Next Generation Computing Market Size, Share & Trends Analysis Report By Component (Software, Services), By Organization Size (SMEs, Large), By Deployment (On-premise, Cloud), By End-use, By Type, And Segment Forecasts, 2022 - 2030

Report Overview

The global next generation computing market size was valued at USD 96.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 19.1% from 2022 to 2030. Factors, such as the increasing R&D activities among technology companies and the increasing need to process and manage large data volumes, are driving market growth. Moreover, the growing adoption of technologies, such as 5G, Artificial Intelligence (AI), and Machine Learning (ML), offers significant growth opportunities. The COVID-19 pandemic had a positive impact on the industry. Next-generation computing technologies, such as cloud and edge, witnessed a rise in demand.

The pandemic boosted the adoption of the cloud, as enterprises could run operations securely from the cloud. Moreover, enterprises across industries accelerated digital transformation to adapt to disruptions and plan operational responsiveness. Technologies, such as edge computing, can provide organizations with the necessary solutions to grow even in uncertain times. In March 2020, the COVID-19 High-Performance Computing (HPC) consortium was formed, a private-public association, to accelerate COVID-19 research using HPC resources. The members of the consortium include market players, such as U.S.-based Microsoft, Google, and NVIDIA Corporation.

Next generation computing technologies aim to solve complex problems, which cannot be solved by conventional computing owing to speed, performance, and energy-efficiency limitations. The new computing architectures can address the requirements for data processing, transfer rates, and energy consumption. The market players provide various hardware, software, and services solutions to various industries including healthcare, IT & telecom, and manufacturing.The lack of a skilled workforce is a challenge for the industry. The next-generation computing technologies, such as quantum and neuromorphic, are still in the early stages of development. Hence, for scaling these technologies, a skilled workforce is necessary for the R&D of the next-generation computing products and solutions.

Component Insights

On the basis of components, the global industry has been further segmented into hardware, software, and services. The hardware component segment dominated the industry in 2021 and accounted for the maximum share of more than 50.00% of the overall revenue. The segment is likely to expandfurther at a lucrative growth rate maintaining its dominant industry position throughout the forecast period.

The growth of this segment can be attributed to the availability of various next-generation computing hardware products, such as high-performance Central Processing Units (CPUs), memory & storage, and networking components. The services component segment, on the other hand, is projected to grow at the fastest CAGR over the forecast period. This can be attributed to the increasing need and availability of services, such as deployment and end-to-end support services. For instance, France-based Atos SE provides quantum expert consulting services.

Type Insights

On the basis of types, the global industry has beenfurther segmented into high-performance computing, quantum computing, cloud computing, edge computing, and others. The cloud computing type segment dominated the industry in 2021 and accounted for the largest share of more than 50.00% of the overall revenue. The segment is projected to expand further at a considerable growth rate retaining its leading position throughout the forecast period.

The advantages offered by cloud computing, such as cost efficiency, flexibility, and security, contribute to the growth of this segment.The edge computing segment is likely to register the fastestgrowth rate over the forecast period. Edge computing provides benefits, such as faster insights and faster response time. Industry players, such as France-based Atos SE and U.S.-based Intel Corporation & NVIDIA Corporation offer solutions for edge computing.

Deployment Insights

On the basis of deployment, the global industry has been further categorized into cloud and on-premise deployment. The on-premise deployment segment dominated the global industry in 2021 and accounted for the largest share ofmore than 58.80% of the overall revenue. The segment is projected to expand further at a significant growth rate maintaining its leading industry position throughout the forecast period.

On-premise deployment offers benefits, such as security, direct control, and physical accessibility, of the information. The cloud segment, on the other hand, is projected to register the fastest growth rate during the forecast period. The rapid growth can be attributed to the increasing adoption of cloud services among enterprises across various industries owing to benefits offered by the cloud, such as remote access and viable storage option for large data volumes.

Organization Size Insights

On the basis of organization sizes, the global industry has been further categorized into Small-& Medium-sized Enterprises (SMEs) and large-size enterprises. The large-size enterprises segment dominated the industry in 2021 and accounted for the largest share of 57.7% of the over revenue. The segment is projected to expand further at a steady CAGR maintaining its leading position throughout the forecast period. Large enterprises across various industries are adopting these technologies to improve their operations and offerings.

For instance, in 2021, Japan-based UD Trucks Corp., a heavy-duty truck manufacturer, used Microsoft Azure's high-performance computing solution, which helped them reduce costs. However, the SMEs segment is estimated to register the fastest growth rate during the forecast period. The growth of this segment can be attributed to the increasing adoption of next-generation computing technologies by SMEs to improve their operations. Moreover, many governments are undertaking initiatives to help SMEs. For instance, in April 2020, the German government announced an assistance program of USD 4,316 to help SMEs tackle the COVID-19 pandemic-led economic shutdown.

End-use Insights

Based on end-use, the global industry has been further divided into automotive & transportation, energy & utilities, healthcare, Banking, Financial Services, and Insurance (BFSI), aerospace & defense, media & entertainment, IT & telecom, retail, manufacturing, and others. The BFSI end-use segment dominated the industry in 2021 and accounted for the largest share of more than 20.50% of the overall revenue. The segment is projected to expand further at a steady CAGR maintaining its leading position throughout the forecast period.

The segment growth can be attributed to the growing application scope of next-generation computing technologies, such as risk management and portfolio optimization, in the BFSIsector. The manufacturing segment, on the other hand, is estimated to register the fastest growth rate during the forecast period. Market technologies can help manufacturers in various stages of product development. It can help in applications, such as maintenance issue predictions and running advanced design simulations.

Regional Insights

North America dominated the global industry in 2021 and accounted for the maximum share of more than 34.65% of the overall revenue. The region is anticipated to expand at a steady growth rate maintaining its leading position throughout the forecast period. Factors, such as high R&D expenditure and the presence of established technology companies, such as U.S.-based Google, Microsoft, and IBM, are driving the market growth in the region. Moreover, the North America region has a developed technological infrastructure, which supports market growth.

Asia Pacific, on the other hand, is expected to register the fastest growth rate during the forecast period. The market growth across the APAC region can be attributed to the increasing investments in next-generation computing technologies. For instance, in February 2019, South Korea’s Ministry of Science and ICT announced an investment of USD 40 million over five years in quantum computing. The investment was aimed at developing core technologies, such as quantum computing hardware and algorithms.

Key Companies & Market Share Insights

The competitive landscape of the market is moderately fragmented, with the presence of various technology startups and established companies. Key participants are investing in the R&D of next generation computing technologies. Moreover, industry players are launching innovative products and adopting strategies, such as acquisitions, to improve their position in the industry. In November 2021, IBM announced the launch of a 127-quantum bit processor called ‘Eagle’. The processor is a step forward to tapping into the computational potential of devices using quantum physics. The company aimed to solve problems at new complexity levels with this launch. Some of the prominent players in the global next generation computing market are:

• IBM

• Google

• Amazon Web Services, Inc.

• Intel Corporation

• Atos SE

• Microsoft

• Hewlett Packard Enterprise Development LP

• NVIDIA Corporation

• Cisco Systems Inc.

• Advanced Micro Devices, Inc

• Dell Inc.

Next Generation Computing Market Report Scope

Global Next Generation Computing Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global next generation computing market report based on component, type, deployment, organization size, end-use, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • High-Performance Computing

  • Quantum Computing

  • Cloud Computing

  • Edge Computing

  • Others

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Small and Medium Sized Enterprises (SMEs)

  • Large Size Enterprises

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Automotive & Transportation

  • Energy & Utilities

  • Healthcare

  • BFSI

  • Aerospace & Defense

  • Media & Entertainment

  • IT & Telecom

  • Retail

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Chile

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa