Global Next Generation Computing Market Overview
Next Generation Computing Market Size was valued at USD 113.30 Billion in 2022. The Next Generation Computing Market industry is projected to grow from USD 135.28 billion in 2023 to USD 667.48 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.4% during the forecast period (2023 - 2032).
Next generation computing refers to the use of emerging technologies to create new and more powerful computing systems. Essentially, next-generation computing refers to the development of hardware and software that can meet data processing, transfer rates, and energy consumption concerns in numerous fields and sectors. Next generation computing benefits in the increased the speed and performance, improved energy efficiency of computing systems, enhanced flexibility and scalability to adopt to complex problems solving, and improved security to protect systems from attacks.
FIGURE 1: NEXT GENERATION COMPUTING MARKET SIZE 2019-2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Next Generation Computing Market Trends
Increasing process and manage large data volumes and complex workloads
Rapid growth in advanced technology has helped to enhance computing capabilities and these advanced computing capabilities help solve complex problems at a massive pace. The computing capabilities depend on the size of the memory on which data is being processed, and the computational power using which large amounts of data is being processed. The goal of next-generation computing technology is to address difficult issues that conventional computing cannot address due to speed, performance, and energy-efficiency constraints. The criteria for data processing, transport rates, and energy consumption can be met by the modern computing architectures. Now a days, defense departments and research institutions are using around 15-17 petaFLOPS of computing capabilities where 1 petaFLOP corresponds to one quadrillion (10^15) floating-point operations per second. Such massive computing capabilities help solve complex research problems at ease and make the systems work effectively and help in analyzing numerous data models in seconds. For instance, in July 2023, The Department of Defense (DoD) of US announced that they have started using the HPE Cray EX4000 system that is expected to address physics, AI, and ML applications for thousands of DoD high performance computing modernization program that works at 17.7 petaFLOPS, which is one of the finest processing capabilities across the globe.
Next Generation Computing Market Segment Insights
Next Generation Computing Market- By Component
The Next Generation Computing Market, in this report, has been segmented based on component into hardware, software, and service.
The hardware component is expected to hold the largest market share till the forecasted duration owing to the availability of a variety of next-generation computing hardware products, including high-performance Central Processing Units (CPUs), memory & storage, and networking components.
FIGURE 2: NEXT GENERATION COMPUTING MARKET, BY COMPONENT, 2022 VS 2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Next Generation Computing Market- By Computing Type
The Next Generation Computing Market, in this report, has been segmented based on computing type into high-performance computing, quantum computing, cloud computing, edge computing, neuromorphic computing, approximate and probabilistic computing, optical computing, energy efficiency computing, memory-driven computing, and others.
High Performance Computing (HPC) is the practise of aggregating computing capacity by giving more performance than a standard desktop computer or workstation to address huge issues in science, engineering, or business. Quantum computers process information by employing the principles of quantum mechanics. Quantum computers may handle issues that classical computers cannot, such as cracking encryption codes and modelling complicated molecules. While cloud computing provides on-demand access to computing resources—applications, servers, data storage, development tools, networking capabilities, and more—hosted at a remote data centre managed by a cloud services provider (or CSP) through the internet, it is not the same as cloud computing.
Cloud computing had the largest market share among computing types due to its use by numerous end use industries.
Next Generation Computing Market- By Deployment mode
The Next Generation Computing Market, in this report, has been segmented based on Deployment mode into cloud, and on-premises.
The on-premises hold the largest market share by deployment mode while the cloud segment is expected to grow at a raid pace in the forecasted duration. On premises benefits organization in gaining direct physical access to the computational facilities and they tend to be more secure than its counterpart- cloud because of less chances of cyberattacks on such facilities that process large complex data. While the cloud segment is expected to grow at a rapid pace owing to rapid adoption to cloud services by organizations across industries.
Next Generation Computing Market- By End-use Industry
The Next Generation Computing Market, in this report, has been segmented based on End-use Industry into automotive & transportation, energy & utilities, healthcare, BFSI, aerospace & defense, media & entertainment, IT & telecom, retail, manufacturing, and others.
As of 2022, BFSI held the largest market share among the mentioned end use industries. Next gen computing is being used in numerus applications in BFSI such as creating accurate data prediction models in capital markets, real time processing of parametric insurance claims, online banking kiosks, fraud detection & prevention, in CRM software, providing high level security, compliance to government regulations etc.
Next Generation Computing Market- By Organization Size
The Next Generation Computing Market, in this report, has been segmented based on organization size into small and medium sized enterprises (SMEs), and large size enterprises.
Large enterprises segment is expected to hold the majority market share in the next generation computing market. Large IT, BFSI, Manufacturing organization are rapidly using these computing facilities to drive innovation, to secure its systems, and to process massive amounts of complex data. Also, there is a steady rise in research in this technology among major global players. For instance, in August 2023, Petronas Digital, the digital arm of Malaysian energy company Petronas signed a deal with Microsoft to develop a high-performance computing- artificial intelligence (AI) infrastructure platform. The company is expected to use the platform to run AI and machine learning to look into energy transition and decarbonization use cases.
Next Generation Computing Market- Regional Insights
Based on Region, the global Next Generation Computing is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, UK, Italy, Spain, China, Japan, India, Australia, UAE, and Brazil.
North America holds the largest share in the Next Generation Computing market. This is primarily due to the technological advancements happening in the region, strong research and development focused industries, presence of global players in IT, telecom, manufacturing, automobile, and healthcare that are using next generation computational techniques for business processes and problem solving in the north American region. Rise in adoption of AI in numerous industries and need for research and development by government departments and institutions are the major drivers for the growth of the Next Generation Computing in the region.
Asia pacific Next Generation Computing market is the fastest growing region among all the regions. Growing investment in high-performance computational facilities in APAC region is driving the growth of the market. For instance, as of 2022, it is estimated that Chinese government has announced a total of $15.3 billion in funding for quantum technologies.
FIGURE 3: NEXT GENERATION COMPUTING MARKET SIZE BY REGION 2022 VS 2032, (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Next Generation Computing Market- Key Market Players and Competitive Insights
The Next Generation Computing market is a highly competitive industry, as numerous companies offer next gen computing having advanced computational capabilities solutions. The market is characterized by the presence of established and large information technological giants like Amazon, Microsoft and other companies researching and developing newer advanced technologies to deal with complex problems in different industries and applied sectors. IBM is a global leader in hybrid cloud, AI, and business services, assisting clients in over 175 countries to capitalise on data insights, improve business processes, reduce costs, and gain a competitive advantage in their industries. Nearly 3,800 government and corporate institutions in critical infrastructure sectors such as financial services, telecommunications, and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to accelerate, optimise, and protect their digital transitions. The Google corporation is merging its AI-focused organisations, and the teams that will be joined have already completed numerous high-profile projects, including the transformer, a technology that serves as the foundation for some of OpenAI's research.
Next Generation Computing Market- Key Companies Include
- IBM Corporation
- Alphabet Inc
- Amazon Web Services, Inc.
- Advanced Micro Devices, Inc
- Atos SE
- Intel Corporation
- NVIDIA Corporation
- Hewlett Packard Enterprise Development LP
- Cisco Systems, Inc.
- Dell Inc.
- Alibaba Group Holding Limited
- Oracle Corporation
- NEC Corporation
Next Generation Computing Market- Industry developments
June 2023: IBM and the Barcelona Supercomputing Center (BSC-CNS), Spain’s national supercomputing center and an International Centre of Excellence in e-Science, announced an expansion of their long-term research and technology partnership. The focus of their partnership would be on the development of the Future of Computing, an initiative by BSC and IBM. This collaboration further is expected to solidify IBM’s commitment to advancing European technology and aligns with the EU’s technology sovereignty strategy.
June 2023: IBM announced that they achieved a breakthrough in quantum computing, demonstrating for the first time that quantum systems can produce accurate results at a scale of 100+ qubits “reaching beyond leading classical approaches.” An IBM research team conducted an experiment that means it’s possible for a quantum computer to outperform leading classical simulations by learning and mitigating errors in the system, the company said. The team used the IBM Quantum ‘Eagle’ processor composed of 127 superconducting qubits on a chip to generate large, entangled states that simulate the dynamics of spins in a model of material and accurately predict properties such as its magnetization.
May 2023: Cadence Design Systems, Inc. is using high-performance computing (HPC) with IBM Cloud HPC to accelerate the development of semiconductor and system design tools. Cadence has over 30 years of experience in computational software and helps companies deliver innovative electronic products such as chips, boards, and systems for dynamic market applications such as hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial, and healthcare. Cadence can manage its compute-intensive workloads on-premises and in the cloud with high levels of resiliency and performance with the integrated IBM Spectrum LSF implemented in a hybrid cloud solution for HPC. Cadence can use IBM HPC both on-premises and in the cloud to meet computing demand surges while helping to limit the risk of failure.
Next Generation Computing Market- Market Segmentation
Next Generation Computing Market- Component Outlook
Next Generation Computing Market- Computing Type Outlook
- High-Performance Computing
- Quantum Computing
- Cloud Computing
- Edge Computing
- Neuromorphic computing
- Approximate and Probabilistic Computing
- Optical Computing
- Energy Efficiency Computing
- Memory-Driven Computing
Next Generation Computing Market- Deployment mode Outlook
Next Generation Computing Market- Organization Size Outlook
- Small and Medium Sized Enterprises (SMEs)
- Large Size Enterprises
Next Generation Computing Market- End-use Industry Outlook
- Automotive & Transportation
- Energy & Utilities
- Aerospace & Defense
- Media & Entertainment
- IT & Telecom
Next Generation Computing Market- Regional Outlook
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- South America
- Rest of South America
|Market Size 2022
||USD 113.30 Billion
|Market Size 2023
||USD 135.28 Billion
|Market Size 2032
|Compound Annual Growth Rate (CAGR)
|Market Forecast Period
|Market Forecast Units
||Value (USD Billion)
||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
||Component, Computing Type, Deployment mode, Organization Size, End-use Industry, and Region
||Europe, North America, Asia-Pacific, Middle East & Africa, and South America
||US, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, South Korea, Australia, Saudi Arabia, UAE, South Africa, Brazil, Argentina, Chile, and others.
|Key Companies Profiled
|| IBM Corporation, Alphabet Inc, Amazon Web Services, Inc., Microsoft Corporation, Advanced Micro Devices, Inc, Atos SE, Intel Corporation, NVIDIA Corporation, Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Dell Inc., Alibaba Group Holding Limited, Oracle Corporation, NEC Corporation
|Key Market Opportunities
||· Increasing adoption of technologies such as AI, ML, and 5G. · Increase in use of on-premises next-generation computing for businesses. · Opportunity 3
|Key Market Drivers
||· Increasing need to process and manage large data volumes and complex workloads. · Growing Research and Development (R&D) activities in technology companies. · Rise in investments in next-gen computing technology
|Key Market Restraints
||· High operational challenges · Stability & error correction issues
Frequently Asked Questions (FAQ) :
The Next Generation Computing Market was valued at USD 113.30 Billion in 2022.
The global market is projected to grow at a CAGR of 19.4% during the forecast period, 2023-2032.
North American region had the largest share of the global market.
The key players in the market are IBM Corporation, Alphabet Inc, Amazon Web Services, Inc., Microsoft Corporation, Advanced Micro Devices, Inc, Atos SE, Intel Corporation, NVIDIA Corporation, Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Dell Inc., Alibaba Group Holding Limited, Oracle Corporation, and NEC Corporation.
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