Next-generation Computing Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Next-Generation Computing Market is Segmented by Component (Hardware, Software, Services), Computing Paradigm (High-Performance Computing (HPC), Quantum Computing, Optical/Photonic Computing, Neuromorphic Computing, Edge/Near-Edge Computing, and More), Deployment Mode (Cloud, On-Premise, Hybrid), End-User Industry (BFSI, Healthcare and Life Sciences, Automotive and Transportation, Energy and Utilities, and More), and Geography.

Next-generation Computing Market Size and Share

Next-generation Computing Market (2025 - 2030)
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Next-generation Computing Market Analysis by Mordor Intelligence

The next-generation computing market size stood at USD 228.76 billion in 2025 and is forecast to climb to USD 553.89 billion by 2030, reflecting a 19.35% CAGR. The expansion has been fuelled by record demand for generative-AI infrastructure, stepped-up public funding for quantum programmes, and tighter integration of edge and cloud resources that lower latency for industrial Internet of Things (IoT) use cases. Hardware components retained leadership with a 47.2% revenue contribution in 2024, helped by successive GPU and application-specific-integrated-circuit (ASIC) launches that improved performance per watt. Services nevertheless paced the fastest, as rising implementation complexity required specialist providers to integrate heterogeneous clusters across on-premise and cloud estates. Traditional high-performance computing (HPC) architectures still hold 41.2% revenue, though quantum computing solutions are projected to record a 35.2% CAGR, signalling an unmistakable pivot toward non-classical approaches. North America kept a 41.2% hold on the next-generation computing market, while Asia-Pacific emerged as the most buoyant region with a 23.1% CAGR thanks to quantum research incentives and hyperscale cloud build-outs. 

Key Report Takeaways

  • By component, hardware produced 47.2% of 2024 revenue in the next-generation computing market, whereas services are on course to expand 24.1% CAGR through 2030. 
  • By computing paradigm, HPC led with 41.2% of the next-generation computing market share in 2024; quantum computing is projected to post a 35.2% CAGR. 
  • By deployment mode, on-premise installations captured 56.3% of spending in 2024; cloud deployments carry the highest 28.1% CAGR outlook. 
  • By end-user sector, BFSI commanded 21.1% revenue, while healthcare and life sciences hold the fastest 32.2% CAGR trajectory. 
  • By region, North America generated 41.2% of 2024 revenue, and Asia-Pacific will deliver the quickest 23.1% CAGR through 2030.  

Segment Analysis

By Component: Hardware primacy under service-led acceleration

The next-generation computing market size tied to hardware reached USD 108 billion in 2024, powered by the adoption of GPUs, tensor processing units, and photonic interconnects. Exascale-class boards integrated six HBM stacks, doubling bandwidth and allowing 10× larger model training batches. Memory producers committed capacity expansions to meet a projected fifteen-fold increase in HBM demand for HPC and AI by 2035, safeguarding component supply. Power-efficient optical links also entered mainstream server boards, cutting latency between accelerator pods to microsecond levels.  

Services, although smaller, grew faster by handling architecture design, secure deployment, and life-cycle management. Managed quantum workloads, AI-pipeline optimisation, and proactive cooling analytics formed new fee lines. Cloud providers bundled professional services hours into platform subscriptions, creating annuity-style revenue. This hybrid revenue mix improved resilience in the next-generation computing market during hardware supply oscillations and cultivated customer lock-in around specialised toolchains. 

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

By Computing Paradigm: Quantum momentum reshapes dominant HPC

HPC still delivered the bulk of 2024 revenue, thanks to well-established procurement cycles in weather modelling, fluid dynamics, and financial risk grids. Vendors launched exascale systems that combined x86 or Arm CPUs with next-generation GPUs on NVLink-over-Ethernet fabrics, offering single-precision throughput beyond seven exaflops. Such leaps sustained the next-generation computing market even as alternative paradigms matured.  

Quantum computing exhibited the steepest growth curve. D-Wave released a 5,000-plus-qubit annealer geared for combinatorial optimisation, [3]D-Wave Quantum Inc., “D-Wave Announces On-Premises Systems Offering,” ir.dwavesys.com while trapped-ion and neutral-atom providers attracted venture funding for error-corrected prototypes. Early hybrid pilots saw quantum kernels accelerate Monte Carlo simulation convergence in high-finance risk models. Given its 35.2% CAGR outlook, quantum will progressively erode classical-only budgets, solidifying its role in the overall next-generation computing market. 

By Deployment Mode: On-premise dominance meets cloud elasticity

On-premise clusters accounted for 56.3% of 2024 spending in the next-generation computing market because defence, finance, and genomics labs require deterministic performance and regulatory control. Tier-1 banks retrofitted private GPU superpods with micro-channel liquid cooling that reduced floor-space needs by half. Sovereign cloud regulations in Europe further encouraged in-country hardware.

Cloud installations, however, posted the swiftest gains, with enterprise usage nearing universality by 2025. Hyperscalers expanded accelerator density via four-GPU mezzanine cards and liquid-cooled chassis offered as on-demand SKUs. Enterprises leveraged these remotely accessible clusters for model-training bursts, then pulled inference workloads on-premise to manage cost. Hybrid and multi-cloud orchestration frameworks fused identity management and data locality governance, mitigating vendor lock-in and widening the customer funnel for the next-generation computing market. 

Next-generation Computing Market
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By End-User Industry: BFSI scale balanced by healthcare agility

Financial institutions represented 21.1% of 2024 revenue in the next-generation computing market. Algorithmic-trading desks required microsecond response times, achieving them with co-located FPGA edge nodes. Banks also trialled quantum-safe cryptography to future-proof data vaults, adding incremental spending on post-quantum key-exchange appliances.  

Healthcare and life sciences are expected to deliver a 32.2% CAGR. Radiology departments deployed AI inference at point-of-image acquisition, slashing diagnosis wait times. Large bio-pharma firms ran de-novo drug-discovery pipelines that used protein-folding LLMs trained on hundreds of millions of sequences. Quantum machine-learning pilots at leading medical centres investigated cardiovascular-surgery risk prediction, showcasing how clinical outcomes can shape capital budgeting and broaden societal value in the next-generation computing market. 

Geography Analysis

North America generated 41.2% of 2024 revenue in the next-generation computing market. The United States alone accounted for roughly three-quarters of regional spend, buoyed by public financing, deep venture capital, and dominant cloud incumbents. National laboratories operated pathfinder quantum testbeds that integrate neutral-atom arrays with exascale supercomputers, cementing leadership. Energy-efficient data-centre innovations emerged from cross-industry consortia, reflecting policy focus on sustainability.  

Asia-Pacific will post the fastest 23.1% CAGR. China, Japan, and India expanded semiconductor park incentives and subsidised quantum-research fellowships. Hyperscale operators pledged to double colocation white-space in Singapore, Sydney, and Mumbai to meet AI demand. Parallel 5G-Advanced roll-outs created new edge-computing nodes, deepening workload localisation and strengthening regional relevance of the next-generation computing market. Australia and South Korea joined multilateral alliances on quantum standards, adding technical pluralism to the region.  

Europe preserved a unified industrial strategy combining digital sovereignty and environmental stewardship. Germany’s Fraunhofer institutes advanced neuromorphic prototypes targeting sub-watt inference, while French labs piloted photonic-based quantum routers. The EU’s fit-for-55 climate package spurred data-centre operators to sign long-term renewable-energy purchase agreements, aligning regulatory compliance with investor pressure. These initiatives elevated Europe’s role as a sustainability vanguard within the next-generation computing market.

Next-generation Computing Market
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Competitive Landscape

The competitive arena remained moderately concentrated; the five largest vendors controlled majority of overall revenue share, yet niche innovators proliferated. NVIDIA kept nearly 80% of the enterprise AI-accelerator sub-segment through continuous GPU, interconnect and software-stack updates. AMD challenged with modular chiplet-based GPUs that promise competitive throughput at lower cost, while Intel refined Ponte Vecchio multicore tiles for HPC. Start-ups such as Cerebras Systems used wafer-scale engines for specialised natural-language-model inference, diversifying supplier options.  

Quantum hardware competition intensified. IonQ acquired a controlling stake in cryptography specialist ID Quantique to bundle quantum-safe networking with trapped-ion processors. [4]Photonics Media, “IonQ to Acquire ID Quantique,” photonics.com Neutral-atom provider QuEra closed a large funding round to build fault-tolerant arrays exceeding one million physical qubits. Superconducting-qubit pioneers collaborated with microwave-component manufacturers to slash control-system overheads. These moves collectively expanded the supplier base, enlarging the total addressable portion of the next-generation computing market.  

Horizontal alliances broadened solution scope. Eaton and Siemens Energy developed 50% lower-emission power-plant architectures targeting hyperscale campuses, tackling the grid-level footprint that could otherwise restrain expansion. Systems integrators partnered with photonics foundries to package co-packaged optics, solving bandwidth ceilings in next-generation Ethernet fabrics. Such cross-disciplinary ventures redirected competition from single-component races toward vertically integrated stacks that encompass silicon, software and sustainability, solidifying holistic value propositions in the next-generation computing market.

Next-generation Computing Industry Leaders

  1. Amazon Web Services Inc.

  2. Alphabet Inc. (Google Cloud)

  3. Microsoft Corp.

  4. IBM Corp.

  5. NIVIDIA Corp.

  6. *Disclaimer: Major Players sorted in no particular order
Next-generation Computing Market Concentration
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Recent Industry Developments

  • June 2025: Eaton and Siemens Energy presented joint power-management blueprints for hyperscalers.
  • June 2025: DuPont rolled out advanced substrate chemistries for AI servers.
  • May 2025: Delta debuted 92%-efficient AI-datacenter solutions.
  • May 2025: IonQ moved to acquire ID Quantique for quantum-safe networking.
  • May 2025: NVIDIA introduced an 800V HVDC architecture for AI factories.

Table of Contents for Next-generation 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 Demand surge for generative-AI compute scaling
    • 4.2.2 Government funding waves for quantum-tech hubs
    • 4.2.3 Edge-to-cloud convergence for ultra-low-latency IoT
    • 4.2.4 Falling GPU TCO via cloud credits and open-IP chiplets
    • 4.2.5 Liquid-cooling breakthroughs enabling dense HPC racks
    • 4.2.6 Secondary market for de-commissioned AI accelerators
  • 4.3 Market Restraints
    • 4.3.1 Quantum-skilled talent shortage
    • 4.3.2 High CAPEX and integration risk for heterogeneous clusters
    • 4.3.3 Grid-power and permitting bottlenecks for hyperscale DCs
    • 4.3.4 Export-control limits on advanced HBM and GPU shipments
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 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
  • 4.8 Impact of Macroeconomic Factors
  • 4.9 Investment Analysis

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Hardware
    • 5.1.1.1 Processors and Accelerators
    • 5.1.1.2 Memory and Storage
    • 5.1.1.3 Interconnect and Networking
    • 5.1.1.4 Thermal and Power Solutions
    • 5.1.2 Software
    • 5.1.3 Services
  • 5.2 By Computing Paradigm
    • 5.2.1 High-Performance Computing (HPC)
    • 5.2.2 Quantum Computing
    • 5.2.3 Optical/Photonic Computing
    • 5.2.4 Neuromorphic Computing
    • 5.2.5 Edge / Near-Edge Computing
    • 5.2.6 Cloud-Native Accelerated Computing
    • 5.2.7 Hybrid and Other Emerging
  • 5.3 By Deployment Mode
    • 5.3.1 Cloud
    • 5.3.2 On-Premise
    • 5.3.3 Hybrid
  • 5.4 By End-user Industry
    • 5.4.1 BFSI
    • 5.4.2 Healthcare and Life Sciences
    • 5.4.3 Automotive and Transportation
    • 5.4.4 Energy and Utilities
    • 5.4.5 Aerospace and Defense
    • 5.4.6 Media and Entertainment
    • 5.4.7 IT and Telecom
    • 5.4.8 Retail and e-Commerce
    • 5.4.9 Manufacturing and Industrial
    • 5.4.10 Government and Public Sector
    • 5.4.11 Other End-user Industries
  • 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 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Russia
    • 5.5.3.6 Rest of Europe
    • 5.5.4 Asia Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 South Korea
    • 5.5.4.4 India
    • 5.5.4.5 ASEAN
    • 5.5.4.6 Rest of Asia Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 UAE
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Nigeria
    • 5.5.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Alibaba Group Holding Ltd.
    • 6.4.2 Amazon Web Services Inc.
    • 6.4.3 Alphabet Inc. (Google Cloud)
    • 6.4.4 Microsoft Corp.
    • 6.4.5 IBM Corp.
    • 6.4.6 NVIDIA Corp.
    • 6.4.7 Intel Corp.
    • 6.4.8 Advanced Micro Devices Inc.
    • 6.4.9 Cisco Systems Inc.
    • 6.4.10 Oracle Corp.
    • 6.4.11 NEC Corp.
    • 6.4.12 Hewlett Packard Enterprise
    • 6.4.13 Dell Technologies
    • 6.4.14 Fujitsu Ltd.
    • 6.4.15 Graphcore Ltd.
    • 6.4.16 D-Wave Quantum Inc.
    • 6.4.17 IonQ Inc.
    • 6.4.18 Rigetti Computing Inc.
    • 6.4.19 ARM Ltd.
    • 6.4.20 PsiQuantum Corp.
    • 6.4.21 Cerebras Systems Inc.
    • 6.4.22 Tencent Holdings (Tencent Cloud)
    • 6.4.23 Baidu Inc.
    • 6.4.24 Huawei Technologies Co. Ltd.
    • 6.4.25 Samsung Electronics Co. Ltd.
    • 6.4.26 Graphcore Ltd.
    • 6.4.27 Cerebras Systems Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Next-generation Computing Market Report Scope

Global Next-generation Computing Market can be defined as computing solutions offered by the market vendors using advanced processors and AI & ML enabled software for managing, storing, and processing data automatically for high-power computational needs in the end-users, which are replacing older CPUs with newer chip architectures, such as GPUs and field-programmable gate arrays (FPGAs).

Global Next-generation Computing Market is components (hardware, software, and services), computing type (high-performance computing, quantum computing, cloud computing, edge computing), deployment type (cloud, on-premise), end-user (automotive & transportation, energy & utilities, healthcare, BFSI, aerospace & defense, media & entertainment, IT & telecom, retail, manufacturing), and geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Component Hardware Processors and Accelerators
Memory and Storage
Interconnect and Networking
Thermal and Power Solutions
Software
Services
By Computing Paradigm High-Performance Computing (HPC)
Quantum Computing
Optical/Photonic Computing
Neuromorphic Computing
Edge / Near-Edge Computing
Cloud-Native Accelerated Computing
Hybrid and Other Emerging
By Deployment Mode Cloud
On-Premise
Hybrid
By End-user Industry BFSI
Healthcare and Life Sciences
Automotive and Transportation
Energy and Utilities
Aerospace and Defense
Media and Entertainment
IT and Telecom
Retail and e-Commerce
Manufacturing and Industrial
Government and Public Sector
Other End-user Industries
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Russia
Rest of Europe
Asia Pacific China
Japan
South Korea
India
ASEAN
Rest of Asia Pacific
Middle East and Africa Middle East Saudi Arabia
UAE
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Component
Hardware Processors and Accelerators
Memory and Storage
Interconnect and Networking
Thermal and Power Solutions
Software
Services
By Computing Paradigm
High-Performance Computing (HPC)
Quantum Computing
Optical/Photonic Computing
Neuromorphic Computing
Edge / Near-Edge Computing
Cloud-Native Accelerated Computing
Hybrid and Other Emerging
By Deployment Mode
Cloud
On-Premise
Hybrid
By End-user Industry
BFSI
Healthcare and Life Sciences
Automotive and Transportation
Energy and Utilities
Aerospace and Defense
Media and Entertainment
IT and Telecom
Retail and e-Commerce
Manufacturing and Industrial
Government and Public Sector
Other End-user Industries
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Russia
Rest of Europe
Asia Pacific China
Japan
South Korea
India
ASEAN
Rest of Asia Pacific
Middle East and Africa Middle East Saudi Arabia
UAE
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the projected next-generation computing market size in 2030?

The next-generation computing market size is expected to reach USD 553.89 billion by 2030, up from USD 228.76 billion in 2025.

Which component category is expanding fastest?

Services are expanding the quickest, with a 24.1% CAGR to 2030 as enterprises seek integration, optimisation and managed-operations expertise.

How large is the opportunity for quantum computing within the next-generation computing market?

Quantum solutions are forecast to grow at a 35.2% CAGR, making them the most dynamic computing paradigm over the period.

Why does on-premise deployment still dominate the next-generation computing market?

Security mandates and deterministic performance requirements kept 56.3% of 2024 spending on on-premise clusters, especially in finance, defence and genomics research.

Which region will record the fastest growth?

Asia-Pacific will record the fastest expansion, at a 23.1% CAGR, driven by quantum research funding and hyperscale cloud capacity doubling.

What is the chief restraint on quantum-technology adoption?

A global shortage of quantum-skilled professionals is the biggest bottleneck, trimming the overall CAGR by an estimated 2.1%.

Page last updated on: June 16, 2025

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