Bare Metal Cloud Market Size, Share, Growth, Trends and Forecast - 2028

 According to a research report "Bare Metal Cloud Market Trends by Service Type (Compute, Networking, Database, Security, Storage, Managed), Organization Size (Large, SMEs), Vertical (BFSI, Healthcare & Life Sciences, Manufacturing) and Region - Global Forecast to 2028" published by MarketsandMarkets, the bare metal cloud market size 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.

By service type, the security services segment is expected to grow at the highest CAGR during the forecast period.

Security services in a bare metal cloud environment are crucial for safeguarding data, applications, and infrastructure in a dedicated, high-performance computing environment. Bare metal cloud providers offer a range of security features designed to protect against a wide range of threats and vulnerabilities. The primary security feature of a bare metal cloud is isolation. Each physical server in a bare metal cloud is dedicated to a single customer, minimizing the risk of “noisy neighbor” issues and ensuring that sensitive data remains isolated from other tenants. Bare metal cloud security services often include features such as firewall management, intrusion detection and prevention systems (IDPS), distributed denial-of-service (DDoS) protection, and security monitoring and reporting. These services help businesses establish strong perimeter defenses, detect and respond to potential threats, and maintain visibility into their security posture.

By vertical, healthcare & life sciences verticals hold a larger market size during the forecast period.

Bare metal cloud technology is instrumental in enhancing healthcare cybersecurity. The sector faces heightened security challenges with the increasing digitization of patient records and sensitive medical data. Bare Metal Cloud’s isolated infrastructure reduces the risk of data breaches and ensures regulatory compliance, such as HIPAA, in the US. Furthermore, the scalability of the bare metal cloud is particularly beneficial for healthcare providers who need to accommodate fluctuating patient loads, as was evident during the COVID-19 pandemic when healthcare facilities rapidly scaled their IT infrastructure to meet surging demands. The healthcare industry invests vast amounts in medical technologies for enhanced patient care. By leveraging dedicated, high-performance servers, organizations in the healthcare industry can expedite medical research, diagnostics, and treatment planning, ultimately leading to better patient outcomes.

By Region, Asia Pacific is expected to grow at the highest CAGR during the forecast period.

The Information and Communication Technology (ICT) industry in the Asia-Pacific region plays a pivotal role in the region’s economy, serving as a driver of growth, innovation, and digital transformation. Many Asia Pacific countries are undergoing significant digital transformation efforts across public and private sectors. The ability to scale resources up or down quickly and efficiently is crucial for businesses in the Asia Pacific online shopping space during peak seasons. Governments in the region are investing in cloud infrastructure to drive digital government services and smart city initiatives. For instance, the Singapore government’s “Smart Nation” program relies on cloud technology to improve citizen services and enhance city management. The region’s telecommunications sector has experienced rapid expansion, with 5G networks being deployed across multiple countries. This infrastructure supports advanced connectivity, IoT applications, and high-speed data transfer. The evolution of high-speed internet connectivity in Asia Pacific countries has facilitated cloud adoption, which is expected to drive the adoption of bare metal cloud services in the region.

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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