Bare Metal Cloud Market Size, Share & Trends Analysis Report By Type (Hardware, Service), By Enterprise Size (SMEs, Large Enterprises), By End-use, By Region, And Segment Forecasts, 2024 - 2030

Bare Metal Cloud Market Size

“2030 Bare Metal Cloud market value to reach USD 36.50 billion”

The global bare metal cloud market size was valued at USD 8.44 billion in 2023 and is projected to grow at a CAGR of 23.9% from 2024 to 2030. Bare metal cloud offers a unique approach to cloud servers, providing dedicated and single-tenant servers managed from a central dashboard. This exclusive setup ensures enhanced performance and heightened security for cloud deployments, as there are no shared resources with external access.

The bare metal cloud offers several advantages for IT professionals seeking a reliable, adaptable, and scalable cloud service with greater control and superior performance. Unlike traditional cloud offerings, bare metal cloud allows users to rent specific hardware components directly from a remote service provider without any pre-installed operating system or virtualization infrastructure. This professional cloud service infrastructure enables the virtualization and division of computing, storage, and database resources, facilitating the partitioning and sharing of servers and storage arrays among multiple clients. It allows IT professionals to customize and optimize their cloud environment to meet their needs and requirements.

The rise in demand for secure storage solutions and advancements in the cloud sector have driven businesses to transition from conventional hosting services to bare metal cloud. The key advantages of bare metal cloud encompass efficient service provision, data protection, enhanced performance, and a standardized hardware infrastructure. It results in specific cost & time reductions for companies with better, smart, and operational decision-making. The deployment of bare metal cloud has evolved with the increasing adoption of big data and the Internet of Things (IoT). The bare metal cloud platform provides a centralized solution for conducting key business analytics and forecasting. Organizations can leverage the bare metal cloud to perform predictive analysis, generate business intelligence insights, and forecast consumer purchasing trends from a single, scalable infrastructure environment.

Type Insights

“Hardware dominated the segment and accounted for a market share of 62.9% in 2023.”

Based on type, the hardware segment is the leading segment for higher growth in the coming years. Installing these systems helps easily integrate system data with hardware and enables the centralization of infrastructure with enhanced security. The accelerated use of internet-based technologies and electronic devices is expected to expand the market. Furthermore, the bare metal cloud empowers clients with enhanced control over hardware configuration, allowing them to customize the system according to specific requirements. Moreover, bare metal cloud providers may furnish specialized hardware and software for high-performance computing, such as InfiniBand networking or parallel file systems, which are intricately designed to maximize performance and scalability for demanding computing workloads.

The service sector is expected to witness a CAGR of 25.2% in the forecast period. A notable trend in the bare metal cloud service market is the increasing network complexity and improvements in cloud services, particularly among telecom and OTT service providers. The global bare metal cloud market is propelled by the telecom and IT sectors due to the rise in big data and the growing need for efficient data storage. Moreover, businesses in various industries like healthcare, finance, and e-commerce drive the demand for bare metal cloud services. As organizations embrace digital transformation efforts and aim to upgrade their IT infrastructure, bare metal cloud providers are in a strong position to cater to the increasing need for high-performance computing solutions.

Enterprise Size Insights

“Large enterprises accounted for the market share of 57.9% in 2023.”

Large enterprises demand bare metal cloud services due to their need for high-performance computing (HPC) and tailored infrastructure to accommodate IT needs. By offering dedicated, non-virtualized servers that grant direct access to the underlying hardware, bare metal cloud services enable large enterprises to optimize their infrastructure according to their specific performance, security, and compliance prerequisites.

The SME segment is expected to witness the fastest CAGR in the forecast period. The SMEs are looking forward to enhancing their computing operations and increasing efficiency. However, many SMEs need more time to maintain extensive in-house data centers and manage infrastructure. As a result, SMEs are increasingly recognizing the importance of bare metal cloud solutions to meet their unique IT needs. These businesses often encounter resource-intensive workloads, strict security requirements, and financial constraints. The bare metal cloud provides SMEs with dedicated physical servers, ensuring consistent performance without virtualization overhead. It makes it an ideal choice for mission-critical applications and data-sensitive tasks. Moreover, the flexibility to scale resources as required enables SMEs to effectively optimize their IT budgets with the help of predictable pricing models.

End-use Insights

“BFSI industry is expected to witness the highest market share of 23.8% market share in 2023.”

The BFSI led the end-use segment in 2023. The sector's contribution is expected to be significantly influenced by its demand to expedite financial transactions and safeguard data. Another factor fueling market growth is the need for advanced technology in risk analytics, statistical models, and bank stress testing. Consequently, increasing adoption within the BFSI sector will expedite market expansion during the forecast period.

The manufacturing segment is anticipated to grow at a fast CAGR in the forecast period. As manufacturers prioritize data security, bare metal cloud services have been their foremost choice. These services offer advanced security and compliance capabilities, reducing the potential risks linked to shared environments. The manufacturing industry uses IoT and big data analytics, with bare metal cloud services catering to the high computational requirements of these technologies, thereby promoting their adoption. Metal cloud technology empowers manufacturers to tailor their infrastructure, guaranteeing peak efficiency for individual workloads. Unwavering authority over resources is imperative for essential manufacturing operations.

Regional Insights

“North America is the leading region for bare metal cloud.”

North America's bare metal cloud market dominated and accounted for a revenue share of 39.2% in 2023. The major factors for the market growth include the rising demand for dedicated servers to minimize latency, the surge in IoT applications for bare metal clouds, and the growing investments in emerging technologies like IoT, big data, social media, and mobility. The rapid advancements in hyper-convergence technology are paving the way for market expansion. However, security concerns during server recovery pose a significant challenge to the market growth. Additionally, the co-existence of containers and virtual machines on a single bare metal server presents a substantial challenge for market growth.

U.S. Bare Metal Market Trends

The bare metal market in the U.S. dominated the regional market with a share of 76.7% in 2023. The significant surge in the utilization of cloud computing services within the region's healthcare, BFSI, and manufacturing sectors has resulted in a substantial increase in demand for these services. The presence of robust ICT infrastructure and the implementation of various government initiatives have played a pivotal role in supporting the exponential growth of the cloud computing market. Furthermore, major technology companies in the region are anticipated to stimulate market growth in the upcoming years.

Europe Bare Metal Cloud Market Trends

Europe bare metal cloud market poses as a lucrative market which is attributed to the increasing demand for hybrid cloud integration, enhanced security, compliance, and the growing adoption of cloud-based services and applications. The growth of the bare metal cloud market is primarily driven by the rising demand for dependable and secure cloud services among enterprises. Data centers and cloud solutions are witnessing a surge in demand, and investments in these technologies are projected to grow substantially in the coming years. Numerous large corporations have adopted cloud solutions or are preparing to introduce their cloud computing services in Europe. The decision is influenced by various factors, including the regulation by General Data Protection Regulation (GDPR) policies, favorable climatic conditions in the region, government support, and the expanding business opportunities in Europe.

The bare metal cloud market in UK is expected to grow significantly in the forecast period. Numerous organizations are embracing the bare metal cloud model in the UK due to its enhanced scalability, particularly for financial and IT infrastructure management. The widely adopted modular structure allows seamless IT infrastructure, storage, computing, and fabric scaling within a single architecture. The bare metal cloud models' flexibility gives companies a competitive edge by swiftly adapting to customer demands and efficiently implementing operational changes. Leading companies prioritize high efficiency and low latency, and deploying bare metal cloud services empowers them to achieve flexibility and efficiency.

Germany's bare metal cloud market held a substantial share in 2023. As businesses and organizations in Germany increasingly adopt big data analytics and IoT applications, robust computing power becomes essential. To meet these demands, bare metal cloud services provide support for data-intensive workloads. In the ever-changing cloud environment, adaptable solutions are crucial, and bare metal cloud services offer dedicated physical servers that cater to organizations' evolving requirements.

Asia Pacific Bare Metal Cloud Market Trends

The Asia Pacific bare metal cloud market is anticipated to witness significant growth. It is characterized by diversity and a substantial population, which has led to the rapid growth of the digital economy. This growth has resulted in a significant increase in data generation within the region. Asia Pacific has embraced data computing, primarily driven by the widespread use of IoT devices, the implementation of smart city initiatives, and the demand for real-time data processing. Moreover, Asia Pacific has experienced a remarkable rise in internet penetration rates, further fueling the consumption of data and the need for localized data processing.

Japan's bare metal market is expected to grow further in the coming years, fueled by ongoing technological advancements that improve efficiency and effectiveness. These advancements encompass materials, manufacturing processes, and digital technologies. Moreover, factors such as population growth, urbanization, and evolving consumer preferences play a crucial role in driving market expansion.

The bare metal cloud market in China held a substantial market share in 2023 owing to the surge in internet usage, which resulted in a higher volume of data generation with processing, analysis, and storage. These factors are driving the adoption of bare metal cloud services and solutions in China.

Key Bare Metal Cloud Company Insights

Some key companies in the bare metal cloud market include Lumen Technologies, IBM, Bigstep, and IBM Corporation.

• Lumen Technologies introduced Edge Bare Metal, which delivers flexible access to a distributed network with high-capacity bare metal cloud servers. Designed to reduce latency for real-time data processing and storage, Edge Bare Metal allows businesses to maximize security, performance, and data orchestration control at the edge.

• IBM offers Cloud Bare Metal Servers, which are dedicated to single tenants and can be provisioned and controlled as cloud services. These servers are a component of IBM Cloud and can be accessed through classic or VPC deployment options.

Recent Developments

• In January 2024, Equinix launched Equinix Metal and Equinix Network Edge in Mumbai, India, to provide modern enterprises with an automated, "as-a-service" deployment method for building their foundational infrastructure. These digital services and Equinix Fabric enable enterprises to take advantage of the interconnected ecosystems, global reach, and cloud adjacency available on the Equinix Platform.

• In August 2023, PhoenixNAP expanded its Bare Metal Cloud platform with energy-efficient HPE ProLiant RL300 Gen11 servers. These servers allow PhoenixNAP to support cloud gaming, artificial intelligence, and other cloud-based workloads with energy efficiency and enhanced performance across its worldwide data center network. The HPE ProLiant RL300 Gen11 servers are designed to deliver next-generation computing performance with reduced energy consumption for digital-first enterprises and service providers running cloud-based workloads. 

Bare Metal Cloud Market Report Scope

Global Bare Metal Cloud Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global bare metal cloud market report based on type, enterprise size, end use, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

    • Bare Metal Compute

    • Bare Metal Network

    • Bare Metal Storage

  • Service

    • Integration& Migration

    • Consulting & Assessment

    • Maintenance Services

• Enterprise Size Outlook (Revenue, USD Million,2018 - 2030)

  • SMEs

  • Large Size Enterprises

• End use Outlook (Revenue, USD Million, 2018 - 2030)

  • Advertising

  • BFSI

  • Government

  • Healthcare

  • Manufacturing

  • Telecom & IT

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • UAE

    • South Africa