High-Performance Computing HPC as a Service Market

Market Overview

The global high-performance computing HPC as a service market size was valued at USD 11.23 billion in 2023. It is estimated to reach USD 25.69 billion by 2032, growing at a CAGR of 10.9% during the forecast period (2024–2032). HPC services enable complete control for the users over computing infrastructure, such as analytics software and operating systems, the storage of huge data sets, and the study of insights from these complex data sets, simulating HPC as a service market growth. High-performance computing (HPC) uses advanced techniques and infrastructure to solve complex computational problems or perform large-scale data processing at significantly higher speeds and capabilities than traditional computing systems. HPC systems are designed to deliver exceptional computational power, storage capacity, and network bandwidth, enabling the efficient execution of highly demanding tasks and simulations.

HPC typically involves using supercomputers or computer clusters consisting of multiple interconnected processors or nodes working together in parallel. To deliver massive computational capabilities, these systems employ specialized hardware components, such as multi-core processors, high-speed interconnects, and high-capacity storage systems. By harnessing the collective power of multiple processors or nodes, HPC enables quick processing of vast amounts of data.

Market Dynamics

Global Market Drivers

Increase in Need for Flexible Computing Services

High-performance computing requires continuous efficiency and the working of HPC clusters. Thus, HPC services enable complete control for the users over computing infrastructure, such as analytics software and operating systems. Moreover, despite numerous benefits, HPC faces several issues and challenges, such as network bandwidth and latency, virtualization overhead, and multi-tenancy, which generate the need for better management of HPC infrastructure and solutions. Thus, such factors drive the demand for high-performance computing services. Furthermore, HPC enabled with cloud services keeps deployment types and software updated, providing several solutions and choices to the users.

Increase in Need for Efficient and High-Speed Computation and Storage Safety

High-performance computing itself refers to speed and scale. In addition, integration of high-performance computing with the cloud provides numerous benefits, such as large storage and high computation. High-performance computing through the cloud can provide users access to multi-core computers for multi-threaded deployment types. In addition, it further enables a high-speed network for different memory deployment types.

Furthermore, the penetration of smartphones and IoT-enabled devices generates huge data sets globally, which drives the demand for high-performance computing services. In addition, the storage of huge data sets and the study of insights from these complex data sets is also the key factor that fuels the demand for high-performance computing services. Moreover, people store their data multiple times to ensure that even if it gets erased from one place, they can recover it from another source. Thus, such factors drive the demand for HPC services among numerous organizations.

Global Market Restraints

High Cost of HPC Services

The increase in workloads across various industries requires specialized Graphics Processing Units (GPUs) and enhanced HPC cloud capacity, which drives global cloud adoption. In addition, HPC deployment types can involve hundreds to thousands of dedicated machines. Enterprises can face serious charges from their cloud service provider (CSP) if they lack appropriate management controls. Also, the varying cost structures for spot instances, on-demand instances, reserved instances, and spot fleets majorly hinder the market growth.

Global Market Opportunities

High Proliferation of Cloud in Emerging Economies

Cloud adoption is on the rise globally as large as well as small and medium enterprises are realizing the potential of its adoption. In addition, emerging countries such as India, China, Mexico, Saudi Arabia, Indonesia, and others are adopting and investing aggressively in cloud solutions. Moreover, startups and small and medium organizations embrace cloud solutions due to their cost-effectiveness, easy deployment, management, and other features. Furthermore, the penetration of smartphones and the internet is also the key factor that fuels cloud adoption in emerging economies. Also, increased demand for scalable and fast-processing computing and storage solutions fosters the market demand in emerging economies. Hence, such factors drive the adoption of the cloud, further anticipated to provide opportunities for high-performance computing (HPC) services shortly.

Regional Analysis

North America Dominates the Global Market

Based on region, the global high-performance computing HPC as a service market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global high-performance computing HPC as a service market shareholder and is estimated to grow at a CAGR of 9% over the forecast period. North America's global high-performance computing service market is analyzed across the U.S. and Canada. According to the Department of Energy (DOE) in November 2018, the U.S. owns five of the world’s top ten systems out of the top five hundred list of the world’s most powerful supercomputers. In addition, the U.S. plans to deploy an exascale system by 2021 at Argonne National Laboratory. Moreover, ongoing research in computer science, nanoscale materials science, and mathematics is also expected to fuel the market demand in this region shortly. In addition, the rise in demand for engineering and scientific progress also boosts the market demand for HPC services in this region.

Europe is anticipated to exhibit a CAGR of 12.7% over the forecast period. Europe's global high-performance computing service market is analyzed across the UK, Germany, France, Russia, and the rest of Europe. An increase in initiatives and investment by the European Commission for supercomputers and digital transformation of the European countries fuels the market demand in this region. For instance, under the European Cloud initiative, the European Commission projects to build the European Data Infrastructure for supercomputers and quantum technologies. Moreover, the European Council approved the guideline for forming the European High-Performance Computing Joint Undertaking in September 2018. Under the EuroHPC regulation, Europe plans to bring the European Union (EU) and partaking countries resources to build data infrastructure and supercomputing applications and technologies.

In Asia-Pacific, the high-performance computing as a service market is analyzed across China, Japan, India, South Korea, and the rest of Asia-Pacific. The increase in the adoption of machine learning and artificial intelligence (AI) among organizations is the major factor that fuels the demand for high-performance computing services in this region. Moreover, the rise in adoption and demand for smartphones in this region is generating massive data sets, which are anticipated to provide major opportunities for market growth in the upcoming years. Moreover, the increase in IT spending by various governments, such as China, Japan, South Korea, and India, is also a major factor fueling the market growth in this region.

LAMEA is comparatively slow in technological adoption as compared to other regions. However, Mexico, Dubai, and other African countries have recently adopted emerging technologies such as artificial intelligence (AI) and machine learning for numerous business processes. In addition, some of the organizations in this region have started adopting digitization in their business processes, further expected to fuel the demand for data analytics and high-performance simulations. This, in turn, is expected to create lucrative opportunities for the high-performance computing services market in the upcoming years in this region.

Segmental Analysis

The global high-performance computing HPC as a service market is bifurcated into components, deployment types, and industry verticals.

Based on components, the global market is bifurcated into solutions and services.

The solution segment dominates the global market and is projected to exhibit a CAGR of 11.5% over the forecast period. High-performance computing as a service market solution comprises software, networking devices, servers, cloud, and storage solutions. The increase in the need to process complex computations processes drives the demand for high-performance computing as a service solution. In addition, HPCaaS solutions ensure the optimal performance, flexible deployment, and management of key components, which further enable efficient management and customization of workflow. Moreover, the HPCaaS server solution provides data storage on numerous cloud platforms. In addition, cloud solution enables data processing through the cloud, eliminating the need for any physical infrastructure.

Based on deployment types, the global market is bifurcated into private cloud, public cloud, and hybrid cloud.

The private cloud segment dominates the global market and is projected to exhibit a CAGR of 14.2% over the forecast period. Private cloud service is offered over the private internal network or the internet as part of computing services. In addition, it offers organizations numerous benefits of a public cloud, such as scalability, self-service, and elasticity, along with additional customization and control from dedicated resources over a computing infrastructure hosted on-premises. Moreover, the private cloud is only accessible to one organization and extends its IT infrastructure. The cloud-based deployment model does not involve capital cost and is low on maintenance requirements.

In addition to direct IT control, internal data delivery and handling, and faster data processing, this model's benefits, including cost-effective cloud deployment and optimal resource use, are predicted to accelerate this market segment's expansion. Moreover, large organizations usually have rapidly changing needs and can spend on costly business intelligence tools of cloud analytics. Thus, such factors drive the demand for private cloud models in high-performance computing as a service market.

Based on industry verticals, the global market is bifurcated into manufacturing, BFSI, healthcare, government, media and entertainment, and others.

The manufacturing segment dominates the global market and is projected to exhibit a CAGR of 13.7% over the forecast period. The manufacturing industry is shifting toward Industry 4.0 to collect and analyze huge amounts of data, which allows companies to easily design products, improve them, and bring them to market faster. For instance, manufacturers are adopting HPC for prototyping as its adoption allows them to design a part using generative design tools quickly and then 3D print a prototype. It ensures all product elements function optimally before the high-volume manufacturing process begins. Many small and medium-sized manufacturers are adopting “HPC in the Cloud” for smaller-scale needs as it provides an effective option. Cost-effectiveness associated with HPC cloud solutions is also the key factor that fuels the adoption of HPCaaS among manufacturers.

Furthermore, the manufacturing industry is adopting HPC for engineering modeling, simulations, and additive manufacturing processes such as 3D printing. In addition, there is an increased penetration of machine-to-machine communication, the Internet of Things (IoT), and other data-generating technologies in the manufacturing industry and the amount of data gathered and stored. As several manufacturers recognize the value of data, the adoption of HPCaaS is expected to increase in the upcoming years, which is opportunistic for the market.

Recent Developments

• May 2023- Hewlett Packard Enterprise (HPE) announced the launch of its new GreenLake for HPC service. The service provides customers access to HPE's high-performance computing (HPC) infrastructure and software on-demand through the cloud.
• April 2023- Dell Technologies announced the launch of its new Dell EMC PowerEdge H1450G server. The server is designed for deployment in HPC as a service (HPCaaS).