Bare Metal Cloud Market Research Report Information By Service Type (Computing Services, Networking Services, Database Services, Identity and Access Management Services, Volume and Object Storage Services), By Organization Type (Small and medium Enterprises, Large Enterprises), By Vertical (BFSI, Government, Healthcare, IT and Telecommunication, Manufacturing, Retail), And By Region (Europe, Asia-Pacific, North America, And Rest Of The World) –Market Forecast Till 2032.

Bare Metal Cloud Market Summary

As per Market Research Future Analysis, the Bare Metal Cloud Market is projected to grow from USD 7.98 Billion in 2024 to USD 34.41 Billion by 2032, with a CAGR of 20.04% during the forecast period. The market was valued at USD 6.63 Billion in 2023. Key drivers include high performance computing, security, cost efficiency, scalability, compliance, hybrid cloud integration, and customization. The market is dominated by large enterprises and the BFSI sector, with North America leading in market share.

Key Market Trends & Highlights

High Performance Computing (HPC) is a significant driver of market growth.

• HPC workloads benefit from direct access to dedicated hardware resources, enhancing performance.
• Large enterprises are the primary consumers of bare metal cloud services, requiring customized infrastructure.
• The BFSI sector is a major adopter due to high computational power and security needs.
• North America holds the largest market share, driven by advanced infrastructure and demand for HPC applications.

Market Size & Forecast

2024 Market Size: USD 7.98 Billion

2032 Market Size: USD 34.41 Billion

CAGR: 20.04%

2023 Market Size: USD 6.63 Billion

Major Players

Key companies include IBM Corporation, CenturyLink, Rackspace Hosting, Internap Corporation, and Oracle Corporation.

High performance computing, security, cost efficiency, scalability, compliance, hybrid cloud integration, and customization is the key market drivers enhancing market growth.Figure 1: Bare Metal Cloud Market Size, 2024-2032 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Bare Metal Cloud Market Trends

High Performance Computing (HPC) is driving the market growth

HPC refers to the use of advanced computing technologies to process large volumes of data and perform complex calculations at a much faster rate than traditional computing systems. Bare metal cloud can support HPC workloads by providing direct access to dedicated hardware resources, such as CPUs, GPUs, and high-speed networking, which can be optimized for specific applications and workloads. Compared to virtualized environments, bare metal cloud can offer significant performance benefits for HPC workloads because it eliminates the overhead associated with virtualization, such as the hypervisor layer and the need to share resources with other virtual machines. Bare metal cloud also provides greater control over the hardware configuration, enabling customers to fine-tune the system for their specific needs. In addition, bare metal cloud providers may offer specialized HPC hardware and software, such as InfiniBand networking or parallel file systems, that are designed to optimize performance and scalability for HPC workloads.

Furthermore, the demand for bare metal cloud services is being driven by businesses across various industries, such as healthcare, finance, and e-commerce. As companies continue to adopt digital transformation initiatives and seek to enhance their IT infrastructure, bare metal cloud providers are well-positioned to meet the growing demand for high-performance computing solutions.

Bare Metal Cloud Market Segment Insights

Bare Metal Cloud Market by Service type Insights

The Bare Metal Cloud Market segmentation, based on Service type, includes Computing Services, Networking Services, Database Services, Identity and Access Management Services, Volume and Object Storage Services. The computing services segment dominated the market. Computing services in bare metal cloud refer to the provisioning of dedicated, non-virtualized bare metal servers to customers for running their applications and workloads. Unlike virtual machines in a virtualized environment, bare metal servers provide direct access to the underlying hardware, including CPUs, memory, and storage, without the overhead associated with hypervisors and virtualization layers. This results in improved performance, lower latency, and better control over the hardware configuration, making it an ideal choice for high-performance computing (HPC) workloads. Bare metal cloud providers offer a range of computing services to customers, including: Dedicated servers, Load balancing, Auto-scaling, and Network isolation.

Bare Metal Cloud Market By Organization Type Insights

The Bare Metal Cloud Market segmentation, based on by organization type, includes Small and medium Enterprises, Large Enterprises. The large enterprise segment dominated the market. Large enterprises are a significant consumer of bare metal cloud services, as they often require high-performance computing (HPC) and customized infrastructure to support their complex IT requirements. Bare metal cloud services provide large enterprises with dedicated, non-virtualized servers that offer direct access to the underlying hardware, allowing them to fine-tune their infrastructure to meet specific performance, security, and compliance requirements.

Figure 1: Bare Metal Cloud Market, by Organization Type, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Bare Metal Cloud Market Vertical Insights

Based on Vertical, the Bare Metal Cloud Market segmentation includes BFSI, Government Healthcare, IT and Telecommunication, Manufacturing, Retail. The BFSI segment dominated the market. The BFSI sector has been a significant adopter of bare metal cloud solutions due to the high computational power and security features required to manage and analyze large amounts of financial data. The healthcare sector has also been a significant adopter of bare metal cloud solutions due to the compliance and regulatory requirements of handling sensitive patient data. The government and public sector has also been a major adopter of bare metal cloud services, as they require highly secure and compliant infrastructure to support citizen-facing services.

Bare Metal Cloud Market Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American region is dominating the market with High Performance Computing, Security, cost efficiency, and customization. The United States is North America's largest market for High Performance Computing (HPC), accounting for most of the market share. This is due to factors such as availability of advanced infrastructure, growing demand for HPC applications, and support for emerging technologies. Canada and Mexico are also significant markets for (HPC) Services in North American region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BARE METAL CLOUD MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The Asia-Pacific Bare Metal Cloud Market accounts for the second-largest market share. The market is characterized by a high growth potential, driven by factors such as the increased demand for high-performance computing, Growing data center market, Increased cloud adoption, and Improved network infrastructure. Moreover, China’s Bare Metal Cloud Market held the largest market share, and the Indian Bare Metal Cloud Market was the fastest-growing market in the Asia-Pacific region.

Europe's Bare Metal Cloud Market anticipated to develop at the fastest CAGR from 2023 to 2032 due to the increasing demand for hybrid cloud integration, compliance, enhanced security, and the growing adoption of cloud-based services and applications. Further, the Germany Bare Metal Cloud Market held the largest market share, and the UK Bare Metal Cloud Market was the fastest-growing market in the European region.

Bare Metal Cloud Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Bare Metal Cloud Market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Content Delivery Network industry must offer innovative products to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Bare Metal Cloud Market industry to benefit clients and increase the market sector. In recent years, the Bare Metal Cloud Market industry has offered some of the most significant advantages to the market. Major players in the Bare Metal Cloud Market, including IBM Corporation, Oracle Corporation, CenturyLink, Internap Corporation, Rackspace Hosting, and others, are attempting to increase market demand by investing in research and development operations.

CenturyLink is a telecommunications company that provides a range of services, including cloud computing, managed hosting, and network services. The company offers a bare metal cloud solution called the CenturyLink Private Cloud on Bare Metal, which is designed to provide high-performance, secure, and compliant infrastructure to support a range of workloads. The CenturyLink Private Cloud on Bare Metal solution offers customers the ability to provision and configure bare metal servers quickly and easily, with the flexibility to customize the hardware and operating system to meet their specific needs. The solution also includes security features such as firewalls, intrusion detection and prevention, and data encryption to help protect customer data and meet compliance requirements. CenturyLink's bare metal cloud solution is targeted towards enterprise customers, particularly those in the BFSI, healthcare, and government sectors, which have high-performance computing, security, and compliance requirements. The solution is offered through CenturyLink's data center network, which includes more than 100 facilities in North America, Europe, and Asia.

Rackspace Hosting is a cloud computing company that provides a range of managed services for public and private cloud platforms. The company was founded in 1998 and is headquartered in San Antonio, Texas. Rackspace's primary offering is its Managed Cloud service, which is designed to help businesses migrate and manage their infrastructure on cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Rackspace also provides bare metal cloud services as part of its infrastructure offerings. Rackspace's bare metal cloud solution, called OnMetal, provides customers with dedicated bare metal servers that can be provisioned and managed via APIs or a web-based control panel. OnMetal servers are built on a hardware platform that is optimized for performance, providing customers with high levels of processing power, memory, and storage. The solution also includes integrated networking capabilities and support for a range of operating systems and applications. One of the benefits of Rackspace's OnMetal bare metal cloud solution is its flexibility and scalability. Customers can quickly provision and de-provision servers as needed, and can also scale their infrastructure up or down to meet changing demand. Rackspace's Managed Cloud services in action is its partnership with the education technology company, Blackboard Inc.

Key Companies in the Bare Metal Cloud Market include

• IBM Corporation

• CenturyLink

• Rackspace Hosting

• Internap Corporation

• Oracle Corporation

Bare Metal Cloud Industry Developments

• Q2 2024: Equinix Expands Bare Metal Cloud Services to Madrid with New Data Center Launch Equinix announced the opening of a new International Business Exchange (IBX) data center in Madrid, expanding its bare metal cloud offerings in Southern Europe to meet growing demand for high-performance, dedicated cloud infrastructure.
• Q2 2024: IBM Launches Next-Gen Bare Metal Servers for AI Workloads on IBM Cloud IBM introduced a new line of bare metal servers optimized for artificial intelligence and machine learning workloads, aiming to provide enterprises with enhanced performance and security for data-intensive applications.
• Q2 2024: Oracle Announces Strategic Partnership with NVIDIA to Deliver Bare Metal AI Cloud Solutions Oracle and NVIDIA entered a multi-year partnership to integrate NVIDIA’s latest GPUs into Oracle’s bare metal cloud infrastructure, targeting enterprise customers in need of scalable AI and high-performance computing resources.
• Q3 2024: Lumen Technologies Expands Bare Metal Cloud Footprint with New Facility in Singapore Lumen Technologies opened a new data center in Singapore, enhancing its bare metal cloud service availability in the Asia-Pacific region to support regional digital transformation initiatives.
• Q3 2024: Alibaba Cloud Launches Bare Metal Cloud Service in Europe Alibaba Cloud launched its first European bare metal cloud service, aiming to attract enterprise customers seeking dedicated, high-performance cloud infrastructure with compliance to EU data regulations.
• Q3 2024: Rackspace Technology Unveils Managed Bare Metal Cloud Platform for Healthcare Sector Rackspace Technology announced a new managed bare metal cloud platform tailored for healthcare organizations, focusing on compliance, security, and high-performance data processing.
• Q4 2024: Dell Technologies and Equinix Announce Joint Bare Metal Cloud Solution for Edge Computing Dell Technologies and Equinix launched a joint bare metal cloud solution designed for edge computing deployments, targeting industries with latency-sensitive applications such as manufacturing and logistics.
• Q4 2024: Leaseweb Global Expands Bare Metal Cloud Services to South America Leaseweb Global announced the launch of its bare metal cloud services in Brazil, marking its entry into the South American market to meet rising demand for dedicated cloud infrastructure.
• Q1 2025: Amazon Web Services Launches Bare Metal Cloud Instances with Arm-Based Processors AWS introduced new bare metal cloud instances powered by custom Arm-based processors, offering customers improved price-performance for compute-intensive workloads.
• Q1 2025: Bigstep Cloud Secures Major Contract with European Automotive Manufacturer for Bare Metal Cloud Deployment Bigstep Cloud announced it has secured a multi-year contract to provide bare metal cloud infrastructure for a leading European automotive manufacturer, supporting advanced analytics and connected vehicle services.
• Q2 2025: Zenlayer Raises $100 Million to Expand Bare Metal Cloud Services Globally Zenlayer completed a $100 million funding round to accelerate the global expansion of its bare metal cloud platform, with a focus on emerging markets and edge computing solutions.
• Q2 2025: Internap Holding LLC Appoints New CEO to Drive Bare Metal Cloud Growth Strategy Internap Holding LLC announced the appointment of a new CEO, tasking the executive with accelerating the company’s growth in the bare metal cloud sector through product innovation and international expansion.

Bare Metal Cloud Market Segmentation

Bare Metal Cloud Market By Service Type Outlook

• Computing Services

• Networking Services

• Database Services

• Identity and Access Management Services

• Volume and Object Storage Services

Bare Metal Cloud Market By Organization Outlook

• Small and Medium Enterprises

• Large Enterprises

Bare Metal Cloud Market Vertical Outlook

• BFSI

• Government

• Healthcare

• IT and Telecommunication

• Manufacturing

• Retail

Bare Metal Cloud Market Regional Outlook

• North America

• US

• Canada

• Europe

• Germany

• France

• UK

• Italy

• Spain

• Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Report Attribute/Metric	Details
Market Size 2023	USD 6.63 billion
Market Size 2024	USD 7.98 billion
Market Size 2032	USD 34.416 billion
Compound Annual Growth Rate (CAGR)	20.04% (2024-2032)
Base Year	2023
Market Forecast Period	2024-2032
Historical Data	2018- 2022
Market Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered	Type, solution, application, and Region
Geographies Covered	North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered	The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled	IBM Corporation, Oracle Corporation, CenturyLink, Internap Corporation, Rackspace Hosting
Key Market Opportunities	High Performance Computing
Key Market Dynamics	Security Services Increased cloud adoption