Report Code: A15919
The next generation computing market size was valued at $132.53 billion in 2020, and is expected to reach $782.10 billion by 2030, growing at a CAGR of 19.4% from 2021 to 2030.
Next generation computing industry device is fundamentally different than conventional & supercomputers. It is also called high performance computing and uses technology based on quantum phenomena. Unlike classical computers, it uses quantum bits to process the data. In addition, next generation computing performs complex calculations proficiently when compared with classical computers and this factor majorly fuels growth of the next-generation computing market. Furthermore, it finds its applications in aerospace & defense, BFSI, healthcare & life science, energy & utilities, manufacturing, IT & telecom, and other industries.
Numerous factors such as rise in investments in next generation computing technology, growth in demand for high performance computing, and increase in demand for next-gen computing from medical research and financial markets drive the next generation computing market growth. Moreover, surge in demand for cloud services, owing to the COVID-19 pandemic drives the growth of the global next-gen computing market. However, high operational challenges and issues regarding stability and error correction hinder the next generation computing market share globally.
The report focuses on growth prospects, restraints, and analysis of the global next-generation computing market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global next-generation computing.
The next generation computing market trends is segmented into Component, Offering, Type, Enterprise Size and End Use Industry.
The global next generation computing market analysis is segmented into component, deployment, type, organization size, industry vertical, and region. By component, the market is divided into hardware, software, and service. Depending on deployment, it is segregated into on-premise and cloud. On the basis of organization size, it is bifurcated into large enterprises and small & medium size enterprises. As per type, it is fragmented into high-performance computing, quantum computing, brain-computer interface, approximate and probabilistic computing, energy efficiency computing, thermodynamic computing, memory-based computing, optical computing, and others. By industry vertical, it is categorized into BFSI, healthcare, space & defense, energy & power, transportation & logistics, chemicals, academia, government, telecom, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Depending on enterprise size, the large enterprise segment garnered the largest share in 2022, and is expected to continue this trend during the forecast period, owing to the rise in complexity in business operations and the need for easy processes, which leads to high competition across industries. However, the SMEs segment is expected to witness the highest growth in the upcoming years, owing to surge in adoption of high-performance computing and memory-based computing is expected to increase to optimize the business capabilities of small & medium-sized enterprises.
Asia-Pacific is expected to exhibit highest growth during the forecast period, owing to surge in the strategic launches and development of advanced next-generation computing solutions in the Asia-Pacific market is attributed to drive the market growth. For instance, in November 2022, Lumen Technologies launched its Edge Bare Metal services for the Asia-Pacific market. With this change, the company shows its sustained commitment to the region's edge infrastructure and services, supporting business innovations, and data-intensive applications of the Fourth Industrial Revolution.
Market players operating in the next-generation computing market include IBM Corporation, Amazon Web Services Inc., Alibaba Group Holding Limited, Cisco Systems, Google Inc., HPE, Intel Corporation, Oracle Corporation, Atos SE and Intel Corporation. These major players have adopted various key development strategies such as business expansion, partnership, collaboration and new product launches, which help to strengthen their foothold in the global next-generation computing market.
Quantum computing systems are heavily relying on quantum physical interactions to define qubits as electrical, optical, and magnetic. The hardware and conditions needed to create and control qubits differ in accordance with the quantum activity being controlled, for example, a photon of light or the spin of an electron. Each approach has different trade-offs in terms of investment and benefits. Further, there are parallels to classical computing, which evolved over multiple modes of physical infrastructure from vacuum tubes to magnetic tape to silicon circuits on chips. Furthermore, continuous technological improvements have been witnessed across multiple hardware platforms with the evolution of new technological roadmaps to help forecast paths. For instance, in November 2022, IBM introduced a new 400 Qubit-Plus Quantum Processor and Next-Generation IBM Quantum System. These advancements lead to a new breakthrough in the quantum hardware and software industry, which outlines a pioneering vision for quantum-centric supercomputing.
Moreover, a growing development of hardware platforms is ahead on the development path of superconducting qubits and trapped ions and other platforms and approaches could still be able to catch up at a later stage. In the long term, it is likely that multiple hardware approaches will co-exist and find their niche in a new quantum computation ecosystem, based on their inherent advantages. These capabilities have the ability to control 1 million qubits in a computation, theoretically allowing for the creation of a sufficient number of error-corrected qubits to demonstrate a quantum advantage in a real-life application. Hence, the potential application of next-generation comp[utying is likely to grow with frequent developments in the field of quantum computing industry, which fueling the market growth. In addition, growing high-performing platforms have demonstrated capabilities in the low hundreds. Building systems that follow the four steps of development require universal control and are capable of running quantum circuits. These “quantum circuit-model platforms” all have a universal gate set, which is a set of gates that allow any arbitrary quantum circuit to be run, and combinations of quantum circuits with classical computations drive algorithms to fuel application development. These are critical prerequisites for building a general-purpose quantum computer that can be integrated as part of a computational workflow.
Major next-generation computing vendors are investing in technology to ensure that their offerings meet today’s consumer expectations. Although most quantum-enabled solutions are emerging and already taking place in recent days and are more effective than traditional approaches. In addition, it often provides early signs of validation that quantum already demonstrates a distinct advantage over existing approaches, which ultimately enhances today’s business models depending on the business value at stake.
In Germany, Allianz tests quantum computing in options valuation and quantifying operational risk. There are also plenty of growing partnerships between the sector and quantum firms. In addition, in March 2022, HSBC announced a three-year collaboration with IBM to explore quantum computers application that can be used for pricing and portfolio optimization, progressing its net zero goals and identifying and addressing fraudulent activity. Similarly, in 2020, Atos, a global leader in digital transformation announced its Life Sciences Centre of Excellence with access to leading-edge technologies, such as Quantum, High-Performance Computing, and AI, supported by Atos’ products, services, and expertise in these sectors. With an explosion of such innovations and investments, the computing industry is certainly moving towards an exponential growth trajectory.
In 2019, the U.S. established a national program - the National Quantum Initiative Act, supporting the development of quantum technologies. This includes the founding of the Quantum Economic Development Consortium (QED-C) to support the development of a quantum supply chain with the goal and mission of supporting the future quantum industry. Further, Canada and its provinces continue to work to evolve their national and provincial-level strategies. On contrary, in the Europe region, several countries are undertaking national and regional initiatives to spearhead the development of quantum computing solutions. For instance, the UK, the Netherlands, Germany, and France have developed national quantum programs and strategies, with total public support of more than $7 billion. Also, the European Commission has also established a separate $1.1 billion research and innovation initiative known as the EU Quantum Flagship, which is dedicated to developing and commercializing quantum technologies in the European Union. Within the EU, quantum computing is prominent and developed in collaboration with European efforts on high-performance computing. There are also initiatives in addition to existing research centres and clusters of excellence in quantum technologies, e.g. Quantum Delta NL in the Netherlands, a dedicated legal entity that governs all related public investments in technology.
In line with these investments, the European industry has also started to coalesce to accelerate the development of commercial quantum solutions. While Asia has had a long and growing effort across the next-generation computing landscape. Like, in Singapore, the focus on quantum information dates back to the early 2000s, while China initially focused on quantum communications but now includes a large focus on quantum computation. Further, China’s five-year plan was launched in 2016 and put quantum computing as a top priority for national technology sovereignty. During the past ten years, China also invested more than $1 billion in quantum technology, with additional investments of $150 million in a start-up fund. These efforts in China are believed to be quite large, and in turn, drive the application of the next-generation computing market. In early 2022, India also announced a plan to spend more than $1 billion over the next five years to support the development of quantum technologies, including an effort to build a small prototype quantum computer by 2026. Such government initiatives across the globe is expected to reinforce market growth.
Top impacting factors
Rise in investments in next-generation computing technology
Increase in emergence of next-generation computing such as high-performance computing, quantum technology, and ongoing potential developments observed by major industries fuel the market growth. For instance, industry giants such as Lockheed Martin, NASA, Goldman Sachs Group., and other government organizations are investing in R&D of this technology. In addition, rise in investments by industry giants and government organizations in startups working in this technology is the major factor that fuels the market growth. For instance, in April 2022, the U.S. National Science Foundation invested over $37 million aimed at the development of intelligent, resilient, and reliable next-generation or NextG networks. The investment is done for Resilient and Intelligent Next-Generation Systems (RINGS) a public-private partnership that focuses on accelerating research to increase the competitiveness of the U.S. in NextG networking and computing technologies.
Moreover, industrial giants are already involved in the development of next-generation computing technology are supporting universities, researchers, and startups by investing and providing funds for further R&D of the technology. For instance, in July 2020, Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group is partnering with Unilever, one of the biggest multinational consumer goods companies, in a pioneering strategic initiative that will enable Unilever to action on next-generation digital marketing campaigns. This partnership helps Unilever to utilize Alibaba Cloud’s trusted artificial intelligence (AI) and cloud-based technologies to optimize its omnichannel, online and offline demand generation activities, which is driving the market growth.
Growth in demand for high performance computing
Conventional computers can solve normal problems at moderate speed with good accuracy across various industries as in the aerospace industry next-generation computing helps to run complex simulations around wing aerodynamics. Manufacturers are adopting to run complex simulations to support the testing of new products before they enter large-scale development. Similarly, fintech firms run highly complex risk analyses and create models to help them spot fraud. The oil and gas sector is dependent on HPC to perform special analyses and test reservoir models in order to locate resources.
On the contrary, high-performance computers possess capabilities to solve complex problems at a faster rate compared to conventional and supercomputers. In addition, computers, which are accessible at present have certain limitations as they are limited by their processors, storage capacity, and latency problems, which creates demand for high-performance computing. High-performance computing uses Quantum Processing Units (QPU) to process data in a few seconds and provides infinite storage, owing to which various industries are adopting and developing high-performance computing technology.
Moreover, there is an increase in demand for high-performance computing for optimization, simulation, data modeling & analysis, and machine & deep learning as they contain huge amounts of complex data. NASA is focused on several high-performance computing technology investments to analyze massive data collected about the universe for research to find safe methods for space traveling in the future. For instance, in June 2022, NASA’s High-Performance Spaceflight Computing (HPSC) project is developing flight computing technology that will provide technical management of the design and delivery of computing chips. This factor is expected to drive the growth of the next-generation computing market globally.
KEY BENEFITS FOR STAKEHOLDERS
Next Generation Computing Market Report Highlights
|Market Size By 2030||USD 782.1 billion|
|Growth Rate||CAGR of 19.4%|
|Forecast period||2020 - 2030|
|By Offering|| |
|By Type|| |
|By Enterprise Size|| |
|By Component|| |
|By End Use Industry|| |
|By Region|| |
|Key Market Players||Intel Corporation, ALIBABA GROUP HOLDING LIMITED, Hewlett Packard Enterprise (HPE), Amazon Web Services Inc., Microsoft Corporation, Atos SE, Cisco Systems, Inc., IBM Corporation, Google Inc., Oracle Corporation|
The next generation computing market is expected to grow at a promising rate during the forecast period. Emergence of on-premises next generation computers for businesses and technological advancements in high performance computing processes are some of the factors expected to offer lucrative opportunities for growth of the market during the forecast period. Moreover, early adoption of thermodynamic computing within the defense & automotive sectors is one of the major factors that drives the market growth. In addition, surge in investments by government entities within the market and rise in use of simulation and modelling are the major factors that boost growth of the market, and are expected to provide great opportunities for the market growth.
According to CXOs, increase in research in next generation computing field in Asia-Pacific, such as China, India, Japan, and rest of Asia-Pacific is expected to provide lucrative opportunities to the market. Presently, North America dominates the market, and is anticipated to remain dominant during the forecast period. Emerging countries in Latin America are also projected to offer substantial growth opportunities. Also top key players in the market are adopting strategies, which propel growth of the market.
For instance, in September 2021, leading IT consulting service provider company Accenture partnered with IonQ to accelerate quantum computing business experimentation in organizations globally and across industries. Experience and skills of Accenture in quantum, coupled with its ability to design and create customized industry solutions tailored to IonQ’s quantum computing technology help more companies innovate and become quantum ready.
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A. factors such as rise in investments in next gen computing technology, growth in demand for high performance computing, and increase in demand for next-gen computing from medical research and financial markets drive growth of the market . Furthermore, increase in use of on-premise next generation computing for businesses, growth in advancements in quantum computing technology, and increase in number of gaming industries implementing next-gen computing applications create lucrative opportunities in the market globally.
A. Distributed computing, Artificial intelligence, Machine learning, Deep learning, Cloud computing, Parallel computing, Grid computing
A. North America is largest regional market for next generation computing market.
A. The global Next Generation Computing market size was valued at $132.53 billion in 2020, and is projected to reach $ 782.10 billion by 2030, growing at a CAGR of 19.4% from 2021 to 2030.
A. • IBM Corporation • Amazon Web Services Inc. • Intel Corporation • Oracle Corporation • Atos SE • Intel Corporation
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