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Next-generation Computing Market Size, Share, Trends, and Growth Forecasts 2026-2031 | AI, Quantum, and Edge Investment Drive 19.02% CAGR to USD 650.48 Billion

globenewswire.com
NVDA The article highlights a leading GPU vendor's fiscal 2025 datacenter revenue doubling year-over-year, indicating massive investment in AI computing. NVIDIA is a key player in this space with its Blackwell-class processors. INTC Intel is mentioned as a provider of processors and accelerators in the next-generation computing market. The article discusses the overall market growth driven by advanced processors, but doesn't provide specific sentiment for Intel. AMD AMD is listed as a provider of processors and accelerators in the next-generation computing market. The article focuses on market trends and growth drivers, without specific sentiment for AMD. MSFT Microsoft is identified as a cloud provider introducing dedicated AI instances and bundling professional services, contributing to recurring revenue and customer reliance on specialized computing toolchains. This indicates a positive role in the AI computing market. GOOGL Alphabet (Google Cloud) is mentioned as a cloud provider offering dedicated AI instances and professional services, which contributes to recurring revenue and customer reliance on specialized computing toolchains. This suggests a positive market position. AMZN Amazon Web Services is highlighted as a cloud provider introducing dedicated AI instances and bundling professional services, creating recurring revenue and increasing customer reliance on specialized computing toolchains. This indicates a positive market role. IBM IBM is listed as a company in the next-generation computing market, but the article does not provide specific details or sentiment regarding its performance or role. DELL Dell Technologies is mentioned as a company in the next-generation computing market. The article focuses on market trends and growth drivers, without specific sentiment for Dell. HPE Hewlett Packard Enterprise is listed as a company in the next-generation computing market. The article does not provide specific sentiment or details about HPE's performance. CSCO Cisco Systems is mentioned as a provider of interconnect and networking solutions within the next-generation computing market. The article does not offer specific sentiment for the company. ORCL Oracle is listed as a company in the next-generation computing market, but the article does not provide specific details or sentiment regarding its performance or role. IONQ IonQ is mentioned as a player in quantum computing, a segment expected to see the strongest growth. The article notes increased investment in trapped-ion systems, which IonQ specializes in. RIGL Rigetti Computing is mentioned in the context of quantum computing, a segment poised for significant growth. The article notes increased investment in quantum systems, implying a positive outlook for companies like Rigetti.

Next-generation Computing Market Size, Share, Trends, and Growth Forecasts 2026-2031 | AI, Quantum, and Edge Investment Drive 19.02% CAGR to USD 650.48 Billion Dublin, Nov. 05, 2026 (GLOBE NEWSWIRE) -- "Next-generation Computing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

Next-generation Computing Market to Reach USD 650.48 Billion by 2031

The global next-generation computing market is projected to grow from USD 228.76 billion in 2025 to USD 272.28 billion in 2026. By 2031, the market is forecast to reach USD 650.48 billion, expanding at a CAGR of 19.02% during 2026-2031. Growth is being driven by generative AI infrastructure, High-Performance Computing (HPC), quantum technology investments, edge computing adoption, advanced processors, photonic interconnects, and rising demand for cloud-based computing capacity.

Generative AI accelerates computing infrastructure demand

Rapid adoption of large language models and image generation platforms is reshaping global demand for processors, memory, networking, and data-centre infrastructure. Fiscal-2025 datacenter revenue at a leading GPU vendor more than doubled year-over-year, demonstrating the scale of investment flowing into AI computing.

Blackwell-class processors integrating 208 billion transistors are supporting trillion-parameter inference while reducing energy requirements compared with prior-generation technology. Cloud providers are also introducing dedicated AI instances that combine low-latency networking with pooled high-bandwidth memory. These services allow medium-sized businesses to access exa-scale computing capacity without making extensive upfront infrastructure investments.

System integrators are re-engineering board-level power delivery and developing software platforms capable of scheduling workloads across thousands of GPUs. These advancements are reducing deployment barriers, accelerating hardware refresh cycles, and strengthening demand across the next-generation computing market.

Government funding strengthens quantum technology development

Public investment is creating new opportunities for quantum computing research, commercialisation, and workforce development. In January 2025, the United States Department of Energy opened USD 625 million in new awards for quantum research. The United Kingdom allocated GBP 121 million (USD 164.34 million) to national testbeds and business accelerators.

Japan and India have also expanded sovereign quantum budgets to improve supply-chain resilience for dilution refrigerators, photonics, and control electronics. These funding programmes connect universities, national laboratories, and private suppliers through long-term partnerships while sharing the cost and risk of prototype development. They are also supporting patent activity in qubit connectivity, cryogenic packaging, and error-mitigation algorithms.

Quantum-skilled workforce shortages remain a constraint

Limited access to specialised talent continues to slow quantum computing adoption. A 2025 industry survey found that 45% of quantum-technology stakeholders identified workforce scarcity as their leading adoption barrier. Quantum algorithm development requires expertise spanning physics, mathematics, and computer science, while many established academic programmes do not provide sufficient multidisciplinary training.

Enterprises are responding with internal boot camps, university partnerships, and jointly funded academic positions. Governments are also expanding scholarships and PhD enrolment. However, lengthy training periods continue to delay planned deployments in cryptography, optimisation, financial modelling, and material-science applications.

Additional factors influencing market development include:

Hardware and services support broad market expansion

Next-generation computing hardware generated USD 106.59 billion in 2025, supported by increasing adoption of GPUs, tensor processing units, advanced memory, and photonic interconnects. Exascale-class boards with six HBM stacks are doubling bandwidth and enabling training batches up to 10 larger. Memory manufacturers are expanding capacity in preparation for a projected fifteen-fold increase in HBM demand for HPC and AI by 2035.

Services are growing rapidly as organisations seek support for architecture design, secure deployment, life-cycle management, AI-pipeline optimisation, managed quantum workloads, and cooling analytics. Cloud providers are bundling professional services with platform subscriptions, creating recurring revenue while increasing customer reliance on specialised computing toolchains.

HPC remains a major source of revenue due to established demand in weather modelling, fluid dynamics, scientific research, and financial risk analysis. New exascale systems combine x86 or Arm CPUs with next-generation GPUs and advanced networking fabrics, delivering single-precision performance beyond seven exaflops.

Quantum computing is expected to record the strongest growth, with a projected CAGR of 34.05%. Recent developments include a 5,000-plus-qubit annealer designed for combinatorial optimisation and increased investment in trapped-ion and neutral-atom systems. Early hybrid deployments indicate that quantum kernels may accelerate Monte Carlo simulation convergence in financial risk models.

Regional outlook for the next-generation computing market

North America accounted for 40.80% of global market revenue in 2025. The United States represented approximately three-quarters of regional spending, supported by public financing, venture capital availability, national laboratory research, and leading cloud providers. Quantum testbeds integrating neutral-atom arrays with exascale supercomputers are reinforcing the region's technological leadership.

Asia-Pacific is forecast to post the fastest CAGR of 22.45%. China, Japan, and India are expanding semiconductor incentives and funding quantum-research fellowships. Hyperscale operators are also increasing colocation capacity in Singapore, Sydney, and Mumbai to support AI workloads. Continued 5G-Advanced roll-outs are creating additional edge-computing nodes and encouraging greater workload localisation.

Europe is advancing next-generation computing through digital sovereignty and sustainability initiatives. Germany's Fraunhofer institutes are developing neuromorphic systems for sub-watt inference, while French laboratories are testing photonic-based quantum routers. Long-term renewable-energy agreements among European data-centre operators are further aligning computing infrastructure investment with regulatory and environmental priorities.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

4.1 Market Overview

4.2 Market Drivers

4.2.1 Demand surge for generative-AI compute scaling

4.2.2 Government funding waves for quantum-tech hubs

4.2.3 Edge-to-cloud convergence for ultra-low-latency IoT

4.2.4 Falling GPU TCO via cloud credits and open-IP chiplets

4.2.5 Liquid-cooling breakthroughs enabling dense HPC racks

4.2.6 Secondary market for de-commissioned AI accelerators

4.3 Market Restraints

4.3.1 Quantum-skilled talent shortage

4.3.2 High CAPEX and integration risk for heterogeneous clusters

4.3.3 Grid-power and permitting bottlenecks for hyperscale DCs

4.3.4 Export-control limits on advanced HBM and GPU shipments

4.4 Value Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces

4.7.1 Bargaining Power of Suppliers

4.7.2 Bargaining Power of Buyers

4.7.3 Threat of New Entrants

4.7.4 Threat of Substitutes

4.7.5 Intensity of Competitive Rivalry

4.8 Impact of Macroeconomic Factors

4.9 Investment Analysis

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Component

5.1.1 Hardware

5.1.1.1 Processors and Accelerators

5.1.1.2 Memory and Storage

5.1.1.3 Interconnect and Networking

5.1.1.4 Thermal and Power Solutions

5.1.2 Software

5.1.3 Services

5.2 By Computing Paradigm

5.2.1 High-Performance Computing (HPC)

5.2.2 Quantum Computing

5.2.3 Optical/Photonic Computing

5.2.4 Neuromorphic Computing

5.2.5 Edge / Near-Edge Computing

5.2.6 Cloud-Native Accelerated Computing

5.2.7 Hybrid and Other Emerging

5.3 By Deployment Mode

5.3.1 Cloud

5.3.2 On-Premise

5.3.3 Hybrid

5.4 By End-user Industry

5.4.1 BFSI

5.4.2 Healthcare and Life Sciences

5.4.3 Automotive and Transportation

5.4.4 Energy and Utilities

5.4.5 Aerospace and Defense

5.4.6 Media and Entertainment

5.4.7 IT and Telecom

5.4.8 Retail and e-Commerce

5.4.9 Manufacturing and Industrial

5.4.10 Government and Public Sector

5.4.11 Other End-user Industries

5.5 By Geography

5.5.1 North America

5.5.1.1 United States

5.5.1.2 Canada

5.5.1.3 Mexico

5.5.2 South America

5.5.2.1 Brazil

5.5.2.2 Argentina

5.5.2.3 Rest of South America

5.5.3 Europe

5.5.3.1 Germany

5.5.3.2 United Kingdom

5.5.3.3 France

5.5.3.4 Italy

5.5.3.5 Russia

5.5.3.6 Rest of Europe

5.5.4 Asia Pacific

5.5.4.1 China

5.5.4.2 Japan

5.5.4.3 South Korea

5.5.4.4 India

5.5.4.5 ASEAN

5.5.4.6 Rest of Asia Pacific

5.5.5 Middle East and Africa

5.5.5.1 Middle East

5.5.5.1.1 Saudi Arabia

5.5.5.1.2 UAE

5.5.5.1.3 Turkey

5.5.5.1.4 Rest of Middle East

5.5.5.2 Africa

5.5.5.2.1 South Africa

5.5.5.2.2 Nigeria

5.5.5.2.3 Rest of Africa

6 COMPETITIVE LANDSCAPE

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)

6.4.1 Alibaba Group Holding Ltd.

6.4.2 Amazon Web Services Inc.

6.4.3 Alphabet Inc. (Google Cloud)

6.4.4 Microsoft Corp.

6.4.5 IBM Corp.

6.4.6 NVIDIA Corp.

6.4.7 Intel Corp.

6.4.8 Advanced Micro Devices Inc.

6.4.9 Cisco Systems Inc.

6.4.10 Oracle Corp.

6.4.11 NEC Corp.

6.4.12 Hewlett Packard Enterprise

6.4.13 Dell Technologies

6.4.14 Fujitsu Ltd.

6.4.15 Graphcore Ltd.

6.4.16 D-Wave Quantum Inc.

6.4.17 IonQ Inc.

6.4.18 Rigetti Computing Inc.

6.4.19 ARM Ltd.

6.4.20 PsiQuantum Corp.

6.4.21 Cerebras Systems Inc.

6.4.22 Tencent Holdings (Tencent Cloud)

6.4.23 Baidu Inc.

6.4.24 Huawei Technologies Co. Ltd.

6.4.25 Samsung Electronics Co. Ltd.

6.4.26 Graphcore Ltd.

6.4.27 Cerebras Systems Inc.

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/khs7g5

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