Cloud High Performance Computing (HPC) Market Size (2024 - 2029)

Cloud High Performance Computing (HPC) Market Analysis

The Cloud High Performance Computing Market size is estimated at USD 10.48 billion in 2024, and is expected to reach USD 17.09 billion by 2029, growing at a CAGR of 10.29% during the forecast period (2024-2029).

The emergence of big data and complex applications, such as ultra-high definition workflows, electronic design automatic simulations, etc., across various industries, is driving growth in the market.

• Artificial Intelligence, Machine learning, IoT, and 3D imaging generate large volumes of data, which HPC is essential for managing. HPC is also required for real-time data processing during live broadcasting of a sporting event, as well as for analyzing market patterns, following a growing storm, and testing new products.
• Faster processing capabilities of microservers or HPC systems increased performance efficiency, and smarter deployment and administration with high-quality service are some key factors driving the growth of the HPC industry. Physical simulation, optimization, and machine learning (ML) in various industrial applications, including financial modeling and life science simulation, are examples where HPC plays a critical role in solving complex problems within time. In the automotive industry, EVs, autonomous vehicles, and connected vehicles are continuously taking development challenges to enter the market and require edge computing capabilities to be incorporated in these solutions driving the market.
• In genomics research, the demand for high-performance computing (HPC) devices is rapidly growing. These technologies aid researchers identify and analyze genetic variations linked to various disorders and their responses to therapies. Genomic sequencing examines all forms of genetic changes throughout the entire genome. HPC systems provide significant speed, reliability, and precision, which aid in the practical analysis of massive amounts of sequencing data in genomic research activities. As a result, the introduction of Next Generation Sequencing (NGS) technology allows for investigating and identifying several areas of human health using various omics methodologies.
• Recently, various organizations have accessed HPC systems, raising concerns about data hacking. HPC systems are vulnerable, which has resulted in many possible security vulnerabilities. Furthermore, because of the clustered environment and varied capabilities, HPC systems require various management systems to operate. As a result, the rising concern over data integrity and cyber-attacks are restraining the growth of the High-Performance Computing Market.
• Data consumption and cloud demand have skyrocketed since the outbreak of COVID-19, owing to enterprises moving toward remote working and shifting their workloads onto the cloud. The demand for HPC saw significant growth, especially in bioscience, as HPC was used to develop a vaccine and tackle the effects of the pandemic. After the pandemic, the market is growing rapidly due to digitization and increased usage of HPC in various end-user applications.

Cloud High Performance Computing (HPC) Industry Segmentation

High-performance computing (HPC) aggregates computing power to deliver much higher performance than a typical desktop computer or workstation to solve significant problems in science, engineering, or business.

The study segments the market by component into hardware, software, and services. Under the hardware segment, servers, storage devices, systems, and networking devices are considered; Consultation, training, and maintenance services are considered under the scope of services segment.

Further, the market is segmented by deployment, i.e., on-premise and cloud. The solutions deployed on the cloud, using cloud computing standardizations, are considered under the scope of the cloud segment.

In terms of end-user application, the study covers aerospace and defense, energy and utilities, BFSI, media and entertainment, manufacturing, life science and healthcare, and other industrial applications.

The end-user applications are quite dynamic, and the market is evolving with the emergence of new tech and the adoption of AI capabilities. The Lifesciences segment, for instance, has received a great push during the COVID-19 pandemic, while the other end-user applications suffered a setback in demand.

The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.