Supercomputers Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 10.03 Billion |
| Market Size (2029) | USD 17.18 Billion |
| CAGR (2024 - 2029) | 11.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Middle East and Africa |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Supercomputers Market Analysis
The Supercomputers Market size is estimated at USD 10.03 billion in 2024, and is expected to reach USD 17.18 billion by 2029, at a CAGR of 11.38% during the forecast period (2024-2029).
Supercomputers, with their high-performance processing capabilities, are increasingly becoming the backbone for running artificial intelligence (AI) programs. Their architecture is adept at handling the extensive data requirements of AI and machine learning applications.
The Growth In The Usage Of High-performance Computing (HPC) Applications Worldwide Will Drive The Market
- Supercomputers, known for their immense computational power and speed, play a crucial role in high-performance computing (HPC) systems. Their capabilities make them indispensable in the HPC landscape. With scientific research leaning more towards simulation-based techniques and the rising importance of machine learning (ML), the market demand for supercomputers has seen a notable uptick.
- Additionally, in October 2024, NVIDIA's shares reached an all-time high, fueled by rising optimism regarding the robust demand for its latest supercomputing AI chips, Blackwell. This underscores the promising growth trajectory of supercomputers, bolstering the overall market expansion.
- As organizations grapple with complex data sets and analytics workloads, the demand for supercomputers will rise. Supercomputers are now becoming more accessible and cost-effective for educational research institutions. Furthermore, the growing trend of democratizing computing power, especially through cloud-computing-enabled platform-as-service models, is set to boost the market further.
The High Initial Cost Of Supercomputing Systems Is The Major Hindrance To Market Growth
- High ownership costs, encompassing the device's price, housing infrastructure, and operational expenses, render supercomputers expensive and challenge market growth. For example, in March 2024, Microsoft and OpenAI collaborated to build an AI-based supercomputer costing approximately USD 100 billion. This shows that such supercomputers cater predominantly to large corporations, making them unfeasible for small and medium-sized enterprises.
The Impact Of Geopolitical Conflicts Among Countries Can Impact The Market Growth
- The demand for supercomputers in defense departments to increase cyber defense and attack supports the government sector's market growth. Additionally, in April 2024, a cybersecurity official at the US State Department detected unusual activity, revealing that China had developed a quantum supercomputer. This advancement can destroy all Western encryption, thereby nullifying their cyber defenses.
Supercomputers Market Trends
Commercial Industries to be the Largest End Users
- Automotive companies are rapidly utilizing commercial supercomputers in their applications. Global vendors and automobile companies have tailored these applications to cater to the industry's unique needs. Key applications of supercomputers in the automotive sector include crash analysis, structural analysis, and computational fluid dynamics. These have significantly enhanced product quality, reduced costs, and tackled previously insurmountable tasks. Given the industry's fierce competitiveness, the adoption of supercomputers has become essential for vendors in the global automotive sector.
- For instance, in February 2024, Tesla announced a USD 500 million investment to install a Dojo supercomputer at its Riverbend Gigafactory in Buffalo, New York. This supercomputer will train Tesla's Artificial Intelligence (AI) systems, crucial for autonomous driving. Anticipated as a major computing platform, it will train machine learning models and process vast data volumes from Tesla's electric vehicles.
- In the energy sector, supercomputers, especially those with attached accelerators, enhance energy efficiency in High-performance Computing (HPC) workloads. New algorithms are being developed to process extensive datasets, yielding higher-resolution images. This advancement aids in accurately locating hydrocarbons underground, particularly in challenging geological environments like Brazil, the Gulf of Mexico, Angola, and the Eastern Mediterranean. Companies can be more selective in their ventures by assessing exploration acreage and asset opportunities early.
Asia Pacific Expected to Witness Significant Growth
- Asia Pacific is rapidly emerging as a leader in technological advancements, particularly in the development of supercomputing systems, with significant contributions from nations like China and Japan.
- In the Asia-Pacific, rapid economic growth, substantial investments in research and development (R&D), and an increasing demand for advanced computational capabilities have fueled the region's consistent adoption and development of high-performance computing (HPC).
- Researchers in China have crafted a prototype quantum computer that can identify up to 76 photons via random sampling of Gaussian bosons. In a bid for dominance in this avant-garde technology, China's researchers are challenging major US firms such as Google, Amazon, and Microsoft. India is also making notable advancements in the Asia-Pacific arena. The nation has initiated the National Supercomputing Mission, targeting the creation of a supercomputing grid with 73 high-performance computing facilities, backed by a projected investment of USD 730 million by 2023.
- In February 2024, China discreetly unveiled the Tianhe-3 supercomputer, touted as the world's most powerful machine. Developed for the National Supercomputer Center in Guangzhou, the machine's secretive nature has fueled widespread speculation. Dubbed "Xingyi," Tianhe-3 is the latest addition to a series of supercomputers crafted by China's National University of Defense Technology.
- In September 2024, India launched the Param Rudra Supercomputing System, a significant leap in its technological journey. This advanced facility, crafted by the Centre for Development of Advanced Computing (C-DAC), bolsters India's high-performance computing prowess, especially in weather and climate computing.
- In October 2024, the Singapore government unveiled its commitment of SGD 270 million (USD 201.7 million) towards the enhancement of its national supercomputing infrastructure. This investment aims to bolster the capabilities of the National Supercomputing Centre (NSCC) in Singapore, ensuring robust support for local research initiatives. The announcement was made by the country's Deputy Prime Minister, who also chairs the National Research Foundation (NRF), during the official launch of the ASPIRE 2A and 2A+ systems. These advanced research supercomputers are under the management of NSCC. These developments are set to bolster the growth of the supercomputer market in the region during the forecast period.
Supercomputers Industry Overview
The market comprises several global and regional players vying for attention in a contested space. However, it is dominated by major vendors that cover a significant market share and compete to gain a foothold and become pioneers in different regional markets.
Vendors adopt competitive strategies to gain a foothold in the market with innovation and the capability to invest in R&D, which is on the higher side. Thus, this strategy intensifies the competition in the market.
Access to distribution channels, existing business relationships, better supply chain knowledge, and the development of high-performance computing solutions give established tech giants a market advantage over new competitors. Overall, the intensity of competitive rivalry among the vendors is expected to be high and remain the same during the forecasted period.
Some of the major market players are Atos SE, Intel Corporation, Hewlett Packard Enterprise Company, Dell EMC (Dell Technologies Inc.), and Fujitsu Limited.
Supercomputers Market Leaders
-
Atos SE
-
Intel Corporation
-
Hewlett Packard Enterprise Co.
-
Dell EMC (Dell Technologies Inc.)
-
Fujitsu Ltd
*Disclaimer: Major Players sorted in no particular order
Supercomputers Market News
- May 2024: In collaboration with Argonne National Laboratory and Hewlett Packard Enterprise (HPE), Intel Corporation announced that the Aurora supercomputer has surpassed the exascale barrier, achieving a remarkable 1.012 exaflops. Furthermore, Aurora stands as the world's fastest AI system, dedicated to Artificial Intelligence (AI) for open science, reaching 10.6 AI exaflops. The Intel Tiber Developer Cloud is enhancing its computing capacity with advanced hardware platforms and new service capabilities. The deployment of new supercomputers utilizing Intel's Xeon CPU Max Series and Data Center GPU Max Series technologies highlights Intel's commitment to advancing High Performance Computing (HPC) and AI.
- March 2024: HPE collaborated with NVIDIA to harness Nvidia's prowess in high-performance computing. Together, they developed a comprehensive generative AI supercomputer with all necessary software and services for developers and robust computing power.
Supercomputers Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment Of The Impact Of Macroeconomic Factors On The Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Higher Processing Power
5.1.2 Increasing Investments in Research
5.2 Market Restraints
5.2.1 High Initial Setup Cost
5.2.2 Large Installation Space
6. MARKET SEGMENTATION
6.1 By End User
6.1.1 Commercial Industries
6.1.2 Government Entities
6.1.3 Research Institutions
6.2 By Geography***
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Australia and New Zealand
6.2.5 Latin America
6.2.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Atos SE
7.1.2 Intel Corporation
7.1.3 Hewlett Packard Enterprise
7.1.4 Dell EMC (Dell Technologies Inc.)
7.1.5 Fujitsu Ltd
7.1.6 IBM Corporation
7.1.7 Lenovo Group Limited
7.1.8 NEC Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Supercomputers Industry Segmentation
Supercomputers outpace standard computers in processing speed thanks to their multiple processors. This design facilitates rapid circuit switching, allowing users to access and process vast amounts of data swiftly.
The supercomputer market is segmented by end users (commercial industries, government entities, and research institutions) and geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By End User | |
| Commercial Industries | |
| Government Entities | |
| Research Institutions |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Supercomputers Market Research Faqs
How big is the Supercomputers Market?
The Supercomputers Market size is expected to reach USD 10.03 billion in 2024 and grow at a CAGR of 11.38% to reach USD 17.18 billion by 2029.
What is the current Supercomputers Market size?
In 2024, the Supercomputers Market size is expected to reach USD 10.03 billion.
Who are the key players in Supercomputers Market?
Atos SE, Intel Corporation, Hewlett Packard Enterprise Co., Dell EMC (Dell Technologies Inc.) and Fujitsu Ltd are the major companies operating in the Supercomputers Market.
Which is the fastest growing region in Supercomputers Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Supercomputers Market?
In 2024, the Middle East and Africa accounts for the largest market share in Supercomputers Market.
What years does this Supercomputers Market cover, and what was the market size in 2023?
In 2023, the Supercomputers Market size was estimated at USD 8.89 billion. The report covers the Supercomputers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Supercomputers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Supercomputers Industry Report
Statistics for the 2024 Supercomputers market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Supercomputers analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Supercomputers Market Report Snapshots
