SUPERCOMPUTERS MARKET ANALYSIS

Market Challenges And Opportunities

Global Supercomputers Market Drivers:

Rise in demand for higher processing power to propel the market growth

The need for analyzing data is increasing among enterprises with vast amounts of data to process and manage, to aid decision making processes. Moreover, the demand for this is also increasing among end users for maintaining a competitive edge. For instance, a pharmaceutical organization that offers faster services will surely witness profits. Several enterprises lack higher processing power as well as tools for analyzing this huge amount of data. Thus, companies that highly data-driven are going through major improvements in decision-making compared to those who rely less on data. Thus, these factors are creating demand for supercomputers to run this amount of data, which in turn is expected to propel growth of the global supercomputers market over the forecast period.

Growing investments in R&D to fuel the market pace

Several countries are increasingly investing in the research and development activities for military and defense research. Countries such as the U.S. have completed major amount of work on supercomputers that mainly support a joint urgent operational request from the U.S. Transportation Command. The project of the U.S. Department of Defense examines the techniques for mitigating the risk for aircrews and medical attendant’s potential airlift of Covid-19 passengers with the use of air force. Such investment initiatives in research and developments are expected to fuel growth of the global supercomputers market over the forecast period.

Global Supercomputers Market Opportunities:

Growing developments in supercomputers are expected to create several growth opportunities in the global supercomputers market over the forecast period. The advancements in supercomputers are driving the digital transformation in different fields such as oil and gas exploration, weather forecasting and climate studies, manufacturing and engineering, and precision medicine, as they are boosting the scalability, productivity, ease of use, and helping companies operate more cost-effectively. For instance, in August 2021, the Academy of Finland announced plans to reveal a special funding call to increase research and support the use of EuroHPC supercomputing infrastructure.

Moreover, growing applications of supercomputers in healthcare industry is also expected to offer various growth opportunities in the global supercomputers market over the forecast period. Capabilities of supercomputers facilitate life science companies to redefine their approaches in patient diagnosis, care delivery, and treatment. Out of these applications, cloud-based supercomputing simulations are leading to a major shift in precision medicine, abandonment of one-size-fits-all approach for more effective model of patient-centric research to healthcare. Thus, many players would be targeting to healthcare industry, such as NVIDIA for addressing the rise in demand in healthcare. This in turn is expected to create several growth opportunities in the global supercomputers market over the forecast period.

Global Supercomputers Market Restraints:

High cost of setup of supercomputer to impede the market pace

Supercomputers offer various benefits, however, high cost setting up this technology creates challenges in the global supercomputers market. This cost depends on capabilities of supercomputers and it can reach over US$ 5 million or higher. For instance, the cost of constructing the Fugaku supercomputer developed by Fujitsu along with the National Research Institute Riken of Japan was US$ 1 billion with the time period of six years. Thus, the user are charge large amounts to reach break-even and recover the infrastructural price of the supercomputer. Thus, this factor is expected to hamper growth of the global supercomputers market over the forecast period.

Need for large installation space to hinder the market growth

Along with the cost constraints, supercomputers need dedicated regions for installation, due to which it becomes difficult in accommodating in critical environments even when the demand exists there. Moreover, the space of installation is coupled with need of high computing power to support the operation of supercomputer. Supercomputers need highly powerful cooling systems and huge amount of space, which can be as big as a football ground. Thus, these factors act as challenges in the global supercomputers market.