Supercomputer Market

Supercomputer Market Outlook (2024 to 2034)

The global supercomputer market size is estimated at a value of US$ 9.4 billion in 2024 and is forecasted to increase at a CAGR of 11.2% to reach US$ 27.17 billion by the end of 2034.

In comparison to general-purpose computers, a supercomputer is a high-performance computer. Supercomputer performance is measured in FLOPS (floating-point operations per second) rather than MIPS (million instructions per second).

Supercomputers are employed in computation-intensive and data-intensive technological and scientific applications such as biomechanics, quantum theory, fossil fuel extraction, weather prediction, molecular dynamics, cryptanalysis, nuclear fusion research, and physical simulations. Supercomputers are significantly contributing to various countries' scientific growth and national security.

Supercomputing centers are widely using cloud services to manage workloads and security. The cloud service runs parallel programs that do not need a highly specialized infrastructure. Nevertheless, more advanced applications are projected to run on the cloud in the future years.

Key Market Growth Drivers

• Growing use of supercomputers in biotechnology research and development is driving supercomputer market growth.
• Rising demand for high processing power is increasing the sales of supercomputers. High processing power refers to the processing needed to manage and process data to evaluate it and make decisions.
• Governments in several countries are investing in high-end projects that necessitate high-performance computing systems, leading to a rise in supercomputer demand.
• Supercomputers are becoming more efficient and their performance getting better due to continuous advancements in processor architectures, memory technology, and interconnect solutions which is boosting their demand faster.
• One of the key supercomputer market trends is advancements in quantum computing, exascale computing, and AI-powered hardware making them more powerful and efficient.
• Continuous expansion of big data and rising AI applications are creating lucrative opportunities for supercomputer manufacturers as they require massive processing resources.
• Supercomputers process and analyze big datasets at a fast speed and because of these factors, they are becoming important for constructing and training complicated AI models and managing high amounts of data.

Report Attributes	Details
Supercomputer Market Size (2024E)	US$ 9.4 Billion
Forecasted Market Value (2034F)	US$ 27.17 Billion
Global Market Growth Rate (2024 to 2034)	11.2% CAGR
North America Market Value (2024E)	US$ 3.1 Billion
East Asia Market Growth Rate (2024 to 2034)	12.3% CAGR
Linux Segment Value (2034F)	US$ 20.1 Billion
Research Institutions Segment Value (2034F)	US$ 12.77 Billion
Key Companies Profiled	Atos SE; Hewlett Packard Enterprise Development LP; Dell Inc.; Inspur Group; Fujitsu Limited; IBM Corporation; Huawei Technologies Co., Ltd.; NEC Corporation; NVIDIA; Intel; Dwave

Why are Supercomputers Garnering a Great Deal of Attention?

“Constant Improvements in Quantum Computing”

Continuous improvements in processor architectures, memory technologies, and interconnections that bring things together are important in significantly improving the performance and efficiency of supercomputers. These improvements involved quantum computing which provides extraordinary processing capacity with the use of quantum physics and exascale computing. This seeks to attain computational performance of at least one exaflop, or a billion computations per second.

Another reason behind the growing sales of supercomputers is AI-powered hardware boosting machine learning activities, and increasing speed and accuracy of data processing.

What are the Issues Stunting Supercomputer Market Expansion?

“High Operating Costs and Substantial Energy Consumption Associated with Supercomputers”

Supercomputers consume massive amounts of energy, which results in high operating costs and serious environmental concerns. The high energy requirements not only fuel the computer processes but also keep the cooling systems running to prevent overheating. This requirement of high energy is somehow impeding the expansion of the supercomputer market size.

Technical expertise is extremely important in the supercomputers for installation, management, and optimization which is complex and difficult to handle. To explore and leverage the capabilities of supercomputers, every organization requires people who have expertise in this field which is sometimes hard to find.

Country-wise Insights

The North American region is poised to account for 33% of the global supercomputer market share in 2024. East Asia is estimated to hold 23.5% of the global revenue share in 2024. In terms of technology, the region is quickly expanding. Countries such as South Korea and Japan are playing a significant role in the market in the region.

Why is the United States a Key Market for Supercomputer Producers?

“Heavy Investments in Scientific Research and Necessity for Complicated Simulations”

Attribute	United States
Market Value (2024E)	US$ 1.38 Billion
Growth Rate (2024 to 2034)	11% CAGR
Projected Value (2034F)	US$ 3.9 Billion

The United States invests heavily in scientific research in various fields such as climate science, genetics, astronomy, and materials science. Supercomputers are required in these fields for complicated simulations, through modeling, and extensive data processing. Supercomputers’ capability of processing huge amounts of data at a fast pace is boosting advancements and developments in this field which is somehow hard to achieve through standard computing methods. The important role of supercomputers in the United States' advanced research and innovation activities is attracting suppliers.

What is Pushing Demand for Supercomputers in Japan?

“Government Support to Strengthen Technological Infrastructure”

Attribute	Japan
Market Value (2024E)	US$ 638.2 Million
Growth Rate (2024 to 2034)	12.5% CAGR
Projected Value (2034F)	US$ 2.08 Billion

The market for supercomputers in Japan is expanding at a notable rate as the government is supporting it by financing projects and forming strategic alliances with institutions and businesses. The main motive of these investments is to strengthen technology infrastructure and to better position in the global market. Also, the government is providing funds for making advanced supercomputers and encouraging collaboration between research institutes, private industries, and academics.

This government support aids various industries in Japan with research in fields like climate modeling and materials science. It also empowers sectors such as automotive, electronics, and healthcare to utilize high-performance computing to enhance productivity and drive innovation.

Category-wise Insights

Based on type, the market is segmented into vector processing machines, tightly connected cluster computers, and commodity clusters. Vector processing machines are projected to hold a significant global market share throughout the projection period. Vector instructions can hide multiple branches by executing a loop in a single operation.

What Drives Preference for the Linux Operating System in Supercomputers?

“Performance Optimization Features and Superior Scalability Associated with Linux”

Attribute	Linux
Segment Value (2024E)	US$ 7.33 Billion
Growth Rate (2024 to 2034)	10.6% CAGR
Projected Value (2034F)	US$ 20.1 Billion

The Linux operating system is widely favored in supercomputers for its superior scalability and performance optimization capabilities. These attributes enable efficient utilization of supercomputers' vast computational power. Linux’s open-source nature allows for customization and adaptation to specific computing needs, which is crucial for numerous scientific and research applications.

Another key reason for its popularity is Linux's support for parallel processing and distributed computing environments, essential for complex simulations and large-scale data analytics in supercomputing applications.

Why is Use of Supercomputers Rising in Research Institutions?

“Supercomputers Enabling Research Institutions Tackle Intricate and Data-Heavy Issues”

Attribute	Research Institutions
Segment Value (2024E)	US$ 4.89 Billion
Growth Rate (2024 to 2034)	10.1% CAGR
Projected Value (2034F)	US$ 12.77 Billion

Demand for supercomputers is growing in research institutions to enhance scientific knowledge and foster innovation across various fields. Supercomputers enable research institutions to address complex and data-intensive problems that standard computing systems struggle to solve.

Supercomputers facilitate international collaborative research efforts by simplifying the sharing of ideas and managing data-intensive projects that require significant computational power. Due to their ability to accelerate research timelines, improve simulation accuracy, and provide insights into intricate processes, supercomputers are becoming crucial tools for advancing scientific discovery and driving innovation within research institutes.

Competitive Landscape

The global market for supercomputers is highly competitive, with a few prominent players competing at the global and regional levels. Key players in the supercomputer market are engaged in product development to extend their respective product offerings and achieve a strong foothold in the global market.

• In July 2024, Australia installed its most powerful supercomputer ever for AI and research work.
• In July 2024, Hewlett Packard Enterprise revealed plans to create a new NVIDIA-powered supercomputer for AIST, one of Japan's top research institutions. ABCI (AI Bridging Cloud Infrastructure) 3.0, AIST's next-generation supercomputer, will be made available as a cloud service to public and private organizations to support large foundational models for generative AI, accelerating the advancement of research, development, innovation, and social application.
• Cerebras Systems, a Silicon Valley startup renowned in the industry for its dinner plate-sized chip designed for artificial intelligence work, introduced its AI supercomputer named Andromeda in October 2022, which is currently available for commercial and academic research.
• In January 2022, Meta, previously called Facebook, constructed the world's largest new supercomputer to develop a new generation of AI, referred to as the AI Research SuperCluster (RSC), to boost real-time interactions.
• Atos SE and NVIDIA collaborated in November 2021 to promote climate and healthcare research computing with Exascale Super Computing under the Excellence AI Lab (EXAIL). The project's objective is to gather researchers and scientists to promote education, research, and computing technologies in Europe. Researchers are also testing new deep learning models and AI on Europe's fastest supercomputer, the Jülich Supercomputing Center.
• Hewlett Packard Enterprise stated in November 2021 that it is creating one of Europe's most powerful supercomputers, which will be deployed and run at CINES (National Computing Center for Higher Education), one of France's three high-performance computing (HPC) centers. GENCI, a French national organization that invests in and delivers HPC resources to France's industrial and academic research communities, purchased the new supercomputer.
• Rescale, a software technology firm based in the United States, partnered with Riken, a scientific research center based in Japan, to utilize the supercomputer Fugaku in the cloud in November 2021. Rescale and Riken collaborated on a new research project called 'Rescale ScaleX on Supercomputer Fugaku', which seeks to boost the use and enhance the accessibility and usability of Fugaku's cloud computing platform.

Fact.MR provides detailed information about the price points of key providers of supercomputers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Supercomputer Market Research

• By Operating System:

  • UNIX
  • Linux

• By Type:

  • Vector Processing Machines
  • Tightly Connected Cluster Computers
  • Commodity Clusters

• By End User:

  • Commercial Industries
  • Government Entities
  • Research Institutions

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa