The global bare metal cloud market size was valued at USD 1,326.9 million in 2016 and is estimated to grow significantly over the next eight years. The increased demand for cost-effective hosted services to achieve enhanced performance, streamlined data operations, and data security would lead to higher adoption of bare metal cloud in various verticals in the near future. Currently, the global market is driven by telecom & IT due to the growing big data and increasing demand for effective storage. However, advertising is the most lucrative end-use segment and this trend is expected to continue over the forecast period.
The bare metal cloud offers several advantages such as enhanced security, easy maintenance of records, monitoring activities in commercial & residential areas, and empowering nations against terrorism & external threats at different locations. The adoption of hosted services is significantly high in the telecom & IT end-use industry, owing to the increased demand for virtual storage facility.
Factors such as increased demand for secure storage facilities and rapid developments in the cloud industry have propelled enterprises to switch from traditional hosting services to the bare metal cloud. Major benefits of bare metal cloud include effective service delivery, data security, improved performance, and standardized hardware platforms.
Bare metal cloud solutions are gaining momentum and witnessing a high demand from enterprises across different industry verticals. These solutions offer manifold benefits, such as efficient data storage, streamlined data center operations, and faster service delivery through various solutions such as bare metal compute and storage network. Additionally, the increasing demand for secure platforms with efficient business processes and IT services has further driven market growth.
The hardware segment is expected to grow over the forecast period, owing to increased use of compute, network, and storage facilities to virtualize data centers. Moreover, the installation of these systems helps in the easy integration of system data with hardware, thereby allowing centralization of infrastructure with enhanced security. The accelerated use of internet-based technologies and electronic devices is expected to further drive bare metal cloud market growth.
In the service sub-segment, integration & migration is the popular bare metal cloud service worldwide. Moreover, it is expected to remain the preferred choice over the forecast period. Meanwhile, the maintenance service sub-segment is anticipated to exhibit faster growth with a significant increase in the market size. This growth may be attributed to the increased adoption of bare metal cloud services, mainly in large enterprises, to ensure the proper functioning of data center operation.
The on-premise segment dominated the market in 2016 owing to the increased control over the implementation process, customization capabilities, and full ownership features of on-premise deployment. Various industries prefer on-premise deployment due to advantages such as easy accessibility and improved efficiency of integrated systems.
The hosted segment is expected to grow at the highest CAGR over the forecast period. The growing adoption of cloud-based deployment services facilitates efficient storage management that assists organizations in operational flexibility and agility. Furthermore, cloud-based services, such as SaaS and IaaS, enable the on-demand remote access and a high degree of scalability.
In 2016, the small and medium segment dominated the market owing to the need for streamlining data operations. Bare metal cloud providers offer rack data storage facilities with greater security and easy access to all types of enterprises. Moreover, medium-scale enterprises use cloud-based data storage for storing and networking a large amount of information generated by various industries.
The large enterprise segment is expected to witness remarkable growth, owing to the generation of the huge volume of data on a regular basis, which further necessitates the need for effective storage service and automated datacenter operation.
In 2016, the telecom & IT segment dominated the market owing to the growing demand for virtual storage facility. Factors such as increasing concerns for storing and computing a large amount of data are the key growth factors for the bare metal cloud in the telecom and IT sector.
The advertising segment is expected to witness remarkable growth owing to the availability of advanced marketing technologies. Moreover, advertising companies are demanding storage systems to store, backup, and compute data, which is fulfilled by the bare metal cloud.
The North America region dominated the market in 2016. This can be attributed to the increased IT investment and high adoption of cloud services in the region. The growth is driven by the increasing demand for virtual data storage and secured host services. Moreover, the presence of a large number of key players and widespread awareness of the technology among small and medium businesses are also driving the regional market growth.
The increased focus of the government on infrastructural development and cloud services is expected to drive the Asia Pacific regional market growth over the forecast period. Emerging economies such as China and India are making huge investments to boost data protection and related services as well as develop innovative products with advanced technologies, such as wireless connectivity and efficient virtual software.
Prominent players dominating the market include IBM Corporation, Oracle Corporation, Rackspace Inc., Centurylink Inc., Internap Corporation, Packet, Datapipe, Inc., Scaleway, Limestone Networks Inc., and Bigstep Technologies Pvt. Ltd.
The key players in the industry are focusing on organic growth strategies to maintain their position. For instance, in 2017, IBM launched bare metal servers powered by the next-generation Intel Xeon Scalable processors on the IBM cloud. This processor delivers GPUs for cognitive and high-performance computing.
Market size value in 2020
USD 5.7 billion
Revenue forecast in 2025
USD 26.2 billion
CAGR of 38.4% from 2017 to 2025
Base year for estimation
2014 – 2016
2018 – 2025
Revenue in USD billion and CAGR from 2018 to 2025
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Type, deployment, enterprise, end use, and region
North America; Europe; Asia Pacific; South America; Middle East & Africa
U.S.; Canada; Mexico; UK; Germany; India; Japan; Australia; and Brazil
Key companies profiled
IBM Corporation; Oracle Corporation; Rackspace Inc.; Centurylink Inc.; Internap Corporation; Packet; Datapipe; Inc.; Scaleway; Limestone Networks Inc.; and Bigstep Technologies Pvt. Ltd.
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This report forecasts revenue growth at global and regional levels and analyzes the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global bare metal cloud market based on type, deployment, enterprise, end use, and region:
Type Outlook (Revenue, USD Million; 2014 - 2025)
Bare Metal Compute
Bare Metal Network
Bare Metal Storage
Integration & Migration
Consulting & Assessment
Deployment Outlook (Revenue, USD Million; 2014 - 2025)
Enterprise Outlook (Revenue, USD Million; 2014 - 2025)
Small & Medium Enterprise
End-Use Outlook (Revenue, USD Million; 2014 - 2025)
Telecom & IT
Regional Outlook (Revenue, USD Million; 2014 - 2025)
Middle East & Africa
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