The Computing Power market size is projected to grow from USD 49.4 billion in 2024 to USD 79.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2024 - 2032). Additionally, the market size for Computing Power was valued at USD 46.2 billion in 2023.
The increased need for AI and machine learning skills and growing hybrid computing solutions are the key market drivers that are enhancing market growth.
Figure1: Computing Power Market, 2018 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The growing need for AI and machine learning skills is driving the market growth.
Market CAGR for computing power is being driven by the rising need for AI and machine learning skills across a range of industries. Robust computing infrastructure has become increasingly important as companies and organizations try to use data for customer insights, predictive analytics, and decision-making. Additionally, in order to handle and analyze massive amounts of data in real-time, AI and ML models demand substantial computational resources. Improvements in processor technology, cloud computing services, and specialized hardware made to speed up AI and ML processes have all resulted from this need. As a result, the need for gradually sophisticated and self-sufficient systems is driving the creation and uptake of high-performance computing solutions, henceforth stimulating market expansion and innovation.
High-performance computing (HPC) solutions have become gradually popular. These strong computer systems are mostly used by educational institutions, governmental organizations, the energy sector, and defense organizations since they are experts at processing enormous amounts of data rapidly. The high-performance computing industry as a whole has grown and changed as a result of its broad acceptance across several industries. High-performance computing, sometimes referred to as supercomputing, anticipates the use of parallel processing to analyze data more quickly and accurately while producing efficient results. Allocating the programmer instructions across multiple processors allows for parallel processing, which significantly reduces the amount of time needed to run the algorithms. The HPC systems also consist of a collection of computers whose combined power provides even greater computational capacity. This implies that complex business processes may be simplified by HPC systems.
Moreover, all varieties of microservers and servers used for extremely computational and data-intensive activities are included in high-performance computing systems. High-performance computing is currently necessary for all countries since it is strongly connected to scientific advancements in the economy, competitiveness, and science. As a result, it is anticipated that throughout the projection period, demand for computing power will increase due to the rising need for AI and machine learning skills. Thus, driving the Computing Power market revenue.
The Computing Power market segmentation, based on component, includes servers, software, services, and others. In 2023, the servers segment dominated the market, accounting for the maximum market revenue due to data centers and small and mid-sized businesses (SMEs) being more prevalent. Many businesses are making significant investments in colocation infrastructure and on-premises to accommodate the increasing demand for public cloud services.
Figure 2: Computing Power Market, by Component, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Computing Power market segmentation, based on deployment mode, includes on-premise and cloud. In 2023, the on-premise category generated the most income due to security concerns regarding the protection of data. Businesses are quite concerned about the government's keenness to protect critical information about individuals and national security.
The computing power market segmentation, based on end users, includes BFSI, gaming, media & entertainment, retail, transportation, government & defense, education & research, manufacturing, healthcare & biosciences, and others. In 2023, the manufacturing category generated the most income due to its business use of HPC systems, CAD software, and stimulation since these are labor-and time-intensive operations. These technologies increase performance, provide speedy data access, and increase computational speeds, contributing to increasing efficiency and competitiveness within the sector.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Computing Power market area will dominate this market, owing to an increase in technology solutions. In addition, the growing need to reuse raw data, along with robust security measures, will boost market growth in this region.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 3: Computing Power Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Computing Power market accounts for the second-largest market share due to the adoption of digital services. Further, the German Computing Power market held the largest market share, and the UK Computing Power market was the fastest-growing market in the European region.
The Asia-Pacific Computing Power Market is expected to grow at the fastest CAGR from 2024 to 2032 due to rising digitalization, growing economies, and a rising tech-savvy population. Moreover, China's Computing Power market held the largest market share, and the Indian Computing Power market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Computing Power market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Computing Power industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Computing Power industry to benefit clients and increase the market sector. In recent years, the Computing Power industry has offered some of the most significant advantages to technology. Major players in the Computing Power market, including Atos SE, Advanced Micro Devices, Inc., Hewlett Packard Enterprise Development LP, Dell Inc., Cisco Systems, Inc., Fujitsu, Intel Corporation, IBM, Microsoft, Amazon Web Services, Inc., and others, are attempting to increase market demand by investing in research and development operations.
AMD (Advanced Micro Devices, Inc.) is a corporation and semiconductor manufacturer headquartered in Santa Clara, California, that produces computer processors and related technologies for both commercial and consumer processors. Leading the industry in high-performance and adaptable computing, AMD powers the goods and services that contribute to resolving the biggest problems facing humanity. The company's innovations will improve embedded, PC, gaming, and data center industries going forward. When AMD was first well-known in 1969 as a startup in Silicon Valley, it had dozens of workers who were passionate about developing cutting-edge semiconductor devices. AMD has developed into an international corporation that defines the current computing standard, achieving various firsts for the industry and significant technological advancements. In March 2023, AMD, a semiconductor producer, unveiled its next-generation EPYC Milan-X processors. These CPUs were created especially for high-performance computer applications and data centers. Data processing may be completed more quickly and effectively thanks to the Milan-X processors' increased performance and efficiency.
Dell Inc. is an American technology firm that creates, sells, repairs, and maintains computers and related goods and services. Dell Technologies, the company's parent, is the owner of Dell. Dell offers a variety of products, including PCs, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, and its supply chain. It includes Dell selling directly to consumers and fulfilling their requests for PCs. Prior to purchasing Perot Systems in 2009, Dell was a hardware manufacturer. Dell then made a move into the IT services sector. The business has upgraded its networking and storage infrastructure. From just providing PCs, it is now growing to offer a variety of technologies to business clients. In February 2024, Dell, a computer technology business, introduced the Dell EMC PowerEdge XE8545 server. In order to encounter the demands of sectors requiring strong processing capabilities, this server was tuned for high-performance computing workloads. The PowerEdge XE8545 server offered improved performance to manage taxing jobs and data-intensive apps.
Atos SE
Advanced Micro Devices, Inc.
Hewlett Packard Enterprise Development LP
Dell Inc.
Cisco Systems, Inc.
Intel Corporation
IBM
Microsoft
Amazon Web Services, Inc.
April 2024: Cisco, a provider of networking solutions, increased the range of high-performance computing networking solutions. The goal of this extension was to meet the increasing demand in HPC clusters for low-latency connection and quicker data transfer. High-performance computing systems were intended to operate more efficiently and perform better thanks to these networking solutions.
November 2023: The technology corporation Atos announced that it had purchased a pioneering computer startup. The determination of this acquisition was to improve Atos' ability to offer high-performance computing (HPC) solutions. The objective of edge computing is to process data closer to its source in order to speed up analysis and enhance privacy.
October 2023: Prominent semiconductor manufacturer Intel introduced their Sapphire Rapids processors. These CPUs were created with high-performance computing applications in mind. With enhanced performance, the Sapphire Rapids processors were touted.
Servers
Software
Services
Others
On-premise
Cloud
BFSI
Gaming
Media & Entertainment
Retail
Transportation
Government & Defense
Education & Research
Manufacturing
Healthcare & Biosciences
Others
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 46.2 Billion |
| Market Size 2024 | USD 49.4 Billion |
| Market Size 2032 | USD 79.3 Billion |
| Compound Annual Growth Rate (CAGR) | 7.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Deployment Mode, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | ย Atos SE, Advanced Micro Devices, Inc., Hewlett Packard Enterprise Development LP, Dell Inc., Cisco Systems, Inc., Fujitsu, Intel Corporation, IBM, Microsoft, Amazon Web Services, Inc. |
| Key Market Opportunities | Rising Computing in IoT Applications |
| Key Market Dynamics | Increase in demand for AI and machine learning Growing Hybrid Computing Solutions |
Frequently Asked Questions (FAQ) :
The Computing Power market size was valued at USD 46.2 Billion in 2023.
The market is projected to grow at a CAGR of 7.00% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are Atos SE, Advanced Micro Devices, Inc., Hewlett Packard Enterprise Development LP, Dell Inc., Cisco Systems, Inc., Fujitsu, Intel Corporation, IBM, Microsoft, Amazon Web Services, Inc., and others.
The server category dominated the market in 2023.
Manufacturing had the largest share in the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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