High performance computing (HPC) refers to the practice of aggregating computing power in a way that delivers much higher performance than one could get out of a typical desktop computer or workstation in order to solve large problems in science, engineering, or business. The advantages of high performance computing include faster simulation times and large-scale data analytics which helps accelerate scientific research and discovery.
The global high performance computing market is estimated to be valued at USD 54.32 bnin 2024 and is expected to exhibit a CAGR of 11.18%over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The rising demand for accelerating scientific research and discovery presents a significant market opportunity for high performance computing. HPC systems are helping analyze massive, complex datasets and run computationally and data-intensive applications in several domains like life sciences, materials and chemical engineering, oil and gas exploration, meteorology etc. It allows researchers to gain new insights through simulations and modeling that would be impossible to obtain by any other means. With the increasing focus on precision medicine and developing new medical treatments, HPC systems are being widely used to model important biological processes and test potential new drugs virtually. They help reduce reliance on time-consuming lab experiments and clinical trials, thereby speeding up the process of scientific discovery. This growing need for speeding up research through high performance computing presents a lucrative opportunity for vendors in this market.
Porter’s Analysis
Threat of new entrants: The high performance computing market requires heavy investments in R&D and technology to develop specialized processors and systems for HPC applications. This poses significant entry barriers for new companies.
Bargaining power of buyers: Buyers in this market include government agencies, research organizations, academic institutes, and large corporations. They have moderate bargaining power due to the specialized nature of HPC systems and limited number of suppliers.
Bargaining power of suppliers: Major suppliers such as Intel, AMD, and Nvidia have strong bargaining power due to their technological expertise and control over key components like processors and GPUs. Buyers have limited options to choose from.
Threat of new substitutes: There are no close substitutes for HPC systems in application areas like modeling, simulation and big data analysis that require extreme computation power. Prospects of new substitutes are low.
Competitive rivalry: The market is dominated by a few global players. Intense competition exists in areas of technological innovation, pricing, and after-sales service.
SWOT Analysis
Strength: HPC systems can process massive datasets and complex simulations much faster than conventional computers. This enhances research and discovery.
Weakness: HPC infrastructure requires high capital and operational expenditure. Significant expertise is also needed to program, maintain and optimally use these specialized systems.
Opportunity: Rising adoption in new application sectors like artificial intelligence, autonomous vehicles, and precision medicine present major growth opportunities.
Threats: Declining price performance of conventional computing threatens demand. Technical issues and bottlenecks in developing exascale systems are also risks.
Key Takeaways
The Global High Performance Computing Market Growth is expected to witness high over the forecast period owing to rising demand from various end-use industries.
Regional analysis- North America dominates the global HPC market currently due to heavy investments by governments and private agencies in the USA and Canada. Asia Pacific is poised to be the fastest growing region due to initiatives by China, Japan, and India to bolster research and development through HPC.
Key players operating in the high performance computing market are Intel, AMD, Nvidia, Wienerberger, Excluton, Ter Stege Betonvormen, Kooy Baksteencentrum, Steenfabriek Spijkenisse, Normteq, Kalkzandsteenfabriek Harderwijk, Mulderij Metsel- en Timmerbedrijf, Daas Baksteen Zeddam. Key players are focusing on developing more powerful and efficient processors, GPUs, and accelerator technologies to build exascale supercomputers. Collaboration between hardware manufacturers, system integrators, and end-users is also becoming important.
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