2025 Next Generation Computing Industry Trends Report: Long-Term Outlook Through 2034

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How Large Will the Next Generation Computing Market Size By 2025?
The market size for next-generation computing has seen swift expansion over the recent past. It is anticipated to swell from $277.04 billion in 2024 to $327.17 billion in 2025, with a compound annual growth rate (CAGR) of 18.1%. Factors that contribute to the increment in the historical period include the progression of consumer electronics, cybersecurity issues, mobile computing, the need for superior computing performance, and advancements in networking infrastructure.

How Big Is the Next Generation Computing Market Size Expected to Grow by 2029?
The market for next-generation computing is projected to experience a swift expansion in the coming years. By 2029, it is predicted to reach a value of $667.19 billion, with a compound annual growth rate (CAGR) of 19.5%. The anticipated growth during the prediction period is due to increasing workload complexity, a focus on eco-friendly computing, government investment in research, and human augmentation. Noteworthy emerging trends during this period include AI and machine learning integration, neuromorphic computing, in-memory computing, hybrid and multi-cloud computing, solid data analytics, and visualization.

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Which Key Market Drivers Powering Next Generation Computing Market Expansion and Growth?
The surge in the incorporation of artificial intelligence is anticipated to accelerate the rise of the next-generation computing market. Utilizing AI means integrating its technologies and solutions into a wide range of sectors, businesses, and applications with the goal of enhancing decision-making processes, task automation, efficiency enhancement, and accomplishment of specific goals. The increasing dependence on AI, particularly machine learning and deep learning, needs considerable computational power. This demand stimulates the evolution of advanced technologies such as quantum and neuromorphic computing. These technologies can execute complex AI-driven tasks more rapidly and efficiently than conventional computing techniques. For example, the International Business Machines Corporation reported in May 2022 that AI integration in businesses rose to 35% in 2022, witnessing a growth of 4% over 2021. Furthermore, 13% more organizations are projected to utilize AI in 2022 relative to 2021. Hence, the upsurgence in AI adoption is projected to fuel the growth of the next-generation computing market. The Next Generation Computing Market is being fueled by an increase in manufacturing activities. The process of transforming raw materials or components into finished products through the use of tools, labor, machinery, and chemical processing is known as manufacturing. Next-generation computing technologies have become indispensable to contemporary manufacturing, enabling enhanced efficiency, precision, and flexibility throughout the production process. For instance, according to Statistics Canada, the manufacturing industry in Canada saw significant growth in February 2023, with total sales rising by 17.9% to reach $850.9 billion in 2022. Hence, the burgeoning manufacturing activities are propelling the ascension of the next-generation computing market.

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Which Fast-Growing Trends Are Poised to Disrupt the Next Generation Computing Market?
Leading businesses in the next-generation computing sector are creating advanced technologies like integrated hybrids to meet the growing demand for powerful, energy-saving, and flexible computing solutions. Integrated Hybrid, an Azure Quantum feature, provides researchers with the ability to effortlessly merge classical and quantum computing resources. For example, Microsoft Corporation, an American tech company, introduced Integrated Hybrid, the next wave of hybrid quantum computing, in March 2023. This pioneering technology comes with an Azure Quantum feature that enables the seamless blending of classical and quantum computing resources. It streamlines the creation and implementation of hybrid quantum computing applications. This interface simplifies the inherent complexities of various hardware platforms, allowing researchers to concentrate on crafting their applications.

What Are the Emerging Segments in the Next Generation Computing Market?
The next generation computing market covered in this report is segmented -

1) By Type: High Performance Computing, Quantum Computing, Brain Type Computing, Approximate And Probabilistic Computing, Energy Efficiency Computing, Thermodynamic Computing, Memory Based Computing, Optical Computing, Edge Computing, Other Types
2) By Component: Hardware, Software, Solution
3) By Deployment: Cloud, On-Premise
4) By Enterprise Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
5) By End-Use Industry: Banking, Financial Services And Insurance (BFSI), Energy And Power, Transportation And Logistics, Chemicals, Academic, Government, Information Technology (IT) And Telecommunications, Healthcare, Space And Defense, Manufacturing

Subsegments:
1) By High Performance Computing: Supercomputers, Distributed Computing Systems
2) By Quantum Computing: Quantum Annealers, Gate Model Quantum Computers
3) By Brain Type Computing: Neuromorphic Computing, Spiking Neural Networks
4) By Approximate And Probabilistic Computing: Stochastic Computing, Probabilistic Programming
5) By Energy Efficiency Computing: Low-Power Processors, Green Computing Solutions
6) By Thermodynamic Computing: Thermal Management Systems, Thermodynamic Models
7) By Memory Based Computing: In-Memory Computing, Memristor Technology
8) By Optical Computing: Photonic Processors, Optical Interconnects
9) By Edge Computing: Edge Devices, Edge Analytics
10) By Other Types: Hybrid Computing, Reversible Computing

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Who Are the Global Leaders in the Next Generation Computing Market?
Major companies operating in the next generation computing market report are Amazon Web Services Inc., Alphabet Inc., Google LLC, Microsoft Corporation, Alibaba Group Holding Limited, Dell Inc., Lenovo Group Ltd., Intel Corp., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Honeywell International Inc., Broadcom Inc., SAP SE, Micron Technology Inc., Hewlett Packard Enterprise Development LP, NVIDIA Corp., Salesforce, NEC Corporation, Advanced Micro Device Inc., Infosys Limited, VMware Inc., Atos SE, Equinix Inc., NetApp Inc., Juniper Networks Inc., Citrix Systems Inc., Splunk Inc., Pure Storage Inc., Nutanix Inc., ISM Corporation

Which are the Top Profitable Regional Markets for the Next Generation Computing Industry?
North America was the largest region in the next generation computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the next generation computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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