Global High Performance Computing Market to Reach $107.8 Billion by 2028, Fueled by Demand for AI, ML, and Big Data Applications

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Nov 24, 2023, 14:00 ET

DUBLIN, Nov. 24, 2023 /PRNewswire/ -- The "Global High Performance Computing Market" report has been added to ResearchAndMarkets.com's offering.

This comprehensive report offers insights into the rapidly evolving High Performance Computing (HPC) market, including its size, key trends, and growth drivers.

The global High Performance Computing (HPC) market has witnessed remarkable progress in recent years, reaching a value of $46.2 billion in 2022. This growth can be attributed to the widespread adoption of data-intensive applications like artificial intelligence (AI), machine learning (ML), and big data analytics, which have significantly increased the demand for robust computing resources. Industries such as healthcare (for genomic research) and financial services (for algorithmic trading) have led the charge in adopting HPC solutions as part of their digital transformation initiatives.

Key Market Drivers

Data-Intensive Applications: The proliferation of data-intensive applications, including AI, ML, and big data analytics, has driven the demand for high-performance computing. These applications require substantial computational power for data processing, training AI models, and conducting complex simulations.
Digital Transformation: Industries across the spectrum are embracing digital transformation, and HPC is a critical component in this journey. Sectors such as healthcare, finance, manufacturing, and research rely on HPC for enhancing efficiency, innovation, and competitiveness.
Cloud-Based HPC Services: Cloud-based HPC services have gained traction due to their scalability and accessibility, making HPC resources available to a broader range of users. Cloud offerings have democratized access to powerful computing resources.
Government Initiatives: Governments, academic institutions, and industry players have collaborated on exascale computing initiatives, addressing challenges like the high cost of infrastructure and the need for skilled personnel. These initiatives aim to advance HPC capabilities further.
Convergence with Emerging Technologies: HPC is converging with AI, quantum computing, and edge computing. This convergence promises innovative solutions and the resolution of complex problems across various domains.

Challenges and Obstacles

High Infrastructure Costs: The initial cost of HPC hardware can be prohibitive for some organizations. Frequent hardware upgrades also contribute to the total cost of ownership.
Power Consumption Concerns: HPC systems are power-hungry, raising concerns about energy consumption and environmental impact. Sustainable practices and energy-efficient solutions are gaining importance.
Talent Shortage: Skilled personnel capable of managing and optimizing HPC systems are in short supply, posing challenges for organizations aiming to leverage HPC effectively.
Regulatory Landscape: Evolving regulations and compliance requirements, especially regarding data privacy and security, can affect HPC deployments and usage.

Market Segmentation and Projections

The global HPC market is segmented based on components, deployment models, organization size, industries, and geography. The hardware segment, which represents the largest upfront investment cost, dominated the market in 2022, valued at $23.8 billion. It is expected to grow at a CAGR of 15.5%, reaching $55.1 billion by 2028. Cloud deployment models, large enterprises, and industries such as manufacturing, defense, BFSI, healthcare, academic and research, and media and entertainment are all significant contributors to market growth.

Key Report Highlights:

Market Size and Growth: The global HPC market was valued at $46.2 billion in 2022, with a projected revenue of $107.8 billion by 2028, growing at a CAGR of 15.5%.
Segment Analysis: The report offers a detailed breakdown of the market by component, deployment, organization size, industry, and region.
Market Trends: Current trends in the global HPC market, including the convergence of HPC with emerging technologies and the importance of Environmental, Social, and Governance (ESG) factors, are discussed.
Competitive Landscape: The report provides an analysis of market share, recent developments, and profiles of major players in the HPC industry, including ATOS, Advanced Micro Devices, Amazon, Cisco System, Dell, Hewlett Packard, IBM, INTEL, Lenovo Group, Microsoft, NEC, and NVIDIA.

For more information about this report visit https://www.researchandmarkets.com/r/xbaiu1

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SOURCE Research and Markets