High-performance Computing (HPC) Market Size, Share, Growth, Trends, and Global Industry Analysis:   By Component (Servers, Storage, Networking Devices, Software, Services, Cloud and Others), By Deployment (On-premise and Cloud), By End-use (Banking, Financial Services, and Insurance (BFSI), Gaming, Media & Entertainment, Retail, Transportation, Government & Defense, Education & Research, Manufacturing, Healthcare & Bioscience and Others) and Region Forecast 2019-2030

High-performance Computing (HPC) Market size was valued at US$ 34,289.2 million in 2023 and grow at a significant CAGR of 6.8% from 2024-2030. Moreover, the U.S. High-performance Computing (HPC) market is projected to grow significantly, reaching an estimated value of US$ 25,538.5 million by 2032.

The expanding need for powerful computational resources in various industries such as AI, scientific research, healthcare, and energy fuels the expanding growth of the market. Powerful computational resources are required to process large datasets, facilitate complex simulations, and spur innovations in quantum computing and big data analytics, among other areas. Cloud-based HPC solutions achieve importance due to on-demand, scalable services with minimal upfront costs in infrastructure deployments. Further transformation of the market can be expected with the continued evolution of HPC technologies, including the emergence of edge computing and quantum advancements.

Key players

The High-performance Computing (HPC) market share is inclusive of several companies such as Hewlett Packard Enterprise Development LP, Dell Inc., Atos SE, Advanced Micro Devices, Inc, Microsoft, Amazon Web Services, Inc., Cisco Systems, Inc., Fujitsu, Intel Corporation and IBM.

Top companies in High-performance Computing (HPC) Market

Hewlett Packard Enterprise (HPE) has had several successes in the High-Performance Computing market with innovations such as developing the HPC6 supercomputer for Eni in 2024, which is designed to accelerate AI, modeling, and simulation for energy transition. This is an extremely powerful system featuring HPE Cray EX4000 systems coupled with AMD accelerators and can reach 600 petaFLOPS, placing it among the world's most powerful industrial supercomputers. Its direct liquid-cooling technology leads the company to create some of the world's most energy-efficient supercomputers by emphasizing energy efficiency. Such developments reflect leadership by HPE in advancing computational power while offering sustainable solutions for industries like energy, finance, and healthcare.

Facts & Figures

• As of June 2024, the fastest supercomputer in the world is "Frontier" at Oak Ridge National Laboratory, USA, with a peak performance of 1.1 exaflops (1.1 quintillion calculations per second).
• The U.S. Department of Energy's "Frontier" supercomputer achieved exascale computing (performing at least one quintillion calculations per second) in May 2022, marking a major milestone in HPC.
• As of 2023, global data centers, including those supporting HPC systems, account for around 1% of global electricity use, with energy consumption growing by 10-15% annually.
• In April 2023, researchers used HPC resources to process genetic sequencing data for COVID-19 variants in under 24 hours, enabling faster response to new mutations.
• Quantum Computing Integration: In January 2024, IBM announced a collaboration to integrate quantum computing capabilities into its classical HPC infrastructure, aiming to solve more complex problems by 2025.

Key Takeaways

• North America is the largest market, largely dominated by the US. North American demand constitutes 41.2% of the overall global demand for the market.
• Based on Component, server segment holds the 36.2% market share
• Based on Deployment, the on-premises segment holds the 58.3% market share
• Based on End-Use Industry, government and defense segment holds the 29.6% market share

Key Developments

• EuroHPC AI Factories Initiative 2024: The European High-Performance Computing Joint Undertaking published AI-oriented calls for expressions of interest to establish "AI Factories." These will offer streamlined AI supercomputing services to SMEs, researchers, and start-ups. The initiative is supported by a budget of €400 million in 2024, a very concrete example of Europe's integration efforts for AI and HPC infrastructures.
• Rescale and IonQ Alliance (2024): Rescale, a cloud HPC platform, teamed up with IonQ to incorporate hybrid quantum computing. This alliance provides new computational options for industries like healthcare and national security, and points to the increasing overlap of HPC with quantum technologies.
  AWS Quantum Embark Initiative (2024): Amazon Web Services (AWS) launched an initiative to support companies in their adoption of quantum computing, marking the continuation of industry trends toward combining the advancement of quantum technology with HPC frameworks.

High-Performance Computing Market Segmentation

By Components: The market will be dominated by the servers and storage segment. Servers are the backbone of HPC systems, providing the needed power to process large-scale computations and complex simulations that form a part of scientific research, finance, and defense. Storage solutions are similarly crucial in serving as massive data requirements for HPC applications with efficient data access and retrieval support. The further the integration of AI, machine learning, and big data analytics into HPC systems, therefore, is driving the demand for the most advanced servers and high-capacity storage.

By Deployment: The on-premise segment leads the market. This is largely because sectors like defense, research, and finance have stringent, secure, and dedicated infrastructure to be able to handle sensitive data and complex computations. More control and reliability, along with the ability to customize hardware and software configurations for specific tasks, are offered through on-premise HPC systems. However, the cloud segment is growing fast because it is scalable, cost-effective, and easy to access. These help smaller firms to use HPC without significant upfront investment in its infrastructure.

By End User: Government and Defence segment leads the market. In government & defense, extensive uses are there in the fields of national security, cryptography, and defense simulations, which essentially rely on real-time modelling of large datasets. Governments around the world have invested significantly in HPC infrastructure in order to support weather forecasting, space exploration, and climate modeling. Education and research, as well as healthcare and bioscience sectors, are also considered of major importance because they rely on HPC for advanced scientific research and drug discovery.