Bare Metal Cloud Market by Service Type (Compute, Networking, Database, Security, Storage, Managed), Organization Size (Large, SMEs), Vertical (BFSI, Healthcare & Life Sciences, Manufacturing) and Region - Global Forecast to 2028

Bare Metal Cloud Market by Service Type (Compute, Networking, Database, Security, Storage, Managed), Organization Size (Large, SMEs), Vertical (BFSI, Healthcare & Life Sciences, Manufacturing) and Region - Global Forecast to 2028

The bare metal cloud market size is expected to grow from USD 8.5 billion in 2023 to USD 19.1 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 17.4% during the forecast period. The emergence of AI and ML applications offers opportunities for the bare metal cloud market growth. Lack of isolation in multi-tenant environments represents a significant challenge for the growth of the bare metal cloud market.

“As per service type, the storage services segment to hold the second largest market share in 2023.“

Bare metal cloud storage services offer a robust and high-performance solution for organizations seeking dedicated and scalable storage resources in the cloud. Bare metal cloud storage eliminates the overhead of virtualization, resulting in low-latency, high-speed access to storage resources. This is essential for applications that rely on fast and consistent data retrieval and storage, such as big data analytics, high-resolution media processing, and database operations. Organizations can quickly scale their storage infrastructure up or down based on their specific needs without the constraints of shared virtualized storage. Whether managing growing datasets or accommodating fluctuating storage demands, bare metal cloud storage services provide the flexibility to ensure optimal resource utilization. Further, bare metal cloud storage services typically offer data redundancy and backup options to enhance data durability and availability. This is crucial for maintaining data integrity and ensuring business continuity during hardware failures or unexpected incidents.

“As per vertical, the manufacturing vertical to hold second largest market share in 2023.“

The manufacturing industry is undergoing a digital transformation, often referred to as Industry 4.0. Key technological trends aligning with bare metal cloud adoption include IoT integration, big data analytics, AI, and edge computing. For instance, General Electric, a global manufacturing company, utilized a bare metal cloud to optimize its operations by harnessing dedicated, high-performance servers. These servers facilitate real-time data analysis from sensors and IoT devices embedded within their equipment, enabling predictive maintenance. The bare metal cloud finds applications in quality control within the manufacturing domain. This real-time analysis detects defects and inconsistencies, ensuring that only high-quality products reach the market. Supply chain optimization is another vital application, allowing manufacturers to track inventory, forecast demand accurately, and cost-effectively optimize logistics.

“As per region, the Latin America region is projected to witness the second-highest CAGR during the forecast period.”

Due to several compelling factors, Latin America has emerged as a favorable destination for the growth of the cloud industry. These include the region’s unmet demand for cloud services, its substantial population, often concentrated in major urban centers, and its openness to both US and Chinese cloud service providers. As Latin America increasingly becomes an emerging market for major cloud providers, the local tech sectors could reap the most significant benefits. Cloud-related activities have already boosted various related industries in the region, including the leased data center sector. As Latin American businesses invest more in cloud computing, they are increasingly seeking ways to improve the performance of their applications and workloads. Bare metal cloud solutions provide dedicated physical servers without virtualization layers, ensuring consistent and high-performance computing resources.

The breakup of the profiles of the primary participants is given below:

By Company: Tier I: 38%, Tier II: 42%, and Tier III: 20%

By Designation: C-Level Executives: 40%, Director Level: 35%, and Others: 25%

By Region: North America: 35%, Europe: 40%, Asia Pacific: 15%, Rest of World: 10%

Note: Others include sales managers, marketing managers, and product managers

Note: The rest of the World consists of the Middle East & Africa and Latin America

Note: Tier 1 companies have revenues of more than USD 100 million; tier 2 companies’ revenue ranges from USD 10 million to USD 100 million; and tier 3 companies’ income is less than 10 million

Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis

Some of the major vendors offering bare metal cloud services across the globe include IBM (US), Oracle (US), AWS (US), Lumen (US), Rackspace (US), Internap (US), Dell (US), Equinix (US), Google (US), Microsoft (US), Alibaba Cloud (China), Scaleway (France), Joyent (US), HPE (US), OVHcloud (France), Limestone Networks (US), GoDaddy (US), phoenixNAP (US), Hetzner (Germany), Huawei Cloud (China), Pure Storage (US), DartPoints (US), Bigstep (UK), Oman Data Park (UK), Gcore (Luxembourg), Zenlayer (US), Vultr (US), RedSwitches (US), HostinRaja (India), Cherry Servers (Lithuania), and Cox Edge (US).

Research coverage:

The market study covers the bare metal cloud market across segments. It aims to estimate the market size and the growth potential of this market across different segments, such as service types, organization size, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Reasons to buy this report:

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the bare metal cloud market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (need for high-performance computing to support resource-intensive applications, Need for delivering high-bandwidth connectivity and scalability, need for enhanced security and compliance to operate in secure environments, and absence of noisy neighbor concern and hypervisor tax) restraints (high cost of implementation costs, and stringent cloud regulations) opportunities (growing adoption of edge computing infrastructure for real-time data processing, growth in adoption of big data and DevOps applications, and emergence of AI and ML applications), and challenges ( lack of isolation in multi-tenant environments, and integration with virtualized environments) influencing the growth of the bare metal cloud market.

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the bare metal cloud market.

Market Development: Comprehensive information about lucrative markets – the report analyses the bare metal cloud market across varied regions.

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the bare metal cloud market.

Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like IBM (US), Oracle (US), AWS (US), Lumen (US), Rackspace (US), Internap (US), Dell (US), Equinix (US), Google (US), Microsoft (US), among others in the bare metal cloud market.