Supercomputer Market to grow by USD 33.46 Billion from 2024-2028, driven by commercial adoption of supercomputing systems, Report on AI’s impact on market evolution – Technavio
Press Releases
Dec 06, 2024
NEW YORK, Dec. 6, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global supercomputer market size is estimated to grow by USD 33.46 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 28.54% during the forecast period. Commercial customers increasingly adopting supercomputing systems is driving market growth, with a trend towards growing use of cloud. However, high ownership cost and large power consumption increases total cost poses a challenge. Key market players include Advanced Micro Devices Inc., Apple Inc., ASUSTeK Computer Inc., Atos SE, Cerebras, CoreWeave, Dell Technologies Inc., Ford Motor Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Intel Corp., International Business Machines Corp., Lenovo Group Ltd., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Renesas Electronics Corp., Robert Bosch GmbH, and ZF Friedrichshafen AG.
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Supercomputer Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 – 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.54% |
Market growth 2024-2028 |
USD 33458.7 million |
Market structure |
Fragmented |
YoY growth 2022-2023 (%) |
21.8 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
China, US, Japan, UK, and France |
Key companies profiled |
Advanced Micro Devices Inc., Apple Inc., ASUSTeK Computer Inc., Atos SE, Cerebras, CoreWeave, Dell Technologies Inc., Ford Motor Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Intel Corp., International Business Machines Corp., Lenovo Group Ltd., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Renesas Electronics Corp., Robert Bosch GmbH, and ZF Friedrichshafen AG |
Market Driver
Supercomputing centers are partnering with cloud providers like Microsoft Azure to expand their market reach. Cray’s collaboration with Microsoft allows access to Azure’s customer base and offers dedicated Cray supercomputers for HPC and AI applications. This arrangement caters to users seeking cloud flexibility and broadens the market for supercomputing, particularly in the private sector, including automotive, financial services, and life sciences. Microsoft Azure data centers will host Cray systems, with direct customer contracts for support and maintenance. Such collaborations are expected to increase as supercomputer vendors explore new markets.
The supercomputer market is experiencing significant growth due to the increasing demand for advanced computing solutions. Genomics, deciphering complex data, and artificial intelligence are key areas driving this trend. Cloud computing and compositing are also important technologies shaping the market. The use of vector processing and parallel processing units is becoming more common. Operating systems like Linux and OpenPascal are popular choices for supercomputer environments. The market is competitive with companies focusing on delivering high-performance computing solutions. The future of supercomputing lies in its ability to handle large datasets and complex calculations, making it an essential tool for various industries.
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Market Challenges
- The supercomputer market faces challenges due to substantial costs associated with ownership and maintenance. These costs include installation, power consumption, and annual maintenance. Supercomputers can cost between USD100 million and USD300 million, with energy consumption averaging 6-7 megawatts and peaking at 9.5 megawatts, leading to an annual energy cost of USD6-7 million. Location, size, cooling solutions, square footage, redundancy, data center complexity, and interconnect network type significantly impact costs. These factors may hinder market growth during the forecast period.
- The supercomputer market faces several challenges in the current climate. Decision-making processes require massive computational power, driving demand for advanced technologies. However, cost and complexity are significant barriers to adoption. Consumers seek cloud-based solutions for affordability and ease of use. Depreciation rates are high, making investments a risk. Technical expertise is essential for implementation and maintenance. Additionally, data security and privacy concerns persist. Despite these challenges, the market continues to grow, driven by advancements in artificial intelligence and machine learning. Companies must innovate to meet consumer demands and overcome these hurdles.
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Segment Overview
This supercomputer market report extensively covers market segmentation by
- OS
- 1.1 Linux
- 1.2 UNIX
- 1.3 Mixed
- 1.4 Windows
- End-user
- 2.1 Government entities
- 2.2 Scientific research and academic institutions
- 2.3 Commercial industries
- Processor Type
- 3.1 Intel
- 3.2 IBM (Power)
- 3.3 AMD
- 3.4 Others
- Geography
- 4.1 APAC
- 4.2 North America
- 4.3 Europe
- 4.4 South America
- 4.5 Middle East and Africa
1.1 Linux- Linux is the dominant operating system in the supercomputer market due to its ability to support various hardware architectures and platforms, superior hardware driver quality, and open-source nature. Supercomputer vendors prefer Linux for its cost-effectiveness, ease of integration, and extensive software packages. Linux’s scalability, reliability, flexibility, and ease of use further enhance its appeal. The absence of licensing fees and the ability to add or remove networking devices without rebooting also contribute to its popularity. Linux’s security features are an added advantage, making it a preferred choice for the supercomputer industry.
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Research Analysis
The Supercomputer Market is experiencing significant growth due to the increasing demand for advanced Data Sets and Analytics workloads. Cloud-computing and Platform-as-a-Service (PaaS) solutions are driving this trend, enabling enterprises to access Higher Processing Power on-demand. Supercomputers, powered by Linux and Unix operating systems, are essential technology-based solutions for managing and analyzing large Data Sets. These systems are crucial for Decision-making processes in various industries, including CT scanning and Vector processing machines. Investments in Research and Development activities continue to fuel innovation, leading to the development of more powerful and efficient supercomputers. Cloud Computing is also playing a pivotal role in making supercomputing capabilities more accessible and cost-effective for businesses.
Market Research Overview
The supercomputer market encompasses the design, development, and deployment of high-performance computing systems capable of processing complex data and performing large-scale simulations. These systems are essential for various industries, including finance, healthcare, and research, to analyze massive datasets and make informed decisions. The market is driven by advancements in technology, such as the integration of artificial intelligence and machine learning, and the increasing demand for data-intensive applications. Additionally, the growing trend towards cloud computing and the adoption of hybrid computing solutions are shaping the market’s growth trajectory. The market is expected to witness significant growth in the coming years due to these factors and the continuous development of more powerful and efficient supercomputers.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- OS
- Linux
- UNIX
- Mixed
- Windows
- End-user
- Government Entities
- Scientific Research And Academic Institutions
- Commercial Industries
- Processor Type
- Intel
- IBM (Power)
- AMD
- Others
- Geography
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio