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The supercomputer market is estimated to grow at a CAGR of 20.83% between 2022 and 2027. The size of the market is forecast to increase by USD 17,555.45 million. The growth of the market depends on several factors, including commercial customers increasingly adopting supercomputing systems, increasing utilization of big data analytics, and high demand from the government sector owing to national security concerns.
This report extensively covers market segmentation by OS (Linux, UNIX, mixed, and windows), end-user (government entities, scientific research and academic institutions, and commercial industries), processor type (intel, IBM (power), AMD, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing utilization of big data analytics is notably driving the market growth, although factors such as high ownership cost and large power consumption increasing the total cost may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Supercomputer Market Driver
The increasing utilization of big data analytics is notably driving market growth. The advent of big data analytics has resulted in the significant growth of cluster supercomputers. The increasing application of big data analytics across industries has fueled the adoption of supercomputers. Big data requires computing systems that can handle data-intensive workloads. Businesses are looking to shift their focus beyond data management to find value from data that can drive rapid, informed decisions. The trend of extracting insights from big data is on the rise. This is creating the need for better computing infrastructure.
Supercomputers, with their large storage and high processing capabilities, are ideal for processing large volumes of data available in the market. This can be witnessed in the financial services industry, where companies such as PayPal have resorted to buying cluster supercomputers over the last two to three years. The growth of high-performance data analysis using cluster supercomputers is mainly driven by the need to achieve advanced analytics on a real-time basis.
Significant Supercomputer Market Trend
Software issues affecting performance is the key trend in the market. The Sandia National Laboratories launched the XPRESS (eXacale Programming Environment and System Software) program to develop an exascale-capable OS. Software issues are extremely challenging and affect the speed and processing capabilities of supercomputers. Currently, OS and message-passing programs used on supercomputers are 15-20 years old. For instance, simultaneous memory access using the software available in the market can slow down a process significantly if the same data area needs to be accessed by multiple processes at the same time.
The program by Sandia aims to provide a system software foundation designed to maximize performance and scalability (more efficiently across thousands of nodes) in future large-scale parallel computers. The goal of the program is to counter specific issues rather than try to scale an entire OS to exascale levels. The program will focus on reducing overhead, instruction latency, and simultaneous memory access.
Major Supercomputer Market Challenge
High ownership cost and large power consumption increasing the total cost is the major challenge impeding market growth. The ownership and maintenance of a supercomputer cost a substantial amount (in the range of millions). The overall cost includes installation, power consumption (megawatts of power), and maintenance costs. The cost of designing, assembling, and installing a supercomputer can range anywhere between USD 100 million and USD 300 million. These systems use around 6-7 megawatts of power on average, with peak consumption approaching 9.5 megawatts.
The annual energy expense for such usage is roughly USD 6 million to USD 7 million. The energy cost of a supercomputer over its lifetime adds up to almost the total investment costs. The energy requirements of a supercomputer increase with a rise in its computational power. Moreover, several technicians have to be employed to keep the supercomputer running. This will hinder the market growth during the forecast period.
Key Supercomputer Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Supercomputer Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cerebras Systems Inc. - The company manufactures computer hardware products and develops AI computing chips. The company offers supercomputers such as BullSequana XH3000, Nimbix Supercomputing Suite, ThinkAI, and JARVICE XE HPC Enterprise Software.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the Linux segment will be significant during the forecast period. Supercomputers are specific devices built for specific purposes, and they require a custom operating system optimized for those specific needs, such as Linux. Linux runs on all the fastest 500 supercomputers globally. The open-source nature of Linux is one of the factors for its increasing adoption.
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The Linux segment was valued at USD 4,395.11 million in 2017 and continued to grow until 2021. Linux is the most preferred operating system (OS) among supercomputer vendors as it supports all possible hardware architectures and platforms, from tiny embedded boards to large computing arrays. Moreover, the quality and coverage of the hardware drivers available for Linux are better compared with that of the drivers available for any other platform. Linux also offers extreme scalability, reliability, flexibility, and ease of use. Moreover, the cost of supercomputers is a major concern. Deploying Linux is cost-effective as it is completely royalty-free. Furthermore, it is relatively easier to add or remove any experimental networking device without rebooting the system. It also offers more security compared with other OS.
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APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is largely driven by technology-focused nations, such as China, Japan, and South Korea. China has overtaken the US in terms of the number of systems installed by using its own resources to build supercomputers after the US banned the export of processors and other hardware components to the nation.
Countries such as India, Taiwan, Singapore, and other emerging nations in the region are gaining ground in this market. For instance, India currently has 12 supercomputing systems. The nation is using these systems for various applications, including weather forecasting and seismic analysis. The Tata group already uses a machine to gain competitive advantages in the markets it serves.
In 2020, COVID-19 positively impacted the growth of the market in APAC as supercomputers were considered critical in identifying and analyzing the COVID-19 variants. The growth of big data analytics also positively impacted the market in the region. Post the relaxation of the lockdowns, the Chinese Ministry of Industry and Information Technology set up a group to prevent and regulate the spread of the disease by providing data services. The data collected helped local governments and communities to implement preventive measures in China. These factors are expected to promote the use of supercomputers and drive market growth in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The reports categorize the global supercomputer market as a part of the global information technology (IT) spending market. The parent global IT spending market covers revenue generated from the sales and subscription of IT services, communications services, cloud services, IT hardware, and IT software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Supercomputer Market Scope |
|
Report Coverage |
Details |
Page number |
201 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.83% |
Market growth 2023-2027 |
USD 17,555.45 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.67 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., ASUSTeK Computer Inc., Atos SE, Cerebras Systems Inc., CoreWeave, Dell Technologies Inc., Ford Motor Co., 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, ZF Friedrichshafen AG, Apple Inc., and Fujitsu Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by OS
7 Market Segmentation by End-user
8 Market Segmentation by Processor Type
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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