Global Hyperscale Computing Market 2023-2030

Global Hyperscale Computing Market 2023-2030

Global Hyperscale Computing Market Size, Share & Trends Analysis Report by Type (Solution and Service), by Enterprise Size (Large Enterprises, and Small and Medium Enterprises), by Application (Cloud Computing, Big Data, and IoT), by end-user (BFSI, IT and Telecom, Media and Entertainment, Retail and E-Commerce, and Healthcare) Forecast Period (2023-2030)

The global hyperscale computing market is anticipated to grow at a CAGR of 21.4% during the forecast period. The rising focus on high-performance computing is a key factor to drive the hyperscale computing market over the forecast period. Hyperscale computing is referred to as a distributed architecture that can accommodate increasing demand from back-end computing and internet-facing resources and does not require additional electric or cooling power and physical space. Hyperscale architecture ensures an optimum level of throughput performance and incremental redundancy for providing fault tolerance and continuous availability. Hyperscale architecture can easily reconfigure hardware or software according to an organization’s needs and allows for upgrading components in an organized manner, thereby providing IT professionals with a cost-effective approach to scale resources on demand. For instance, in February 2020, Dell Technologies introduced the EMC PowerEdge XE2420 server. The new short-depth, compact, high-performance server is developed to operate in challenging and space-constrained environments. Additionally, the server is equipped with a two-socket system, four accelerators to manage evolving business demands, and the option to add up to 92TB of storage per server. The rising popularity and deployment of Artificial Intelligence (AI), Machine Learning (ML), Industrial 4.0, Internet of Things (IoT), autonomous cars, big data, and cloud computing are expected to drive revenue growth of the global hyperscale computing market to a significant extent over the forecast period.

Segmental Outlook

The global hyperscale computing market is segmented based on type, enterprise size, application, and by end-user. Based on type, the market is bifurcated into solution and service. By enterprise size, the market is bifurcated into large enterprises and short and medium enterprises. By application, the market is sub-segmented into cloud computing, big data, and IoT. Further, by end-user, the market is sub-segmented into BFSI, IT and Telecom, media and entertainment, retail and e-commerce, and healthcare. Among these, the cloud computing sub-segment accounted for the dominant share of the market during the forecast period. This can be attributed to the rising adoption of cloud-based solutions and the increased need for hyperscale to build distributed infrastructure systems to meet the growing cloud computing and big data requirements of modern organizations.

IT and Telecom Sub-Segment is Anticipated to Hold Prominent Share in the Global Hyperscale Computing Market

The IT & telecom segment is expected to account for the largest revenue share owing to increasing technological innovations to gain a competitive edge over other players in the market and increasing adoption of technologically advanced hybrid solutions. In addition, increasing advancements in communication technologies such as social media, the internet, 4G, and 5G are increasing the need to build these networks with efficient processing ability, increased flexibility, and bandwidth density. With the growing demand several IT and Telecom companies investing in hyperscale computing will further drive the market. For instance, in October 2022, US-based multinational technology services and telecom equipment provider, Cisco, announced to invest in dedicated data center capacity for WebEx, its remote conferencing, file sharing, and contact center operation services suite, in India. The undisclosed investment amount will be used to set up a domestic data center and acquire regulatory licenses for WebEx in India.

Regional Outlook

The global hyperscale computing market is further segmented based on geography including North America (the US and Canada), Europe (UK, Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East and Africa, and Latin America). Among these, the Asia-Pacific region is projected to expand at a significant CAGR during the forecast period, due to rapid growth in Internet of Things (IoT) applications, ongoing shift towards digitalization, rising demand for cloud services, and adoption of 5G wireless networks which are driving demand for small sites hosting edge computing infrastructure. In addition, a steady shift towards the adoption of hybrid cloud solutions coupled with a rise in the number of hyperscale data centers in the region is expected to continue to drive the market over the forecast period.

Global Hyperscale Computing Market Growth, by Region 2023-2030

Source: OMR Analysis

The North American Region is Anticipated to Hold a Significant Share of the Global Hyperscale Computing Market

North America is expected to continue to account for a larger revenue share among other regional markets during the forecast period due to the increasing adoption of advanced cloud computing technology, the rising implementation of high-performance computing solutions, and the increasing number of hyperscale data centers in the region. According to comsoc.org, as of March 2022, the US currently accounts for almost 40.0% of operational hyperscale data centers, which was half of all worldwide capacity. The US has the most data centers in the future pipeline, with a current known pipeline of 314 future new hyperscale data centers, the installed base of operational data centers will pass the 1,000 mark in three years and continue growing rapidly thereafter.

The increasing penetration of digital services across various sectors, such as healthcare, finance, retail, and more, has further bolstered the demand for hyperscale computing solutions. For instance, Netflix, a company that relies heavily on data centers for streaming content to millions of users worldwide, utilizes AWS's EC2 hyperscale facilities to handle peak loads and ensure a seamless user experience. Additionally, the robust presence of various small and large vendors providing hyperscale computing services is opening up significantly large revenue opportunities for players and supporting the growth of the North American hyperscale computing market.

Market Players Outlook

The major companies serving the global hyperscale computing market include Amazon Web Services, Inc., Dell Technologies, Inc, Intel Corp., and Server Technology, Inc. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, funding, collaborations, and new product launches to stay competitive in the market. For instance, in February 2023, Amazon Web Services teamed up with Rebura, a UK-based provider of AWS consulting services. The collaboration involves jointly working to broaden their service offerings. In October 2021, Google Cloud signed an agreement with Thales, a leader in advanced technologies. The agreement includes jointly developing hyperscale cloud offerings for France. The new hyperscale offering benefits the public sector and French companies. Further, the company aims to provide innovative and advanced solutions to organizations in France.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global hyperscale computing market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.