Bare Metal Cloud Market

Bare Metal Cloud Market Outlook (2024 to 2034)

Revenue from the global bare metal cloud market is estimated at US$ 18.21 billion in 2024. The market is forecasted to expand at a remarkable 23.2% CAGR and climb to a size of US$ 146.73 billion by the end of 2034. Growing investments in developing technologies such as big data, IoT, mobility, and social media are playing an important role in driving market growth.

Increasing demand for dedicated servers to minimize latency in operations and the growing number of IoT applications provided on bare metal clouds are other important factors contributing to the growth of the market. Bare metal cloud services are expected to be majorly procured by small and medium enterprises. The services help in enhancing the business functionality and reduce operating costs. Therefore, bare metal cloud services are witnessing increased demand among business organizations. In addition, the servers use a comprehensible infrastructure that minimizes manual labor and errors.

Bare metal cloud offers high performance with ongoing scale, coupled with dedicated servers and utmost customization. The growing IT industry and expanding reliance on databases is an evident sign for the market, which is presumed to steer demand. Furthermore, financial institutions heavily rely on data, while the threat of data breaches is expected to primarily push demand for bare metal clouds in the BFSI industry.

Key Market Growth Drivers

• Demand for bare metal cloud solutions is increasing from companies seeking high-performance computing (HPC) and flexible infrastructure modification.
• Bare metal cloud solutions offer dedicated servers without the burden of virtualization, enhancing performance for demanding applications.
• Bare metal cloud provides better security compared to standard cloud setups by eliminating shared resources and multi-tenancy issues, attracting companies in finance and healthcare with strict data security regulations.
• Surging popularity of big data analytic applications, which require robust computing resources, is a key factor driving the expansion of the bare metal cloud market size.
• Bare metal cloud services offer the flexibility and processing capacity needed for large-scale data processing and analysis.
• Ongoing technological developments and integration with other cloud services are boosting the adoption rate of bare metal cloud, marking a significant market trend.
• Businesses find bare metal cloud simpler to implement and maintain due to improved interoperability and management tools.
• Continuous expansion of computing applications requiring low latency and high performance is contributing to bare metal cloud market trends.
• Companies with steady workloads and long-term projects increasingly choose bare metal cloud for its affordability and the pay-as-you-go model, which offers cost flexibility and the freedom to scale resources up or down based on demand.

Report Attribute	Detail
Bare Metal Cloud Market Size (2024E)	US$ 18.21 Billion
Forecasted Market Value (2034F)	US$ 146.73 Billion
Global Market Growth Rate (2024 to 2034)	23.2% CAGR
North America Market Share (2024E)	38%
East Asia Market Growth Rate (2024 to 2034)	24.8% CAGR
SMEs Segment Value (2034F)	US$ 95.37 Billion
Telecommunications Segment Value (2034F)	US$ 65.36 Billion
Key Companies Profiled	Oracle; Microsoft; Google; IBM; Amazon Web Services (AWS); Dell; Lumen; Rackspace; Limestone Networks; Huawei Cloud; OVHcloud; Pure Storage; Hivelocity; Scaleway; Equinix; Zenlayer.

Why are Bare Metal Cloud Solution So Important?

“Extensive Use of Bare Metal Cloud Systems for HPC and Flexibility to Modify Infrastructure”

High-performance computing (HPC) and the flexibility of optimizing cloud infrastructure have become critical requirements for various companies, which are driving the adoption of bare metal cloud solutions. Bare metal cloud solutions consist of the provision of dedicated servers, free from the complications of virtualization, thus utilizing the maximum capability of the resources.

Bare metal cloud is well suited for heavy computing workloads with highly customized hyperscale configurations and performance optimizations such as big data processing, research and development, and deep simulation. This technology provides better performance and flexibility for companies that need to have the computing infrastructure suited to all their specific requirements.

What are the Roadblocks in the Growth Pathway of the Market?

“Requirement of Highly Skilled Professionals for Management”

Specific operational skills and experience are essential when it comes to managing bare metal cloud systems since they deal with physical assets that are directly accessed without the usual covers of virtualization. This is because when several factors affect systems implementation, it becomes difficult to manage, expensive to implement, and in some instances time-consuming, especially for organizations that do not have the necessary technological support and or skills.

This also poses a challenge, as skilled professionals are usually required to manage, maintain, and troubleshoot the infrastructure, which can be problematic for small organizations or those lacking adequate IT support. These factors are adversely affecting bare metal cloud market growth.

Country-wise Insights

North America is projected to hold 38% of the worldwide bare metal cloud market share in 2024 due to strong IT infrastructure, high investment in advanced technologies, and well-established technology companies. Demand for bare metal is increasing in the region by various industries such as finance, healthcare, media, and various others.

How are Market Players Leveraging the Lucrative Opportunities the United States?

“High Demand for High-Performance Infrastructure for Big Data Analytics”

Attribute	United States
Market Value (2024E)	US$ 4.98 Billion
Growth Rate (2024 to 2034)	21.8% CAGR
Projected Value (2034F)	US$ 35.95 Billion

Development of big data and analytics in the United States is boosting the need for reliable and expandable computer sources. Data-driven decision-making is becoming more important for businesses to improve their operations, consumer insights, and strategic planning. This growing demand is creating excellent opportunities for bare metal cloud market players in the United States as these systems handle massive data sets and intricate analytical procedures with ease and without the performance penalty that comes with virtualization.

Companies in the United States are adopting bare metal cloud solutions due to their capacity to meet increasing demand for high-performance infrastructure essential for big data analytics.

What is Complementing Market Expansion in Japan?

“Growing Implementation of Hybrid Cloud Strategies”

Attribute	Japan
Market Value (2024E)	US$ 1.16 Billion
Growth Rate (2024 to 2034)	25% CAGR
Projected Value (2034F)	US$ 10.78 Billion

Companies in Japan are increasingly implementing hybrid cloud strategies that encompass public, private, and bare metal cloud infrastructure to meet diverse requirements. These strategies rely heavily on bare metal cloud solutions for the control and flexibility needed for seamless hybrid deployments.

By leveraging the bare metal cloud to optimize their IT infrastructure, businesses benefit from the public cloud's scalability and affordability for less sensitive workloads while ensuring high performance and security for critical applications. This balanced approach enhances the overall effectiveness of IT operations, optimizes resource utilization, and ensures compliance with data regulations.

Category-wise Insights

Based on application, the market is divided into AI & machine learning, servers, render farms, building applications, NoSQL & relational databases, custom virtual environments, and big data. The application of bare metal cloud is increasing in AI & machine learning due to its capacity to deliver high-performance computing power and low latency, which is needed for complex algorithms and massive data sets processing.

Why is Implementation of Bare Metal Cloud Increasing in the BFSI Sector?

“Bare Metal Cloud Protecting Sensitive Financial Data from Breaches”

Attribute	BFSI
Segment Value (2024E)	US$ 3.73 Billion
Growth Rate (2024 to 2034)	23.6% CAGR
Projected Value (2034F)	US$ 30.96 Billion

Use of bare metal cloud is increasing in the banking, financial services, and insurance (BFSI) sector to improve security, and performance, and meet regulatory compliance capabilities. By providing dedicated hardware resources, bare metal cloud ensures high performance and low latency. Real-time data analytics and handling large transaction volumes require these features.

The security features of bare metal cloud help protect sensitive financial data from breaches by the stringent legal requirements of the BFSI sector. Bare metal cloud is an attractive alternative for financial firms looking to improve their IT infrastructure due to its advantages related to security, compliance, and performance.

What Makes Bare Metal Cloud Solutions Cost-Effective for SMEs?

“Bare Metal Cloud Eliminating Need for Virtualization to Reduce Expenses”

Attribute	SMEs
Segment Value (2024E)	US$ 11.29 Billion
Growth Rate (2024 to 2034)	23.8% CAGR
Projected Value (2034F)	US$ 95.37 Billion

Cost-effectiveness, scalability, and performance advantages of bare metal cloud are driving increased demand among SMEs (small- and medium-sized enterprises). Bare metal cloud offers dedicated server resources without the expense of virtualization, ensuring high performance and reliability for critical applications. This allows SMEs to manage demanding tasks such as e-commerce platforms and data analytics effectively.

As their business expands, SMEs can quickly scale their infrastructure and optimize IT expenditures thanks to the various pricing models and scalability provided by bare metal cloud solutions. These benefits make bare metal cloud an ideal option for SMEs seeking reliable, high-performance IT solutions without the hassle and expense of conventional dedicated servers.

Competitive Landscape

Key players in the global bare metal cloud industry are focusing on expanding their portfolio by including several services such as managed services, specialized packages, hybrid cloud options, and others. This portfolio diversification is helping them attract various companies from different industries or sectors.

• In June 2024, Hivelocity, a pioneer in colocation, private cloud, and bare metal hosting solutions, which Colohouse recently bought, announced the release of its new VMware-powered private cloud product. Utilizing the most recent iterations of the VMware Cloud Foundation (VCF), Cloud Director, and NSX architectures, this new service will offer completely integrated services and capabilities for backup, restore, and disaster recovery (DR).
• In March 2024, the world's first line of RISC-V servers was introduced by European cloud operator Scaleway, which claims this is a "firm commitment to technological independence" in a market where companies are increasingly vying for control over semiconductor production.
• In January 2024, in response to India's growing need for XaaS, Equinix introduced virtual network services and bare metal as a service.
• In November 2023, OVHcloud US, a leading provider of worldwide cloud services, announced the release of its second generation of Scale Bare Metal servers. This next series of high-performance Scale Bare Metal servers was first introduced in 2021 and offers superior processing capability.
• In January 2022, Rackspace Technology, a globally renowned player, announced its plan to acquire Just Analytics, an established provider of cloud-based data, analytics, and Artificial Intelligence (AI).
• In January 2022, Zenlayer announced C+ funding from Telkom Indonesia. Telkom is the largest telecommunications company in Indonesia. The C+ funding brings the financing round to US$ 62 million.
• In January 2022, Amazon Web Services (AWS) launched a new EC2 instance type for high-performance computing tasks.

Fact.MR provides detailed information about the price points of key providers of bare metal cloud solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Bare Metal Cloud Market Research

• By Application :

  • AI & Machine Learning
  • Servers
  • Render Farms
  • Building Application
  • NoSQL & Relational Databases
  • Custom Virtual Environments
  • Big Data

• By Organization Size :

  • SMEs
  • MSMEs
  • Large Organizations

• By End-Use Industry :

  • Telecommunications
  • BFSI (Banking, Financial Services, & Insurance)
  • Retail & Consumer Goods
  • Manufacturing
  • Pharmaceuticals

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa