SUNNYVALE, Calif., May 20, 2022 — The worldwide High Performance Computing market now totals $41 billion, according to leading HPC and hyperscale analyst firm Intersect360 Research. The firm’s just-released report, Worldwide HPC and AI Training 2021 Total Market Size and 2022–2026 Forecast: Products and Services, reported that the market was up by 5.2% over 2020.

The market experienced a rebound in 2021, although it was not as large as many in the industry had hoped, explains Intersect360 Research CEO Addison Snell. “HPC and AI clawed back to single-digit growth, but our hopes for a major market rebound this year were lost, as the pandemic continued to have an effect on the market in 2021 across multiple vertical markets, with economic uncertainty and supply chain disruptions.”

One major segment that did see accelerated growth was cloud computing, which experienced high double-digit growth for the second straight year. “Cloud growth continued at a breakneck pace,” said Snell. “Cloud is a salve to uncertainty. If you need to delay a procurement, cloud picks up the slack. When you need something right now, you can open a cloud instance faster than you can add nodes on-premises.”

Snell and Intersect360 Research’s Chief Research Officer, Dan Olds, will give an in-depth presentation on the forecast in a free 90-minute webinar Tuesday, May 24 at noon EDT/9 am PDT via Zoom. Advance registration is required at https://www.intersect360.com/presentation/may-2022-hpc-ai-market-forecast/

The webinar will include both a “traditional HPC” market view that conforms to previous years’ methodologies and an “expanded HPC/AI” market view that includes spending on infrastructure for AI training outside of HPC budgets. Special emphasis will be given to the size and influence of the hyperscale market, including its effect on HPC and AI through cloud and cloud-related services.

“AI is now appearing with on-prem installations independent from HPC budgets, and we are now providing multiple views to our clients, including the full interrelationship of HPC, AI, cloud, and hyperscale markets,” reports Snell. “This ‘grand unification’ model of data center spending shows how dominant hyperscale companies have become in the IT landscape.”

The total market was $46.4 billion ($46,359 million) when both HPC and AI training are considered, according to Intersect360 Research, not including AI infrastructure purchased by hyperscale companies. Of the additional $5.4 billion in pure AI training spending not associated with HPC budgets, only about one-quarter is on-premises infrastructure; the other three-quarters is cloud computing supporting AI training. When hyperscale companies’ own use of AI is considered, the dominant role of hyperscale in this space becomes apparent.

Over the next five years, Intersect360 Research predicts that HPC and AI training will rebound to stable growth levels. HPC budgets will grow to $59.2 billion by 2026, a 7.7% compound annual growth rate (CAGR). Not including hyperscale consumption, HPC and AI training combined will grow to $70.0 billion an 8.6% CAGR.

“Ultimately HPC and AI are growth markets,” adds Snell, “and despite the losses brought about by the pandemic, we will see a return to long-term, sustained growth.

About Intersect360 Research

Intersect360 Research is a market intelligence, research, and consulting advisory practice focused on high-performance data center trends, including High Performance Computing (HPC), artificial intelligence (AI) and machine learning, cloud computing, big data, and hyperscale. Intersect360 Research utilizes both user-based and supplier-based research to form a complete perspective of market dynamics, trends, and usage models, including both technical and business applications. The company’s end-user-focused research is inclusive from both a technology perspective and a usage standpoint, allowing Intersect360 Research to provide its clients with total market models that include both traditional and emerging HPC applications.
 
In addition to its market advisory subscription services, Intersect360 Research offers customers an array of client-specific services, including custom surveys, white papers and custom analysis. More information about Intersect360 Research as well as the full slate of Intersect360 Research reports available for purchase and download can be found at www.intersect360.com.

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Source: Intersect360 Research