Bare Metal Cloud Market

Global Bare Metal Cloud Market Outlook (2022-2032)

The bare metal cloud industry is expected to enjoy year-on-year (YoY) growth of around 25% in 2022, to total a valuation of US$ 12 Bn. Application in AI and machine learning displayed positive growth of approx. 22% Y-o-Y to total a market valuation of around US$ 2.5 Bn, while big data application was up by around 29% Y-O-Y to reach nearly US$ 2 Bn.

Anticipated Market Value by 2032	USD 111.75 Bn
Estimated CAGR (2022-2032)	25%
Projected Market Value in 2022	USD 12 Bn
Share of North America (2022-2032)	30%
Notable Key Players of Bare Metal Cloud Market	Oracle Microsoft Google IBM Amazon Web Services (AWS) Dell

Bare metal cloud services are expected to be majorly procured by small and medium enterprises. The services help in enhancing the business functionality and to reduce operating costs. Therefore, bare metal cloud services witness a surged demand among business organizations. In addition, the servers use a comprehensible infrastructure that minimizes manual labor and errors.

On the contrary, problems faced while integrating bare metal cloud services with on-premise security management applications and tools can hinder the market growth in the coming time.

Revenue Analysis of Bare Metal Cloud from 2017 to 2021 Vs Market Forecast 2022 to 2032

As per Fact.MR, a market research and competitive intelligence provider, historically, from 2016-2020, the bare metal cloud market has illustrated exponential growth in demand owing to the unprecedented outbreak of COVID-19. Elevated work from home culture has drastically propelled demand for bare metal cloud management software solutions owing to efficient flexibility and scalability.

Growing IT & services industry across the globe is likely to emphasize demand over the coming years. The bare metal cloud market is expected to surge at a CAGR of 25% over the projected time frame (2022- 2032).

It has been observed that spending on private cloud services expanded drastically in the past half-decade. Spending on private cloud services registered a growth of 28% Y-o-Y owing to higher reliability of businesses on cloud services.

Bare metal cloud offers high performance with ongoing scale, coupled with dedicated servers and utmost customization. The swelling IT industry and expanding reliance on data bases is an evident sign for the market, which is presumed to steer demand.

Furthermore, banking institutes having high reliance on data, while threat of data breach will primarily push demand for bare metal clouds in the BFSI industry.

• The market in Europe is projected to witness a CAGR of 25% during the assessment period of 2022-2032.
• The U.S is expected to corner a significant amount of revenue market share of nearly 85% in the North America market.
• Telecommunications industry is presumed to register a momentous CAGR of around 23%, whereas, retail & consumer goods are foreseen to witness a CAGR of nearly 20% through 2031.

What are the factors driving the Global Bare Metal Cloud Market?

Increased Investment in Developing Technologies to Drive the Industry

The growing investment in developing technologies such as; big data, IoT, mobility, and social media are likely to play a salient role in driving the market in the assessment period. Furthermore, the increased demand for dedicated servers to minimize latency in operations and the growing number of IoT applications provided on bare metal clouds are identified to be other important factors contributing to the rise of the market.

Several enterprises have started adopting cloud-based subscription services. Since the cloud continues to show a constant rise and is the fastest-growing area of technology, the bare metal cloud market is likely to bolster through the forecast period. Additionally, growth in colocation services and the rising number of data centers are expected to augment the industry in the assessment time.

How are the Large Enterprises Contributing to the Market Expansion?

Growing Demand for Efficient Storage Service to Boost the Market

The large enterprise segment is projected to experience a higher market share due to the increasing production of data volume. In addition, the need for an efficient storage service and automated data center operation is expected to further boost the demand for bare metal cloud services.

Moreover, the requirement of bare metal cloud services among large enterprises owing to the need to manage, maintain and control their own IT cloud infrastructure is further expected to augment the market in the coming time.

Country-Wise Analysis

Why is the U.S Expected to be the Most Promising Region?

Presence of Key Players to Play Salient Role in Bolstering the Market

Presence of robust end-use sectors and developed IT & Service infrastructure, the U.S is projected to be the most lucrative region during the forecast period. North America is anticipated to garner about 30% of the market share in the forecast period. In the region, the US is predicted to acquire the largest market share in the assessment period.

The U.S is home to globally renowned players such as; Google, Apple, NVidia, and others. The presence of such technological giants in the region plays a crucial role in driving the demand for bare metal cloud services. These players are dependent on bare metal cloud services, which is expected to bolster the market in the coming time. As per Fact.MR, the U.S is expected to capture 85% of the North American revenue share.

What is India’s position in the Bare Metal Cloud Market?

Being one of the fastest developing countries, India to Witness Growth Opportunities

With the presence of key players such as; Wipro, Tech Mahindra, Tata Communication Services, L&T InfoTech, and other established players of the region, India is likely to garner remarkable market share during the forecast period. Further, India, being the hub to startups is expected to drive the market significantly. India has been identified as one of the fastest developing economies of the world, therefore, the country is expected to witness various opportunities for expansion in the coming time.

Category-Wise Analysis

What is the role of AI & Machine Learning in Developing the Market?

Need for Large Data Sets and Storage to Strengthen the Segment

As per the analysis by Fact. MR, demand for bare metal clouds from AI & Machine learning is anticipated to surge at a CAGR of 29% in the assessment period. AI & Machine learning witnessed a positive growth of 22% while garnering a market value of USD 2.5 Bn in 2022. The requirement of large data sets, storage, and processing power by AI is likely to boost the bare metal cloud market in the coming time.

What is the Contribution of the BFSI Sector in Developing the Market?

Need for High-End Computing to Develop the Segment

The BFSI sector is expected to play a crucial role in augmenting the market in the forecast period. The demand from the sector to facilitate monetary transactions and to keep their records secured is projected to be a salient cause bolstering the segment’s contribution. Moreover, the need for high-end computing for risk analytics, quantitative model, and bank stress-testing is further projected to drive the market in the forecast period.

Competitive Landscape

The key players of the global bare metal cloud market opt for various strategies that include partnerships, collaboration, innovation, and R&D. The players of the market also do unique product launching to procure the forefront position in the market competition.

Some of the recent developments among the key players are-

• 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, a known name in the cloud service provider announced the C+ funding from Telkom Indonesia. Telkom is the largest telecommunications company in Indonesia. The C+ funding brings the financing round to USD 62 Mn.
• In January 2022, the Amazon Web Services (AWS) launched new EC2 instance type for high-performance computing tasks.

Key Segments Covered in Bare Metal Cloud Industry Research

• By Application

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

• By End Use Industry

  • Telecommunications
  • BFSI (Banking, Financial, Services and Insurance)
  • Retail & Consumer Goods
  • Manufacturing Sector
  • Pharmaceutical Industry
  • Others

• By Organization Size

  • SMEs
  • MSMEs
  • Large Organizations