High Performance Computing Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The High Performance Computing Market is Segmented by Component (Hardware, Software and Services), Deployment Mode (On-Premise, Cloud, Hybrid), Industrial Application (Government and Defense, Academic and Research Institutions, BFSI, Manufacturing and Automotive Engineering, and More), Chip Type (CPU, GPU, FPGA, ASIC / AI Accelerators) and Geography. The Market Forecasts are Provided in Terms of Value (USD).

High Performance Computing Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Compare market size and growth of High Performance Computing Market with other markets in Technology, Media and Telecom Industry

High Performance Computing Market Analysis by Mordor Intelligence

The high-performance computing market is valued at USD 55.7 billion in 2025 and is forecast to reach USD 83.3 billion by 2030, advancing at a 7.23% CAGR. Momentum is shifting from pure scientific simulation toward AI-centric workloads, so demand is moving to GPU-rich clusters that can train foundation models while still running physics-based codes. Sovereign AI programs are pulling government buyers into direct competition with hyperscalers for the same accelerated systems, tightening supply and reinforcing the appeal of liquid-cooled architectures that tame dense power envelopes. Hardware still anchors procurement budgets, yet managed services and HPC-as-a-Service are rising quickly as organizations prefer pay-per-use models that match unpredictable AI demand curves. Parallel market drivers include broader adoption of hybrid deployments, accelerated life-sciences pipelines, and mounting sustainability mandates that force datacenter redesigns.

Key Report Takeaways

  • By component, hardware led with 55.3% revenue share in 2024; services are projected to expand at 14.7% CAGR to 2030.  
  • By deployment mode, on-premise environments held 67.8% of the high-performance computing market share in 2024, while cloud-based systems are set to grow at 11.2% CAGR through 2030.  
  • By chip type, CPUs led with 23.4% share in 2024, whereas GPUs are scaling at 10.5% CAGR through 2030
  • By industrial application, Government & Defense captured 24.6% share in 2024; Life Sciences & Healthcare is advancing at 12.9% CAGR to 2030.  
  • By geography, North America held 40.5% of the high-performance computing market size in 2024; Asia-Pacific shows the fastest trajectory at 9.3% CAGR.  

Segment Analysis

By Component: Services Drive Transformation

Hardware accounted for 55.3% of the high-performance computing market size in 2024, reflecting continued spend on servers, interconnects, and parallel storage. Managed offerings, however, posted a 14.7% CAGR and reshaped procurement logic as CFOs favor OPEX over depreciating assets. System OEMs embed metering hooks so clusters can be billed by node-hour, mirroring hyperscale cloud economics. The acceleration of AI inference pipelines adds unpredictable burst demand, pushing enterprises toward consumption models that avoid stranded capacity. Lenovo’s TruScale, Dell’s Apex, and HPE’s GreenLake now bundle supercomputing nodes, scheduler software, and service-level agreements under one invoice. Vendors differentiate through turnkey liquid cooling and optics that cut deployment cycles from months to weeks.

Services’ momentum signals that future value will center on orchestration, optimization, and security wrappers rather than on commodity motherboard counts. Enterprises migrating finite-element analysis or omics workloads appreciate transparent per-job costing that aligns compute use with grant funding or manufacturing milestones. Compliance teams also prefer managed offerings that keep data on-premise yet allow peaks to spill into provider-operated annex space. The high-performance computing market thus moves toward a spectrum where bare-metal purchase and full public-cloud rental are endpoints, and pay-as-you-go on customer premises sits in the middle.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Deployment Mode: Hybrid Models Emerge

On-premise infrastructures held 67.8% of the high-performance computing market share in 2024 because mission-critical codes require deterministic latency and tight data governance. Yet cloud-resident clusters grow at 11.2% CAGR through 2030 as accelerated instances become easier to rent by the minute. Shared sovereignty frameworks let agencies keep sensitive datasets on local disks while bursting anonymized workloads to commercial clouds. CoreWeave secured a five-year USD 11.9 billion agreement with OpenAI, signalling how specialized AI clouds attract both public and private customers. System architects now design software-defined fabrics that re-stage containers seamlessly between sites.

Hybrid adoption will likely dominate going forward, blending edge cache nodes, local liquid-cooled racks, and leased GPU pods. Interconnect abstractions such as Omnipath or Quantum-2 InfiniBand allow the scheduler to ignore physical location, treating every accelerator as a pool. That capability makes workload placement a policy decision driven by cost, security, and sustainability rather than topology. As a result, the high-performance computing market evolves into a network of federated resources where procurement strategy centers on bandwidth economics and data-egress fees rather than capex.

By Chip Type: GPU Momentum Builds

CPUs delivered 23.4% of 2024 revenue thanks to scalar codes that remain memory-bandwidth bound, yet GPUs rise at 10.5% CAGR as transformer models dominate. NVIDIA recorded USD 22.563 billion in Q1 FY 2026 data-center sales powered by Hopper-class accelerators. AMD crossed USD 3.7 billion in Q1 2025 data-center revenue, reflecting strong Instinct MI300 deployments. Meanwhile, Intel pivots to Gaudi-3 and foundry services for outside designers. The high-performance computing market now prizes heterogeneous architectures that marry CPU, GPU, and specialized ASIC tiles over silicon photonics links.

Developers refactor legacy MPI codes into CUDA, SYCL, or HIP kernels to harvest GPU speedups, though memory constraints remain the limiting factor. Emerging CXL-attached pooling promises to decouple capacity from the accelerator package. By mid-decade, topology flexibility will define system competitiveness more than peak floating-point metrics, and vendors that integrate multi-die coherency will capture outsized wallet share.

High Performance Computing Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Industrial Application: Life Sciences Accelerates

Government & Defense retained 24.6% of 2024 revenue, but Life Sciences posted the fastest 12.9% CAGR on the back of AI-accelerated drug discovery. Pharmaceutical users combine large-language models with molecular dynamics to prune compound libraries early. Lantern Pharma’s RADR engines now ingest 100 billion data points to prioritize genomic signatures. Concurrently, Fujifilm will lift antibody production capacity past 750,000 liters by 2030, underpinned by precise bioprocess simulations. Regulatory agencies accept in-silico evidence in IND filings, further cementing compute as a bottleneck.

Traditional seismic modeling, CFD, and weather research continue to represent steady baseline demand, but AI-centric verticals supply incremental growth. Life-Sciences-as-a-Service consortia now procure shared exascale partitions so mid-size biotech firms can submit queued runs. This structure democratizes access and expands the total addressable high-performance computing market. Vendors that pre-package validated workflows for omics, cryo-EM, and generative drug design achieve faster sales cycles than those who ship bare iron.

Geography Analysis

North America commanded 40.5% of the high-performance computing market in 2024 as federal agencies injected USD 7 million into the HPC4EI program aimed at energy-efficient manufacturing. The CHIPS Act ignited over USD 450 billion of private fab commitments, setting the stage for 28% of global semi capex through 2032. Datacenter power draw may climb to 490 TWh by 2030; drought-prone states therefore legislate water-neutral cooling, tilting new capacity toward immersion and rear-door liquid loops. Hyperscalers accelerate self-designed GPU projects, reinforcing regional dominance but tightening local supply of HBM modules.

Asia-Pacific posts the strongest 9.3% CAGR, driven by sovereign compute agendas and pharma outsourcing clusters. China’s carriers intend to buy 17,000 AI servers, mostly from Inspur and Huawei, adding USD 4.1 billion in domestic orders. India’s nine PARAM Rudra installations and upcoming Krutrim AI chip build a vertically integrated ecosystem. Japan leverages Tokyo-1 to fast-track clinical candidate screening for large domestic drug makers. These investments enlarge the high-performance computing market size by pairing capital incentives with local talent and regulatory mandates.

Europe sustains momentum through EuroHPC, operating LUMI (386 petaflops), Leonardo (249 petaflops), and MareNostrum 5 (215 petaflops), with JUPITER poised as the region’s first exascale machine. Horizon Europe channels EUR 7 billion (USD 7.6 billion) into HPC and AI R&D. Luxembourg’s joint funding promotes industry-academia co-design for digital sovereignty. Regional power-price volatility accelerates adoption of direct liquid cooling and renewable matching to control operating costs. South America, the Middle East, and Africa are nascent but invest in seismic modeling, climate forecasting, and genomics, creating greenfield opportunities for modular containerized clusters.

High Performance Computing Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

Incumbent silicon vendors retain scale advantages, yet competitive pressure intensifies as hyperscalers and specialized clouds build proprietary stacks. NVIDIA, AMD, and Intel still dominate accelerator revenue, but their aggregate share is slowly diluted by internal AWS Trainium and Google TPU rollouts. Cloud providers pursue vertical integration to secure supply and improve cost per training token, eroding traditional OEM bargaining power. The high-performance computing market therefore sees ecosystem competition rather than component rivalry.

Strategic investments illustrate this pivot. NVIDIA, Intel, and AMD jointly funded Ayar Labs to commercialize optical I/O that could unlock chiplet-level bandwidth ceilings. Applied Digital’s revenue nearly doubled to USD 43.7 million in Q4 2024, buoyed by a USD 160 million private placement and a 3% NVIDIA equity stake that legitimize its GPU colocation focus. CoreWeave’s impending IPO, backed by a multi-billion-dollar OpenAI contract, crystallizes market appetite for niche AI hyperscalers staffed with ex-high-frequency-trading engineers.

Sustainability emerges as both differentiation and compliance necessity. HPE’s direct-liquid-cooled Cray EX supports 224 Blackwell GPUs in fanless mode, slashing facility PUE and addressing water-usage criticism. Dell packages rear-door heat exchangers as standard, enabling 80 kW racks without chilled water loops. As regulators scrutinize embodied carbon, suppliers integrate life-cycle emissions data into RFP responses. Over the next five years, competitive advantage will derive from supply-chain resilience, integrated software stacks, and proof of resource efficiency, rather than raw benchmark leadership.

High Performance Computing Industry Leaders

  1. Advanced Micro Devices, Inc.

  2. NEC Corporation

  3. Hewlett Packard Enterprise

  4. Qualcomm Incorporated

  5. Fujistu Limited

  6. *Disclaimer: Major Players sorted in no particular order
High Performance Computing Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • March 2025: CoreWeave filed for IPO after 2024 revenue hit USD 1.9 billion and signed a five-year USD 11.9 billion infrastructure deal with OpenAI.
  • December 2024: India’s Ministry of Electronics and IT confirmed deployment of nine PARAM Rudra systems under the National Supercomputing Mission to build domestic capability.
  • November 2024: HPE introduced fanless liquid-cooled Cray EX systems supporting up to 224 NVIDIA Blackwell GPUs to address energy-efficient high-density computing.
  • November 2024: The U.S. Department of Energy awarded USD 7 million for HPC4EI to fund 10 industrial efficiency projects across eight states.

Table of Contents for High Performance Computing Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 The Explosion of AI/ML Training Workloads in U.S. Federal Labs and Tier-1 Cloud Providers
    • 4.2.2 Surging Demand for GPU-Accelerated Molecular Dynamics in Asian Pharma Outsourcing Hubs
    • 4.2.3 Mandatory Automotive ADAS Simulation Compliance in EU EURO-NCAP 2030 Roadmap
    • 4.2.4 National Exascale Initiatives Driving Indigenous Processor Adoption in China and India
  • 4.3 Market Restraints
    • 4.3.1 Escalating Datacenter Water-Usage Restrictions in Drought-Prone U.S. States
    • 4.3.2 Ultra-Low-Latency Edge Requirements Undermining Centralized Cloud Economics
    • 4.3.3 Global Shortage of HBM3e Memory Constraining GPU Server Shipments 2024-26
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Outlook
  • 4.6 Technological Outlook (Chiplets, Optical Interconnects)
  • 4.7 Porter’s Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUES)

  • 5.1 By Component
    • 5.1.1 Hardware
    • 5.1.1.1 Servers
    • 5.1.1.1.1 General-Purpose CPU Servers
    • 5.1.1.1.2 GPU-Accelerated Servers
    • 5.1.1.1.3 ARM-Based Servers
    • 5.1.1.2 Storage Systems
    • 5.1.1.2.1 HDD Arrays
    • 5.1.1.2.2 Flash-Based Arrays
    • 5.1.1.2.3 Object Storage
    • 5.1.1.3 Interconnect and Networking
    • 5.1.1.3.1 InfiniBand
    • 5.1.1.3.2 Ethernet (25/40/100/400 GbE)
    • 5.1.1.3.3 Custom/Optical Interconnects
    • 5.1.2 Software
    • 5.1.2.1 System Software (OS, Cluster Mgmt)
    • 5.1.2.2 Middleware and RAS Tools
    • 5.1.2.3 Parallel File Systems
    • 5.1.3 Services
    • 5.1.3.1 Professional Services
    • 5.1.3.2 Managed and HPC-as-a-Service (HPCaaS)
  • 5.2 By Deployment Mode
    • 5.2.1 On-premise
    • 5.2.2 Cloud
    • 5.2.3 Hybrid
  • 5.3 By Chip Type (Cross-Cut with Component)
    • 5.3.1 CPU
    • 5.3.2 GPU
    • 5.3.3 FPGA
    • 5.3.4 ASIC / AI Accelerators
  • 5.4 By Industrial Application
    • 5.4.1 Government and Defense
    • 5.4.2 Academic and Research Institutions
    • 5.4.3 BFSI
    • 5.4.4 Manufacturing and Automotive Engineering
    • 5.4.5 Life Sciences and Healthcare
    • 5.4.6 Energy, Oil and Gas
    • 5.4.7 Other Industry Applications
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 Europe
    • 5.5.2.1 Germany
    • 5.5.2.2 United Kingdom
    • 5.5.2.3 France
    • 5.5.2.4 Italy
    • 5.5.2.5 Nordics (Sweden, Norway, Finland)
    • 5.5.2.6 Rest of Europe
    • 5.5.3 Asia-Pacific
    • 5.5.3.1 China
    • 5.5.3.2 Japan
    • 5.5.3.3 India
    • 5.5.3.4 South Korea
    • 5.5.3.5 Singapore
    • 5.5.3.6 Rest of Asia-Pacific
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Rest of South America
    • 5.5.5 Middle East
    • 5.5.5.1 Israel
    • 5.5.5.2 United Arab Emirates
    • 5.5.5.3 Saudi Arabia
    • 5.5.5.4 Turkey
    • 5.5.5.5 Rest of Middle East
    • 5.5.6 Africa
    • 5.5.6.1 South Africa
    • 5.5.6.2 Nigeria
    • 5.5.6.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves (MandA, JVs, IPOs)
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
    • 6.4.1 Advanced Micro Devices, Inc.
    • 6.4.2 NEC Corporation
    • 6.4.3 Fujitsu Limited
    • 6.4.4 Qualcomm Incorporated
    • 6.4.5 Hewlett Packard Enterprise
    • 6.4.6 Dell Technologies
    • 6.4.7 Lenovo Group
    • 6.4.8 IBM Corporation
    • 6.4.9 Atos SE / Eviden
    • 6.4.10 Cisco Systems
    • 6.4.11 NVIDIA Corporation
    • 6.4.12 Intel Corporation
    • 6.4.13 Penguin Computing (SMART Global)
    • 6.4.14 Inspur Group
    • 6.4.15 Huawei Technologies
    • 6.4.16 Amazon Web Services
    • 6.4.17 Microsoft Azure
    • 6.4.18 Google Cloud Platform
    • 6.4.19 Oracle Cloud Infrastructure
    • 6.4.20 Alibaba Cloud
    • 6.4.21 Dassault Systèmes

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
**Subject to Availability
*** In the Final Report Asia, Australia and New Zealand will be Studied Together as 'Asia Pacific'
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Global High Performance Computing Market Report Scope

The high-performance computing (HPC) market is defined based on the revenues generated from the sale of hardware, software, and services used in various industrial applications such as aerospace and defense, energy and utilities, BFSI, media and entertainment, manufacturing, life science and healthcare, and other industrial applications, across the regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The analysis is based on the market insights captured through secondary research and the primaries. The report also covers the major factors impacting the growth of the market in terms of drivers and restraints. 

The high-performance computing (HPC) market is segmented by component (hardware [servers, storage devices, systems, networking devices], software and services), deployment type (on-premise and cloud), industrial application (aerospace and defense, energy and utilities, BFSI, media and entertainment, manufacturing, life science and healthcare, and other industrial applications), and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Component Hardware Servers General-Purpose CPU Servers
GPU-Accelerated Servers
ARM-Based Servers
Storage Systems HDD Arrays
Flash-Based Arrays
Object Storage
Interconnect and Networking InfiniBand
Ethernet (25/40/100/400 GbE)
Custom/Optical Interconnects
Software System Software (OS, Cluster Mgmt)
Middleware and RAS Tools
Parallel File Systems
Services Professional Services
Managed and HPC-as-a-Service (HPCaaS)
By Deployment Mode On-premise
Cloud
Hybrid
By Chip Type (Cross-Cut with Component) CPU
GPU
FPGA
ASIC / AI Accelerators
By Industrial Application Government and Defense
Academic and Research Institutions
BFSI
Manufacturing and Automotive Engineering
Life Sciences and Healthcare
Energy, Oil and Gas
Other Industry Applications
By Geography North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Nordics (Sweden, Norway, Finland)
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Singapore
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East Israel
United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Component
Hardware Servers General-Purpose CPU Servers
GPU-Accelerated Servers
ARM-Based Servers
Storage Systems HDD Arrays
Flash-Based Arrays
Object Storage
Interconnect and Networking InfiniBand
Ethernet (25/40/100/400 GbE)
Custom/Optical Interconnects
Software System Software (OS, Cluster Mgmt)
Middleware and RAS Tools
Parallel File Systems
Services Professional Services
Managed and HPC-as-a-Service (HPCaaS)
By Deployment Mode
On-premise
Cloud
Hybrid
By Chip Type (Cross-Cut with Component)
CPU
GPU
FPGA
ASIC / AI Accelerators
By Industrial Application
Government and Defense
Academic and Research Institutions
BFSI
Manufacturing and Automotive Engineering
Life Sciences and Healthcare
Energy, Oil and Gas
Other Industry Applications
By Geography
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Nordics (Sweden, Norway, Finland)
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Singapore
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East Israel
United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the projected value of the high-performance computing market by 2030?

The market is expected to reach USD 83.31 billion by 2030, advancing at a 7.23% CAGR.

Which component segment is growing fastest in the high-performance computing market?

Managed services and HPC-as-a-Service offerings are expanding at 14.7% CAGR, outpacing hardware and software.

Why are GPUs gaining momentum in the high-performance computing industry?

AI training and large-scale inference tasks rely on massive parallelism, driving GPUs to a 10.5% CAGR through 2030.

Which region is forecast to grow quickest and what drives that growth?

Asia-Pacific leads with a 9.3% CAGR, propelled by sovereign exascale projects in China and India and pharma outsourcing demand.

How are water-usage restrictions affecting new HPC datacenters?

States such as Arizona and Virginia mandate water-neutral cooling, adding 15-20% to build costs but spurring adoption of liquid and immersion technologies.

What role do hybrid deployment models play in future HPC strategies?

Hybrid frameworks let organizations keep sensitive workloads on-premise while bursting to cloud for peak demand, offering cost flexibility without compromising security.

High Performance Computing Market Report Snapshots