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 forecasts that the worldwide HPC server-based AI market will expand at a robust 27.1% CAGR from 2017-2022 to reach $1.6 billion in 2022, up more than four-and-a-half-fold from $346 million in 2016, the first year in which we tracked this figure. We define the HPC AI market as a subset of the high-performance data analysis (HPDA) market that includes machine learning (ML), deep learning (DL) and other AI workloads running on HPC servers.