June 19, 2024
High Performance Computing Market

The High Performance Computing Market Is Expected To Be Flourished By Growing Adoption Of HPC Across Various Industrial Verticals

High performance computing (HPC) is the use of parallel processing for solving complex problems by coupling many central processing units and graphic processing units to achieve immense computational power within a short time span. HPC finds applications in areas including weather forecasting, oil and gas exploration, molecular modeling, economic forecasting, and defense applications among others. Increasing adoption of HPC across industries such as healthcare, manufacturing, automotive, and banking is driving the demand for HPC solutions. For instance, HPC is being widely used in genomic research for drug discovery and personalized medicine. Automotive companies use HPC for crash simulation, aerodynamic design, and engine simulation.

The global High Performance Computing Market is estimated to be valued at USD 54.32 bnin 2024 and is expected to exhibit a CAGR of 11.18%over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Growing adoption of HPC across various industrial verticals is expected to drive the growth of the market over the forecast period. For instance, usage of HPC is rising in industries such as automotive, aerospace and defense, life sciences, energy, and banking due to the capability of HPC systems to handle large volumes of data and perform complex simulations in reduced time. The increasing demand for HPC from such industries will propel the HPC market growth. Additionally, higher computational power requirement of artificial intelligence and deep learning technologies will also augment the market growth during the forecast period. However, high setup and maintenance costs associated with HPC solutions may restraint the market growth over the forecast period.

Segment Analysis

The high performance computing market is dominated by the government sub segment. The government sub segment accounts for around 40% of the total market share owing to the huge investments made by governments across the globe for various applications including healthcare, transportation, defense, education etc. Government agencies are the largest end users of HPC systems as they require supercomputing power for critical decision making, weather and climate modeling, scientific applications and national security.

PEST Analysis

Political: Government initiatives to promote HPC adoption will boost the market growth. Many governments are funding R&D projects involving use of HPC technologies.
Economic: Increasing demand from industries like automotive, manufacturing, pharmaceutical for simulations and modeling is fueling the economic growth of the market.
Social: Growing awareness about applicability of HPC systems in various fields like medical research, material science etc is positively impacting the social factors.
Technological: Advancements in processor technologies, increased parallel processing capabilities, virtualization, cloud computing are the major technological drivers of the market.

Key Takeaways

The Global High Performance Computing Market Growth is expected to witness high growth over the forecast period driven by widespread adoption across industries and continuous technological innovations. North America dominates currently due to extensive research activities and presence of key players in the region. The government and healthcare sectors collectively account for more than 50% market share owing to their massive supercomputing demands.
Key players operating in the high performance computing market are Wienerberger, Excluton, Ter Stege Betonvormen, Kooy Baksteencentrum, Steenfabriek Spijkenisse, Normteq, Kalkzandsteenfabriek Harderwijk, Mulderij Metsel- en Timmerbedrijf, Daas Baksteen Zeddam. Traditional HPC players are focusing on newer application areas and key industry players are investing heavily in R&D to enhance processor performance and system architecture. Adoption of blade servers, multi-core processors, and parallel programming holds immense growth potential.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it