Next Generation Computing Market Trends

Next Generation Computing Market Overview

Next Generation Computing Market Size was valued at USD 5,58,881.9 million in 2022. The Next Generation Computing market industry is projected to grow from USD 6,48,340.0 Million in 2023 to USD 26,02,482.5 million by 2032, exhibiting a compound annual growth rate (CAGR) of 16.7% during the forecast period (2023 - 2032). Next Generation Computing, Increasing need to process and manage large data volumes and complex workloads and Growing research and development (r&d) activities in technology companiesare the key market drivers boosting the growth of the Next Generation Computing market.  

The next-generation computing industry, often termed high-performance computing, operates on quantum phenomena-based technology, leveraging quantum bits for data processing. It distinguishes itself from conventional and supercomputers by its proficiency in executing complex calculations. This advancement finds extensive applications across diverse sectors like aerospace & defense, BFSI, healthcare & life sciences, energy & utilities, manufacturing, IT & telecom, and others.

Driving market growth are factors such as increased investments in next-generation computing technology, rising demand for high-performance computing solutions, and the growing need for advanced computing in medical research and financial markets. Additionally, the COVID-19 pandemic has spurred demand for cloud services, further propelling the global next-gen computing market.

Despite its promising growth trajectory, the market faces challenges related to operational complexities, stability concerns, and the need for robust error correction mechanisms. Addressing these hurdles will be crucial for sustaining and expanding the market share of next-generation computing technologies globally.

FIGURE 1: NEXT GENERATION COMPUTING MARKET SIZE 2018-2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Next Generation Computing Market Trends

• The rise in investments in next-gen computing technology is expected to drive market growth.

The investment in next-generation computing has witnessed a remarkable surge in recent years as businesses and organizations across various industries seek to harness the transformative potential of emerging technologies. With the exponential growth of data and the increasing complexity of computational tasks, there is a pressing need for more powerful and efficient computing solutions.

This growing demand has fueled significant investments in research, development, and implementation of cutting-edge computing technologies such as quantum computing, artificial intelligence (AI), machine learning, and high-performance computing (HPC). Companies, governments, and academic institutions alike are pouring resources into these areas to unlock new capabilities and drive innovation.

Quantum computing, in particular, has emerged as a frontier technology with the potential to revolutionize industries ranging from finance and healthcare to logistics and materials science. As quantum computers promise to tackle complex problems that are currently intractable for classical computers, investment in quantum computing research and infrastructure has intensified worldwide.

IBM's commitment to advancing quantum computing exemplifies the increasing investment in next-generation computing. Through initiatives like the IBM Q Network, the company is collaborating with leading organizations and academic institutions to explore practical applications of quantum computing in business and science. The IBM Q Network provides access to the most advanced and scalable quantum computing systems, fostering a growing quantum computing ecosystem.

Furthermore, IBM's establishment of regional hubs across four continents underscores the company's dedication to increasing access to quantum systems and advancing research in quantum computing. These hubs, located at strategic locations worldwide, aim to facilitate joint development work and accelerate the adoption of quantum computing technologies.

IBM's investment in quantum computing, coupled with the broader industry trend, underscores the growing importance of next-generation computing solutions in driving innovation and addressing complex challenges across various sectors. As organizations continue to invest in emerging technologies, the future of computing holds tremendous promise for unlocking new possibilities and transforming industries in profound ways

Next Generation Computing Market Platform Segment Insights

Next Generation Computing Type Insights

Based on Computing Type, the Next Generation Computing Market segmentation includes Cloud Computing, High-Performance Computing, Edge Computing, Energy Efficiency Computing, Memory-Driven Computing, Neuromorphic computing, Optical Computing, Quantum Computing, Approximate and Probabilistic Computing, and Others. The Cloud Computing held the majority share in 2022, contributing around ~62% to the market revenue. Cloud computing has surged in popularity, becoming the cornerstone of modern business infrastructure over the past decade. Its widespread adoption can be attributed to several key advantages over traditional on-premise IT setups. Firstly, cloud computing offers unparalleled cost-effectiveness by eliminating the need for upfront investments in hardware and software. Instead, users pay only for the resources they consume, leading to significant cost savings. Additionally, cloud providers handle maintenance and upgrades, further reducing overhead expenses. Moreover, the scalability and agility inherent in cloud resources enable businesses to swiftly adapt to changing needs and market dynamics. This flexibility is crucial in today's fast-paced business environment where agility is a competitive necessity. Furthermore, cloud computing enhances mobility and accessibility, empowering remote workforces and facilitating seamless collaboration from anywhere with an internet connection. This flexibility not only improves productivity but also facilitates global operations.

Security and reliability are paramount concerns for businesses, and cloud providers address these by investing heavily in advanced security measures and disaster recovery strategies. Consequently, cloud setups often offer greater data protection and resilience compared to on-premise solutions. Additionally, cloud platforms provide access to cutting-edge technologies such as AI, machine learning, and data analytics, fostering innovation and giving businesses a competitive edge.

In the landscape of cloud computing providers, several giants and niche players dominate the market. Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) lead the pack, offering comprehensive suites of cloud services with exceptional global reach and scalability. Other notable players include Alibaba Cloud, Oracle Cloud Infrastructure (OCI), and IBM Cloud, each catering to specific user segments with tailored solutions. Beyond the top 10, numerous other companies offer specialized cloud services, further enriching the cloud computing ecosystem.

Overall, the growth trajectory of cloud computing shows no signs of slowing down, driven by its inherent advantages and the continuous evolution of innovative technologies. The diverse landscape of providers offers a multitude of options for businesses across industries, highlighting the importance of understanding the distinct strengths of each player for informed decision-making.

Next Generation Computing Component Insights

Based on the component, the Next Generation Computing Market segmentation is Hardware, Software, and Services. Software dominated the market in 2022. In the realm of High-Performance Computing (HPC), a plethora of software solutions are available to optimize and manage complex computing environments. Among them are OpenHPC, Slurm, PBS Pro, Rocks Cluster, Platform9, Bright Computing, Altair PBSWorks, IBM Spectrum Symphony, and many others. These software platforms cater to various aspects of HPC, including workload management, resource allocation, and system optimization. Companies like Platform9, Bright Computing, Altair, and IBM are prominent players in this space, offering comprehensive solutions to meet the diverse needs of HPC users.

In the domain of Edge Computing, a wide array of software solutions is available to enable processing and analysis closer to the data source, enhancing efficiency and reducing latency. Notable software platforms include AWS Greengrass, Azure IoT Edge, Google Cloud Edge TPU, NVIDIA Deepstream, and Wind River Helix Edge, among others. These platforms facilitate edge intelligence, real-time analytics, and secure data management at the network edge. Leading companies such as Amazon Web Services, Microsoft Azure, Google Cloud, NVIDIA, and Wind River provide robust software solutions for edge computing, catering to a variety of industries and use cases.

 Next Generation Computing Deployment Type Insights

Based on Deployment Type, the Next Generation Computing Market segmentation includes Cloud and On-Premises. The On-Premises owners held the majority share in 2022. Meanwhile, the on-premises deployment segment, though slightly smaller in 2023 with a market size of USD 327,079.2 million, is expected to grow steadily to USD 1,296,110.1 million by 2032, boasting a CAGR of approximately 16.53%. Despite the growing popularity of cloud solutions, on-premises deployment continues to retain significance, particularly for organizations with specific security, compliance, or data governance requirements, as well as those with legacy systems. This steady growth trajectory reflects the sustained demand for on-premises computing solutions, ensuring their continued relevance and market presence in the evolving landscape of next-generation computing

FIGURE 2: NEXT GENERATION COMPUTING MARKET, BY DEPLOYMENT TYPE, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Next Generation Computing Organization Size Insights

Based on the Organization Size, the Next Generation Computing Market segmentation is Large Enterprises and SME. SMEs dominated the market in 2022. In 2023, the North American market for small and medium enterprises (SMEs) in next-generation computing reached a significant value of USD 122,801.6 million, projected to soar to USD 461,213.3 million by 2032, reflecting a robust Compound Annual Growth Rate (CAGR) of approximately 15.84%. This remarkable growth trajectory underscores the region's dynamic landscape, fueled by factors such as continuous technological advancements, a burgeoning adoption of cloud computing, and concerted digital transformation initiatives. Similarly, Europe witnessed substantial growth in its SME next-generation computing market, with a market size of USD 95,099.9 million in 2023, poised to expand to USD 347,216.1 million by 2032, boasting a CAGR of around 15.48%. This growth is attributed to various factors including governmental efforts towards digitalization, a strong emphasis on innovation, and evolving business needs that drive the adoption of advanced computing solutions.

Meanwhile, Asia-Pacific emerges as the fastest-growing market, with its SME next-generation computing market valued at USD 85,162.6 million in 2023, anticipated to escalate to USD 405,334.6 million by 2032, at an impressive CAGR of approximately 18.93%. The region's rapid economic development, substantial investments in technology infrastructure, and proliferation of digital businesses contribute significantly to this growth trajectory. Likewise, the Middle East and Africa (MEA) region exhibit substantial growth potential, with its SME next-generation computing market expanding from USD 15,519.3 million in 2023 to a projected USD 72,101.9 million by 2032, registering a CAGR of approximately 18.61%. This growth is supported by concerted efforts towards digital transformation, rising internet penetration, and increasing demand for advanced IT solutions across various industries

Next Generation Computing End-Use Insights

Based on the End-Use, the Next Generation Computing Market segmentation is IT & Telecom, BFSI, Retail, Healthcare, Aerospace & Defense,, Manufacturing, Energy & Utilities, Media & Entertainment, Automotive & Transportation, and Other End-Use. IT & Telecom dominated the market in 2022. This expansion is primarily propelled by escalating demand for cloud services, edge computing, and the establishment of 5G network infrastructure. Moreover, the proliferation of IoT devices and the necessity for advanced data analytics further fuel this growth trajectory

Next Generation Computing Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Next Generation Computing market accounted for ~37% in 2022. It is expected to exhibit a significant CAGR growth during the study period. North America stands at the forefront of next-generation computing technologies, as evidenced by its impressive market growth from $241,182 million in 2023 to $902,541 million by 2032, boasting a notable CAGR of 15.79%. This ascendancy is underpinned by substantial investments in cloud computing, artificial intelligence (AI), and edge computing. With a mature technology ecosystem fostering innovation and entrepreneurship, the region benefits from widespread digital transformation initiatives across various industries. The proliferation of Internet of Things (IoT) devices and the deployment of 5G networks further contribute to sustained growth. Moreover, the presence of major tech companies and leading research institutions continuously propels advancements in computing technologies, ensuring North America's position as a global leader in the field.

FIGURE 3: NEXT GENERATION COMPUTING MARKET SIZE BY REGION 2022 VS 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe market accounts for the second-largest market share. In Europe, a steady growth trajectory is observed in the adoption of next-generation computing technologies, with market values increasing from $186,722 million in 2023 to $679,248 million by 2032, achieving a CAGR of 15.43%. This growth is fueled by initiatives focused on digitalization, smart cities, and Industry 4.0, accompanied by investments in cybersecurity, data analytics, and AI. Supportive regulatory frameworks and collaborative research efforts further drive the development and adoption of advanced computing technologies across sectors, enhancing competitiveness and fostering innovation throughout the region.

Asia-Pacific emerges as a key growth market for next-generation computing, with market values escalating from $167,272 million in 2023 to $793,237 million by 2032, boasting a remarkable CAGR of 18.88%. Fueled by rapid urbanization, increasing internet penetration, and a burgeoning tech startup ecosystem, countries like China, Japan, and South Korea lead in AI research and development. Meanwhile, India and Southeast Asian nations focus on expanding digital infrastructure. Robust economic growth, coupled with government initiatives to promote digital innovation, drives significant investments across diverse industries, positioning Asia-Pacific as a major hub for computing technologies

Next Generation Computing Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Next Generation Computing market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Next Generation Computing market is highly competitive, with many vendors offering similar products and services.

In the realm of next-generation computing, the market exhibits a moderate level of concentration, as indicated by a CR4 (concentration ratio of the top 4 companies) of 41.6%. Notably, cloud computing giants such as AWS, Microsoft Azure, Google Cloud, and Alibaba Cloud command significant shares, with AWS leading at 18.1%, followed by Microsoft Azure (13.1%), Google Cloud (6.5%), and Alibaba Cloud (3.9%). These established players leverage their robust cloud infrastructure and expertise to offer a diverse range of next-generation computing solutions. However, a substantial portion of the market (54.8%) remains dispersed among various other players, denoted as "Others," which likely encompass startups, specialized vendors, and niche players focusing on specific technologies like quantum computing or neuromorphic computing.

The Next Generation Computing Market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Next Generation Computing market include

• IBM corporation


• Alphabet Inc.


• Amazon Web Services, Inc.


• Microsoft


• Advanced Micro Devices, Inc


• Atos SE


• Intel Corporation


• NVIDIA Corporation


• Hewlett Packard Enterprise Development LP


• Cisco Systems, Inc.


• Dell Inc.


• Alibaba Group Holding Limited


• Oracle Corporation


• NEC Corporation


• Agilent Technologies

Next Generation Computing Industry Developments

• In March 2023, Intel's Habana Labs has launched second-generation Al processors for training and inferencing. In March 2022, Amphenol Corporation has expanded its SURLOK Plus Series to include 8 mm and 10.3 mm right-angle connectors, with a voltage range of 1500 VDC to meet energy storage and high-power connection and transfer requirements.


• In September 2023, Microsoft unveiled new generative AI features across Windows, Edge, Bing and Microsoft 365. It also debuted two new laptops. Powering all these will be the redesigned Microsoft Copilot, a unified AI assistant to help people navigate across apps, operating systems and devices.

Next Generation Computing Market Segmentation

Next Generation Computing Type Outlook

• Cloud Computing


• High-Performance Computing


• Edge Computing


• Energy Efficiency Computing


• Memory-Driven Computing


• Neuromorphic computing


• Optical Computing


• Quantum Computing


• Approximate and Probabilistic Computing


• Others

Next Generation Computing Component Outlook

• Hardware


• Software


• Services

Next Generation Computing Deployment Type Outlook

• Cloud


• On-Premises

Next Generation Computing Organization Size Outlook

• Large Enterprises


• SME

Next Generation Computing Deployment Type Outlook

• IT & Telecom


• BFSI


• Retail


• Healthcare


• Aerospace & Defense


• Manufacturing


• Energy & Utilities


• Media & Entertainment


• Automotive & Transportation


• Other End-Use

Next Generation Computing Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America