Global Next Generation Computing Market Size, Share & Industry Trends Analysis Report By Type, By Component, By Offering (On-premise and Cloud), By Organization Size, By End User, By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Next Generation Computing Market
Market Report Description
The Global Next Generation Computing Market size is expected to reach $465.7 billion by 2028, rising at a market growth of 18.0% CAGR during the forecast period.
Next-generation computing technology is substantially different from traditional and supercomputer computing technology. It's also known as high-performance computing, and it employs quantum computing technologies. It processes data with quantum bits, rather than traditional computers. Furthermore, when compared to traditional computers, next-generation computing is more capable of doing complex computations, which is a primary driving force behind the market's expansion. It's also used in aerospace and defence, banking and financial services, healthcare and life science, energy and utilities, manufacturing, information technology and telecommunications, and other fields.
The next-generation computing industry is driven by several factors, including increased investments in next-generation computing technology, increased demand for high-performance computing, and increased demand for next-generation computing from scientific science and the capital industry. Over the forecast period, factors such as rising expenditures in artificial intelligence (AI), Industrial Internet of Things (IIoT), and engineering, which involve electronic design automation (EDA), are expected to boost the market.
Without the necessary tools and advanced technologies, meeting the escalating need for quick product development cycles (PLCs) and maintaining consistent quality becomes nearly impossible in real-time. Various sectors, such as automobile and medical robots, are using next-generation computing systems with computer-aided engineering programs for high-fidelity modelling simulation.
Machine learning (ML), Physical modelling, and optimization, in a variety of industrial applications, including financial modelling and life science simulation, are just a few examples of how next-generation computing may help solve complicated issues quickly. In addition, regulatory standards for energy consumption, sustainability, and safety, along with cost pressure, are at an all-time high around the world and are increasing rapidly, leading to increased complexity for development engineers.
COVID-19 Impact Analysis
The market for next-generation computing has grown in recent years; but, following the outbreak of the COVID-19 pandemic, the sector would see a minor fall in software sales in 2020. This is due to governments in the majority of countries putting the country on lockdown and shutting down cities to avoid the virus from spreading. Following the recuperation from the COVID-19 pandemic, the next-generation computer sector is expected to thrive in the future years. Moreover, several firms around Asia are implementing modern computer technologies to better their business processes and operational efficiency. Furthermore, several countries have implemented quantum computing apps and utilized quantum computing solutions for their health and life sciences operations, all without the virus spreading to the general population.
Market Growth Factors
High demand in science and healthcare sector
Advances in genetic, personalized medicine, the mass acceptance of health records (EHRs) and digital photography, as well as the growing multiplication of medical IoT and mobile devices have resulted in a massive growth of structured or unstructured healthcare-related data. The healthcare business has always been at the cutting edge of technology adoption for the past two decades, due to the rising need for data analysis. Furthermore, one of the primary elements that complemented the acceptance of powerful computational solutions in the industry was the necessity to hasten drug development and genomics-related research. The use of AI in the medical field to assist healthcare professionals with diagnoses has been a big enabler for the adoption of these technologies in industrial settings.
Innovations in next-generation computing technology
The rise of next-generation computing technologies such as high-performance processing and quantum technology, as well as continuous prospective advances noticed by major sectors, are driving market expansion. For example, industry behemoths like NASA, Lockheed Martin, Goldman Sachs Group, and other government agencies are investing in this technology's research and development. Another example, Google LLC teamed up with NASA and Oak Ridge National Laboratory in October 2019 to create the greatest quantum information service in the world. Sandia National Laboratories will also receive million from the US Department of Energy's Innovative Scientific Computing Research Programs.
Market Restraining Factors
Lack of Utilization by SMEs
Many SMEs are unaware of the importance of Next-Generation Computing Market and lack the financial resources to put up such systems. Due to the high investment costs, many SMEs in underdeveloped countries are still hesitant to embrace Next-Generation Computing. Many of them are ignorant of the numerous benefits, such as improved performance and customized delivery. These businesses also lack the skills and know-how required to set up and maintain an Next-Generation Computing system. As a result, lack of awareness amongst SMEs hinders market expansion. Cloud computing, on the other hand, has the potential to increase adoption among SMEs by significantly lower prices.
Based on Type, the market is segmented into High Performance Computing, Quantum Computing, Energy Efficiency Computing, Memory Based Computing, Approximate & Probabilistic Computing, Brain Type Computing, Optical Computing, Thermodynamic Computing, and Others. The high performance computing segment acquired the highest revenue share in the Next-Generation Computing Market in 2021. Parallel computational and Supercomputers techniques, processing algorithms, and systems are used in high-performance computing to address complicated computational problems. Next-Generation Computing uses a variety of approaches, such as computer modelling, simulation, and analysis, to solve complex computational problems and conduct research while allowing multiple users to access computing resources at the same time.
Based on Component, the market is segmented into Hardware, Software, and Services. The software segment witnessed a substantial revenue share in the Next-Generation Computing Market in 2021. The implementation of this software improves customer satisfaction in several works for large such as IT & telecommunications, BFSI, and healthcare, maximizing the demand for existing customers while lowering operating costs. This supports the implementation of solutions that are required to properly manage the software.
Based on Offering, the market is segmented into On-premise and Cloud. The On-premise segment acquired the maximum revenue share in the Next-Generation Computing Market in 2021. The aspects that can be credited as governments continue to be interested in obtaining sensitive data defense and security and private details of citizens, businesses are worried about the protection of their administrative data. This is due to a variety of benefits provided by the on-premise implementation, including a strong level of data protection and safety. As a result, on-premise infrastructure is preferred over cloud-based technology. In the coming years, such factors are expected to boost the on-premise segment's growth.
Organization size Outlook
Based on Organization size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The small & medium enterprises segment registered a substantial revenue share in the Next-Generation Computing Market in 2021. This is because SMEs are migrating their organizations to a digital platform and implementing next-generation computing solutions, permitting businesses to become more productive, intelligent, and efficient.
End User Outlook
Based on End User, the market is segmented into Government, BFSI & Telecom, Space & Defense, Energy & Power, Chemicals, Healthcare, Academia, and Others. The government segment garnered the highest revenue share in the Next-Generation Computing Market in 2021. The rise of the Next-generation computing is being fueled by governments investing in breakthrough technologies for military and defense, law enforcement, and the Securities and Exchange Commission to detect fraud risk and identify trade infractions. This is due to the government and defense agencies' active adoption of cutting-edge IT systems to improve computing efficiency.
|Market size value in 2021||USD 149.4 Billion|
|Market size forecast in 2028||USD 465.7 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 18% from 2022 to 2028|
|Number of Pages||386|
|Number of Tables||623|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Component, Offering, Organization Size, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America garnered the largest revenue share in the Next-Generation Computing Market in 2021. To increase their regional coverage and reach, regional market sellers have formed new partnerships with other companies. For example, Graph core developed its partner programme to expand its ability to contact new customers and help them scale up using its intelligence processing unit (IPU) products. To increase its presence in the North American market, the company added many new partners to its partner network, including Applied Data Systems and Images ET Technologies, among others.
Free Valuable Insights: Global Next Generation Computing Market size to reach USD 465.7 Billion by 2028
KBV Cardinal Matrix - Next Generation Computing Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the Next-Generation Computing Market. Companies such as IBM Corporation, Oracle Corporation and Intel Corporation are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Atos Group, Cisco Systems, Inc., Hewlett-Packard Enterprise Company, Amazon Web Services, Inc., Microsoft Corporation, Intel Corporation, Oracle Corporation, Google LLC, and Alibaba Group Holding Limited.
Recent Strategies Deployed in Next Generation Computing Market
» Partnerships, Collaborations and Agreements
- Feb-2022: Hewlett Packard Enterprise joined hands with Ayar Labs, the leader in chip-to-chip optical connectivity. Together, the companies aimed to escort a new era of data centre innovation by growing silicon photonics solutions based on optical I/O technology. Additionally, the modernization of these technologies would support future demands for high-performance computing and artificial intelligence solutions.
- Feb-2022: Amazon Web Services came into a partnership with Kyndryl, the information technology infrastructure services provider. Together, the companies aimed to provide separate skills, expertise, and global resources to assist consumers in upgrading enterprises through Industry-based companies' cloud services and solutions. Additionally, AWS would provide solutions for Kyndryl’s top industry consumers across the world, Kyndryl plans to build out its internal architecture in the cloud, using AWS as a prefered cloud supplier.
- Jan-2022: Amazon signed a multi-year agreement with Stellantis, a leading global mobility and automaker supplier. Through this agreement, the companies aimed to transform the in-vehicle experience for millions of Stellantis consumers and modernize the mobility industry’s transition to a defendable software explained future.
- Jan-2022: Oracle Cloud Infrastructure came into a partnership with Syntax, a leading provider of multi-cloud and mission-critical application managed services. Through this partnership, the companies would allow on-premises Oracle E-Business offering consumers to roam or extend their solutions by taking benefits of OCI’s low price, better performance, enhanced scalability, and a broad array of platform services.
- Jan-2022: Microsoft joined hands with Qualcomm Technologies, an American multinational corporation. Together, the companies aimed to boost the adaptation of augmented reality in both the customers and business sector. Additionally, Qualcomm Technologies is working with Microsoft around various actions to propel the environment, developing custom AR chips to allow a new wave of power-efficient, lightweight AR glasses to provide immersive and rich experiences, and plans to combine software such as Microsoft Mesh and Snapdragon Spaces XR Developer Platform.
- Nov-2021: Amazon Web Services formed a partnership with Nasdaq, an online global marketplace for buying and trading securities. Through this partnership, the companies aimed to build the next generation of cloud authorized architecture for the world’s capital markets, helping to boost innovation and enhance enterprise procedures.
- Nov-2021: IBM formed a partnership with Amazon Web Services, a subsidiary of Amazon providing on-demand cloud computing platforms. Together, the companies aimed to integrate the advantages of IBM Open Data for companies for IBM Cloud Pak for Data and the AWS Cloud to provide energy consumers. Additionally, the solution would run on the AWS Cloud and streamline the capacity for consumers to run work tasks in the AWS cloud and on-premises. Moreover, the companies would collaborate on further advancement of future functionality to offer better flexibility and choice on where to run OSDU applications.
- Nov-2021: Google Cloud joined hands with Genesys Telecommunications, a full-service contact centre solution. Together, the companies aimed to create new next-generation AI, data analytics and machine learning applications that would help enterprises provide stronger, more instinctive and active experiences.
- Oct-2021: Cisco system extended its partnership with Tata Communications, an Indian telecommunications company. Together, the companies aimed to enhance companies with easy and simple to manage, deploy, and analyse IT infrastructure for providing anytime, anywhere access. Additionally, Cisco Meraki with Tata Communications environment to provide a leading offering of next-generation cloud-managed Wi-Fi services based on the advanced Wi-Fi 6 technology and SD-WAN services around multiple enterprises. Moreover, the integrated expertise assures smooth lifecycle management and advanced consumer experience to the company's stakeholders with greater efficiency, security, and agility.
- Jul-2021: Google Cloud entered into a partnership with AT&T, an American multinational conglomerate holding company. Through this partnership, the companies aimed to provide transformative abilities that assist enterprises to propel real value and build industry-changing experiences in healthcare, retail, entertainment, manufacturing, and more, with the capabilities to use Android, Google Maps, augmented reality, Pixel, and virtual reality, and other solutions around Google for more enveloping consumer experiences.
- Jun-2021: Google Quantum AI formed a partnership with Boehringer Ingelheim, a world-leading contract manufacturer of biopharmaceuticals. Together, the companies aimed to implement and research cutting-edge use cases for quantum computing in pharmaceutical research and development, particularly molecular dynamics simulations.
- Mar-2021: Intel teamed up with IBM, an American multinational technology corporation. Through this collaboration, the companies aimed to boost semiconductor production innovation across the environment, improve the challenges of the U.S. semiconductor enterprise and support key U.S. government actions.
» Product Launches and Product Expansions
- Apr-2022: IBM introduced IBM z16, the first integrated on-chip AI accelerator. The chip provides latency advanced assumptions designed to allow consumers to analyze real-time transactions at scale on crucial applications. Additionally, IBM z16 is developed to protect consumers from harvest now, and decrypt later attacks with the company's first quantum-secure system.
- Feb-2022: Atos introduced the BullSequana XH3000, a new exascale-class supercomputer. The hybrid computing platform provides incomparable flexibility and performance to allow top researchers and scientists to advance research in sectors including weather forecasting and climate change, genomics, and new drug discovery. Additionally, BullSequana XH3000 are manufactured and designed in Europe at its factory in Angers, France, this is Atos’ most powerful and organized supercomputer and a crucial element in securing digital and economic jurisdiction.
- Nov-2021: Oracle introduced Oracle Cloud Infrastructure AI services. The AI provides a compilation of services that make it accessible for developers to apply AI services to applications without demanding data science expertise.
- Oct-2021: Intel introduced the 12th Gen Intel Core family, along with Intel Core i9-12900K. The new processor provides a new performance hybrid infrastructure that provides leaps in multi-threaded performance, allowing up to 2 times quick content creation compared to prior generation2.
- Sep-2021: Oracle introduced Oracle Exadata X9M platforms, the industry’s fastest and most affordable systems. The Exadata X9M portfolio provides Oracle Exadata Database Machine X9M and Exadata Cloud@Customer X9M, the only platform that runs Oracle Autonomous Database in consumer data centres.
- May-2021: IBM introduced a 2-nanometer nanosheet technology semiconductor. This chip plays a crucial role in everything from computing to communication devices, to appliances, transportation structure, and crucial infrastructure.
- May-2021: Google introduced Tensor Processing Units AI chips. The next-generation custom chip offers the fourth generation of chips which provides twice as fast as the last variant.
- Mar-2021: Cisco introduced a new offering of networking systems. The suite offers three core elements such as full-stack visibility of network applications, expanded secure access service edge architecture, and new network-as-a-service solutions developed to provide modest IT and flexible accession for consumers looking for quick speed, scale, and agility. Additionally, the portfolio is designed to allow consumers to build the infrastructure for enterprise in the new world defined by the Covid-19 pandemic.
» Acquisitions and Mergers
- Mar-2022: Google signed an agreement to acquire Mandiant, a publicly traded American cybersecurity firm. This acquisition of Mandiant would achieve Google Cloud's existing strengths in security. Additionally, Google Cloud provide consumers with a robust set of services including advanced abilities such as BeyondCorp Enterprise for Zero Trust and VirusTotal for malevolent content and software susceptibility.
- Feb-2022: Intel Corporation took over Tower Semiconductor, a leading foundry for analogue semiconductor solutions. This acquisition would advance Intel’s IDM 2.0 strategy as the enterprise further expands its production abilities, global footprint and technology offering to address extraordinary industry requirements.
- Oct-2021: Atos took over DataSentics, a technology consultancy specialising in data science. Through this acquisition, Atos would improve its AI/ML and Computer Vision offering with new AI-intensive products and data science abilities and welcome highly-skilled professionals of approximately 100 AI/ML engineers and data scientists.
- Nov-2020: IBM completed the acquisition of Instana, a leading enterprise application and observability performance monitoring platform. This acquisition aimed to help enterprises to better control the problems of advanced applications that span the hybrid cloud landscape.
- Mar-2020: Microsoft completed the acquisition with Affirmed Networks, a cloud-native networking solutions for telecom operators. Under this acquisition, the company aimed to target wide cloud suppliers looking to get intensity into the telco enterprise.
Scope of the Study
Market Segments Covered in the Report:
- High Performance Computing
- Quantum Computing
- Energy Efficiency Computing
- Memory Based Computing
- Approximate & Probabilistic Computing
- Brain Type Computing
- Optical Computing
- Thermodynamic Computing
By Organization size
- Large Enterprises
- Small & Medium Enterprises
By End User
- BFSI & Telecom
- Space & Defense
- Energy & Power
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- IBM Corporation
- Atos Group
- Cisco Systems, Inc.
- Hewlett-Packard Enterprise Company
- Amazon Web Services, Inc.
- Microsoft Corporation
- Intel Corporation
- Oracle Corporation
- Google LLC
- Alibaba Group Holding Limited
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What would be the size of the next generation computing market by 2028?
The global next generation computing market size is expected to reach $465.7 billion by 2028.
What are the key driving factors and challenges in the next generation computing market?
High demand in science and healthcare sector are driving the market in coming years, however, lack of utilization by SMEs growth of the market.
Who are the leading players in the next generation computing market?
IBM Corporation, Atos Group, Cisco Systems, Inc., Hewlett-Packard Enterprise Company, Amazon Web Services, Inc., Microsoft Corporation, Intel Corporation, Oracle Corporation, Google LLC, and Alibaba Group Holding Limited.
At what CAGR is the next generation computing market estimate to grow in the forecast period?
The expected CAGR of the next generation computing market is 18% from 2022 to 2028.
Which segment is leading the market in 2021?
The Hardware segment is leading the Global Next Generation Computing Market by Component in 2021, thereby, achieving a market value of $242 billion by 2028.
Which region dominated the next generation computing market in 2021?
The North America is the fastest growing region in the Global Next Generation Computing Market by Region in 2021, and would continue to be a dominant market till 2028.