Hyperscale Computing Market (2023 - 2030)

Hyperscale Computing Market Summary

The global hyperscale computing market size was valued at USD 56.83 billion in 2022 and is projected to reach USD 310.11 billion by 2030, growing at a CAGR of 23.9% from 2023 to 2030. The increasing growth of cloud computing adoption is driving the market growth.

Moreover, the rising adoption of artificial intelligence, big data, machine learning, and IoT offers significant growth opportunities. The COVID-19 pandemic had a positive impact on the hyperscale computing industry. Cloud computing technology played a crucial role to aid people and businesses during the COVID-19 pandemic, offering a range of technologies to support development activities in the search for vaccinations, treatments, and testing.

The community of data scientists led the way in the fight against the pandemic by utilizing a wide variety of AI and machine learning solutions. However, they often relied on cloud computing as sophisticated algorithms frequently required substantial amounts of processing power to operate. Many hyperscale cloud providers recognized this need and assisted global initiatives by providing free tools, services, and financial commitments throughout the crisis. For instance, Rescale Inc., in collaboration with Microsoft Azure and Google Cloud, announced a program that provides free high-performance computing (HPC) resources to teams working to develop COVID-19 test kits and vaccinations.

Component Insights

Based on components, the market is classified into solution and service segments. The solution segment held the maximum revenue share of 78.7% in 2022 and is expected to register a CAGR of 22.9% over the forecast period. The growth of the segment can be attributed to the increasing demand for scalable computing architecture solutions.

The services segment is projected to advance at the highest CAGR of 26.9% over the forecast period. The growing integration of artificial intelligence (AI) and machine learning (ML) for agent augmentation, speech recognition, automation, emotion analysis, and call analytics is driving professional and managed services demand in the market.

Enterprise Size Insights

Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises (SMEs). The large enterprise segment accounted for the largest revenue share of 70.6% in 2022 and is projected to expand at a CAGR of 22.7% over the forecast period. Key components of hyperscale architecture are horizontal scalability, redundancy, and high availability. These features are intended to enhance performance and throughput. Well-designed applications, combined with an efficient hyperscale architecture, provide large enterprises with a powerful tool for controlling an agile business, allowing them to acquire a competitive advantage.

The small & medium enterprises segment is likely to advance at the highest CAGR of 26.3% over the forecast period. Small & medium enterprises are increasingly adopting hyperscale innovations such as software-defined networking (SDN), micro-segmentation, and converged infrastructure to enhance business processes and save costs.

Application Insights

Based on application, the market is segmented into cloud computing, big data, IoT, and others. The cloud computing segment accounted for the largest revenue share of 31.4% in 2022 and is projected to expand at a CAGR of 25.6% over the forecast period. The dominance of the segment can be attributed to the growing adoption of cloud infrastructure by enterprises. According to the Google Cloud Brand Pulse Survey 2022, 41.4% of global tech and business leaders are planning to increase their investment in cloud-based services, owing to the current economic and business environment.

The big data segment is likely to progress at the highest CAGR of 26.7% over the forecast period. Some of the emerging trends for big data in 2023 are extended adoption of predictive analysis, data lakes architecture, flexible and customizable dashboards, availability of more data sources, and use of advanced big data tools.

End-Use Insights

Based on end-use, the market is segmented into BFSI, IT & telecom, media & entertainment, retail & e-commerce, healthcare, and others. The IT & telecom segment accounted for the largest revenue share of 23.5% in 2022 and is projected to advance at a CAGR of 25.6% over the forecast period. IT & telecom companies increasingly use hyperscale computing owing to its benefits such as simplified management, less downtime, increased operational efficiency, simpler data backups, and scalability. Growing digital transformation requirements and increasing adoption of cloud-native platforms drive the market growth for this segment.

The media & entertainment segment is likely to expand at the fastest CAGR of 28.4% over the forecast period. This can be attributed to the growing adoption of social media and video streaming services. According to Jones Lang LaSalle IP, Inc., the growing use of social media and streaming services is expected to drive the hyperscale industry in the U.S.

Regional Insights

North America dominated the market with a share of 32.8% in 2022 and is anticipated to expand at a CAGR of over 22.3% over the forecast period. Factors such as high research & development (R&D) expenditure, established IT services market, and the presence of numerous cloud service providers are driving the market growth in the region. Moreover, the region has a developed technological infrastructure, aiding the market growth.

Asia-Pacific is expected to expand at the highest CAGR of 26.6% during the forecast period. The market growth across the region can be attributed to the growth of end-use industries such as media & entertainment, retail & e-commerce, IT & telecom, BFSI, and healthcare, among others. As per the Associated Chambers of Commerce and Industry of India (ASSOCHAM), a leading Indian trade association, India is projected to become the global hub for cloud computing data centers by 2026.

Key Companies & Market Share Insights

The competitive landscape of the hyperscale computing industry is fragmented, having numerous local and global solution and service providers. Key participants are adopting strategic initiatives such as acquisitions, expansions, and product launches.

In February 2023, Microsoft announced the hyperscale serverless preview for Azure SQL Database. According to the company, customers who select the serverless option in the Hyperscale tier would gain access to automated storage and compute scalability based on workload requirements for databases demanding up to 80 vCores and 100 TB. Some prominent players in the global hyperscale computing market are:

• Amazon Web Services, Inc.

• Hewlett Packard Enterprise Development LP

• Intel Corporation

• Microsoft

• Google Cloud

• Oracle

• Dell Inc.

• Alibaba Cloud

• Server Technology, Inc.

• VIAVI Solutions Inc.

Hyperscale Computing Market