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    Cloud High Performance Computing Market

    ID: MRFR/ICT/4360-CR
    100 Pages
    Shubham Munde
    March 2023

    Cloud High-Performance Computing Market Research Report Information By Components (Solutions, Servers, Storage, Networking Devices, Software, Services, Design, Consulting, Integration, and Deployment, Support and Maintenance, Management), Deployment (Cloud, On-premises), Organization Size(Small and Medium-sized Enterprises (SMEs), Large Enterprises), Application Areas(Government and Defense, BFSI, Education and Research, Manufacturing, Media, and entertainment, Healthcare and Life Sciences, Energy and Utilities) Regions – Forecast Till 2035.

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    Cloud High Performance Computing Market Infographic
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    Cloud High Performance Computing Market Summary

    As per MRFR analysis, the Cloud High-Performance Computing Market Size was estimated at 7.488 USD Billion in 2024. The Cloud High-Performance Computing industry is projected to grow from 8.737 USD Billion in 2025 to 40.86 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 16.68 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Cloud High-Performance Computing Market is experiencing robust growth driven by technological advancements and evolving user needs.

    • The market is witnessing increased adoption of hybrid cloud solutions, particularly in North America, which remains the largest market.
    • Energy efficiency has become a focal point for organizations, influencing their cloud computing strategies across various sectors.
    • The integration of AI and machine learning technologies is rapidly transforming the landscape, especially in the software segment, which is the fastest-growing.
    • Rising demand for data-intensive applications and advancements in cloud infrastructure are key drivers propelling growth in both the servers and cloud segments.

    Market Size & Forecast

    2024 Market Size 7.488 (USD Billion)
    2035 Market Size 40.86 (USD Billion)
    CAGR (2025 - 2035) 16.68%

    Major Players

    Amazon Web Services (US), Microsoft Azure (US), Google Cloud (US), IBM (US), Oracle (US), Alibaba Cloud (CN), Hewlett Packard Enterprise (US), NVIDIA (US), Dell Technologies (US), SAP (DE)

    Cloud High Performance Computing Market Trends

    The Cloud High-Performance Computing Market is currently experiencing a transformative phase, driven by advancements in technology and increasing demand for efficient computing solutions. Organizations across various sectors are recognizing the potential of cloud-based high-performance computing to enhance their operational capabilities. This shift is largely attributed to the need for scalable resources that can handle complex computations and large datasets. As businesses seek to optimize their processes, the adoption of cloud solutions appears to be a strategic move that aligns with their goals for innovation and efficiency. Moreover, the competitive landscape of the Cloud High-Performance Computing Market is evolving, with numerous players striving to offer cutting-edge services. The integration of artificial intelligence and machine learning into cloud platforms is likely to further enhance performance and accessibility. This trend suggests that organizations are not only looking for traditional computing power but are also interested in leveraging advanced technologies to gain insights and drive decision-making. As the market continues to mature, it may witness a surge in partnerships and collaborations aimed at delivering comprehensive solutions that meet diverse customer needs.

    Increased Adoption of Hybrid Cloud Solutions

    Organizations are increasingly gravitating towards hybrid cloud models, which combine on-premises infrastructure with cloud resources. This approach offers flexibility and scalability, allowing businesses to optimize their computing capabilities while maintaining control over sensitive data.

    Focus on Energy Efficiency

    There is a growing emphasis on energy-efficient computing solutions within the Cloud High-Performance Computing Market. Companies are seeking ways to reduce their carbon footprint and operational costs, prompting the development of more sustainable technologies.

    Integration of AI and Machine Learning

    The incorporation of artificial intelligence and machine learning into cloud platforms is becoming more prevalent. This trend indicates a shift towards smarter computing solutions that can analyze vast amounts of data and provide actionable insights, enhancing overall performance.

    Cloud High Performance Computing Market Drivers

    Cost Efficiency and Scalability

    Cost efficiency remains a pivotal driver in the Cloud High-Performance Computing Market. Organizations are increasingly shifting from traditional on-premises HPC systems to cloud-based solutions to reduce capital expenditures associated with hardware and maintenance. The pay-as-you-go model offered by cloud providers allows businesses to scale their computing resources according to demand, optimizing operational costs. This flexibility is particularly appealing to small and medium-sized enterprises that may lack the resources for extensive IT infrastructure. Market analysis indicates that the transition to cloud HPC can lead to cost savings of up to 30%, making it an attractive option for organizations looking to enhance their computational capabilities without incurring significant financial burdens.

    Advancements in Cloud Infrastructure

    Technological advancements in cloud infrastructure are significantly influencing the Cloud High-Performance Computing Market. Innovations in networking, storage, and processing capabilities are enabling cloud providers to offer more robust and efficient HPC solutions. The introduction of high-speed interconnects and improved data transfer rates enhances the performance of cloud-based HPC systems, making them more competitive with traditional on-premises solutions. Furthermore, the integration of cutting-edge hardware, such as GPUs and FPGAs, is facilitating faster computations and more complex simulations. As these advancements continue to evolve, they are likely to attract more organizations to adopt cloud HPC, thereby expanding the market.

    Increased Collaboration and Partnerships

    Increased collaboration and partnerships among technology providers are shaping the Cloud High-Performance Computing Market. Cloud service providers are forming strategic alliances with hardware manufacturers, software developers, and research institutions to enhance their HPC offerings. These collaborations aim to create integrated solutions that combine the strengths of various technologies, thereby improving performance and usability. For example, partnerships that focus on developing specialized software for specific industries can lead to more tailored HPC solutions. This trend not only fosters innovation but also expands the reach of cloud HPC services, as organizations are more likely to adopt solutions that are specifically designed to meet their unique needs.

    Growing Focus on Research and Development

    The Cloud High-Performance Computing Market is witnessing a growing emphasis on research and development across various fields. Academic institutions and research organizations are increasingly utilizing cloud HPC to conduct simulations, modeling, and data analysis, which are essential for scientific breakthroughs. This trend is supported by government initiatives that promote the use of advanced computing technologies in research. For instance, funding programs aimed at enhancing computational resources for research projects are becoming more prevalent. As a result, the demand for cloud HPC services is expected to rise, as researchers seek to leverage the power of cloud computing to accelerate their work and achieve innovative outcomes.

    Rising Demand for Data-Intensive Applications

    The Cloud High-Performance Computing Market is experiencing a surge in demand for data-intensive applications across various sectors. Industries such as finance, healthcare, and scientific research are increasingly relying on high-performance computing (HPC) to process vast amounts of data efficiently. This trend is driven by the need for real-time analytics and complex simulations, which require substantial computational power. According to recent estimates, the HPC market is projected to grow at a compound annual growth rate (CAGR) of over 7% through the next few years. As organizations seek to leverage big data for strategic decision-making, the adoption of cloud-based HPC solutions is likely to accelerate, further propelling the market forward.

    Market Segment Insights

    Cloud High-Performance Computing Components Insights

    Based on components, the Cloud High-Performance Computing Market segmentation includes solutions, servers, storage, networking devices, software, services, design and consulting, integration and deployment, support and maintenance, and management. The servers segment held the largest market share in 2022 and is anticipated to grow significantly during the forecast period. The growth can be attributed to the increase in the number of data centers, as various small and mid-size enterprises (SMEs). Furthermore, many businesses are in the process of investing in on-premises and colocation infrastructure to support the growing demand for public cloud services.

    The services segment accounted for over 9.0% of the market share in 2022 and is expected to grow at a CAGR exceeding 5.0% from 2023 to 2030. HPC vendors provide various services, including maintenance, support, and management. Support is especially required during installing HPC systems and their initial use. On the other hand, maintenance services involve upgrading existing systems and troubleshooting. Owing to this, the market size of the services segment is expected to surpass USD 7,000 million over the forecast period.

    April 2022 CGG is significantly expanding its high-performance computing (HPC) capacity and accompanying service offerings to enable continuous distinction in its core business and speed up the development of new operations. The business has acquired a lease to construct a European HPC hub in Southeast England, which would go live in H1 2023 and expand its cloud HPC capacity by up to 100 petaflops.

    Cloud High-Performance Computing Based on Deployment Insights

    Based on deployment, the Cloud High-Performance Computing Market segmentation includes cloud, on-premises. The on-premise segment held the largest market share in 2022 and is anticipated to experience significant growth during the forecast period. While governments remain keen on securing sensitive data related to national security and citizens' data, enterprises are concerned about protecting their respective organizational data. As a result, an on-premise infrastructure is still preferred over a cloud-based infrastructure. The cloud segment is expected to grow at the highest CAGR of over 8.5% during the forecast period.

    Cloud deployment allows organizations to reduce operational costs due to the zero requirements of additional in-house computing resources. Other advantages, such as increased efficiency and cost-effectiveness, are expected to fuel the cloud segment's growth.

    Figure2: Cloud High-Performance Computing Market, Based on Deployment,2022 & 2030 (USD billion)

    Cloud High-Performance Computing Organization Size Insights

    Based on organization size ,the global cloud high-performance computing industry includes small and medium-sized enterprises (SMEs), large enterprises. The Large Enterprises segment held the largest market share in 2022 and is anticipated to experience significant growth during the forecast period. However, The potential users in many SMEs need more awareness about the benefits of cloud high-performance computing and more money to set up such systems. Due to the high investment costs, SMEs in many developing nations still need to be convinced about adopting cloud high-performance computing.

    Many need to know the advantages of cloud high-performance computing, such as better performance and customizable delivery. These enterprises also need more technical expertise to establish and run a cloud high-performance computing system. However, cloud computing can boost the use of cloud high-performance computing among SMEs, as it will considerably cut down their costs.

    April 2021 Cloud High-Performance Computing Market was awarded USD 40 Million SGD to build a new supercomputer for the National Supercomputing Centre (NSCC) Singapore, the national high-performance computing (CLOUD HIGH-PERFORMANCE COMPUTING) resource center dedicated to supporting science and engineering computing needs for academic, research, and industry communities.

    Cloud High-Performance Computing Application Areas Insights

    Based on application, the Cloud High-Performance Computing Market data includes Government and Defense, BFSI, Education and Research, manufacturing, Media and entertainment, Healthcare and Life Sciences, Energy and Utilities, and Earth Sciences. The Manufacturing segment held the largest market share in 2022 and is anticipated to experience significant growth during the forecast period. Manufacturing processes tend to be computation-intensive and time-consuming. Hence, incumbents of the manufacturing industry often adopt simulation and CAD software along with HPC systems. HPC systems can be particularly useful for computational fluid dynamics, structural mechanics, and electromagnetic in the manufacturing industry.

    These attributes enhance performance, improve computational speeds, and ensure rapid access to data. However, the government & defense segment is predicted to grow at a CAGR exceeding 9.0% during the forecast period. While defense agencies are anticipated to aggressively adopt cutting-edge IT solutions to improve computing efficiency, government agencies are expected to adopt HPC systems to support digitization initiatives and contribute to economic development.

    Get more detailed insights about Cloud High Performance Computing Market

    Regional Insights

    North America : Innovation and Leadership Hub

    North America is the largest market for Cloud High-Performance Computing (HPC), holding approximately 45% of the global market share. The region's growth is driven by advancements in technology, increasing demand for data analytics, and supportive government regulations promoting cloud adoption. The presence of major tech companies and research institutions further fuels this growth, making it a key player in the HPC landscape. The United States leads the North American market, with significant contributions from Canada. Key players such as Amazon Web Services, Microsoft Azure, and Google Cloud dominate the competitive landscape, offering innovative solutions tailored to various industries. The region's focus on research and development, coupled with a robust infrastructure, positions it as a leader in The Cloud High-Performance Computing.

    Europe : Emerging Cloud HPC Powerhouse

    Europe is witnessing rapid growth in the Cloud High-Performance Computing market, accounting for approximately 30% of the global share. The region benefits from strong governmental support for digital transformation initiatives and a growing emphasis on sustainability in computing. Countries like Germany and the UK are at the forefront, driving demand for cloud solutions that enhance operational efficiency and reduce carbon footprints. Germany, the largest market in Europe, is closely followed by the UK and France. The competitive landscape features key players such as SAP and IBM, who are investing heavily in cloud technologies. The European market is characterized by a focus on compliance with regulations like GDPR, which influences cloud service offerings and fosters trust among users. This regulatory environment is crucial for the growth of the HPC sector in the region.

    Asia-Pacific : Rapidly Growing HPC Market

    Asia-Pacific is rapidly emerging as a significant player in the Cloud High-Performance Computing market, holding around 20% of the global market share. The region's growth is fueled by increasing investments in technology infrastructure, a surge in data generation, and a growing focus on artificial intelligence and machine learning applications. Countries like China and India are leading this transformation, supported by favorable government policies. China is the largest market in the region, with substantial contributions from India and Japan. The competitive landscape is marked by the presence of Alibaba Cloud and other local players who are expanding their offerings. The region's emphasis on innovation and collaboration among tech companies and research institutions is driving the adoption of cloud HPC solutions, making it a vital area for future growth.

    Middle East and Africa : Emerging Market with Potential

    The Middle East and Africa region is gradually emerging in the Cloud High-Performance Computing market, currently holding about 5% of the global share. The growth is driven by increasing digital transformation initiatives, investments in smart city projects, and a rising demand for advanced computing solutions. Countries like the UAE and South Africa are leading the charge, supported by government initiatives aimed at enhancing technological capabilities. The UAE is the largest market in the region, with South Africa following closely. The competitive landscape is evolving, with local and international players entering the market to meet the growing demand. The region's focus on innovation and collaboration among various sectors is expected to drive further growth in the Cloud HPC market, positioning it as a key player in the global landscape.

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development to expand their product lines, which will help the Cloud High-Performance Computing market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Cloud High-Performance Computing industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

    Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Cloud High-Performance Computing industry to benefit clients and increase the market sector. In recent years, the Cloud High-Performance Computing industry has offered healthcare some of the most significant advantages. Major players in the Cloud High-Performance Computing market, including AMD (US), Dassault Systems (France), Intel (US), NVIDIA (US), AWS (US), HPE (US), Sugon (China), IBM (US) Atos (US) Fujitsu (Japan) Cisco (US) Dell (US) Lenovo (China)., and others, are attempting to increase market demand by investing in research and development operations.

    NVIDIA has been a pioneer in accelerated computing. The company's invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, and ignited the era of modernity, fueling the creation of the metaverse. NVIDIA is now a full-stack computing company with data-center-scale offerings reshaping the industry. NVIDIA launched its first data center CPU. This Arm-based processor delivers 10x the performance of the current fastest servers on the most complex AI and Cloud High-Performance Computing Market workloads.

    Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys. Ansys specializes in Design Optimization, Finite Element Analysis (FEA, FEM), Computational Fluid Dynamics (CFD), Electromagnetics, Explicit Dynamics, Consulting, Grid Generation, Meshing, Multi-body Dynamics, Multiphysics, FSI, Virtual Prototyping, Structural Analysis, Engineering Simulation.Ansys established a strategic partnership with Amazon Web Services, Inc.

    The partnership would allow Ansys products to be deployed on AWS, making simulation workloads more user-friendly while also providing scalability and flexibility with simple access to software and storage solutions from anywhere via a web browser, and the collaboration extends cloud-based high-performance computing (HPC) to promote electronic design automation (EDA), computer-aided engineering (CAE), and simulation solutions.

    Key Companies in the Cloud High Performance Computing Market market include

    Industry Developments

    • Q2 2024: Microsoft launches Azure ND H100 v5 VM for high-performance cloud AI workloads Microsoft announced the general availability of its Azure ND H100 v5 virtual machines, powered by NVIDIA H100 Tensor Core GPUs, targeting cloud-based high-performance computing and AI workloads.
    • Q2 2024: Amazon Web Services unveils new HPC-optimized EC2 instances AWS introduced new EC2 instances designed for high-performance computing in the cloud, featuring enhanced networking and storage capabilities for scientific and engineering workloads.
    • Q2 2024: Google Cloud partners with Rescale to expand cloud HPC offerings Google Cloud announced a strategic partnership with Rescale to deliver advanced cloud high-performance computing solutions for enterprise and research customers.
    • Q2 2024: NVIDIA launches DGX Cloud in Europe for AI and HPC workloads NVIDIA expanded its DGX Cloud service to European data centers, enabling customers to access high-performance computing resources for AI model training and scientific research.
    • Q1 2024: Oracle opens new cloud region in Spain with focus on HPC services Oracle launched a new cloud region in Madrid, Spain, with dedicated infrastructure for high-performance computing workloads, targeting European enterprise and public sector clients.
    • Q1 2024: IBM and Red Hat announce joint HPC cloud platform for scientific research IBM and Red Hat unveiled a new cloud-based high-performance computing platform aimed at accelerating scientific discovery through scalable, open-source technologies.
    • Q2 2024: Hewlett Packard Enterprise wins $100M contract for cloud HPC at U.S. national lab HPE secured a $100 million contract to provide cloud-based high-performance computing infrastructure to a major U.S. national laboratory, supporting advanced research initiatives.
    • Q2 2024: Google Cloud launches new HPC toolkit for genomics research Google Cloud released a specialized toolkit for genomics researchers, enabling scalable high-performance computing workflows in the cloud for large-scale DNA analysis.
    • Q1 2024: Alibaba Cloud launches next-generation HPC cluster service Alibaba Cloud introduced a new high-performance computing cluster service, featuring advanced interconnects and GPU acceleration for scientific and engineering applications.
    • Q2 2024: Microsoft partners with BioNTech for cloud-based HPC in vaccine research Microsoft announced a partnership with BioNTech to provide cloud high-performance computing resources for accelerating vaccine development and biomedical research.
    • Q1 2024: Startup Cerebras Systems raises $150M to expand cloud HPC AI platform Cerebras Systems secured $150 million in new funding to scale its cloud-based high-performance computing platform for artificial intelligence applications.
    • Q2 2024: AWS partners with Siemens for cloud HPC in industrial engineering Amazon Web Services and Siemens announced a collaboration to deliver cloud-based high-performance computing solutions for industrial engineering and simulation workloads.

    Future Outlook

    Cloud High Performance Computing Market Future Outlook

    The Cloud High-Performance Computing Market is projected to grow at a 16.68% CAGR from 2024 to 2035, driven by advancements in AI, big data analytics, and increasing demand for scalable computing resources.

    New opportunities lie in:

    • Development of specialized cloud solutions for AI-driven applications.
    • Expansion of hybrid cloud models to enhance computational flexibility.
    • Partnerships with academic institutions for research and development initiatives.

    By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

    Market Segmentation

    Cloud High-Performance Computing Regional Outlook

    North America
    • US
    • Canada
    Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Rest of Europe
    Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    Rest of the World
    • Middle East
    • Africa
    • Latin America

    Cloud High-Performance Computing Components Outlook

    • Solutions
    • Servers
    • Storage
    • Networking Devices
    • Software
    • Services
    • Design and Consulting
    • Integration and Deployment
    • Support and Maintenance
    • Management

    Cloud High-Performance Computing Deployment Outlook

    • Cloud
    • On-premises

    Cloud High-Performance Computing Application Areas Outlook

    • Government and Defense
    • BFSI
    • Education and Research
    • Manufacturing
    • Media and entertainment
    • Healthcare and Life Sciences
    • Energy and Utilities
    • Earth Sciences

    Cloud High-Performance Computing Organization Size Outlook

    • Small and Medium-sized Enterprises (SMEs)
    • Large Enterprises

    Report Scope

    MARKET SIZE 20247.488(USD Billion)
    MARKET SIZE 20258.737(USD Billion)
    MARKET SIZE 203540.86(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)16.68% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of artificial intelligence and machine learning in Cloud High-Performance Computing Market enhances computational efficiency.
    Key Market DynamicsRising demand for advanced analytics drives innovation and competition in the Cloud High-Performance Computing Market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Shubham Munde
    Research Analyst Level II

    With a technical background in information technology & semiconductors, Shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the ICT/Semiconductor domain. Shubham holds a Bachelor’s in Information and Technology and a Master of Business Administration (MBA). Shubham has executed over 150 research projects for our clients under the brand name Market Research Future in the last 2 years. His core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. He is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. He has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. He has worked on the projects of top tech brands such as IBM, Google, Microsoft, AWS, Meta, Oracle, Cisco Systems, Samsung, Accenture, VMware, Schneider Electric, Dell, HP, Ericsson, and so many others. He has worked on Metaverse, Web 3.0, Zero-Trust security, cyber-security, blockchain, quantum computing, robotics, 5G technology, High-Performance computing, data centers, AI, automation, IT equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.

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    FAQs

    How much is the cloud high-performance computing market?

    The Cloud High-Performance Computing Market size was valued at USD 5.5 Billion in 2022.

    What is the growth rate of the cloud high-performance computing market?

    The global market is projected to grow at a CAGR of 16.68%% during the forecast period, 2023-2030.

    Which Region held the largest market share in the cloud high-performance computing market?

    North America had the largest share of the global market

    Who are the key players in the cloud high-performance computing market?

    The key players in the market are AMD (US), Dassault Systems (France), Intel (US), NVIDIA (US), AWS (US), HPE (US), Sugon (China), IBM (US), Atos (US) Fujitsu (Japan) Cisco (US) Dell (US) Lenovo (China).

    Which deployment led the cloud high-performance computing market?

    The On-premises cloud high-performance computing category dominated the market in 2022.

    Which application areas had the largest market share in the cloud high-performance computing market?

    The Manufacturing based segment had the largest share of the global market.

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