Bare Metal Cloud Market is Predicted to reach USD 60 billion | Excluding the Impact of Inflation by 2032

Prudour Private Limited

Updated · Mar 14, 2023

Bare Metal Cloud Market is Predicted to reach USD 60 billion | Excluding the Impact of Inflation by 2032

Market Overview

Published Via 11Press: A bare metal cloud is a type of cloud computing infrastructure where users can rent or lease dedicated hardware resources like servers, storage, and networking equipment on-demand from a provider. Unlike traditional cloud computing models, the bare metal cloud gives users direct access to the underlying hardware so they can customize their infrastructure, optimize workloads, and achieve high levels of performance and security.

The bare metal cloud market is a rapidly expanding segment of the cloud computing industry, driven by an increase in demand for high-performance computing, big data analytics, artificial intelligence, and other resource-intensive applications. Major players include IBM, Oracle, AWS, Microsoft, and Google as well as smaller firms like Packet, Joyent, and Scaleway.

The global bare metal cloud market size is forecast to reach USD 60 billion by 2032 from USD 6.9 billion in 2022, rising at a compound annual growth rate (CAGR) of 24.1% during the forecast period.

The market for cloud computing is expected to experience significant growth over the coming years, driven by its increasing adoption across various industries and the need for more powerful and adaptable infrastructure solutions. Key trends shaping this space include hybrid/multi-cloud environments, edge computing/IoT adoption, as well as increased focus on security & compliance following high-profile data breaches and cyber-attacks.

Bare Metal Cloud Market

Key Takeaways

  • The bare metal cloud market expected to reach USD 6.9 Billion in 2022.
  • Forecasted compound annual growth rates between 2022 and 2032 is 24.1%.
  • By 2032, the bare metal cloud market is projected to reach USD 60 Billion.
  • Bare metal cloud is a type of cloud computing infrastructure that gives users direct access to dedicated hardware resources, allowing them to customize their infrastructure for maximum performance and security.
  • The bare metal cloud market is a rapidly expanding segment of the cloud computing industry, driven by rising demand for high-performance computing, big data analytics, artificial intelligence, and other resource-intensive applications.
  • Key players in the market include IBM, Oracle, AWS, Microsoft, and Google as well as smaller firms like Packet, Joyent, and Scaleaway.
  • The cloud computing market is expected to experience steady growth over the coming years, driven by its increasing adoption across various industries and the demand for more powerful yet flexible infrastructure solutions.
  • Key trends influencing this market include the rise of hybrid and multi-cloud environments, the growing importance of edge computing and IoT technologies, as well as an elevated focus on security and compliance measures.

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Regional Snapshot

  • North America: North America is the leading market for bare metal cloud due to its abundance of cloud service providers and widespread adoption across various industries. The United States leads this region in terms of market size, followed by Canada.
  • Europe: Europe is a major market for bare metal cloud, with countries such as the UK, Germany, and France leading in terms of adoption. This demand is being driven by an increased need for high-performance computing, data analytics, and AI across various industries.
  • Asia Pacific: The Asia Pacific region is witnessing a remarkable expansion of the bare metal cloud market, driven by rising adoption across industries such as healthcare, financial services, and e-commerce. Countries like China, Japan, and India are leading contributors to this region’s market share.
  • Latin America: The Latin America market for bare metal cloud computing is growing steadily, with countries such as Brazil, Mexico, and Argentina leading the charge. This development has been spurred on by the increasing adoption of cloud computing and demand for high-performance computing and data analytics across a range of industries.
  • Middle East and Africa: The Middle East and Africa market for bare metal cloud services is on the rise due to the increasing adoption of cloud computing in industries such as healthcare, financial services, and e-commerce. Countries like UAE, Saudi Arabia, and South Africa dominate this region’s market share.

Drivers

  • High-Performance Computing: Bare metal cloud is becoming more and more popular with organizations that require high-performance computing resources for running applications such as big data analytics, machine learning, and AI. By accessing dedicated hardware through bare metal cloud services, organizations gain access to hardware with better performance and lower latency than traditional virtualized cloud resources.
  • Customization: Bare metal cloud provides users with the freedom to customize their infrastructure according to individual needs. This gives them greater control, enabling them to optimize setups for specific workloads and boost performance.
  • Security: Bare metal cloud provides superior security compared to traditional cloud computing, as users have their own dedicated hardware resources that enable them to implement stronger security protocols and tightly regulate access to their infrastructure.
  • Cost-Effectiveness: Bare metal cloud computing can be more cost-effective than traditional cloud computing for certain workloads. By dedicating hardware resources, organizations avoid the overhead associated with virtualization and enjoy better performance at lower costs.
  • Multi-Cloud and Hybrid Environments: Bare metal cloud is becoming increasingly important in multi-cloud and hybrid environments, where organizations must integrate and manage multiple cloud infrastructures. Bare metal cloud provides a consistent infrastructure across multiple clouds, simplifying management tasks while improving performance.

Restraints

  • Complexity: Bare metal cloud can be more complex to manage than traditional cloud computing. With direct access to hardware resources, users need to have a deeper understanding of the underlying infrastructure and be able to manage it effectively.
  • Limited Scalability: Bare metal cloud can be less scalable than traditional cloud computing for certain workloads. With dedicated hardware resources, organizations may face limitations in terms of scaling up or down quickly to meet changing demands.
  • Limited Availability: Bare metal cloud can be less widely available than traditional cloud computing. With dedicated hardware resources, providers may have limited availability of certain types of infrastructure, which can make it more difficult for organizations to find the resources they need.
  • Cost: Bare metal cloud can be more expensive than traditional cloud computing for certain workloads. With dedicated hardware resources, organizations may face higher upfront costs and longer contract terms, which can make it less cost-effective for some use cases.
  • Vendor Lock-In: Bare metal clouds can be more prone to vendor lock-in than traditional cloud computing. With direct access to hardware resources, organizations may be more dependent on their provider’s infrastructure and may face challenges in migrating their workloads to a different provider or environment.

Opportunities

  • Edge Computing: Edge computing is becoming more and more essential as organizations seek to process and analyze data closer to its source. A bare metal cloud can offer high-performance computing resources at the edge, allowing organizations to run resource-intensive applications in a distributed computing environment.
  • Internet of Things (IoT): The exponential growth of IoT is necessitating a need for new types of computing infrastructure that can handle the vast amounts of data generated by connected devices. The bare metal cloud can offer dedicated hardware resources tailored to handle both the scale and complexity of IoT workloads.
  • Containerization: Containerization is becoming more and more popular as a means to package and deploy applications with consistency and efficiency. The bare metal cloud can offer high-performance infrastructure for running containerized applications, giving organizations better performance and scalability.
  • Hybrid Cloud: As hybrid cloud environments become more commonplace, organizations are seeking infrastructure that can guarantee consistent performance across multiple clouds. The bare metal cloud can offer this consistency of infrastructure across multiple clouds, simplifying management and achieving superior performance for businesses.
  • Industry-Specific Applications: Industries have specific needs when it comes to computing infrastructure. The bare metal cloud can provide customized resources for running industry-specific applications, enabling organizations to achieve superior performance and security levels.

Challenges

  • Skills Gap: Bare metal cloud computing can be more intricate to manage than traditional cloud computing, necessitating an intimate knowledge of its underlying infrastructure. Unfortunately, there is currently a skills gap in the market with an absence of professionals with sufficient expertise.
  • Competition: The bare metal cloud market is becoming more and more crowded, with an increasing number of providers entering it. This makes it harder for providers to stand out and attract customers.
  • Regulatory Compliant Compliance: Many industries have stringent regulatory requirements when it comes to data privacy and security. Providers of bare metal cloud infrastructure must guarantee their infrastructure complies with these regulations, which can prove a difficult challenge.
  • Data Security: Bare metal cloud offers increased security compared to traditional cloud computing due to direct access to hardware resources. However, this also presents new risks such as hardware-level attacks.
  • Interoperability: With the growth of multi-cloud and hybrid cloud environments, interoperability is becoming an increasingly critical requirement. Providers of bare metal cloud infrastructure must guarantee their infrastructure works seamlessly with other cloud environments – which can present a challenge.

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Recent Developments

  • Partnerships and Acquisitions: In the bare metal cloud market, there have been a variety of partnerships and acquisitions as providers strive to expand their capabilities and reach. For instance, IBM acquired Nordcloud in 2021 in order to bolster its hybrid cloud capabilities.
  • Edge Computing: There has been an increasing focus on edge computing in the bare metal cloud market, as organizations seek to process and analyze data closer to its source. In 2021, PacketFabric launched a bare metal edge computing platform with high-performance resources at the edge.
  • Containerization: Containerization has seen increasing popularity in the bare metal cloud market, as organizations strive to deploy applications more quickly and stably. In 2021, Equinix unveiled a service designed specifically for running containerized applications within its data centers.
  • Security: In the bare metal cloud market, there has been an increasing emphasis on security as organizations strive to safeguard their data and infrastructure from cyber threats. For instance, Digital Realty launched a bare metal security service in 2021 that provides enhanced protection measures for bare metal infrastructure.
  • Industry-Specific Solutions: In the bare metal cloud market, there has been an increasing focus on industry-specific solutions to meet the diverse needs of different industries. For instance, Packet launched a platform specifically tailored for financial services applications in 2021 which offers low-latency access to high-performance computing resources.

Key Market Segments

Type

  • Hardware
  • Service

Application

  • Advertising
  • BFSI
  • Government
  • Healthcare
  • Others

Key Market Players

  • International Business Machines (IBM) CorporationOracle Corporation
  • Oracle Corporation
  • Rackspace
  • Centurylink
  • Internap Corporation
  • Packet
  • Datapipe
  • Scaleway
  • Limestone Networks
  • Bigstep Technologies

Nature Insights

The bare metal cloud market is a rapidly expanding segment of the cloud computing industry. Bare metal clouds offer direct access to physical hardware resources without the abstraction layers typically found in traditional cloud computing environments, leading to higher performance levels, scalability, and security compared to traditional cloud computing models.

One of the primary drivers of growth for bare metal cloud computing is an increasing need for high-performance computing resources to support resource-intensive workloads such as artificial intelligence, big data analytics, and high-performance computing. Bare metal clouds offer dedicated hardware tailored specifically for these tasks, giving organizations better performance and faster time to insights.

Another driver of the bare metal cloud market is an increasing need for edge computing capabilities. As IoT and other distributed computing environments expand, organizations require infrastructure that can support the scale and complexity of edge computing workloads. Bare metal cloud provides high-performance resources at the edge, enabling organizations to process and analyze data closer to where it’s generated.

However, the bare metal cloud market also faces numerous obstacles such as a skills gap, competition, regulatory compliance, data security, and interoperability. To be successful in the marketplace, providers of bare metal cloud infrastructure must overcome these challenges.

Report Scope

Report Attribute Details
The market size value in 2022 USD 6.9 Bn
Revenue forecast by 2032 USD 60 Bn
Growth Rate CAGR Of 24.1%
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of the World
Historical Years 2017-2022
Base Year 2022
Estimated Year 2023
Short-Term Projection Year 2028
Long-Term Projected Year 2032

Frequently Asked Questions

Q: What is Bare Metal Cloud Computing Infrastructure?
A bare metal cloud is an approach to cloud computing that provides direct access to physical hardware resources without the intermediaries typically found in traditional cloud environments.

Q: What are some of the advantages of bare metal cloud computing?
A: Bare metal clouds offer higher levels of performance, scalability, and security compared to traditional cloud computing models. Furthermore, these dedicated hardware resources can be optimized for resource-intensive workloads like artificial intelligence (AI), big data analytics (BDA), and high-performance computing (HPC).

Q: What challenges face the bare metal cloud market?
A: Some issues facing this sector include a skills gap, competition, regulatory compliance, data security, and interoperability.

Q: What are some recent developments in the bare metal cloud market?
A: Recently, there have been partnerships and acquisitions as well as an emphasis on edge computing, containerization, security, and industry-specific solutions.

Q: What is driving the growth of the bare metal cloud market?
A: Demand for high-performance computing resources, edge computing capabilities, and industry-specific solutions are fueling this sector’s expansion.

Prudour Private Limited
Prudour Private Limited

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