SUNNYVALE, CA — May 18, 2022— HPC and hyperscale industry analyst firm Intersect360 Research today said the traditional worldwide high performance computing market totaled $38.1 billion at the end of 2022, a year-over-year increase of 8.1 percent from 2021. The expanded HPC-AI market grew 11.3 percent, reaching $44.4 billion last year.
In its newly-released report, Worldwide HPC and AI 2022 Total Market Size and 2023–2027 Forecast: Products and Services, Intersect360 Research details both markets, including $6.3 billion in dedicated AI budgets that are part of the expanded HPC-AI market. These figures do not include the $17.9 billion spent by the hyperscale market on AI and HPC infrastructure in 2022, which dwarfs the rest of the market, the firm said.
The forecast represents a return to steady growth following the recent pandemic-affected years. The HPC market will grow at a 6.1 percent compound annual growth rate (CAGR) from 2022 through 2027 to reach $51.2 billion in 2027. The expanded HPC-AI market will grow at a 6.3 percent CAGR from 2022 through 2027 to reach $60.4 billion in 2027, representing the relatively faster growth of dedicated AI budgets outside of HPC.
“After so much economic disruption due to the pandemic, it’s gratifying to see the market returning to steady growth,” said Intersect360 Research CEO Addison Snell. “But that doesn’t mean this forecast is simple. With broader adoption of AI, slowing migration toward cloud, and the dawn of exascale supercomputing, there are a lot of complex industry dynamics at work. Each subsegment of the market warrants careful evaluation.”
Following eight straight years of double-digit growth, cloud computing will soon see the final year in its streak, according to the report. Over the next five years, cloud computing is forecast to near its maximum penetration of HPC spending, where new HPC cloud deployments will be balanced by on-premises repatriation.
Addison Snell, CEO, Intersect360 Research.
By the end of the decade, added Snell, “the ‘pure AI’ market will begin to diminish, or else the distinction between scalable, high-performance infrastructure for HPC and machine learning will become less relevant.” In the long run, Intersect360 Research expects the two views of the market to re-merge.
Snell and Intersect360 Research’s Chief Research Officer Dan Olds presented an in-depth overview of the forecast May 16 via Zoom. A recording of their presentation is viewable at https://www.intersect360.com/presentation/may2023/.
