     11.6 LATIN AMERICA

12 COMPETITIVE LANDSCAPE (Page No. - 87)
     12.1 OVERVIEW
     12.2 COMPETITIVE SCENARIO
             12.2.1 NEW PRODUCT LAUNCHES
             12.2.2 ACQUISITIONS
             12.2.3 PARTNERSHIPS


13 COMPANY PROFILES (Page No. - 91)
     13.1 INTRODUCTION
     13.2 AMD
             13.2.1 OVERVIEW
             13.2.2 STRENGTH OF PRODUCT PORTFOLIO
             13.2.3 BUSINESS STRATEGY EXCELLENCE
             13.2.4 RECENT DEVELOPMENTS
     13.3 INTEL
             13.3.1 OVERVIEW
             13.3.2 STRENGTH OF PRODUCT PORTFOLIO
             13.3.3 BUSINESS STRATEGY EXCELLENCE
             13.3.4 RECENT DEVELOPMENTS
     13.4 HPE
             13.4.1 OVERVIEW
             13.4.2 STRENGTH OF PRODUCT PORTFOLIO
             13.4.3 BUSINESS STRATEGY EXCELLENCE
             13.4.4 RECENT DEVELOPMENTS
     13.5 IBM
             13.5.1 OVERVIEW
             13.5.2 STRENGTH OF PRODUCT PORTFOLIO
             13.5.3 BUSINESS STRATEGY EXCELLENCE
             13.5.4 RECENT DEVELOPMENTS
     13.6 DELL
             13.6.1 OVERVIEW
             13.6.2 STRENGTH OF PRODUCT PORTFOLIO
             13.6.3 BUSINESS STRATEGY EXCELLENCE
             13.6.4 RECENT DEVELOPMENTS
     13.7 LENOVO
             13.7.1 OVERVIEW
             13.7.2 STRENGTH OF PRODUCT PORTFOLIO
             13.7.3 BUSINESS STRATEGY EXCELLENCE
             13.7.4 RECENT DEVELOPMENTS
     13.8 FUJITSU
             13.8.1 OVERVIEW
             13.8.2 STRENGTH OF PRODUCT PORTFOLIO
             13.8.3 BUSINESS STRATEGY EXCELLENCE
             13.8.4 RECENT DEVELOPMENTS
     13.9 CISCO SYSTEMS
             13.9.1 OVERVIEW
             13.9.2 STRENGTH OF PRODUCT PORTFOLIO
             13.9.3 BUSINESS STRATEGY EXCELLENCE
             13.9.4 RECENT DEVELOPMENTS
     13.10 CRAY
             13.10.1 OVERVIEW
             13.10.2 STRENGTH OF PRODUCT PORTFOLIO
             13.10.3 BUSINESS STRATEGY EXCELLENCE
             13.10.4 RECENT DEVELOPMENTS
     13.11 ATOS
             13.11.1 OVERVIEW
             13.11.2 STRENGTH OF PRODUCT PORTFOLIO
             13.11.3 BUSINESS STRATEGY EXCELLENCE
             13.11.4 RECENT DEVELOPMENTS
     13.12 NVIDIA
             13.12.1 OVERVIEW
             13.12.2 STRENGTH OF PRODUCT PORTFOLIO
             13.12.3 BUSINESS STRATEGY EXCELLENCE
             13.12.4 RECENT DEVELOPMENTS

14 APPENDIX (Page No. - 123)
     14.1 INSIGHTS OF INDUSTRY EXPERTS
     14.2 DISCUSSION GUIDE
     14.3 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
     14.4 INTRODUCING RT: REAL-TIME MARKET INTELLIGENCE
     14.5 AVAILABLE CUSTOMIZATIONS
     14.6 RELATED REPORTS
     14.7 AUTHOR DETAILS

The study consists of four major activities to estimate the current market size of the HPC market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the HPC market.

Secondary research

In the secondary research process, various secondary sources such as D&B Hoovers and Bloomberg BusinessWeek have been referred to for identifying and collecting information for this study. Secondary sources included annual reports; press releases and investor presentations of companies; white papers and articles by recognized authors; gold standard and silver standard websites; regulatory bodies; and databases.

Primary research

Various primary sources from both the supply and demand sides of the HPC market were interviewed to obtain qualitative and quantitative information for this study. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various vendors who provide HPC solutions and associated service providers operating in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

High Performance Computing (HPC) Market  Size, and Share

To know about the assumptions considered for the study, download the pdf brochure

Market size estimation

For estimating and forecasting the HPC market and its other dependent submarkets, the top-down and bottom-up approaches were used. The bottom-up procedure was used to arrive at the overall market size of the global HPC market using key companies’ revenue and their offerings in the market. The research methodology used to estimate the market size included the following:

  • The key players in the market were identified through extensive secondary research.
  • The market size, in terms of value, was determined through primary and secondary research processes.
  • All percentage shares, splits, and breakups were determined using secondary sources and verified through primary sources.

Data triangulation

With data triangulation and validation through primary interviews, the exact value of the overall parent market size was determined and confirmed using this study. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.

Report objectives

  • To describe and forecast the global HPC market on the basis of components (solutions and services), deployment types, organization size, server price bands, application areas, and regions
  • To forecast the market size of the 5 main regional segments, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
  • To analyze subsegments with respect to individual growth trends, prospects, and contributions to the total market
  • To provide detailed information about the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
  • To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for the major players
  • To profile the key players and comprehensively analyze their core competencies1 and positioning
  • To track and analyze the competitive developments, such as mergers and acquisitions, new product developments, and partnerships and collaborations, in the market
  • To analyze the opportunities in the market for stakeholders and provide details of their competitive landscape for major players
  • To comprehensively analyze the core competencies of key players

Available customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product analysis

  • Product matrix provides a detailed comparison of the product portfolio of each company

Geographic analysis

  • Further breakup of the North American HPC market
  • Further breakup of the European HPC market
  • Further breakup of the APAC market
  • Further breakup of the MEA market
  • Further breakup of the Latin American market

Company information

  • Detailed analysis and profiling of additional market players up to 5
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Report Code
TC 2204
Published ON
Dec, 2020
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