Global Hyper-Scale Computing Market By Component (Solution, Services), By Enterprise Size (Large Enterprises, Small & Medium-Sized Enterprises), By Deployment Mode (Cloud Computing, Big Data, IoT, and Others), By End-users (BFSI, IT & Telecommunication, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Hyper-Scale Computing Market was valued at USD 62.8 billion, and is expected to grow to around USD 416.0 billion in 2032 Between 2023 and 2032, this market is estimated to register the highest CAGR of 21.4%.

The Hyper-scale computing market is driven by increasing demand for high- productivity computing, virtualization advancements, constant variation and expansion of the IT industry, and an increase in acceptance of hybrid high-performance computing solutions.

In addition, the volume of systems processing high amounts of data at high speeds encourages academic institutions, the utility sector for HPC adoption systems, energy companies, government agencies, and defense agencies, which helps in hyper-scale computing industry expansion.

Market Segment Analysis

By Component Analysis

The solutions segment dominates the global hyper-scale computing market.

Based on components, the market for hyper-scale computing is segmented into solutions and services. The solutions segment dominates the Hyper-scale computing market. This is due to the increasing number of data centers, like many small and medium-sized enterprises. In addition, various businesses are actively investing in on-premises infrastructure to care for the rising demand for public cloud services.

The services segment is the second dominating segment of the hyper-scale computing market. HPC vendors provide services such as maintenance, management, and support. Support is required during the connection of hyper-scale systems and their initial use. In addition, advanced systems and their related problems are a part of maintenance services.

By Enterprise Size

The segment of large enterprises is anticipated to dominate during the forecast period.

The global hyper-scale computing market is segmented by enterprise size into large enterprises and small & medium enterprises (SMEs). The large segment enterprise anticipated a significant market share and is expected to grow at the fastest CAGR during the forecast period. Hyper-scale architecture’s major factors are horizontal scalability, redundancy, and availability. These factors enhance quality and output.

Furthermore, the well-organized applications, mixed with a convenient hyper-scale architecture, give large enterprises a dominant tool for supervisory an active business, giving them a good advantage.

The small & medium enterprises sector will probably spread at the highest CAGR above the forecast period. Small & medium enterprises are gradually gaining hyper-scale revolutions such as software-defined networking (SDN), micro-segmentation, and converged organization to increase business procedures and save prices.

Deployment Analysis

The cloud computing segment is gaining the most significant market revenue share in 2022.

By deployment mode, the market for hyper-scale computing is segmented into cloud computing, big data, IoT, and others. The segment cloud computing gaining the most significant market revenue share in 2022 is expected to grow at a CAGR over the forecast period—the high acceptability of the segment due to the growing acceptance of cloud infrastructure by various companies.

As per the Brand Pulse Survey by Google Cloud in 2022, 41.4% of global technology and various business leaders are developing their investment in cloud-based facilities due to the current financial and business situation. Some developing trends for significant data segment 2023 are prolonged adoption of expected analysis, data lakes design, flexible and customized dashboards, more data convenience, and advanced big data tools.

End-User Analysis

The IT & Telecom segment dominates the market for global hyper-scale computing.

The hyper-scale computing market is segmented based on end-users into BFSI, IT & telecom, media & entertainment, retail & E-commerce, healthcare, and other end-users. The IT & telecom segment dominates the market for hyper-scale computing.

The IT & telecom companies gradually use hyper-scale computing due to its sound management, low downtime, high operational efficiency, standard data backups, and high scalability. Rising digital transformation needs and high adoption of cloud-related platforms propel this segment’s global hyper-scale computing market growth.

Key Market Segments

By Component

• Solution
• Services

By Enterprise Size

• Large Enterprises
• Small & Medium-Sized Enterprises

By Deployment Mode

• Cloud Computing
• Big Data
• IOT
• Other Deployment Modes

By End-Users

• BFSI
• IT & Telecommunication
• Other End-Users

Drivers

Adoption of AI and Machine Learning

The growth in social media, online video streaming, and IoT has led to an exponential increase in data generation. Businesses must process, analyze, and store this data, fueling the demand for hyper-scale computing. AI and machine learning advancements require a robust data processing and storage infrastructure.

With scalability and cost-effectiveness, hyper-scale computing is an ideal solution for supporting these technologies. Moreover, businesses are increasingly adopting cloud services for data storage and processing. Hyper-scale data centers, the backbone of cloud services, are expected to benefit from this trend.

Restraints

High Initial Investment

Hyper-scale data centers require substantial initial capital investment, which can be a significant barrier for small and medium enterprises. Hyper-scale data centers consume vast amounts of energy, posing environmental concerns and operational cost challenges. In an era where data breaches are a significant concern, the security of hyper-scale data centers can be a potential restraint.

Opportunity

The advent of 5G technology

The advent of 5G technology can create significant opportunities for the hyper-scale computing market. 5G requires robust, scalable, and efficient data infrastructure for high-speed data transmission and storage.

The growth of edge computing, where data processing occurs near the data source, may create opportunities for smaller, localized hyper-scale centers. Developing Economies: There’s enormous potential for hyper-scale computing growth in developing economies as businesses in these regions increasingly digitalize their operations.

Trends

Rising Adoption Of Green Data Centers

In response to the high energy consumption of data centers, trends are moving towards eco-friendlier solutions, such as using renewable energy sources and improving energy efficiency. With AI and automation technologies becoming more advanced, they are being integrated into hyper-scale data centers to optimize data processing, power usage, and cooling systems.

Companies are adopting multi-cloud strategies, which can boost the demand for hyper-scale data centers as they provide the infrastructure for such services. To enhance the portability and efficiency of applications, there’s a growing trend of containerization in hyper-scale computing. Containerization helps manage and automate multiple applications independently, improving the operational efficiency of data centers.

COVID-19 Impact Analysis

COVID-19 Caused a Positive Impact on the Global Hyper-Scale Computing Market during the Pandemic Period.

With lockdown measures in place, there was an unprecedented surge in the usage of digital services. Businesses had to shift to remote work models, leading to increased use of cloud services, video conferencing, and virtual collaboration tools, all of which rely on hyper-scale computing infrastructure. This led to an increased demand for hyper-scale data centers.

As physical stores and entertainment venues closed, people turned to online shopping and digital entertainment platforms like Netflix and Amazon Prime. This increased traffic required robust backend infrastructure provided by hyper-scale computing. The uncertainty caused by the pandemic led to some companies deferring or canceling their IT infrastructure upgrade plans.

While this may have caused a temporary slowdown in the hyper-scale computing market, it could surge demand post-pandemic as companies play catch-up. The long-term impact of COVID-19 on the hyper-scale computing market is likely positive. The pandemic has highlighted the importance of robust digital infrastructure.

As companies increasingly migrate towards cloud-based services and data-intensive applications such as AI and ML continue to grow, the demand for hyper-scale computing is expected to remain high in the post-pandemic world.

Regional Analysis

North America dominates the hyper-scale computing market with around 38.1% revenue share.

North- America is the biggest market for technologically based solutions. It is a key player in the global economy, significantly developing and implementing new technologies. A robust security measure is required for processing large volumes of raw data.

This surges the need for the latest technological implementation, encouraging telecom operations, 5G technology adaption, and HPC systems adoption in IT, telecom, and BFSI.

North American region is considered the center of the largest global enterprises, like Boeing and General Motors, coupled with SMEs, that adopt HPC systems to ease technical restraints. Hence, hyper-scale computing is growing in North America. Asia Pacific is the second-largest growing region during the forecast period for weather forecasting and scientific research, among others.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

With the presence of various local and regional players, the market for companion diagnostics is fragmented. Market players are subject to intense competition from top players, particularly those with strong brand recognition and high distribution networks.

Companies have gained various expansion strategies, such as partnerships and product launches, to stay on top of the market. The prominent players in the market are concentrated on developing innovative collaboration software to gain a competitive edge and attract a more extensive customer base.

Major Players

• Microsoft
• Server Technology, Inc.
• Oracle
• VIAVI Solutions Inc.
• Dell Inc.
• Intel Corporation
• Alibaba Cloud
• Cisco Systems Inc.
• Apple Inc.
• Amazon Web Services Inc.
• IBM Corporation
• Hewlett Packard Enterprise Co.
• Celestica Inc.
• Facebook Inc.
• Equinix Inc.
• Google Inc.
• Other Key Players

Recent Developments

• In May 2022- The Manufacturing Connect platform was co-developed by Litmus with Google Cloud to simplify the complex task of collecting data from disparate factory devices and exposing it to AI and Google Cloud data applications.
• February 2023 – Microsoft, a prominent player, declared in February 2023 the hyper-scale serverless performance of Azure SQL Database. The customers who select the hyper-scale serverless option would have a chance to access more automated storage and compute scalability for workloads that require databases with a maximum of 80 vCores or 100 TB.

Report Scope