Bare Metal Cloud Market Growth Report, Trends, Drivers & Opportunities-2030

Bare Metal Cloud Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Service Type (Networking Services, Storage & Database Services, Compute Services, Security Services, and Others), Enterprise Size (SMEs and Large Enterprises), and Application (BFSI, Manufacturing, Government, Retail, Healthcare, IT & Telecommunications, and Others)

Publication Month : Sep 2023

  • Report Code : TIPTE100000790
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 184
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[Research Report] The bare metal cloud market size was valued at US$ 6,690.24 million in 2022 and is expected to reach US$ 27,180.47 million by 2030; it is estimated to record a CAGR of 19.2% from 2022 to 2030.

Analyst Perspective:

The rapid adoption pace of bare metal cloud is expected to continue over the long term. Similar to dedicated servers, bare metal servers do not share system resources with other users. Additionally, there are no additional overhead from nested virtualization when a separate virtualization layer is added, such as running containers within a lightweight virtual machine (VM). Bare metal servers are ideal for applications requiring access to the physical server and performance counters or those dedicated for virtualized environments. Such factors are contributing to the bare metal cloud market growth. Most bare metal services are substantially scalable, including systems with hundreds of CPU cores, more than 20 sockets, and terabytes of memory. Thus, they are great options for big data applications and high transaction workloads that require low latency. Hardware resources are provisioned on need basis and typically billed based on a specific period, eliminating the need to tie up capital expenditure budget. Additionally, bare metal permits the usage of cloud migration software, which are not supported on a VM or with restrictive, hardware-based licensing. Such benefits and rising digital transformation fuel the bare metal cloud market growth.

Bare Metal Cloud Market Overview:

Bare metal cloud services are a type of infrastructure as a service (IaaS) wherein dedicated hardware, housed and managed by a service provider, is rented to the provider’s client. Bare metal is different from other cloud-based services, in context of hosting framework since it doesn’t share hardware resources with other users/tenants. Thus, bare metal differs from traditional cloud deployments since bare metal cloud servers provide enhanced flexibility, security, and control. With a bare metal cloud service, the users get the predictability and control of on-premise hardware with the performance and scalability of a cloud computing platform. Like a traditional in-house server, the enterprise has direct access to the operating system and system hardware. Applications are installed and run directly on the rented physical hardware, and since overheads pertaining to running a hypervisor is associated, a bare metal solution is able to provide better performance and lower latency than a virtual machine.

The bare metal cloud market is mostly consolidated. Market players are expanding their business by diversifying client base, improving product portfolios, and developing new applications. Thus, many prominent players are facing intense competition from start-ups and leading global IaaS (infrastructure as a service) providers. Cloud applications are increasingly adopted by several prominent end-use industries such as BFSI, IT & telecommunication, data centers, and government. Various players are launching bare metal services for mid-size markets to improve IT infrastructure with high security, performance, and customization. In January 2023, DartPoints launched a new bare metal package offering dedicated servers that allow tenants to control their IT infrastructure, achieving cloud-like agility with highly secure physical equipment. DartPoints launched the new bare metal package to increase demand for data center services at the edge with a fully personalized environment. New product launches boost the adoption of bare metal cloud services in the data center.

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Bare Metal Cloud Market: Strategic Insights

bare-metal-cloud-market
Market Size Value inUS$ 6,690.24 million in 2022
Market Size Value byUS$ 27,180.47 million by 2030
Growth rateCAGR of 19.2% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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Bare Metal Cloud Market Driver:

Advent of IoT, Big Data, Machine Learning, and AI to Fuel Bare Metal Cloud Market Growth During Forecast Period

In the past few years, the rising adoption of the Internet of Things (IoT), content delivery network (CDN), and 5G have propelled the demand for low-latency access to data processing and storage. IoT, big data, machine learning (ML), and artificial intelligence (AI) are a few technologies that generate a huge volume of data, require low latency processing, and demand localized computing resources. According to IoTExpress Technologies Pvt. Ltd., in APAC, IoT devices are expected to surpass 15 billion by the end of 2023, a 55% increase from 2020. These devices are expected to generate 79.4 zettabytes (ZB) of data by 2025. Data generated by IoT devices must be processed, stored, and analyzed in real time. IoT devices are widely used globally, connecting various physical objects and enabling data collection and communication. Bare metal clouds positioned at the edge of the network can provide local computing power, storage, and analytics capabilities, which reduce the latency and bandwidth requirements of transmitting data to a centralized data center. Bare metal clouds enable real-time decision making and facilitate IoT deployments across the manufacturing, healthcare, transportation, and smart city industries. Hence, the adoption of bare metal clouds is rising, leading to a rise in the launch of advanced bare metal cloud offerings.

Bare Metal Cloud Market Segmental Analysis:

Based on service type, the bare metal cloud market is segmented into networking services, storage & database services, compute services, security services, and others. The storage & database services segment held the largest bare metal cloud market share in 2022 and is anticipated to register the highest CAGR in the bare metal cloud market during the forecast period. Based on enterprise size, the bare metal cloud market is bifurcated into SMEs and large enterprises. On the basis of application, the bare metal cloud market is segmented into BFSI, manufacturing, government, retail, healthcare, IT & telecommunications, and others. The IT & telecommunications segment held the largest bare metal cloud market share in 2022 and is also anticipated to register a high CAGR in the bare metal cloud market during the forecast period.

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The large enterprises segment held a larger bare metal cloud market share in 2022. However, the SMEs segment is anticipated to register a higher CAGR in the bare metal cloud market during the forecast period. The advantages provided by bare metal cloud vendors are enough to attract large enterprises to integrate the bare metal cloud system into their organizations. The pre-pandemic trend showed that large enterprises have adopted bare metal cloud at a greater pace than SMEs. Large enterprises are aware of the high cost of integrations with the existing systems and maintaining them. A high level of complexity to the performance and scalability requirement is brought by the large enterprises as they are spread across different corners worldwide. Security is always the foremost concern in bare metal cloud. However, for larger multinational firms, the concern is not limited to security alone and goes beyond that. Bare metal cloud with its deployment models offers varying types of security to enterprises, which propels the demand for bare metal cloud among large enterprises.

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Bare Metal Cloud Market Regional Analysis:

The North America bare metal cloud market size was valued at US$ 2,570.39 million in 2022 and is projected to reach US$ 9,812.15 million by 2030; it is expected to record a CAGR of 18.2% from 2022 to 2030. Technological advancements across North America have led to highly competitive markets. In terms of technology service providers, financial industries, and government bodies, North America is considered one of the best-represented regions. The growth of technological developments and supporting government regulations made North America the most promising bare metal cloud market. The North America bare metal cloud market is segmented into the US, Canada, and Mexico. The US held the largest share of the market in 2022. The bare metal cloud market in the US has been growing rapidly. Companies from almost all verticals keenly adopt bare metal cloud services for higher performance and dedicated cloud computing services. The most adopted solutions for the bare metal cloud are database, computing, and storage services. In addition, the bare metal cloud market players are introducing solutions to cater to the growing demand for various end-user sectors such as BFSI, manufacturing, and government. In January 2022, IBM Corporation introduced IBM Cloud bare metal servers for virtual private cloud (VPC). It has 2nd Gen Intel Xeon Platinum 8260 CPUs available in compute, balanced, and memory profiles. It can create multiple private clouds in multizone regions. Thus, product launches are projected to foster the bare metal cloud market growth in the US. Canada's political stability and highly connected geography make it the most suitable location for colocation services and help it bag optimistic growth opportunities for cloud computing. With better awareness among enterprises about the benefits of bare metal cloud services, it is expected to take up pace in the coming years.

Bare Metal Cloud Market Key Player Analysis:

The bare metal cloud market consists of many players such as Amazon.com Inc, Microsoft Corporation, Alphabet Inc, IBM Corporation, Oracle Corporation, Rackspace Service Type Inc, Lumen Technologies Inc, Internap Holding LLC, Equinix Inc, Limestone Networks Inc, Scaleway SAS, Bigstep Inc, and Cyxtera Technologies Inc. Various other companies are introducing new product offerings to contribute to the bare metal cloud market size proliferation. Several other major companies have been analyzed during this research study to get a holistic view of the bare metal cloud market ecosystem.

Recent Developments: 

The bare metal cloud market players highly adopt inorganic and organic strategies. A few recent key bare metal cloud market developments are listed below:

  • In August 2023, Cyxtera Technologies, Inc. and Hewlett-Packard Development Company, L.P. collaborated to help customers accelerate and simplify their hybrid IT strategies. Cyxtera Technologies, Inc. was leveraging the HPE GreenLake edge-to-cloud platform to support Enterprise Bare Metal solutions.
  • In March 2023, AW Rostamani Group, one of the UAE’s leading diversified business conglomerates, chose several Oracle Cloud Infrastructure (OCI) services, including Oracle Exadata Cloud Service, to enable migration of core business processes to the cloud and support the company’s growth. The company will utilize numerous OCI services including OCI Compute bare metal instances, and FastConnect to connect directly to the Oracle Cloud Dubai Region.
  • In January 2023, Digital Realty, a global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions announced the strengthening of an existing relationship with Hivelocity through this customer's adoption of ServiceFabric, an interconnection solution and orchestration platform designed to support the wider industry's shift to a hybrid, data-centric architecture.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Service Type, Enterprise Size, and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


What will be the market size for bare metal cloud market by 2030?

The bare metal cloud market is expected to reach US$ 27,180.47 million by 2030.

What is the estimated global market size for the bare metal cloud market in 2022?

The bare metal cloud market was valued at US$ 6,690.24 million in 2022 and is projected to reach US$ 27,180.47 million by 2030; it is expected to grow at a CAGR of 19.2% during 2022–2030.

What are the future trends of the bare metal cloud market?

Rising demand for colocation services is the future trends of the bare metal cloud market.

What are the driving factors impacting the bare metal cloud market?

Low CAPEX and OPEX required for bare metal cloud infrastructure; demand for scalable, flexible, efficient, and easy IT infrastructure; and rapidly increasing data traffic are the driving factors impacting the bare metal cloud market.

Which are the key players holding the major market share of bare metal cloud market?

The key players, holding majority shares, in bare metal cloud market includes Amazon.com Inc, Microsoft Corporation, Alphabet Inc, IBM Corporation, Oracle Corporation, Rackspace Service Type Inc, Lumen Technologies Inc, Internap Holding LLC, Equinix Inc, Limestone Networks Inc, Scaleway SAS, Bigstep Inc, and Cyxtera Technologies Inc.

Which region is holding the major market share of global bare metal cloud market?

The North America held the largest market share in 2022, followed by Europe and APAC.

Which is the fastest growing regional market?

APAC is anticipated to grow with the highest CAGR over the forecast period.

Which is the leading service type segment in the bare metal cloud market?

The storage & database services segment led the bare metal cloud market with a significant share in 2022 and compute services is expected to grow with the highest CAGR.

The List of Companies - Bare Metal Cloud Market

  1. Amazon.com Inc
  2. Microsoft Corporation
  3. Alphabet Inc
  4. IBM Corporation
  5. Oracle Corporation
  6. Rackspace Service Type Inc
  7. Lumen Technologies Inc
  8. Internap Holding LLC
  9. Equinix Inc
  10. Limestone Networks Inc
  11. Scaleway SAS
  12. Bigstep Inc
  13. Cyxtera Technologies Inc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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