Worldwide on Premises HPC Broader Market Forecast Update, 2020-2025

Running HPC workloads in the cloud has undergone a fundamental shift over the past few years as CSPs have made a concerted effort to address the needs of HPC users, both for traditional HPC workloads as well as AI applications. Cloud adoption continues to rapidly increase for both current and new users, leading to a projection of end user HPC cloud spending to reach almost $9 billion by 2024. The spending for cloud resources by HPC end users primarily augments their spending for on-premise servers, as most users employ the cloud to complement, rather than replace, on-premise resources. There is much higher cloud adoption by workgroup users, suggesting that workgroup users are shifting some of their on-premise workloads to the cloud.

Hyperion Research is projecting the HPC cloud market to exhibit a five-year CAGR of nearly 17% and reach $9.3 billion in end user spending in 2025. The key verticals driving much of the growth include: the bio-sciences and manufacturing sectors, as well as the economics/finance sector and the EDA sector, to name a few.