Next Generation Computing Market is Estimated to Witness High Growth Owing to Developments in Cloud Computing
Next generation computing includes technologies like cloud computing, edge computing and quantum computing. Cloud computing provides on-demand access to shared computing resources like servers, storage, networking, software and analytics over the internet. It allows business and individuals to avoid upfront infrastructure costs while paying only for resources that are consumed. Edge computing moves computing and data storage closer to the sources of data generation like Internet-connected devices. This ensures lower latency and faster insights from real-time analytics of data generated at the edge. Quantum computing uses the principles of quantum mechanics like superposition and entanglement to process information exponentially faster than classical computers for specific problem sets.
The Global Next Generation Computing Market is estimated to be valued at US$ 168.57 Bn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Next Generation Computing are Amazon Web Services (AWS), Alphabet Inc. (Google), AMD (Advanced Micro Devices, Inc.), Apple Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Oracle Corporation, Qualcomm Incorporated, Samsung Electronics Co., Ltd., SAP SE, Supermicro Computer, Inc., Tencent Holdings Limited, and Texas Instruments Incorporated.
The Next Generation Computing Market Size in cloud computing and edge computing adoption across industries, increasing investments in quantum computing research and expanding application landscape of advanced computing technologies.
Technological advancements fueling the next generation computing market include developments in cloud, edge and quantum computing offerings, next-gen processors and hardware, 5G and wireless technologies enabling IoT/edge devices, artificial intelligence and machine learning.
Market Drivers
Rapid increase in data volumes generated across industries is driving the need for scalable and efficient next generation computing platforms. Proliferation of IoT devices connected over networks is another key factor pushing the demand for distributed and real-time computing power. Growing requirement of advanced analytics, simulation and modeling capabilities for applications in transportation, healthcare and manufacturing is boosting investments in high performance cloud, edge and quantum solutions.
Challenges in Next Generation Computing Market
The Next Generation Computing Market Size And Trends is currently facing challenges such as high infrastructure costs for setting up data centers and lack of skilled workforce. Setting up data centers requires huge capital investments which is a major challenge for small and medium organizations. There is also a lack of skills required for managing big data, cloud, artificial intelligence and other emerging technologies. Setting up high performance computing infrastructure also requires significant upfront costs which small players find difficult to afford. Cybersecurity also poses a major challenge as more applications and data shift to the cloud. Protecting massive amounts of data from unauthorized access and ensuring privacy has become critical.
SWOT Analysis
Strength: Scalability and flexibility of cloud computing; Growing demand for high performance data analytics and AI Weakness: High initial infrastructure costs; Cybersecurity and privacy challenges Opportunity: Growth of IoT and edge computing; Increased focus on automation and application modernization Threats: Dependency on few technology giants; Stringent data protection regulations
Geographically, North America currently holds the largest share in the next generation computing market mainly due to heavy investments in cloud computing and data center build outs by major tech companies in the US. The Asia Pacific region is expected to be the fastest growing regional market during the forecast period driven by rapid digital transformation initiatives across industries in major economies like China and India. Countries are implementing national level programs to promote adoption of advanced computing technologies.
In terms of value, the next generation computing market is highly concentrated in the US currently, accounting for over 30% of the global market size. This is attributed to widespread cloud adoption by businesses as well as strategic investments by leading technology firms in the country to develop high performance computing infrastructure and next generation capabilities. China is expected to emerge as the fastest growing geographical market during 2024-2031 driven by government support for digitalization of industries using emerging technologies. Get More Insights On, Next Generation Computing Market For More Insights Discover the Report In language that Resonates with you
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