The bare metal cloud market growth 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 increasing influence of green data center popularity, data center regulatory standards, cloud data traffic, and hyperscale computing’s rising position in big data analytics are driving the adoption of bare metal cloud services globally.
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Top Trends in Global Bare Metal Cloud Market:
Due to its capacity to offer the performance and isolation benefits of devoted physical servers combined with the flexibility and scalability of cloud computing, bare metal cloud services were becoming more and more popular.
Many businesses were using dedicated bare metal servers in combination with virtualized cloud resources as part of their hybrid cloud strategy to create a balanced and effective IT architecture.
Bare metal cloud is appealing for handling resource-intensive tasks like artificial intelligence (AI) and big data processing, where dedicated hardware resources are essential.
Businesses that needed higher levels of security and compliance, especially those subject to tight regulatory requirements, preferred bare metal cloud services.
Businesses looking for more control over their infrastructure and the flexibility to alter hardware configurations to suit their particular requirements found the bare metal cloud to be appealing.
To avoid vendor lock-in and enhance redundancy and disaster recovery capabilities, businesses were implementing multi-cloud strategies, and bare metal cloud was being incorporated into these strategies.
Edge computing and bare metal cloud were proven to be a potent combination for powering AI and Internet of Things (IoT) applications as well as enabling real-time data processing and analytics at the network edge.
DevOps tools and automation capabilities were being incorporated by bare metal cloud providers into their services to speed up the provisioning, scaling, and maintenance of bare metal servers.
Key Industry Development:
In order to diversify their product portfolios and customer bases, major cloud service providers and data centre operators have been forming strategic alliances and buying bare metal cloud providers.
Businesses were able to easily execute resource-intensive workloads thanks to improvements made by bare metal cloud providers in terms of performance and scalability.
For AI, machine learning, and other data-intensive applications, providers were incorporating the most recent technologies, including as GPUs and FPGAs, to improve the capabilities of bare metal servers.
In order to enable quicker data processing and lower latency at the network edge, some providers started offering bare metal cloud services customised expressly for edge computing use cases.
Businesses were able to manage and automate bare metal infrastructure more easily thanks to improvements in APIs and the introduction of developer-friendly tools.
To answer the specific needs of industries like banking, healthcare, and gambling, some providers started offering industry-specific bare metal cloud solutions.
The performance benefits and flexibility of dedicated hardware were luring Small and Medium-sized Enterprises (SMEs) to adopt bare metal cloud services.
With the growth of open-source initiatives for managing bare metal infrastructure, companies now have more options and freedom when developing and implementing their solutions.
Based on service type, the compute services segment will hold the largest market size in 2023. Compute services are cloud services that offer exclusive access to physical servers, allowing users to deploy and manage applications and workloads on dedicated hardware. Unlike virtualized cloud instances, compute services in the bare metal cloud market provide users with raw computing power, customization, resource isolation, and low-latency performance while offering cloud-like flexibility, scalability, and management capabilities. They are particularly suitable for resource-intensive applications, high-performance computing (HPC), and scenarios where security, performance, and control are paramount. Moreover, bare metal cloud services often include automation, orchestration, and scaling features to help businesses efficiently manage their computing resources. This scalability ensures that organizations can handle fluctuations in demand whenever traffic spikes during a product launch or scaling down during periods of reduced activity.
Based on organization size, large enterprises segment to hold the largest market share in 2023. Large enterprises often operate complex, data-intensive workloads, including mission-critical applications, big data analytics, and high-performance computing tasks. Bare metal servers provide these organizations with dedicated physical hardware, eliminating virtualization's performance variability and resource contention in multi-tenant environments. Moreover, security and compliance are paramount concerns for large enterprises, particularly in regulated industries like finance and healthcare. Bare metal servers offer greater control over security configurations and data isolation. As large enterprises embrace hybrid and multi-cloud architectures to achieve scalability and redundancy, bare metal servers complement these strategies by providing high-performance, dedicated infrastructure that integrates seamlessly with other cloud services.
Based on vertical, the BFSI vertical is to hold the largest market share in 2023. The adoption of bare metal cloud in the banking, financial services, and insurance (BFSI) sector is gaining significant traction as organizations prioritize performance, security, and regulatory compliance. JPMorgan Chase, one of the world’s largest financial institutions, has utilized bare metal cloud solutions to support its high-frequency trading operations, ensuring minimal latency and robust performance. In addition, the BFSI sector is turning to the bare metal cloud for data-intensive tasks such as risk assessment and actuarial modeling. Security and data protection are paramount in BFSI, and the bare metal cloud enables institutions to maintain control over their security measures. Citigroup, a global financial services leader, has incorporated bare metal cloud servers into its infrastructure to enhance security and data privacy, meeting stringent regulatory requirements while ensuring high performance. Thus, performance, security, and compliance requirements are expected to drive the demand for bare metal clouds in the BFSI sector during the forecast period.
Top Key Companies in Bare Metal Cloud Market:
Some of the key players operating in the Bare Metal Cloud Market are - IBM (US), Oracle (US), AWS (US), Lumen (US), Rackspace (US), Internap (US), Dell (US), Equinix (US), Google (US), and Microsoft (US).
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