Intersect360 Research Traditional HPC Total Market Forecast: 2010 to 2014

by Christopher G. Willard, Ph.D., Addison Snell, Laura Segervall
for Intersect360 Research
June 2010

This Intersect360 Research report presents our forecast estimates for the size of the overall traditional High Productivity Computing (HPC) market, including servers, storage, services, software, networks, and other products, from 2010 through 2014, with compound annual growth rates (CAGRs) based on 2009. Overall we expect revenue to grow at a 7.8% CAGR over the forecast period. This higher-than-usual CAGR is the result of a down year in 2009, from which we expect the market to rebound.

• Despite contracting by 21% due to macroeconomic effects in 2009, the HPC market will rebound to $21.8 billion by 2014.
• The Mid-Range and Entry-Level segments hold the best opportunities for growth, based mostly on a larger potential pool of convertible and found problems, which lead to green-field opportunities.
• The fastest-growing product segments are storage (9.1% CAGR) and software (8.7%), reflecting the increasing pace of differentiation in technologies beyond the computational system hardware.
• EMEA markets should not be overlooked, as we believe that, even starting from a larger base, these markets hold similar growth opportunities to the highly touted Asia-Pacific markets and may be more stable.
• In evaluating vertical market opportunities, both growth rates and absolute growth potential must be considered. We predict the best overall opportunities in: bio-sciences, consumer product manufacturing, energy, and chemicals. Markets that can leverage software and experience from related fields are most likely to show the greatest growth.

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