The Next Generation Computing Market refers to upcoming technologies that aim to increase computational power and capabilities beyond what current computing systems can achieve. These technologies include quantum computing, neuromorphic computing and photonic computing among others.
Next Generation Computing Market Size promise significantly higher speeds than conventional computers through revolutionary architectures and methods of computation. Quantum computing, for instance, leverages the principles of quantum mechanics like superposition and entanglement to solve complex problems exponentially faster than classical computers. Neuromorphic computing draws inspiration from the human brain and utilizes analogue circuits and neuron-like logic to achieve cognitive abilities such as pattern recognition, knowledge representation and predictive analysis. Photonic computing, on the other hand, utilizes light rather than electricity for information processing and transmission enabling unrivalled data transfer speeds.
The Global Next Generation Computing Market is estimated to be valued at US$ 12 Billion in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 To 2031.
With edge and cloud computing becoming ubiquitous, the demand for massively parallel computing and low-power platforms is surging. Edge/fog computing promises seamless experience through localized processing and 5G networks will drive further requirement. Moreover, mainstream adoption of AI/ML is driving the need for faster inference through dedicated accelerators on edge and cloud.
Key Takeaways
Key players operating in the Next Generation Computing are IBM, Intel Corporation, Microsoft, Google, Nvidia, Qualcomm among others. IBM, in particular, is a pioneer in quantum computing and has made several achievements in the field. Some key quantum computers developed and operational at IBM include Osprey, Hummingbird and Condor. Nvidia also possesses considerable market share owing to its pioneering work in GPUs and deep learning chips.
The growing demand for faster computation from various sectors such as healthcare, automotive, banking, manufacturing among others is a key factor driving the Next Generation Computing Market. Real-time analytics, simulation modeling and improved user experiences require exponentially higher computation which can only be delivered by next generation systems.
Established technology giants are expanding globally to tap international research communities and customers. IBM recently opened its first IBM Q Quantum Computation Center in Germany to advance joint research with European partners. Google is also collaborating with various research universities across continents for its quantum initiatives. With coming 5G revolution and advances in the relevant fields, the Next Generation Computing Market is poised for a Global expansion in the forecast period.
Market Key Trends
One of the major trends in the Next Generation Computing Companies is the increasing focus on Photonic Computing. Several startups as well as tech giants are making substantial R&D investments towards developing photonic circuits and hardware for information processing. Photonic circuits are more energy efficient and can enable terabit/second level data transmission speed critical for IoT and edge applications. For instance, Microsoft has demonstrated transistors based on light instead of electrons that can theoretically process data a thousand times faster than existing chips.
Porter's Analysis
Threat of new entrants: The next generation computing market requires huge R&D investments and technological expertise which makes entry difficult for new players.
Bargaining power of buyers: Large buyers in industries like defense, automotive have significant bargaining power compared to fragmented sellers in this emerging market.
Bargaining power of suppliers: Key suppliers of semiconductors and processors have some bargaining power due to their differentiated technology and expertise in the next generation domain.
Threat of new substitutes: Substitution threat is low as next generation technologies like quantum and artificial intelligence are supplementary rather than substitutes to each other.
Competitive rivalry: Being an emerging strategic domain, competition is intense among technology giants to gain early mover advantage through innovations.
Geographical Regions
North America currently dominates the next generation computing market in terms value due to the presence of key technology companies and defense organizations involved in research.
The Asia Pacific region is expected to be the fastest growing market during the forecast period supported by increasing investments in innovation by China, India along with adoption across industrial and commercial sectors in the region.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)