High-performance Computing (HPC) Market - Growth, Trends, Forecasts (2020 - 2025)

The High-performance Computing (HPC) Market is Segmented by Component (Hardware, Software and Services), Deployment Type (On-premise, On-demand), Industrial Application, and Geography.

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

6.13 %

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Market Overview

The high-performance computing market is expected to witness a CAGR of 6.13% over the forecast period 2020-2025. With the growth of technologies like the Internet of Things (IoT), artificial intelligence (AI), and 3D imaging, the size and amount of data that organizations have to work with are growing exponentially. Therefore, fueled by the growth of AI and IoT, high-performance computing is increasingly used to drive commercial, industrial, and personal usage.

  • The adoption of high-performance computing (HPC) systems with computer-aided engineering (CAE) software for high-fidelity modeling simulation is on the rise among various industries, such as automotive, discrete manufacturing, and healthcare robotics.
  • Additionally, the regulatory requirements for energy consumption, sustainability and safety, and the cost pressure are at the top across the world, which is rapidly increasing, resulting in increased complexity for the engineers in the field for development. Hence, digital engineering is gaining importance as a core strategy to these challenges with virtual testing and simulation for every aspect of the products in the automotive industry.
  • In November 2018, Intel had unveiled Cascade Lake Advance Performance (AP), a 48-core Xeon variant aimed at the high-performance computing crowd. Intel characterized the new AP processor line as designed for the most demanding high-performance computing (HPC), artificial intelligence (AI) and infrastructure-as-a-service (IaaS) workloads.
  • HPC services are also getting traction in recent years. These services are the majority in terms of consultation, deployment, and maintenance. Companies, such as HPE, have mentioned focusing on providing HPC services, such as advisory services and professional services for integration and installation.
  • Moreover, cloud-based HPC solutions are gaining traction in the market due to their cost-effective pay-as-you-go pricing model. This has become a critical factor in driving the market as the volume, variety, and velocity of data generated have evolved exponentially and are expected to further increase with the 5G technology already getting adoption.
  • HPC is recognized as one of the powerful tools in assisting the healthcare sector and the researchers to fight against COVID-19. Folding home is one such project lead by OCF for simulating protein dynamics, including the process of protein folding and the movements of proteins implicated in a variety of diseases. The University of Aberdeen, the University of East Anglia, and the Plymouth Marine Laboratory have joined this project to run simulations of protein dynamics on their personal computers and provide new opportunities for developing therapeutics.
  • However, the rising concerns related to the safety and legitimate use of this data is a significant challenge for the growth of this market.

Scope of the Report

High-performance computing (HPC) is the process of the use of parallel processing for running advanced application programs efficiently, reliably, and quickly. Newer workloads, such as genomic sequencing, machine learning, deep learning, speech and facial recognition, and pattern recognition, are being executed on HPC systems. High-performance computers are contributing a lot to industrial competitiveness, national security, scientific progress, and quality of life.

Using HPC computations capabilities, scientists and researchers get a better decision and analysis and a simulation support system to help determine how the explored object may behave in a real-life situation, influenced by different physical predictor variables. This saves time and R&D expenses and assists in building a more qualitative and precise product. This would be a very daunting task to do without model simulation, which usually consists of larger systems, many geometric details, and complex physics.​

The study offers an in-depth analysis of the market with varied offerings by vendors for hardware, software, and services, and their deployment mode for application in a wide range of end-user verticals, globally.​

Component
Hardware
Software and Services
Deployment Type
On-premise
Cloud
Industrial Application
Aerospace and Defense
Energy and Utilities
BFSI
Media and Entertainment
Manufacturing
Life Science and Healthcare
Other Industrial Applications
Geography
North America
Europe
Asia-Pacific
Latin America
Middle-East and Africa

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Key Market Trends

Financial Service to Occupy a Significant Share

  • The HPC market is experiencing high demand from the financial service industries, among other end-user applications. The majority of the existing infrastructure is challenging due to the poor alignment with the business needs and resulting in higher complexity.
  • Thus, the financial services organizations are modernizing their IT infrastructure with innovative solutions, to offer competitive differentiation. HPC provides higher speed, agility, and scalability, which are highly essential in the industry.
  • Apart from this, the trader works in a complex trading environment, which includes multiple graphics-intensive monitors for viewing numerous applications at a time in limited space. Thus, access to time-sensitive and live feed applications is expected to drive the HPC demand in the financial service industries.
  • According to IBEF, the Mutual Fund (MF) industry in India has seen rapid growth in Assets Under Management (AUM). Total AUM of the industry stood at Rs 23.16 trillion (US$ 321.00 billion) as of February 2019. At the same time, the number of Mutual funds (MF) equity portfolios reached a high of 74.6 million as of June 2018.
  • Indian Government is also taking the initiative to boost the financial services industry. For example, in December 2018, the Securities and Exchange Board of India (SEBI) proposed direct overseas listing of Indian companies and other regulatory changes. It has provided companies with a broader investor base, better valuation, increased awareness, analyst coverage, and visibility.

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Asia-Pacific to Register the Fastest Growth Rate

  • China and Japan are mostly responsible for the rapid growth of HPC systems in the Asia-Pacific region. After the United States, China has one of the well-developed HPC systems, having ramped up the HPC investment quicker than the other countries.
  • A significant driver for the market in China is the country’s “national AI development plan,” released in July 2017 that reveals the country is committed in spending USD 22.15 billion on Artificial Intelligence research by 2020 and USD 59.07 billion by 2025. This plan is aimed at positioning China as a market leader in Artificial intelligence in driverless technology, consumer Artificial Intelligence applications, telemedicine, and bio-pharmacy. It is expected to create huge potential for the development of higher capacity HPC systems.

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Competitive Landscape

The competitive rivalry in this industry is high, and this market is highly fragmented. Market incumbents, such as HPE, Dell, Lenovo, Amazon Web Services (AWS), Intel Corporation, Microsoft Corporation, and IBM, have considerable influence on the overall market. Vendors of high-performance computing are increasingly focusing on delivering enhanced solutions that can cater to various requirements.

  • September 2019 - The company announced the expansion of the 3DEXPERIENCE Lab open innovation laboratory and accelerator program, which aims at welcoming the new startups, incubator partners, and fab lab partners into its global ecosystem.
  • November 2018 - Amazon Web Services (AWS) announced the launch of AWS ParallelCluster to simplify HPC cluster management. AWS ParallelCluster is an open-source cluster management tool that makes it easy for scientists, researchers, and IT administrators to deploy and manage High-Performance Computing (HPC) clusters in the AWS cloud. HPC clusters are collections of tightly coupled compute, storage, and networking resources that enable customers to run large scale scientific and engineering workloads. This AWS ParallelCluster reduces the operational overhead of cluster management and simplifies running HPC workloads on AWS.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

      1. 4.2.1 Industry Attractiveness - Porter's Five Forces Analysis

        1. 4.2.1.1 Bargaining Power of Suppliers

        2. 4.2.1.2 Bargaining Power of Consumers

        3. 4.2.1.3 Threat of New Entrants

        4. 4.2.1.4 Intensity of Competitive Rivalry

        5. 4.2.1.5 Threat of Substitute Products

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Assessment of Impact of COVID-19 on the Industry

  6. 6. MARKET SEGMENTATION

    1. 6.1 Component

      1. 6.1.1 Hardware

      2. 6.1.2 Software and Services

    2. 6.2 Deployment Type

      1. 6.2.1 On-premise

      2. 6.2.2 Cloud

    3. 6.3 Industrial Application

      1. 6.3.1 Aerospace and Defense

      2. 6.3.2 Energy and Utilities

      3. 6.3.3 BFSI

      4. 6.3.4 Media and Entertainment

      5. 6.3.5 Manufacturing

      6. 6.3.6 Life Science and Healthcare

      7. 6.3.7 Other Industrial Applications

    4. 6.4 Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia-Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle-East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Advanced Micro Devices Inc.

      2. 7.1.2 NEC Corporation

      3. 7.1.3 Hewlett Packard Enterprise

      4. 7.1.4 Sugon Information Industry Co. Ltd

      5. 7.1.5 Fujistu Ltd

      6. 7.1.6 Intel Corporation

      7. 7.1.7 International Business Machines Corporation

      8. 7.1.8 Microsoft Corporation

      9. 7.1.9 Dell Technologies Inc.

      10. 7.1.10 Dassault Systemes SE

      11. 7.1.11 Lenovo Group Ltd

      12. 7.1.12 Amazon Web Series

      13. 7.1.13 NVIDIA Corporation

  8. *List Not Exhaustive
  9. 8. INVESTMENT ANALYSIS

  10. 9. FUTURE OF THE MARKET

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