High-performance Computing (HPC) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

High-performance Computing (HPC) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The high-performance computing market is expected to witness a CAGR of 9.44% over the forecast period from 2021 - 2026. Factors such as increasing investments in the Industrial Internet of Things (IIoT), artificial intelligence (AI), and engineering, which demand electronic design automation (EDA), are likely to drive the market over the forecast period. The market has been augmented by the continued investment from hardware providers to develop solutions that support these capabilities.

Key Highlights

• The surging demand for short product development cycles (PLCs), along with a need to maintain persistent quality, becomes nearly impossible to address in real-time without using the right tools and advanced technologies. The adoption of HPC systems with computer-aided engineering software for high-fidelity modeling simulation is on the rise among various industries, such as automotive and healthcare robotics.
• Physical simulation, optimization, and machine learning (ML) in varied industrial applications, including financial modeling and life science simulation, are some of the examples where HPC plays a critical role in solving complex problems within time. Additionally, the regulatory requirements for energy consumption, sustainability and safety, and the cost pressure are at the top across the world, which is rapidly increasing, resulting in increased complexity for the engineers in the field for development.
• In the aerospace and defense sector, the companies are highly emphasizing reducing the production cost with an increased production rate. HPC software solutions enable these companies to provide accurate multi-scale and multi-physics simulation solutions by leveraging the simulation at the design phase, cutting off physical testing.
• Moreover, cloud-based HPC solutions are gaining traction in the market due to their cost-effective pay-as-you-go pricing model. This has become a critical factor in driving the market as the volume, variety, and velocity of the data generated have evolved exponentially and are expected to further increase with the 5G technology already getting adoption.
• The demand for HPC saw significant growth, especially in bioscience, as HPC was used to develop a vaccine and tackle the effects of the pandemic. The data consumption and cloud demand skyrocketed since the outbreak of COVID-19, owing to enterprises moving toward remote working and shifting their workloads onto the cloud.

Key Market TrendsLife Science and Healthcare is Expected to Witness Significant Growth

• According to HPC Wire, advances in genomics, precision medicine, the widespread adoption of electronic health records (EHRs) and digital imaging, and the increasing proliferation of medical IoT and mobile devices have resulted in an explosive growth of structured and unstructured healthcare-related data.
• With the increased demand for data analysis in the healthcare sector, the industry has been at the forefront of technological adoption over the past two decades. Moreover, the need to expedite drug discovery and genomics-related study has been one of the major factors that complemented the adoption of high-performance computing solutions in the market.
• The implementation of AI in the medical sector to help healthcare professionals in diagnostics has been a huge enabler to the adoption of these solutions in industrial applications. For instance, AI image recognition can avert inaccurate diagnoses of cancers and other diseases. But it requires going through a huge set of collected data to arrive at a conclusion. Such systems have been crucial in reducing the already existing workload in the sector.
• Moreover, researchers can considerably understand how the virus initiates infection by knowing more details about the structure of the protein which the virus uses to enter human cells. This is expected to be an important step forward and may help in the development of a vaccine. The HPC resource has Atos’ BullSequana X supercomputer with additional computing capabilities and access to Atos HPC, AI & Quantum Life Sciences Center of Excellence.
• Additionally, in March 2021, Cleveland Clinic and IBM announced a planned 10-year partnership to establish the discovery accelerator, which is a joint Cleveland Clinic-IBM center with the mission of fundamentally advancing the pace of discovery in the healthcare and life sciences sector through the usage of high-performance computing on the hybrid cloud, artificial intelligence (AI), and quantum computing technologies. The collaboration is expected to build a research and clinical infrastructure to empower big data medical research in ethical, privacy-preserving ways and discoveries for patient care and approaches to public health threats such as the COVID-19 pandemic.

North America is Expected to Hold Major Share

• The North American region is known for its early adoption of advanced technologies driven by healthy technology development in the United States and Canada. The increase in massive data drives this implementation of new technologies and the need for security, thus, leading to the implementation of HPC systems. North America is expected to continue dominating the global HPC market during the forecast period. One of the significant factors responsible for the demand is government investments at the national level in R&D activities.
• With the presence of key players in the market, including NVIDIA, HPE, IBM, Microsoft, and AMD, the demand for high-performance computing in the region is expected to witness significant growth. The White House’s Budget for the fiscal year 2021 proposed an investment of over USD 475 million for exascale computing to secure its place as the leading country (United States) in supercomputer space. The investment is also aimed to achieve a fivefold improvement in application performance over the Summit system at the Oak Ridge Leadership Computing Facility in the United States.
• In April 2021, OpenFive, a provider of customizable, silicon-focused solutions with differentiated IP, announced the successful tape out of a high-performance SoC on TSMC’s N5 process, with integrated IP solutions targeted for HPC/AI, networking, and storage solutions. Combined with OpenFive advanced 2.5D packaging solutions and high performance, low power, and low latency HBM/D2D interface IP, designers can now create systems-on-chip (SoCs) that pack more computing power into smaller form factors for AI and HPC applications.
• The vendors in the market have also been forming new partnerships with other companies to expand their geographic coverage and reach. For instance, Graphcore expanded its partner program to increase its capacity to reach new customers and support them on their scale-up journey with its intelligence processing unit (IPU) solutions. The company added several partners to its global partner program in the North American region, including Applied Data Systems, Images et Technologie, among others, to expand its reach in the region.
• Though manufacturers have made significant improvements in leveraging HPC systems for innovation, the penetration of HPCs in America’s small and medium enterprise manufacturing base has come much more slowly and periodically. The vast number of SMEs constitute various users who adopted HPC in the region.

Competitive Landscape

The competitive rivalry in the high-performance computing market is high and is highly fragmented. Market incumbents, such as Hewlett Packard Enterprise, Advanced Micro Devices Inc., Intel Corporation, NEC Corporation, and IBM Corporation, have considerable influence on the overall market. Vendors of high-performance computing are increasingly focusing on delivering enhanced solutions that can cater to various requirements.

• June 2021 - Travelport named Amazon Web Services (AWS) as its preferred cloud partner while outlining plans to draw on the tech giant’s portfolio to boost the performance and scalability of its operations. AWS, apart from offering cloud capabilities, will use other technologies, including HPC, storage, security, analytics, machine learning, and databases, to deliver a faster, easier, and more personalized travel booking experience to Travelport.
• April 2021 - NVIDIA announced a series of collaborations to allow and combine NVIDIA GPUs and software with Arm-based CPUs. The initiatives include combining AWS Graviton2-based Amazon EC2 instances with NVIDIA GPUs; supporting the development of scientific and AI applications with a new HPC Developer Kit, boosting video analytics and security features at the edge; and creating a new class of Arm-based PCs with NVIDIA RTX GPUs.

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Companies Mentioned

Advanced Micro Devices Inc.
NEC Corporation
Hewlett Packard Enterprise
Sugon Information Industry Co. Ltd
Fujistu Ltd
Intel Corporation
International Business Machines Corporation
Microsoft Corporation
Dell EMC (Dell Technologies Inc.)
Dassault Systemes SE
Lenovo Group Ltd
Amazon Web Series
NVIDIA Corporation
Atos SE

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