High Performance Computing Market Size and Share
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.
Global High Performance Computing Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
The Explosion of AI/ML Training Workloads in U.S. Federal Labs & Tier-1 Cloud Providers | +2.1% | North America, with spillover to Europe and Asia-Pacific | Medium term (2-4 years) |
Surging Demand for GPU-Accelerated Molecular Dynamics in Asian Pharma Outsourcing Hubs | +1.8% | Asia-Pacific core, particularly India, China, and Japan | Long term (≥ 4 years) |
Mandatory Automotive ADAS Simulation Compliance in EU EURO-NCAP 2030 Roadmap | +1.2% | Europe primary, North America secondary | Medium term (2-4 years) |
National Exascale Initiatives Driving Indigenous Processor Adoption in China & India | +1.5% | Asia-Pacific, with strategic implications globally | Long term (≥ 4 years) |
Source: Mordor Intelligence
The Explosion of AI/ML Training Workloads in U.S. Federal Labs & Tier-1 Cloud Providers
Federal laboratories now design procurements around mixed AI and simulation capacity, effectively doubling addressable peak-performance demand in the high-performance computing market. The Department of Health and Human Services framed AI-ready compute as core to its 2025 research strategy, spurring labs to buy GPU-dense nodes that pivot between exascale simulations and 1-trillion-parameter model training.[1]Department of Health and Human Services, “Strategic Plan for Artificial Intelligence 2025,” hhs.gov The Department of Energy secured USD 1.152 billion for AI-HPC convergence in FY 2025.[2]Office of Scientific and Technical Information, “FY 2025 Budget Request,” osti.gov Tier-1 clouds responded with sovereign AI zones that blend FIPS-validated security and advanced accelerators, and industry trackers estimate 70% of first-half 2024 AI-infrastructure spend went to GPU-centric designs. The high-performance computing market consequently enjoys a structural lift in top-end system value, but component shortages heighten pricing volatility. Vendors now bundle liquid cooling, optical interconnects, and zero-trust firmware to win federal awards, reshaping the channel.
Surging Demand for GPU-Accelerated Molecular Dynamics in Asian Pharma Outsourcing Hubs
Contract research organizations in India, China, and Japan are scaling DGX-class clusters to shorten lead molecules’ path to the clinic. Tokyo-1, announced by Mitsui & Co. and NVIDIA in 2024, offers Japanese drug makers dedicated H100 instances tailored for biomolecular workloads.[3]Mitsui & Co., “Tokyo-1 Supercomputer Launch,” iptonline.com India’s CRO sector, projected to reach USD 2.5 billion by 2030 at a 10.75% CAGR, layers AI-driven target identification atop classical dynamics, reinforcing demand for cloud-delivered supercomputing. Researchers now push GENESIS software to simulate 1.6 billion atoms, opening exploration for large-protein interactions. That capability anchors regional leadership in outsourced discovery and amplifies Asia-Pacific’s pull on global accelerator supply lines. For the high-performance computing market, pharma workloads act as a counter-cyclical hedge against cyclic manufacturing demand.
Mandatory Automotive ADAS Simulation Compliance in EU EURO-NCAP 2030 Roadmap
New European protocols require OEMs to prove millions of virtual driving scenarios, making digital validation the new gold standard. The November 2024 NHTSA roadmap echoes this expectation, signaling global harmonization around simulation-first safety evidence.[4]NHTSA, “NCAP 2033 Roadmap,” nhtsa.gov Siemens and other tool vendors package scenario databases, physics solvers, and sensor-fusion models optimized for GPU clusters. Manufacturers now build in-house compute farms because cloud latency can hinder hardware-in-the-loop cycles. This regulation injects steady demand into the high-performance computing market, but it also concentrates purchase decisions among automotive tier-ones that require deterministic latency and on-site data custody.
National Exascale Initiatives Driving Indigenous Processor Adoption in China & India
India’s National Supercomputing Mission deployed nine PARAM Rudra systems by December 2024 and primes three indigenous supercomputers launched in September 2024. China’s telecom carriers plan to procure 17,000 AI servers worth almost CNY 30 billion (USD 4.1 billion) from domestic vendors, fast-tracking local accelerator ecosystems. Ola’s Krutrim unit will tape out the first Indian AI chip by 2026. These moves fracture traditional supply chains and boost RISC-V and ARM designs, reducing western incumbents’ export volumes while enlarging the total global high-performance computing market.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Global Shortage of HBM3e Memory Constraining GPU Server Shipments 2024-26 | -1.8% | Global, with particular impact on Asia-Pacific manufacturing | Medium term (2-4 years) |
Escalating Datacenter Water-Usage Restrictions in Drought-Prone U.S. States | -1.4% | North America primary, with implications for global data center siting | Short term (≤ 2 years) |
Ultra-Low-Latency Edge Requirements Undermining Centralized Cloud Economics | -0.8% | Global, with emphasis on developed markets | Medium term (2-4 years) |
Source: Mordor Intelligence
Escalating Datacenter Water-Usage Restrictions in Drought-Prone U.S. States
Legislation in Virginia and Maryland forces disclosure of water draw, while Phoenix pilots Microsoft’s zero-water cooling that saves 125 million liters per site each year. Utilities now limit new megawatt hookups unless operators commit to liquid or rear-door heat exchange. Capital outlays can climb 15-20%, squeezing return thresholds in the high-performance computing market and prompting a shift toward immersion or cooperative-air systems. Suppliers of cold-plate manifolds and dielectric fluids therefore gain leverage. Operators diversify sites into cooler climates, but latency and data-sovereignty policies constrain relocation options, so design innovation rather than relocation must resolve the cooling-water tension.
Global Shortage of HBM3e Memory Constraining GPU Server Shipments 2024-26
HBM3e demand outstrips wafer starts despite Samsung’s 12-high stacks and SK Hynix ramping interposer capacity. Chinese buyers front-loaded 2024 orders to pre-empt U.S. export controls, pushing quarterly HBM revenue up 70%. TSMC’s CoWoS packaging backlog lengthens GPU lead times, capping high-end cluster delivery until mid-2026. Many integrators now ship half-populated memory stacks, limiting model batch size and simulation grid resolution for early adopters. The constraint knocks 1.8 percentage points from projected high-performance computing market CAGR, yet it also sparks investment in alternative memory hierarchies such as CXL-attached DRAM pools.
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.
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.

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.

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
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Advanced Micro Devices, Inc.
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NEC Corporation
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Hewlett Packard Enterprise
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Qualcomm Incorporated
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Fujistu Limited
- *Disclaimer: Major Players sorted in no particular order

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.
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 |
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) |
On-premise |
Cloud |
Hybrid |
CPU |
GPU |
FPGA |
ASIC / AI Accelerators |
Government and Defense |
Academic and Research Institutions |
BFSI |
Manufacturing and Automotive Engineering |
Life Sciences and Healthcare |
Energy, Oil and Gas |
Other Industry Applications |
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 |
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.