Bare Metal Cloud Market Overview
Bare Metal Cloud Market is projected to grow from USD 7.98 Billion in 2024 to USD 34.41 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.04% during the forecast period (2024 - 2032). Additionally, the market size for Bare Metal Cloud was valued at USD 6.63 billion in 2023.
High performance computing, security, cost efficiency, scalability, compliance, hybrid cloud integration, and customization is the key market drivers enhancing market growth.
Figure 1: Bare Metal Cloud Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Bare Metal Cloud Market Trends
High Performance Computing (HPC) is driving the market growth
HPC refers to the use of advanced computing technologies to process large volumes of data and perform complex calculations at a much faster rate than traditional computing systems. Bare metal cloud can support HPC workloads by providing direct access to dedicated hardware resources, such as CPUs, GPUs, and high-speed networking, which can be optimized for specific applications and workloads. Compared to virtualized environments, bare metal cloud can offer significant performance benefits for HPC workloads because it eliminates the overhead associated with virtualization, such as the hypervisor layer and the need to share resources with other virtual machines.
Bare metal cloud also provides greater control over the hardware configuration, enabling customers to fine-tune the system for their specific needs. In addition, bare metal cloud providers may offer specialized HPC hardware and software, such as InfiniBand networking or parallel file systems, that are designed to optimize performance and scalability for HPC workloads.
Furthermore, the demand for bare metal cloud services is being driven by businesses across various industries, such as healthcare, finance, and e-commerce. As companies continue to adopt digital transformation initiatives and seek to enhance their IT infrastructure, bare metal cloud providers are well-positioned to meet the growing demand for high-performance computing solutions.
Bare Metal Cloud Market Segment Insights
Bare Metal Cloud Market by Service type Insights
The Bare Metal Cloud Market segmentation, based on Service type, includes Computing Services, Networking Services, Database Services, Identity and Access Management Services, Volume and Object Storage Services. The computing services segment dominated the market. Computing services in bare metal cloud refer to the provisioning of dedicated, non-virtualized bare metal servers to customers for running their applications and workloads.
Unlike virtual machines in a virtualized environment, bare metal servers provide direct access to the underlying hardware, including CPUs, memory, and storage, without the overhead associated with hypervisors and virtualization layers. This results in improved performance, lower latency, and better control over the hardware configuration, making it an ideal choice for high-performance computing (HPC) workloads. Bare metal cloud providers offer a range of computing services to customers, including: Dedicated servers, Load balancing, Auto-scaling, and Network isolation.
Bare Metal Cloud Market By Organization Type Insights
The Bare Metal Cloud Market segmentation, based on by organization type, includes Small and medium Enterprises, Large Enterprises. The large enterprise segment dominated the market. Large enterprises are a significant consumer of bare metal cloud services, as they often require high-performance computing (HPC) and customized infrastructure to support their complex IT requirements. Bare metal cloud services provide large enterprises with dedicated, non-virtualized servers that offer direct access to the underlying hardware, allowing them to fine-tune their infrastructure to meet specific performance, security, and compliance requirements.
Figure 1: Bare Metal Cloud Market, by Organization Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Bare Metal Cloud Market Vertical Insights
Based on Vertical, the Bare Metal Cloud Market segmentation includes BFSI, Government Healthcare, IT and Telecommunication, Manufacturing, Retail. The BFSI segment dominated the market. The BFSI sector has been a significant adopter of bare metal cloud solutions due to the high computational power and security features required to manage and analyze large amounts of financial data. The healthcare sector has also been a significant adopter of bare metal cloud solutions due to the compliance and regulatory requirements of handling sensitive patient data. The government and public sector has also been a major adopter of bare metal cloud services, as they require highly secure and compliant infrastructure to support citizen-facing services.
Bare Metal Cloud Market Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American region is dominating the market with High Performance Computing, Security, cost efficiency, and customization. The United States is North America's largest market for High Performance Computing (HPC), accounting for most of the market share. This is due to factors such as availability of advanced infrastructure, growing demand for HPC applications, and support for emerging technologies. Canada and Mexico are also significant markets for (HPC) Services in North American region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BARE METAL CLOUD MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia-Pacific Bare Metal Cloud Market accounts for the second-largest market share. The market is characterized by a high growth potential, driven by factors such as the increased demand for high-performance computing, Growing data center market, Increased cloud adoption, and Improved network infrastructure. Moreover, China’s Bare Metal Cloud Market held the largest market share, and the Indian Bare Metal Cloud Market was the fastest-growing market in the Asia-Pacific region.
Europe's Bare Metal Cloud Market anticipated to develop at the fastest CAGR from 2023 to 2032 due to the increasing demand for hybrid cloud integration, compliance, enhanced security, and the growing adoption of cloud-based services and applications. Further, the Germany Bare Metal Cloud Market held the largest market share, and the UK Bare Metal Cloud Market was the fastest-growing market in the European region.
Bare Metal Cloud Market Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Bare Metal Cloud Market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Content Delivery Network industry must offer innovative products to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Bare Metal Cloud Market industry to benefit clients and increase the market sector. In recent years, the Bare Metal Cloud Market industry has offered some of the most significant advantages to the market. Major players in the Bare Metal Cloud Market, including IBM Corporation, Oracle Corporation, CenturyLink, Internap Corporation, Rackspace Hosting, and others, are attempting to increase market demand by investing in research and development operations.
CenturyLink is a telecommunications company that provides a range of services, including cloud computing, managed hosting, and network services. The company offers a bare metal cloud solution called the CenturyLink Private Cloud on Bare Metal, which is designed to provide high-performance, secure, and compliant infrastructure to support a range of workloads. The CenturyLink Private Cloud on Bare Metal solution offers customers the ability to provision and configure bare metal servers quickly and easily, with the flexibility to customize the hardware and operating system to meet their specific needs. The solution also includes security features such as firewalls, intrusion detection and prevention, and data encryption to help protect customer data and meet compliance requirements. CenturyLink's bare metal cloud solution is targeted towards enterprise customers, particularly those in the BFSI, healthcare, and government sectors, which have high-performance computing, security, and compliance requirements. The solution is offered through CenturyLink's data center network, which includes more than 100 facilities in North America, Europe, and Asia.
Rackspace Hosting is a cloud computing company that provides a range of managed services for public and private cloud platforms. The company was founded in 1998 and is headquartered in San Antonio, Texas. Rackspace's primary offering is its Managed Cloud service, which is designed to help businesses migrate and manage their infrastructure on cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Rackspace also provides bare metal cloud services as part of its infrastructure offerings. Rackspace's bare metal cloud solution, called OnMetal, provides customers with dedicated bare metal servers that can be provisioned and managed via APIs or a web-based control panel. OnMetal servers are built on a hardware platform that is optimized for performance, providing customers with high levels of processing power, memory, and storage. The solution also includes integrated networking capabilities and support for a range of operating systems and applications. One of the benefits of Rackspace's OnMetal bare metal cloud solution is its flexibility and scalability. Customers can quickly provision and de-provision servers as needed, and can also scale their infrastructure up or down to meet changing demand. Rackspace's Managed Cloud services in action is its partnership with the education technology company, Blackboard Inc.
Key Companies in the Bare Metal Cloud Market include
Bare Metal Cloud Market Industry Developments
In August 2020, IBM announced that it had partnered with NVIDIA to launch a new bare metal server offering, called the IBM Cloud NVIDIA T4 GPU. This offering was designed to provide customers with access to NVIDIA's latest GPU technology for running AI and machine learning workloads on bare metal servers.
In November 2020, CenturyLink announced that it had expanded its bare metal cloud footprint with the launch of a new data center in Oslo, Norway. This expansion was aimed at meeting the growing demand for bare metal infrastructure in Europe, particularly among enterprises in the financial services, healthcare, and gaming industries.
In September 2020, Rackspace announced that it had partnered with Dell Technologies to launch a new bare metal infrastructure solution, called "Dell EMC PowerEdge MX Powered by Rackspace". This offering was designed to provide customers with a high-performance, customizable bare metal infrastructure solution that could be tailored to specific workload requirements.
Bare Metal Cloud Market Segmentation
Bare Metal Cloud Market By Service Type Outlook
Bare Metal Cloud Market By Organization Outlook
Bare Metal Cloud Market Vertical Outlook
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BFSI
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Government
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Healthcare
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IT and Telecommunication
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Manufacturing
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Retail
Bare Metal Cloud Market Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 6.63 billion |
| Market Size 2024 |
USD 7.98 billion |
| Market Size 2032 |
USD 34.416 billion |
| Compound Annual Growth Rate (CAGR) |
20.04% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, solution, application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
IBM Corporation, Oracle Corporation, CenturyLink, Internap Corporation, Rackspace Hosting |
| Key Market Opportunities |
High Performance Computing |
| Key Market Dynamics |
Security Services Increased cloud adoption |
Frequently Asked Questions (FAQ) :
The Bare Metal Cloud Market size was valued at USD 7.98 Billion in 2024.
The market is projected to grow at a CAGR of 20.04% during the forecast period, 2024-2032.
North American region had the largest share of the market.
The key players in the market are IBM Corporation, Oracle Corporation, CenturyLink, Internap Corporation, Rackspace Hosting.
The BFSI category dominated the market in 2022.
The computing services channel had the largest share of the market.
