×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

* Please use a valid business email

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

US Bare Metal Cloud Market

ID: MRFR/ICT/57392-HCR
200 Pages
Aarti Dhapte
February 2026

US Bare Metal Cloud Market Size, Share and Research Report: By Service Type (Computing Services, Networking Services, Database Services, Identity and Access Management Services, Volume and Object Storage Services), By Organization Type (Small and medium Enterprises, Large Enterprises) and By Vertical (BFSI, Government, Healthcare, IT and Telecommunication, Manufacturing, Retail) - Industry Forecast to 2035

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

US Bare Metal Cloud Market Infographic
Purchase Options

US Bare Metal Cloud Market Summary

As per Market Research Future analysis, the US bare metal-cloud market size was estimated at 2000.0 USD Million in 2024. The US bare metal-cloud market is projected to grow from 2391.4 USD Million in 2025 to 14285.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 19.5% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US bare metal-cloud market is experiencing robust growth driven by performance demands and hybrid cloud strategies.

  • The market is witnessing increased demand for performance, particularly in sectors requiring high computational power.
  • Hybrid cloud adoption is becoming prevalent, allowing businesses to leverage both on-premises and cloud resources effectively.
  • Security and compliance concerns are driving organizations to seek bare metal solutions that offer enhanced control over data.
  • Key market drivers include the rising need for customization and the shift towards cost efficiency, particularly in the context of edge computing.

Market Size & Forecast

2024 Market Size 2000.0 (USD Million)
2035 Market Size 14285.0 (USD Million)
CAGR (2025 - 2035) 19.57%

Major Players

IBM (US), Oracle (US), OVHcloud (FR), Packet (US), DigitalOcean (US), Scaleway (FR), Linode (US), Vultr (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

US Bare Metal Cloud Market Trends

the bare metal-cloud market is experiencing a notable evolution, driven by the increasing demand for high-performance computing solutions. Organizations are increasingly recognizing the advantages of bare metal servers, which offer dedicated resources and enhanced performance compared to traditional virtualized environments. This shift is largely influenced by the need for improved security, reduced latency, and the ability to handle resource-intensive applications. As businesses continue to migrate to cloud-based infrastructures, the appeal of bare metal solutions becomes more pronounced, particularly for sectors requiring stringent compliance and data protection measures. Moreover, the trend towards hybrid cloud architectures is gaining traction, as companies seek to combine the benefits of both bare metal and virtualized environments. This approach allows for greater flexibility and scalability, enabling organizations to optimize their IT resources according to specific workloads. the bare metal-cloud market is likely to see further growth as technological advancements continue to enhance the capabilities of these solutions. This makes them more accessible and appealing to a wider range of industries.. As the landscape evolves, stakeholders must remain vigilant to emerging trends and adapt their strategies accordingly to capitalize on the opportunities presented by this dynamic market.

Increased Demand for Performance

The bare metal-cloud market is witnessing a surge in demand for high-performance computing solutions. Organizations are increasingly opting for dedicated resources that offer superior performance, particularly for applications requiring significant processing power. This trend is driven by the need for efficiency and speed in data processing.

Hybrid Cloud Adoption

The adoption of hybrid cloud architectures is becoming more prevalent, as businesses seek to leverage the strengths of both bare metal and virtualized environments. This strategy allows for enhanced flexibility and scalability, enabling organizations to tailor their IT resources to meet specific workload requirements.

Focus on Security and Compliance

There is a growing emphasis on security and compliance within the bare metal-cloud market. Organizations are prioritizing solutions that provide robust security features and meet regulatory requirements, particularly in sectors such as finance and healthcare, where data protection is paramount.

US Bare Metal Cloud Market Drivers

Emergence of Edge Computing

The emergence of edge computing is significantly influencing the bare metal-cloud market, as organizations increasingly require low-latency processing capabilities. With the proliferation of IoT devices and real-time data analytics, businesses are looking for solutions that can process data closer to the source. This trend is expected to drive demand for bare metal solutions that can be deployed at edge locations, providing the necessary performance and reliability. Industry analysts suggest that the edge computing market could reach $15 billion by 2026, further underscoring the potential for growth in the bare metal-cloud market as companies seek to leverage edge capabilities for enhanced operational efficiency.

Rising Need for Customization

The bare metal-cloud market is experiencing a rising need for customization as businesses seek tailored solutions to meet their specific operational requirements. This trend is particularly evident in sectors such as finance and healthcare, where unique workloads necessitate dedicated resources. According to recent data, approximately 40% of organizations in the US are prioritizing customized cloud solutions to enhance performance and efficiency. The ability to configure hardware and software environments allows companies to optimize their applications, leading to improved service delivery. As a result, the demand for customizable bare metal solutions is likely to grow, driving innovation and competition within the bare metal-cloud market.

Shift Towards Cost Efficiency

Cost efficiency remains a pivotal driver in the bare metal-cloud market, as organizations strive to optimize their IT expenditures. With the increasing complexity of cloud services, businesses are seeking solutions that provide better value for their investments. Reports indicate that companies can save up to 30% on operational costs by transitioning to bare metal solutions, which offer predictable pricing models and reduced overhead. This shift is particularly appealing to small and medium-sized enterprises (SMEs) that require robust infrastructure without incurring excessive costs. Consequently, the focus on cost efficiency is likely to propel growth in the bare metal-cloud market, as more organizations recognize the financial benefits of adopting these solutions.

Increased Focus on Data Sovereignty

Data sovereignty is becoming a critical concern for organizations operating in the US, particularly in light of evolving regulations surrounding data privacy and protection. The bare metal-cloud market is responding to this need by offering solutions that ensure data remains within national borders, thereby complying with local laws. As businesses become more aware of the implications of data residency, the demand for bare metal solutions that provide enhanced control over data storage and processing is likely to rise. This trend is particularly relevant for industries such as finance and healthcare, where compliance is paramount. Consequently, the focus on data sovereignty is expected to drive growth in the bare metal-cloud market as organizations prioritize regulatory compliance.

Advancements in Network Infrastructure

Advancements in network infrastructure are playing a crucial role in shaping the bare metal-cloud market. The increasing availability of high-speed internet and improved connectivity options are enabling organizations to leverage bare metal solutions more effectively. Enhanced network capabilities facilitate seamless integration between on-premises and cloud environments, allowing businesses to optimize their operations. Recent statistics indicate that nearly 60% of US companies are investing in upgrading their network infrastructure to support cloud initiatives. As these advancements continue, they are likely to bolster the adoption of bare metal solutions, driving growth and innovation within the bare metal-cloud market.

Market Segment Insights

By Services Type: Compute Services (Largest) vs. Managed Services (Fastest-Growing)

The US bare metal-cloud market showcases a diverse distribution of services with Compute Services holding the largest market share. This segment capitalizes on the increasing demand for high-performance computing solutions and dedicated infrastructure, catering to enterprises seeking robust and scalable options. Networking Services follow closely, facilitating seamless connectivity and communication, while Database Services hold a significant position due to the necessity of data management in modern businesses. Security Services increasingly gain prominence as organizations prioritize data protection and compliance, and Storage Services, alongside Managed Services, are adapting to meet the evolving needs of clients, contributing to overall market growth. Growth trends in the US bare metal-cloud market are primarily driven by the digital transformation initiatives undertaken by various sectors. The adoption of Managed Services is surging as companies look for efficient outsourcing solutions to optimize their IT environments. Furthermore, the rising threat landscape is pushing organizations to invest increasingly in Security Services, while the demand for high-capacity and high-speed data processing fuels growth in Compute Services. Emerging technologies, including AI and IoT, are also anticipated to drive innovation across all service types, thereby enhancing competitiveness and expanding market potential.

Compute Services: Dominant vs. Managed Services: Emerging

Compute Services remain dominant in the US bare metal-cloud market, characterized by their ability to deliver powerful computing resources tailored to the specific needs of businesses. This segment offers scalability and reliability, essential for enterprises engaging in resource-intensive tasks. Managed Services, on the other hand, represent an emerging trend, offering businesses the advantage of outsourcing IT management. This service provides organizations with the flexibility to focus on core functions while ensuring operational efficiencies. The shift towards Managed Services is driven by the need for cost-effective solutions, particularly among small to medium-sized enterprises, fostering a collaborative ecosystem within the cloud landscape.

By Organization Size: Large Enterprise (Largest) vs. SME (Fastest-Growing)

The market share distribution in the US bare metal-cloud market presents a clear dominance of large enterprises. They boast a substantial portion of the overall market, leveraging their extensive resources and established infrastructure to adopt innovative cloud solutions. In contrast, small and medium-sized enterprises (SMEs) are rapidly gaining traction, capitalizing on the flexibility and cost-effectiveness of bare metal-cloud services to meet their unique operational demands. This dynamic landscape showcases how both segments are carving out significant stakes in the market. Growth trends highlight the contrasting paths of these segments. Large enterprises continue to invest heavily in sophisticated cloud technologies, primarily for enhanced performance and security. Meanwhile, SMEs are emerging as the fastest-growing segment, driven by increased demand for scalable and customizable cloud solutions. The shift towards digital transformation and remote working practices further propels this growth, as SMEs seek budget-friendly options that do not compromise on performance.

Large Enterprise (Dominant) vs. SME (Emerging)

Large enterprises in the US bare metal-cloud market are characterized by their robust financial capabilities and extensive IT infrastructures, enabling them to implement complex bare metal solutions efficiently. They often prioritize high performance, security, and compliance, given their vast data handling requirements. Conversely, SMEs represent a dynamic and evolving segment, driven by their need for agility and innovation without incurring prohibitive costs. They are increasingly adopting bare metal-cloud solutions to leverage the benefits of dedicated resources and superior performance while maintaining the ability to scale rapidly. This emerging trend among SMEs underscores their growing significance in the overall market landscape, as they push for more accessible and tailored cloud services.

By Vertical: BFSI (Largest) vs. Healthcare Life Sciences (Fastest-Growing)

In the US bare metal-cloud market, the BFSI segment holds the largest market share, driven by its significant reliance on cloud services for data management and security. This segment’s dominance is followed by IT & ITES and Manufacturing, which also contribute to a substantial portion of the market. Other segments, such as Telecom and Media Entertainment, are growing, but they do not match the share of BFSI. Growth trends indicate an increasing demand for cloud solutions across the Healthcare Life Sciences sector, attributed to the need for advanced data storage, analysis, and compliance with regulations. As more organizations in this sector adopt innovative technologies, the Healthcare Life Sciences segment is rapidly evolving, making it one of the fastest-growing categories in the market as firms seek efficient cloud-based solutions to enhance operational efficiency.

BFSI (Dominant) vs. Healthcare Life Sciences (Emerging)

The BFSI segment is characterized by its high volume of sensitive data transactions and the resultant necessity for robust security measures, leading to a strong preference for bare metal-cloud solutions. Financial institutions leverage these technologies to ensure compliance with stringent regulations while enabling quick access to critical data. On the other hand, Healthcare Life Sciences represents an emerging segment, gaining traction due to the increasing digitization of health records and the demand for research and development. As healthcare companies embrace cloud solutions to streamline operations and improve patient care, this segment is poised for significant growth, reflecting a shift in priorities within the US bare metal-cloud market.

Get more detailed insights about US Bare Metal Cloud Market

Key Players and Competitive Insights

The bare metal-cloud market is currently characterized by a dynamic competitive landscape, driven by increasing demand for high-performance computing and the need for customizable infrastructure solutions. Key players such as IBM (US), Oracle (US), and DigitalOcean (US) are strategically positioning themselves through innovation and partnerships. IBM (US) focuses on integrating AI capabilities into its bare metal offerings, enhancing performance and operational efficiency. Oracle (US) emphasizes its cloud-native applications, leveraging its database expertise to attract enterprise clients. DigitalOcean (US) aims to simplify cloud infrastructure for developers, fostering a community-driven approach that enhances customer loyalty and engagement.The market structure appears moderately fragmented, with a mix of established players and emerging startups. Companies are adopting various business tactics, such as localizing services and optimizing supply chains, to enhance their competitive edge. This fragmentation allows for diverse offerings, yet the collective influence of major players like IBM (US) and Oracle (US) shapes market trends and customer expectations.

In October IBM (US) announced a strategic partnership with a leading AI firm to enhance its bare metal-cloud services. This collaboration aims to integrate advanced AI tools into its infrastructure, potentially revolutionizing how businesses utilize cloud resources. The strategic importance of this move lies in IBM's commitment to staying at the forefront of technological innovation, thereby attracting clients seeking cutting-edge solutions.

In September Oracle (US) launched a new bare metal service designed specifically for high-performance computing applications. This service is tailored to meet the needs of industries such as finance and healthcare, which require robust processing capabilities. The introduction of this service indicates Oracle's intent to capture a larger share of the enterprise market, positioning itself as a leader in specialized cloud solutions.

In August DigitalOcean (US) expanded its data center footprint by opening new facilities in key US locations. This expansion is aimed at improving service delivery and reducing latency for its growing customer base. The strategic significance of this move reflects DigitalOcean's focus on enhancing user experience and operational efficiency, which is crucial in a competitive market where speed and reliability are paramount.

As of November current trends in the bare metal-cloud market include a strong emphasis on digitalization, sustainability, and AI integration. Companies are increasingly forming strategic alliances to leverage complementary strengths, thereby enhancing their service offerings. The competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift suggests that companies that prioritize these aspects will be better positioned to thrive in an increasingly complex market.

Key Companies in the US Bare Metal Cloud Market include

Industry Developments

Recent developments in the US Bare Metal Cloud Market have shown significant growth and ongoing innovations. Companies such as DigitalOcean, Linode, and Vultr have expanded their offerings, focusing on enhancing service reliability and performance. In terms of acquisitions, in October 2022, Oracle completed its acquisition of Cerner, which has implications for its data management capabilities in cloud services. However, there have been no major publicly known mergers specifically among the listed companies in the last year. As of September 2023, Lumen Technologies revamped its Bare Metal Cloud service to increase scalability and integration with edge computing applications.

Additionally, Rackspace's recent investment in hybrid cloud solutions reflects the increasing demand for flexible cloud architectures. The market valuation for Bare Metal Cloud services has seen positive trends, attributed to rising adoption by enterprises seeking customizable infrastructure solutions. Over the past few years, the adoption of Bare Metal Cloud technologies has surged, with notable events such as IBM launching new capabilities in February 2021, catering to a growing market for cloud-native applications. This sector is likely to continue evolving as companies strive to meet consumer demand for efficient and reliable cloud services.

Future Outlook

US Bare Metal Cloud Market Future Outlook

The Bare Metal Cloud Market is projected to grow at a 19.57% CAGR from 2025 to 2035, driven by increasing demand for high-performance computing and cost efficiency.

New opportunities lie in:

  • Development of hybrid cloud solutions integrating bare metal services
  • Expansion of edge computing capabilities for real-time data processing
  • Creation of tailored solutions for specific industry verticals like finance and healthcare

By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic partnerships.

Market Segmentation

US Bare Metal Cloud Market Vertical Outlook

  • BFSI
  • IT & ITES
  • Manufacturing
  • Healthcare Life Sciences
  • Retail Consumer Goods
  • Telecom
  • Media Entertainment
  • Government
  • Others

US Bare Metal Cloud Market Services Type Outlook

  • Compute Services
  • Networking Services
  • Database Services
  • Security Services
  • Storage Services
  • Managed Services

US Bare Metal Cloud Market Organization Size Outlook

  • SME
  • Large Enterprise

Report Scope

MARKET SIZE 2024 2000.0(USD Million)
MARKET SIZE 2025 2391.4(USD Million)
MARKET SIZE 2035 14285.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 19.57% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled IBM (US), Oracle (US), OVHcloud (FR), Packet (US), DigitalOcean (US), Scaleway (FR), Linode (US), Vultr (US)
Segments Covered Services Type, Organization Size, Vertical
Key Market Opportunities Growing demand for customizable infrastructure solutions drives innovation in the bare metal-cloud market.
Key Market Dynamics Growing demand for customizable infrastructure drives competition in the bare metal-cloud market.
Countries Covered US
Leave a Comment

FAQs

What is the expected market size of the US Bare Metal Cloud Market in 2024?

The US Bare Metal Cloud Market is expected to be valued at 2.2 billion USD in 2024.

What will the market size of the US Bare Metal Cloud Market reach by 2035?

By 2035, the market size is expected to grow significantly to 16.5 billion USD.

What is the projected CAGR for the US Bare Metal Cloud Market from 2025 to 2035?

The projected CAGR for the US Bare Metal Cloud Market is 20.102% from 2025 to 2035.

Which are the key players in the US Bare Metal Cloud Market?

Major players in the market include Linode, DigitalOcean, Lumen Technologies, and IBM, among others.

What is the expected market value for Computing Services in 2024?

In 2024, the market value for Computing Services is expected to be 0.7 billion USD.

How much will the Networking Services segment be valued at in 2035?

The Networking Services segment is projected to reach a value of 3.9 billion USD by 2035.

What is the estimated market size for Database Services in 2025?

By 2025, the Database Services segment is expected to contribute significantly to the overall market growth.

What market size can we expect for Identity and Access Management Services in 2035?

Identity and Access Management Services are anticipated to reach a market size of 2.5 billion USD in 2035.

What are the emerging trends in the US Bare Metal Cloud Market?

Emerging trends include increased demand for customized services and high-performance computing solutions.

What are some challenges faced by the US Bare Metal Cloud Market?

Challenges include the need for robust security measures and the complexity of hybrid cloud integrations.

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions