Bare Metal Cloud Market Size - By Service Type (Data Storage Service, Networking Service, Security Service, Compute Service), Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, End-user & Global Forecast, 2024 - 2032

Bare Metal Cloud Market Size

Bare Metal Cloud Market size was valued at USD 7.1 billion in 2023 and is estimated to register a CAGR of over 18% between 2024 and 2032. The rising global demand for High-Performance Computing (HPC) is a significant factor driving the market growth. HPC applications, such as scientific simulations, AI/ML modeling, and data analytics, require immense computational power, low-latency access to hardware, and optimal performance.
 

For instance, in January 2023, DartPoints launched a bare metal cloud solution, providing dedicated servers for organizations seeking high performance and customization in their IT infrastructure. This offers full control over physical equipment, combining the agility of cloud with the benefits of secure & dedicated hardware and subsequently addressing the unique needs of mid-size markets.
 

Technological advancements are driving the bare metal cloud market growth by delivering enhanced performance, automation, and security. These advancements include faster processors, high-speed networking, and efficient storage solutions, allowing bare metal servers to meet the growing needs of modern workloads.
 

In January 2023, OVHcloud unveiled Bare Metal Instances, a pay-as-you-go service offering dedicated single-tenant physical servers with computational, storage, and networking resources. Users can be billed on an hourly or monthly basis, which helps in ensuring cost flexibility. Bare Metal Instances has been designed to seamlessly integrate with the public cloud ecosystem, enabling users to enhance their deployments with the complete public cloud catalog. This integration is facilitated through APIs and Infrastructure-as-Code (IaC) tools, making it easier for businesses to leverage bare metal instances while optimizing their cloud-based workloads.
 

The limited availability of bare metal cloud services can be a challenge for businesses. Bare metal cloud options are not as widely available as traditional virtualized cloud offerings. This scarcity restricts the choices available to businesses and may hinder their ability to find a suitable provider that meets their specific requirements for dedicated & high-performance physical servers. It can also result in higher costs and reduced flexibility due to a lack of competitive options in the market.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the bare metal cloud market as organizations swiftly shifted to remote work and digital transformation. This augmented the demand for high-performance, secure, and scalable computing infrastructure. Bare metal cloud, which offers dedicated physical servers, was able to meet these needs, thereby ensuring reliable & efficient operations for remote workforces, online services, and data-intensive applications. The pandemic accelerated the adoption of cloud technologies, further driving the market growth as businesses sought agile & robust solutions to navigate the crisis.
 

Bare Metal Cloud Market Trends

Edge computing adoption is an emerging trend in the bare metal cloud industry due to the growing demand for real-time processing & low-latency applications. Edge computing brings data processing closer to the source of data generation, thereby reducing latency and enhancing performance. For instance, in April 2023, Spectro Cloud launched the Secure Edge-Native Architecture (SENA) to facilitate the secure deployment and management of edge computing environments. This solution streamlines edge operations, making it more accessible and appealing to those organizations seeking to harness the benefits of High-Performance Computing (HPC) closer to data sources.
 

Bare metal cloud providers are strategically placing servers at edge locations, thereby enabling businesses to deploy dedicated & high-performance infrastructure for edge computing workloads. This trend caters to applications, such as IoT, autonomous vehicles, and smart cities, where rapid data processing at the edge is essential for optimal performance and responsiveness.
 

The hybrid & multi-cloud integration in the bare metal cloud market strikes a balance between high performance and operational flexibility. By seamlessly incorporating bare metal cloud alongside virtualized cloud resources and on-premises infrastructure, organizations can optimize their workloads. They can retain control and security through dedicated servers while leveraging the scalability and versatility of cloud environments. This approach ensures that mission-critical applications receive the necessary computing power required while accommodating the evolving business needs, making hybrid & multi-cloud integration a compelling trend in the bare metal cloud landscape.
 

Bare Metal Cloud Market Analysis

Based on deployment model, the public cloud segment accounted for 40% of the market share in 2023, as it aligns with the evolving needs of businesses. Public cloud providers are increasingly offering bare metal cloud options to those users requiring dedicated & high-performance servers; this is also allowing these providers to benefit from the scalability and global reach of public cloud.
 

This combination allows organizations to operate demanding applications & workloads with agility and in a cost-effective manner. As a result, the adoption of public-cloud-based bare metal services is projected to expand, serving as an attractive solution for various use cases.
 

Based on organization size, the large enterprises segment held over 60% of the bare metal cloud market share in 2023, due to their complex IT requirements. These organizations often require dedicated & High-Performance Computing (HPC) resources to support data-intensive applications, AI/ML workloads, and critical business operations.
 

Bare metal cloud offerings provide the control & scalability needed to accommodate these demands. Large enterprises are also increasingly adopting hybrid & multi-cloud strategies, integrating bare metal cloud solutions for specific use cases, enhancing performance, and maintaining flexibility. As such, the adoption of bare metal cloud services is estimated to increase among the large enterprises seeking optimized infrastructure solutions.
 

North America bare metal cloud market registered around 30% of the revenue share in 2023. The region houses a robust technology ecosystem and a thriving enterprise landscape with diverse industry verticals. For instance, in April 2023, IBM announced the full availability of its LinuxONE bare metal servers under an Infrastructure-as-a-Service (IaaS) model, which can be rented in the cloud. Customers can rent these dedicated physical servers in the cloud, providing HPC resources with full control & security. This move enhanced IBM's cloud portfolio, allowing it to cater to the diverse workload needs of businesses.
 

Large enterprises, SMBs, and startups are increasingly adopting bare metal cloud solutions to meet their High-Performance Computing (HPC) requirements. Additionally, the growing demand for edge computing, the need for secure & compliant infrastructure, as well as the presence of major cloud service providers are contributing to the North America market growth.
 

Bare Metal Cloud Market Share

Microsoft Corporation and Oracle Corporation dominate the market holding around 10% of the revenue share. Their broad customer base, compliance certifications, and reliability make them preferred choices for enterprises requiring high-performance, secure, and scalable bare metal infrastructure for a wide range of applications and workloads.
 

Bare Metal Cloud Market Companies

The major companies operating in the bare metal cloud industry are-

• Microsoft Corporation
• Oracle Corporation
• IBM Corporation
• Amazon Web Services (AWS)
• Google LLC.
• Alibaba Cloud
• Rackspace Technology
   

Bare Metal Cloud Industry News

• In June 2023, Firmus, a company that is known for its immersion cooling technology, launched the Sustainable Metal Cloud (SMC), a bare-metal cloud service, in the ST Telemedia Global Data Centre (STT GDC) outlets across Asia Pacific. The SMC will provide Infrastructure-as-a-Service (IaaS) for the high-performance AI clusters powered by Nvidia A100 & H100 GPUs. These systems, referred to as sustainable AI factories by STT GDC, will support advanced AI & visual computing workloads in an environmentally sustainable manner.
   

The bare metal cloud market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Service Type

• Data storage service
• Networking service
• Security service
• Compute service

Market, By Deployment Model

• Public cloud
• Private cloud
• Hybrid cloud

Market, By Organization Size

• SME
• Large organization

Market, By End-User

• IT & telecom
• Healthcare
• BFSI
• Manufacturing
• Retail & e-commerce
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa