Bare Metal Cloud Market is expected to reach US$ 27,180.47 million by 2030

Increasing Adoption of Digital Transformation Drives Bare Metal Cloud Market Growth

According to our latest study on “Bare Metal Cloud Market Forecast to 2030 – COVID-19 Impact and Global Analysis – by Service Type, Enterprise Size, and Application,” 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.

A bare metal cloud service allows enterprises to rent hardware resources such as physical dedicated servers with just CPUs, memory, and storage from a provider like AWS or Google, provisioned to create the required cloud environments and can be fully tailored to meet the definite requirements of the user. Apart from the offered flexibility, pertaining to cloud configuration, the users can troubleshoot without worrying about neighboring virtual machines. In general, public clouds are characterized by multiple tenants and virtual machines, often leading to competition for resources. However, bare metal clouds are comprised of dedicated servers rented by the user, and hence such challenges are completely mitigated. Thus, it allows for flexibility to install preferred operating systems and finely tune hardware and software for specific, often data-intensive, workloads.

Flexibility is a significant advantage offered by the services provided by bare metal cloud market players. It provides user enterprises complete control over cloud assets so that the user can setup and customize it as per need. Mainly, the user has direct physical access to the resources compared to typical cloud offerings where physical resources are hidden behind the hypervisor layer. Bare metal cloud services allow one to control the number of virtual machines and the workload on them. Despite higher per-unit costs, bare-metal cloud service is more cost-efficient than virtualized servers for high workloads. Since, usage rates are calculated on whichever is suitable an hourly or a monthly basis. It thus has lower upfront costs.

Organizations grow rapidly and hence expect operations to scale up as per the requirement. With easier scalability being offered by the bare metal cloud model, many organizations seem to adopt the model for their diverse operations, including financial management and IT infrastructure management. Implementing such a modular structure that can scale up the IT infrastructure, storage, computing, and fabric in a single architecture is being adopted widely today. The flexibility offered by bare metal cloud models provides a competitive advantage to companies by quickly adjusting to the demands of customers and making the necessary changes in the operations efficiently. High efficiency and low latency are a prerequisite for leading companies, and deployment of bare metal cloud service gives them the power to be flexible and efficient. Small, medium, and large enterprises are adopting bare metal cloud services due to factors such as increased data speed, benefits offered by cloud services, cost-efficient features, and others. In April 2022, phoenixNAP deployed its bare metal cloud service at an American Tower Edge Data Center in Austin, Texas. To cater to growing demands for bare metal cloud services, market players are launching these solutions. In January 2023, DartPoints launched bare metal cloud solutions that will offer servers to the tenants and allow them to take full control of their IT infrastructure, achieving cloud-like agility with highly secure physical equipment. Thus, benefits of bare metal cloud solutions such as flexibility and scalability contribute to its adoption and launch of new solutions, which fuel the bare metal cloud market growth.

Adoption of Big Data and IoT by Various Industry Verticals to Offer Lucrative Opportunities for Bare Metal Cloud Market Growth During Forecast Period

Big Data and IoT are the most practiced technologies across various industry verticals such as BFSI, IT and telecom, government, and others. While big data has become essential for the hospitality and e-commerce & retail industries to understand customer needs, IoT has become essential in the manufacturing vertical to achieve better efficiency. The integration of Big Data and Analytics with the cloud is driven by the need for companies to manage large volumes of data. SAP is catering this market by augmenting its in-memory SAP HANA, an enterprise application development platform with features of Big Data and analytics. The convergence of IoT and cloud would allow machine communication with enterprise-level applications such as CRM, ERP, and SCM. This would help to grow Big Data and Analytics markets in a significant manner and add value to the users. The driver in this convergence could be the factor that the enterprises will avail to the bare metal cloud services for the storage, collection, and analysis of their data on a real-time basis in a cost-effective way. The adoption of bare metal cloud can act as competitive advantage to the enterprise as they can save money and focus on other enterprise goals. The adoption of bare metal cloud has reached a point where the popularity of Big Data and IoT goes hand-in-hand with the progress of the bare metal cloud market. Bare metal cloud vendor deals with all software related to business intelligence, predictive analysis, and prediction of buying behavior of the customer. The growing need to include Big Data and IoT as an integral part of various businesses is expected to create opportunities for the bare metal cloud market in the coming years.

North America held over one-third of the global bare metal cloud market share in 2022. The regional bare metal cloud market is segmented into the US, Canada, and Mexico. North America is the early adopter of digital technology across the world. In May 2020, the United States Agency for International Development (USAID) released a Digital Strategy for development and humanitarian assistance in the rapidly evolving digital landscape across the world. The strategy was built to strengthen various industries, contributing to the region's economic growth. Increasing digitalization fosters the demand for bare metal cloud services by players as the services are cost-effective and flexible solutions to store their data. The US is the hub of the bare metal cloud as all the leading bare metal cloud companies, including Google; Oracle; Rackspace Hosting; IBM Corporation; and CenturyLink, Inc., originated in the US. 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.

Segmental Overview

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. 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. By 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 the highest CAGR in the bare metal cloud market during the forecast period.

Competitive Landscape and Key Developments

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 are among the key players operating in the bare metal cloud market. 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. The leading bare metal cloud market players focus on feature upgrades, expansion and diversification, collaboration, and acquisition strategies, which enable them to grab new business opportunities.

• In March 2023, Oracle and NVIDIA announced plans to operate vital NVIDIA AI applications on the new Oracle Cloud Infrastructure (OCI) Supercluster. OCI Compute Bare Metal is an ultra-low latency RDMA over Converged Ethernet (RoCE) cluster based on NVIDIA networking, and a selection of high-performance computing (HPC) storage are all included in OCI’s Supercluster. Numerous OCI Compute Bare Metal instances that can effectively handle massively parallel workloads have been deployed and validated by NVIDIA.
• In March 2023, Amazon Elastic Compute Cloud (Amazon EC2) C6in instances, Amazon EC2 M6in and M6idn instances, and Amazon EC2 R6in and R6idn instances were made available in bare metal size.
• In February 2023, Equinix, Inc., a digital infrastructure company, announced to continue the expansion of its Equinix Metal hubs in Asia Pacific. Equinix’s distributed Bare Metal-as-a-Service was made available in Osaka and Melbourne, apart from existing access in Hong Kong, Seoul, Singapore, Sydney, and Tokyo.

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