The next-generation computing market revenue is expected to be worth $136.46 billion in 2023, rising to $783.64 billion by 2033 with a CAGR of 19.1%, said a report. According to Future Market Insights, adoption is reaching its peak due to the new computing architectures' ability to fulfil the needs for data processing, transfer rates, and energy usage.
In terms of regional growth, the report said that the US is expected to dominate the market with a CAGR of 7.2%, followed by China's expected growth of 8.4% by 2033. China's market is projected to generate a share of $233.3 billion by 2033. Other regions like Japan and India are also expected to see growth in the next-gen computing sector, with Japan's market CAGR expected to be 5.4% and India's market size expected to reach $9.72 billion by 2033.
Key players in the next-generation computing market include Hewlett Packard Enterprise, Huawei, Hitachi, IBM, and Dell Technologies. Businesses are looking to capture a significant share of the booming information storage industry, with investments in cutting-edge technologies like quantum computing and blockchain, said Future Market Insights.
The report said that as next-gen computing technologies like quantum and neuromorphic computing are still in the early stages of research, there is a need for a qualified workforce to support the development of these technologies. The growth of next-gen computing start-ups is being driven by the demand for faster computing performance, access to larger data sets, and advanced analytics, with support from government grants, venture capital investments, and corporate alliances.
The report said that the adoption of next-gen computing is also being driven by the increasing use of technologies like 5G, AI, and ML, which are being funded by government agencies and corporate giants like Goldman Sachs Group, Lockheed Martin, and NASA. The increasing adoption of cloud services due to its remote access and practical storage capabilities is also driving demand for next-gen computing.
Based on end-use, the BFSI industry is expected to lead the market with a CAGR of 9.3% by 2033, while based on offerings, cloud-based services are projected to dominate the market with a CAGR of 21.5% by 2033. The average growth of the next-gen computing industry is expected to be around 1.19x between 2022 and 2023.
In recent developments, IBM's “Eagle” processor, which includes 127 quantum bits, is set to debut, marking a significant step towards using the computational power of quantum physics-based devices. Additionally, computer chips with AI power, like Intel's Xeon processors, are operating more efficiently than traditional CPUs, and the company has also made significant investments in the development of quantum computing.
“The next-generation computing market is expected to see substantial growth over the next decade, driven by advancements in technologies like AI, 5G, and cloud computing,” said Sandipa Saha, Principal Consultant, Future Market Insight. “Businesses across all industries are increasingly adopting these technologies, which is driving demand for next-gen computing solutions and services.”