Global Pandemic Will Wipe Out Projected Growth; Decline is Expected 

SUNNYVALE, CA—March 27, 2020—HPC and hyperscale analyst firm Intersect360 Research has released a new report
guiding its clients that the market for High Performance Computing (HPC) products and services will fall significantly short of its previous 2020 forecast,
due to the global COVID-19 pandemic. The newly-revised forecast predicts the overall worldwide HPC market will be flat to down 12% in 2020.

The report, Worldwide High Performance Computing Market Forecast: Pre-Announce Guidance Related to the Effects of COVID-19,
states that Intersect360 Research now expects worldwide HPC market performance to fall short of previously forecast expectations for the current calendar
year by 11% to 12%. The report gives a range of guidance based on uncertain factors; the expected decline is the midpoint of a spread from 6% to 17%
below prior market expectations.
Intersect360 Research had previously estimated total worldwide market revenue for HPC as $38.7 billion in 2019 and had projected 7% year-over-year growth
in 2020. The newly-adjusted forecast wipes out that growth and projects the market will be flat to down 12% instead, with a midpoint expectation of
a 6% loss that would bring the total worldwide HPC market size to approximately $36.6 billion by the end of 2020. This would end a streak of ten straight
growth years for the HPC market.
“We are still early in the process of learning about the COVID-19 pandemic and what it will truly mean for the world,” said Addison Snell, CEO of Intersect360
Research. “That said, we cannot think everything will stay the same. Our data and experience show there will be an adjustment in the HPC market as
a direct result of the spread of the novel coronavirus.”
The report from Intersect360 Research gives a segment-by-segment analysis of the HPC market, broken out by vertical markets, regions, and products and
services. According to the report: “This shortfall will not be evenly spread across market segments. There will be certain segments that may perform
at or even above our previous forecast. Conversely, some segments will be significantly below the average decline.”
“Some segments of HPC, such as public sector research and pharmaceuticals, are directly engaged in the worldwide fight against COVID-19, and important,
incremental investments are buoying these segments,” said Snell. “Other HPC vertical markets, like automotive and aerospace engineering, oil exploration,
and entertainment, are already in significant decline.”
Similarly, the report foresees significant differences between product and services categories, as well as minor differences between regions. The three
segmentations correspond to a consistent market decline.
According to the report: “As HPC budgets tighten, most organizations prioritize staffing and other existing operational expenditures over new acquisitions
and upgrades. In many cases, even when budgets are not cut, the uncertainty causes delays in procurement, which can push spending from one year into
the next. At the other extreme, we expect spending on cloud computing for HPC to significantly increase above and beyond the already-high growth rate
we had projected.”
The newly-released report draws on end-user data gathered in February and March 2020 as part of an annual HPC budget survey, including specific queries
on budget changes related to COVID-19. As part of this report, Intersect360 Research affirms it expects 2019 market performance to remain consistent
with its previous forecast.
Intersect360 Research states it plans to release final 2019 HPC market numbers to clients, along with a revised five-year forecast, shortly. “There are
times it can be difficult to focus on one’s own small role in a crisis,” said Snell. “In this case, our job is to continue to monitor the health of
the HPC industry, while our emotions are focused on the health of our colleagues who comprise it.”
Worldwide High Performance Computing Market Forecast: Pre-Announce Guidance Related to the Effects of COVID-19, as well as the full calendar of Intersect360
Research reports, is available for purchase and download at Inquire with about our full Advisory Service.


About Intersect360 Research

Intersect360 Research is a market intelligence, research, and consulting advisory practice focused on high-performance data center trends, including High
Performance Computing (HPC), artificial intelligence (AI) and machine learning, cloud computing, big data, and hyperscale. Intersect360 Research utilizes
both user-based and supplier-based research to form a complete perspective of market dynamics, trends, and usage models, including both technical and
business applications. The company’s end-user-focused research is inclusive from both a technology perspective and a usage standpoint, allowing Intersect360
Research to provide its clients with total market models that include both traditional and emerging HPC applications.

In addition to its market advisory subscription services, Intersect360 Research offers customers an array of client-specific services, including custom
surveys, white papers, custom analysis, and both marketing and general business consulting.

More information on Intersect360 Research can be found at:

Posted in