Bare Metal Cloud Market Research Report: Information By services Type (Compute Services, Networking Services, Database Services, Security Services, Storage Services, Managed Services) By Organization Size (SMEs and Large Enterprise) By Vertical (BFSI, IT & ITES, Manufacturing, Healthcare Life Sciences, Retail Consumer Goods, Telecom, Media Entertainment, Government and Others) and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) –Market Forecast Till 2035.

Bare Metal Cloud Market Summary

As per MRFR analysis, the Global Bare Metal Cloud Market Size was estimated at 8.38 (USD Billion) in 2024 and is expected to grow to 58.71 (USD Billion) by 2035 at a CAGR (growth rate) of around 19.4% during the forecast period (2025-2035).

Key Market Trends & Highlights

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

• In the Global Bare Metal Cloud Market, North America is expected to hold the largest value share of USD 23.55 Billion by 2035.
• Compute Services is expected to have the largest share, valued at USD 23.99 Billion in 2035.
• Need for high-performance computing to support resource-intensive applications, Growth in demand for delivering high-bandwidth connectivity and scalability and Increasing interest in developing technologies drives the Bare metal Cloud Market.

Market Size & Forecast

2025 Market Size: USD 9.97 Billion

2035 Market Size: USD 58.71 Billion

CAGR: 19.4%

2024 Market Size: USD 8.38 Billion

Major Players

Key players include Atlantic net, Liquid Web, LLC., Cherry Servers, Inc, Hivelocity Ventures Corp., Scaleway SAS, Amazon.com, Inc, INAP OperationsLLC, RedSwitches, LLC, OpenMetal, Inc, Oracle Corporation, Vultr Holdings, LLC, IBM, Lumen Technologies, Rackspace Technology and Microsoft Azure. Competing in the Bare metal Cloud domain.

The bare metal cloud market is expected to grow significantly over the forecast period due to several factors. The growth of the bare metal cloud market is expected to be driven by key factors such as need for high-performance computing to support resource-intensive applications and growth in demand for delivering high-bandwidth connectivity and scalability. However, factors such as high implementation costs and stringent cloud regulations are expected to restrict market growth.

On the other hand, rise in adoption of edge computing infrastructure for real-time data processing and growth in adoption of big data and devops applications in the future pose lucrative opportunities for the market.

As per Analyst at MRFR, “The rise in AI and ML technologies exponential growth in AI investment directly correlates with the increasing demand for high-performance computing. Bare metal solutions offer dedicated hardware and with the elimination of virtualization overhead, provide the perfect environment for custom workloads, especially when processing vast amounts of data and performing complex calculations.”

Figure1:Bare Metal Cloud Market, 2019 - 2035 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Bare Metal Cloud Market Opportunity

Emergence Of AI And ML Applications

The emergence of AI and ML applications presents a significant opportunity for the Bare Metal Cloud Market, as these technologies require immense computational power, high-speed data processing, and optimized hardware configurations. Bare metal cloud offers dedicated servers with direct access to GPUs and CPUs, enabling faster training and inference of complex AI and ML models without the performance bottlenecks often seen in virtualized environments. For example, NVIDIA uses bare metal cloud infrastructure to accelerate deep learning research and deployment, allowing researchers to leverage powerful GPU clusters with low latency.

AI and ML workloads involve a lot of computation, to computing, fast storage, and bandwidth to train AI and ML model. Bare metal cloud solutions fulfil these demands by providing custom configurations and GPU-accelerated servers for the most demanding tasks. From predictive analytics in healthcare to personalized services in retail and automation of tasks in the manufacturing sector, industries are using AI-fuelled insights to thrive. The growing proficiency of AI-driven applications that include self-driving cars, natural language processing, and recommendation systems have also increased the need for stable, dedicated infrastructure that bare metal clouds offer.

The on-demand scalability of bare metal cloud services, combined with their cost efficiency, makes them ideal for AI/ML-based innovation, further boosting this trend. 85% of AI and ML workloads demand GPU-accelerated servers, with 40% of these workloads utilizing bare metal cloud environments. Even GPT-4 requires 10-50x higher bandwidth than traditional workloads, processing as much as 10TB of data per day by AI models. 50% of bare metal cloud deployments use NVIDIA A100 or V100 GPUs.

Bare Metal Cloud Market Segment Insights

Bare Metal Cloud Market Method Segment Insights

Based on Services Type, the Bare Metal Cloud market segmentation includes compute services, networking services, database services, security services, storage services and managed services. The Compute Services segment held the majority share in 2024, contributing around ~38.9% to the market revenue. The compute services are a fundamental element of the bare metal cloud market offering raw, dedicated physical server resources with no hypervisor layer, offering maximum control, performance, and customization for enterprise workloads.

These services provide high-throughput compute power ideal for latency-sensitive and processor-intensive applications such as artificial intelligence (AI), machine learning (ML), data analytics, high-performance computing (HPC), and real-time financial processing. Bare metal compute services differ from conventional virtualized compute environments in that they provide full access to hardware resources CPU, memory, and storage, enabling users to tailor operating systems, hypervisors, or container runtimes to particular application requirements. This results in improved performance, lower virtualization overhead, and superior workload isolation.

Compute services in the bare metal model are consumed typically through Infrastructure-as-a-Service (IaaS) for automated provisioning and API-based orchestration. Enterprises in regulated industries like BFSI, healthcare, and government tend to use compute services for compliance, security, and data sovereignty requirements. As the adoption of hybrid and multi-cloud architectures rises, the compute services segment is growing rapidly as organizations require scalable, secure, and high-performance infrastructure that can operate seamlessly across cloud and on-premise environments

.Figure2: Bare Metal Cloud Market, by Method, 2024 & 2035 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Bare Metal Cloud Market Organization Size Segment Insights

Based on Organization Size, the Bare Metal Cloud market segmentation includes SME and Large Enterprise. The Large Enterprise segment held the majority share in 2024 contributing around ~59.8% to the market revenue. The large enterprise in the bare metal cloud space, accounts for a huge share owing to the sophisticated infrastructure requirements, high compliance requirements, and performance-driven workloads of large-scale businesses. These enterprises across sectors like banking and financial services, healthcare, telecom, manufacturing, and government need high-performance computing environments that are capable of handling mission-critical applications like ERP, AI/ML modeling, high-frequency trading, and large database operations.

Bare metal cloud delivers dedicated physical servers with access to full hardware, removing the hypervisor layer and related virtualization overhead, and thereby guaranteeing workload isolation, deterministic performance, and improved security.

Large enterprises tend to leverage bare metal infrastructure as part of hybrid and multi-cloud environments to ensure consistency of performance while obtaining regulatory compliance (e.g., GDPR, HIPAA, PCI-DSS). They also benefit from advanced service-level agreements (SLAs), security and networking features embedded, and managed services to lighten operational load. These enterprises tend to demand custom configurations, high availability, and support for geographically distributed workloads. As large enterprises continue their digital transformation and modernization initiatives, the need for flexible, scalable, and secure bare metal cloud environments is likely to increase, making this segment a key driver of market growth.

Bare Metal Cloud Market Vertical Segment Insights

Based on the Vertical, the Bare Metal Cloud market segmentation includes BFSI, IT & ITES, Manufacturing, Healthcare Life Sciences, Retail Consumer Goods, Telecom, Media Entertainment, Government and Others. By Vertical, BFSI segment hold the majority market share in 2024 contributing 25.0% of the market share. The Banking, Financial Services, and Insurance (BFSI) vertical is a key segment in the bare metal cloud market owing to its need for ultra-low latency, high-performance computing, and stringent regulatory compliance.

Financial institutions require dedicated infrastructure to run transaction-intensive applications, real-time risk simulation, fraud detection, algorithmic trades, and core banking systems, where performance determinism and data security are not negotiable. Bare metal cloud solutions eliminate virtualization overhead, giving unadulterated access to computing and storage resources, which provide guaranteed throughput, segregation of workloads, and low I/O latency critical parameters for high-frequency trading as well as financial analytics.

Moreover, the BFSI industry is subject to stringent regulation, necessitating compliance with standards like PCI-DSS, SOX, and GDPR. Bare metal environments enable such compliance by providing total control over the underlying hardware, allowing tailored security settings, encryption, and audit trails. Financial institutions also appreciate leveraging bare metal as part of hybrid cloud architectures to preserve data locality without sacrificing service scalability. With increasing usage of AI/ML for predictive analytics, blockchain for secure payments, and digital banking platforms, the BFSI sector's dependence on bare metal cloud keeps rising, making it a major contributor to the market’s overall growth trajectory.

Bare Metal Cloud Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 39.6% in the Bare Metal Cloud market in 2024 and is expected to maintain its dominance during the forecast period. North America is the largest market for Bare Metal Cloud. Because it has more financial institutions than any other, the region has attracted international investors. Local players dominate the North American market, resulting in severe entry hurdles.

The U.S. dominates the regional market because it has a high concentration of technology titans, cloud service providers, and enterprises from data-intensive industries like financial services, healthcare, media & entertainment, and gaming. These industries increasingly require single-tenant environments for latency-sensitive workloads like AI/ML, real-time data analytics, and blockchain applications. Bare metal cloud offerings in North America provide access to physical servers without the virtualization layer, which allows lower latency, enhanced processing efficiency, and greater control over infrastructure, mandatory for compliance with regulatory requirements like HIPAA, SOX, PCI-DSS, and FISMA.

The emerging trend towards hybrid and multi-cloud deployments is also fueling demand for bare metal cloud solutions, especially among enterprises that want to preserve on-premise performance with cloud-native scalability. In addition, increased investments in edge computing and 5G infrastructure are likely to drive demand for geographically distributed, low-latency computing nodes where bare metal platforms can provide performance isolation and scalability.

Figure3: BARE METAL CLOUD MARKET SIZE BY REGION 2024 & 2035

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

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

The Europe bare metal cloud market is showing consistent growth, supported by growing digital transformation in industries, strict data protection legislation, and a surging demand for sovereign cloud infrastructure. European organizations are using bare metal cloud as a solution to fulfill performance-driven workload requirements, like high-frequency trading, advanced analytics, AI/ML, and media rendering, while complying with the General Data Protection Regulation (GDPR) and national data residency requirements. The principal countries driving this trend include Germany, France, the United Kingdom, and the Netherlands, due to their sophisticated IT infrastructure, robust enterprise ecosystem, and investment in next-generation data centers.

Single-tenant, non-virtualized environments are gaining popularity among verticals like banking & finance, government, healthcare, and manufacturing, where control over data, low latency, and improved security are mission-critical.

The Asia-Pacific (APAC) bare metal cloud market is set to become a high-growth region, driven by the fast-paced digital transformation in developing economies, the surge in data-intensive applications, and increasing need for low-latency, secure computing environments. These nations include China, Japan, India, South Korea, Singapore, and Australia, and they are the leaders in regional adoption due to the growth of hyperscale data centers, the quick uptake of 5G, and increasing enterprise demand for hybrid and edge cloud models.

The APAC region is increasingly turning towards bare metal cloud solutions for high-performance workloads like AI/ML training, real-time analytics, online games, media transcoding, and mission-critical business apps, where committed compute resources and limited virtualization overhead provide a material performance benefit.

Bare Metal Cloud Key Market Players & Competitive Insights

With a strong presence across different End Uses and geographies, the Bare Metal Cloud market is highly competitive and dominated by established, pure-play vendors. Over 20 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Bare Metal Cloud market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Atlantic net, Liquid Web, LLC., Cherry Servers, Inc, Hivelocity Ventures Corp., Scaleway SAS, Amazon.com, Inc, INAP OperationsLLC, RedSwitches, LLC, OpenMetal, Inc, Oracle Corporation, Vultr Holdings, LLC, IBM, Lumen Technologies, Rackspace Technology and Microsoft Azure. OpenMetal is expanding its infrastructure footprint, opening new data centre locations in Asia and Europe to support demand growth in developing regions. The business is expanding its product offerings with naked metal servers and clusters with GPU-enabled for AI, ML, and HPC workloads that leverage high-performance hardware to deliver low-latency applications.

It is supporting a hybrid model that utilizes OpenStack-based hosted private cloud and dedicated bare-metal infrastructure to provide its customers with flexibility, control, and predictable cost models. Oracle Corporation’s strategic focus in the bare metal cloud market centers on accelerating infrastructure expansion, particularly in Europe, to support AI-optimized workloads and data sovereignty. The organization has committed $3 billion to deepen Oracle Cloud Infrastructure capacity over five years allocating $2 billion to Germany and $1 billion to the Netherlands to address regulatory and performance demands in those markets.

Key Companies in the Bare Metal Cloud market include

• Atlantic net
• Liquid Web, LLC.
• Cherry Servers, Inc
• Hivelocity Ventures Corp.
• Scaleway SAS
• com, Inc
• INAP OperationsLLC
• RedSwitches, LLC
• OpenMetal, Inc
• Oracle Corporation
• Vultr Holdings, LLC
• IBM
• Lumen Technologies
• Rackspace Technology
• Microsoft Azure

Bare Metal Cloud Industry Developments

• In 2025, Hivelocity launched its new VPS Pro plans—a next‑generation virtual private server built to complement its bare metal offerings. The launch positions the solution alongside bare metal, enterprise cloud, virtual servers, and colocation services. VPS Pro delivers enhanced performance through premium NVMe SSD storage, generous CPU and RAM configurations, full root access, and seamless scalability to support demanding digital workloads.
• In 2025, Amazon Launch EC2 R7g (Graviton3‑based) bare‑metal instances in nine sizes offering up to 30 Gbps networking bandwidth, enhancing options for energy-efficient high-throughput workloads.
• In 2025, INAP released its next‑generation Intelligent Monitoring for dedicated private cloud, powered by VMware. This offering enhances infrastructure observability and management through advanced monitoring tools.

Bare Metal Cloud Market Segmentation

Bare Metal Cloud Service Type Outlook

• Compute Services
• Networking Services
• Database Services
• Security Services
• Storage Services
• Managed Services

Bare Metal Cloud Organization Size Outlook

• SME
• Large Enterprise

Bare Metal Cloud Vertical Outlook

• BFSI
• IT & ITES
• Manufacturing
• Healthcare Life Sciences
• Retail Consumer Goods
• Telecom
• Media Entertainment
• Government
• Others

Bare Metal Cloud Regional Outlook

• North America
• US
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Russia
• Italy
• Rest of Europe
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Thailand
• Indonesia
• Rest of Asia Pacific
• South America
• Brazil
• Argentina
• Rest of South America
• Middle East & Africa
• GCC Countries
• South Africa
• Rest of MEA

Report Attribute/Metric	Details
Market Size 2024	USD 8.38 Billion
Market Size 2025	USD 9.97 Billion
Market Size 2035	USD 58.71 Billion
Compound Annual Growth Rate (CAGR)	19.4% (2025-2035)
Base Year	2024
Market Forecast Period	2025-2035
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