Why Is the Global HPC Market Set to Surge to $437 Billion by 2028?

Overall HPC Market Overview

The 2023 High‑Performance Computing (HPC) market, encompassing servers, cloud, storage, software, and maintenance services, reached $372 billion, a slight decline from $373 billion in 2022. Total global HPC expenditure was $297 billion, and it is projected to climb to $437 billion by 2028.

On‑Premise HPC Server Market

In 2023, on‑premise HPC server sales amounted to $150 billion, a 2.7 % decline year‑over‑year. The market is expected to recover to roughly $163 billion in 2024. Systems priced under $10 million represent a large share of the on‑premise segment.

HPC Cloud Market Growth

Buyers are shifting internal budgets to cloud computing. From 2021 onward, the share of HPC workloads run on public‑cloud resources is expected to grow at over 21 % annually for the next five years, reaching a market size of about $200 billion by 2028.

Key Hardware Trends

Shift from monolithic architectures to heterogeneous designs with multiple hardware partitions.

Cloud‑based options expanding: more image types, bare‑metal, HPC‑as‑a‑Service (HPCaaS), experimental hardware access, containers.

Processor choices: x86, ARM, RISC‑V.

Superchips: Nvidia Grace Hopper, AMD MI300.

Accelerators: Nvidia Hopper, AMD MI300, Gaudi, Graphcore, Cerebras, SambaNova, Cambricon, Groq, etc.

Storage Landscape

Storage accounts for roughly 21 % of on‑premise HPC spending and continues to grow. AI‑driven workloads are further increasing storage demand, prompting a shift toward modern AI‑aware file systems while still supporting traditional HPC file systems such as BeeGFS, Lustre, NFS, OneFS, PanFS, and Spectrum Scale.

Interconnect Technologies

Emerging interconnects—CXL, NVMe/NVMeoF, Ultra Ethernet—are being evaluated alongside established protocols such as RDMA, RoCE, iSER, iWARP, and SRP to meet the functional and performance requirements of diverse HPC workloads.

Quantum Computing Outlook

The global quantum computing market was valued at $8.48 billion in 2023, with an expected compound annual growth rate of 22.1 %, reaching $15 billion by 2026.

Future Outlook to 2028

Growth drivers include supply‑chain improvements, adoption of the latest GPU technologies, experimental AI workflow evaluations, and the emergence of sovereign clouds. By 2028, cloud‑based HPC/AI revenue is expected to approach $200 billion, while on‑premise HPC server market growth steadies at about 8 % per year.