High-performance Computing (HPC) Market - Growth, Trends, and Forecast (2019 - 2024)

The High-performance Computing (HPC) Market is segmented by Component (Hardware, Software, Service), Deployment (On-premise, On-demand), End-user Vertical, and Geography.

Market Snapshot

summary
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

Europe

CAGR:

7.02%

Key Players:

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Market Overview

The high-performance computing market was valued at USD 33.45 billion in 2018 and is expected to reach a value of USD 47.02 billion by 2024, at a CAGR of 7.02% over the forecast period (2019-2024). With the growth of technologies like the Internet of Things (IoT), artificial intelligence (AI), and 3-D imaging, the size and amount of data that organizations have to work with is growing exponentially. Therefore, fueed by the growth of AI and IoT, high-performance computing is increasingly used to drive commercial, industrial and personal usage.

  • Further, the fast-paced growth in the IT industry is expected to be the primary driver of the heavily integrated HPC market. The incorporation of IT services across diverse industry verticals is the major cause of this growth, where, apart from business operations, these services are also used for process optimization, data management, and analytics.
  • Moreover, with the increase in deployment of autonomous vehicles across many industries, including aerospace, healthcare, automotive and e-commerce. From factories to distribution centers, the company’s vehicles are useful for any business.and thus to run that process smoothly lots of software runs simultanoeously. This is where high-performance computing (HPC) becomes extremely important.
  • For instance 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.
  • However, the rising concerns related to the safety and legitimate use of this data is a major challenge for the growth of this market.

Scope of the Report

High-performance computing (HPC) is the process of 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, pattern recognition, etc., are being executed on HPC systems. High-performance computers are contributing a lot to industrial competitiveness, national security, scientific progress, and quality of life.

By Component
Hardware
Software
Service
By Deployment
On Premise
On Cloud
By End-user Vertical
Academic Research
Healthcare/Bio-Sciences
Computer Aided Engineering
Aerospace and Defense
Information Technology
Financial Services
Government
Others End-user Verticals
Geography
North America
Europe
Asia-Pacific
Rest of the World

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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 the 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 offers greater 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 graphic-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, 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.
Trend 1

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Asia-Pacific to Execute the Fastest Growth Rate

  • China and Japan are largely responsible for the rapid growth of HPC systems in the Asia-Pacific region. After the United States, China claims one of the well-developed HPC systems, having ramped up the HPC investment quicker than the other countries.
  • A major 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, and is expected to create huge potential for the development of higher capacity HPC systems.
  • Above factors contribute to the overall growth of high-performance computing market in Asia-Pacific region.
HPC REGION

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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. 

  • November 2018 - Amazon Web Services (AWS) announced to launch 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.

Major Players

  1. Hewlett Packard Enterprise
  2. Fujistu LTD
  3. Intel Corporation
  4. International Business Machines Corporation
  5. Microsoft Corporation

* Complete list of players covered available in the table of contents below

Concentration

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Expansion and Diversification of IT industry

      2. 4.3.2 Innovation In Virtualization Technology

    4. 4.4 Market Restraints

      1. 4.4.1 Performance Bottleneck For High Performance Computing in Cloud-based Systems

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Component

      1. 5.1.1 Hardware

      2. 5.1.2 Software

      3. 5.1.3 Service

    2. 5.2 By Deployment

      1. 5.2.1 On Premise

      2. 5.2.2 On Cloud

    3. 5.3 By End-user Vertical

      1. 5.3.1 Academic Research

      2. 5.3.2 Healthcare/Bio-Sciences

      3. 5.3.3 Computer Aided Engineering

      4. 5.3.4 Aerospace and Defense

      5. 5.3.5 Information Technology

      6. 5.3.6 Financial Services

      7. 5.3.7 Government

      8. 5.3.8 Others End-user Verticals

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Advanced Micro Devices, Inc.

      2. 6.1.2 NEC Corporation

      3. 6.1.3 Hewlett Packard Enterprise

      4. 6.1.4 Sugon Information Industry Co., Ltd

      5. 6.1.5 Fujistu Ltd

      6. 6.1.6 Intel Corporation

      7. 6.1.7 International Business Machines Corporation

      8. 6.1.8 Microsoft Corporation

      9. 6.1.9 Dell Technologies, Inc.

      10. 6.1.10 Cray, Inc

      11. 6.1.11 Lenovo Group, Ltd

      12. 6.1.12 Amazon Web Series

      13. 6.1.13 NVIDIA Corporation

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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