This Intersect360 Research report presents the 2018 total market model and five-year forecast for the overall High Performance Computing (HPC) market,
segmented into vertical markets across industry, government, and academia. The forecast horizon is from 2019 through 2023, with compound annual growth
rates (CAGRs) using 2018 as a base.

Intersect360 Research defines HPC as the use of servers, clusters, and supercomputers—plus associated software, tools, components, storage, and services—for
scientific, engineering, or analytical tasks that are particularly intensive in computation, memory usage, or data management. Intersect360 Research
reports available in this series include the following segmentations:

• Products and Services: servers, storage, networks, software, service, cloud, other
  
• Economic sectors:industry, government, academia
• Vertical markets (this report):academia, national security, national research labs, national agencies, state or local governments, bio sciences,
  chemical engineering, consumer product manufacturing, electronics, energy, financial services, large product manufacturing, media and entertainment,
  retail, transportation, other
• Regions:North America, EMEA, Asia-Pacific, Latin America
• Server class (HPC server revenue): entry-level, midrange, high-end, supercomputer
• Cloud categories (HPC cloud revenue):raw cycles, cloud storage, application hosting (SaaS), infrastructure hosting (IaaS, PaaS), other
• Software categories (HPC software revenue):operating environments, developer tools, middleware, storage software, transfer costs, application
  software, other
• Services categories (HPC services revenue):maintenance and repair, system engineering, system integration, training, programming services,
  other
• HPC server market shares(current year only, not forecast)
• HPC storage market shares(current year only, not forecast)

Total HPC market revenue was $36.1 billion in 2018, growing 3.2% over 2017. This was the ninth consecutive year of growth for the HPC market. The commercial
sector continued to be the driving force for the HPC market in 2018. With commercial usage accounting for over half of HPC revenue, this sector
has also continued to have the highest growth rate over the past several years.

Energy and financial services were key growth areas for HPC in 2018; these are joined by chemical engineering as major vertical markets driving HPC
to a 6.8% compound annual growth rate (CAGR) from 2018 through 2023. After another year of slight decline, public-sector (academic and government)
segments will also return to growth over the forecast period.

• HPC system elements
  • Systems, clusters
  • Server technologies
• Storage elements
  • Storage systems
• Interconnect elements
  • System interconnects
• Software elements
  • Operating systems
• Services
• Cloud computing, grid computing, utility computing
• Other technology trends
  • Artificial intelligence and machine learning trends
  • Big Data trends
  • Government programs or investment in HPC

INTRODUCTION

What Is HPC?

HPC 2018 TOTAL MARKET MODEL: VERTICAL MARKETS

2018 Market Performance

Table 1: Total HPC Market Revenue ($000), 2018 vs. 2017, by Vertical Market

Figure 1: Total HPC Market Revenue Share, 2018, by Vertical Market

2018–2023 HPC MARKET FORECAST: VERTICAL MARKETS

Table 2: Total HPC Market Revenue ($000), 2018 Actuals, 2019 to 2023 Forecast, by Vertical Market

Figure 2: Total HPC Market Revenue ($000), 2018 Actuals, 2019 to 2023 Forecast, by Vertical Market

CONCLUSIONS

APPENDIX A: METHODOLOGY

Methodology Updates

APPENDIX B: HPC MARKET DYNAMICS MODEL AND FUNDAMENTAL FORECAST ASSUMPTIONS

Market Maturity

Fundamental Market Dynamics Model

Figure A1: Traditional HPC Market Dynamics

Fundamental Market Assumptions

Fundamental Drivers

Fundamental Market Dampeners

Model-Based Assumptions

Basic Market Drivers

Basic Market Dampeners