High performance computing (HPC) involves the practice of aggregating computing power in a way that delivers much higher performance than one could get out of a typical desktop computer or workstation in order to solve large problems in science, engineering, or business. HPC systems are optimized to maximize computing performance and minimize response time. While traditional computing systems are designed to maximize throughput, HPC systems are designed to achieve the fastest processing speed for a given workload. HPC provides capabilities like simulations, predictive modeling, data analytics, and virtual experimentation that have transformed many scientific and engineering domains. It enables precise simulations of earthquakes, storms, aircraft and vehicle design, molecular modeling for drug discovery, and financial modeling. The global High Performance Computing Market is estimated to be valued at US$ 36.33 Bn in 2024 and is expected to exhibit a CAGR of 3.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Artificial Intelligence (AI) is driving the demand for HPC as AI/machine learning algorithms require massive computational power to analyze huge volumes of data and deliver results at incredible speeds. AI facilitates predictive modeling, data analytics and simulations. Many HPC applications today involve AI/deep learning to enhance capabilities like object detection, speech recognition, and more. For precision simulations needed for drug discovery, materials engineering and climate modeling, HPC enabled by AI is allowing supercomputing power to be applied with greater accuracy. Cloud HPC is also a major trend as cloud providers like AWS, Microsoft and Google offer users elastic, on-demand HPC capabilities in the cloud. This is reducing upfront infrastructure investments for organizations. Edge computing and specialized hardware like GPUs and FPGAs are further boosting HPC performance. Overall, AI is enabling new capabilities with HPC and driving greater demand for high performance computing infrastructure and resources across industries.
Threat of new entrants: The threat of new entrants is low as setting up a high performance computing infrastructure requires large initial investments and established technology competencies which makes it difficult for new players to enter this market.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are several existing players providing high performance computing solutions. However, large technology buyers still have bargaining power considering their high spending power and requirements.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of multiple component manufacturers and software developers providing inputs for high performance computing.
Threat of new substitutes: There are currently no cost-effective substitutes for high performance computing. However, emerging technologies like edge and cloud computing can pose a potential threat in future.
Competitive rivalry: The competitive rivalry in the high performance computing market is high owing to the presence of technology giants offering competitive solutions.
The Global High Performance Computing Market Size is expected to witness high growth over the forecast period supported by increasing adoption across various industries.
North America currently dominates the high performance computing market owing to presence of major technology companies and availability of advanced research infrastructure. Countries like US and Canada are early adopters of HPC systems. However, Asia Pacific is expected to grow at the fastest pace during the forecast period led by increasing investments in research & development activities from China, Japan and India.
Key players operating in the high performance computing market are Hewlett Packard Enterprise, Dell Technologies, Lenovo, IBM, Fujitsu among others. Major players are focusing on partnerships, new product innovations and mergers & acquisitions to strengthen their position in the growing high performance computing industry.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it