Worldwide HPC Broader Market Forecast Update, 2018–2023

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 forecasts that the worldwide HPC server market will grow at a 9.7% CAGR to reach more than $19.5 billion in 2022, up from $12.2 billion in 2017 (see Figure 1). In 2022, the North American HPC server market will be, as it is today, the largest single market with 40% of global share, but the over 15% CAGR between 2017 and 2022 for the Asia/Pacific region and Japan will be the largest for all regions tracked.