CAGR: 22%Current Market Size: USD 29.44 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The Global Bare Metal Cloud market is expected to grow from USD 6 billion in 2021 to USD 29.44 billion by 2029, at a CAGR of 22% during the Projection period 2022-2029. The growth of this market is mainly driven owing to increasing IoT platforms.
A customer rents specific hardware resources in a bare-metal cloud from a distant service provider. Without any installed operating systems or virtualization infrastructure, it provides hardware resources. Commercial cloud service infrastructure allows for the virtualization and division of computing, storage, and database resources, allowing for the segmentation and sharing of servers and storage arrays by numerous clients. However, despite the flexibility and cost advantages that virtualized computing instances offer, there are downsides, particularly those linked to resource competition. Inadequate isolation of execution environments and virtual networks also poses dangers. By giving consumers access to separated physical resources, the bare-metal cloud addresses these problems. The bare-metal cloud is an excellent solution for big data applications and high-transaction workloads that struggle with delay. Bare-metal cloud services are provided by the majority of the biggest cloud vendors, including Oracle, AWS, IBM, and Rackspace. When it comes to cloud services, renting a raw, dedicated server from a managed service provider is akin to using bare-metal services (MSP). Similar to conventional dedicated servers, bare-metal instances offer direct access to the system hardware without having a hypervisor deployed. In contrast to conventional dedicated servers, some bare-metal instances are offered on demand and charged by the hour.
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Market Dynamics:
Drivers:
During the Projection period, it is anticipated that the banking, financial services, and insurance (BFSI) sector will significantly contribute to market growth. The sector's requirement to speed financial transactions and ensure the security of their information is projected to be a major element raising the segment's contribution. The need for high-end computing for risk analytics, quantitative models, and bank stress testing is another factor that is expected to drive market expansion throughout the course of the Projection period. As a result, the market's expansion will be accelerated by the rising usage throughout the BFSI sector.
Restraints:
Virtual cloud computing providers are investing heavily in the research and development of alternatives, such as lightweight hypervisors, in an effort to make them more monolithic, lightweight, portable, and adaptable. Since they provide high-performance and low-memory footprint virtualization solutions for various CPU architectures, these hypervisors are regarded as providing a less expensive alternative to bare metal cloud infrastructure. The ease of setting up Virtual Machines (VMs) and the ability to quickly backup and recover from disasters large datasets are two of the key factors influencing the adoption of lightweight hypervisors. Since they provide end users with more freedom in non-locking resources and a comprehensive cloud virtualization architecture without the additional cost of server-side operations, which will impede market growth over the Projection period.
Opportunities:
The market is expected to grow greatly owing to the booming investment in cutting-edge technologies like the internet of things (IoT), big data, mobility, and social media, which will accelerate the growth rate of the bare metal cloud market. Additionally, the sector is acknowledged to be significantly influenced by the rise in the number of IoT applications made available on bare metal clouds and the rising demand for dedicated servers to lower operational latency.
Challenges
The bare metal recovery concept aims to restore all of the data from a server system that has crashed without reloading and restoring the hardware's previous operating software. Commercial enterprises must set up a server for backup and replication, which significantly increases maintenance and deployment costs. The backup and replication server requires the exact same hardware as is used to restore the damaged bare metal system. Restoration of bare metal is challenging for most firms, and vendors require a lot of training during the restoration process' dry run. Over the course of the Projection period, vendors will likely face significant challenges due to the restoration of the bare metal and the need for considerable training.
Segmentation Analysis:
The global bare metal cloud market has been segmented based on Enterprise Size, End-User, and regions.
By Enterprise Size
The enterprise size segment is small and medium enterprises and large enterprises. The large enterprise segment led the largest share of the bare metal cloud market with a market share of around 67.3% in 2021. Large Enterprises, primarily those in the banking industry, are the dominating market segment. It is because huge businesses need to manage their workloads when processing lots of data. It makes high-performance computing possible, which is very important to banks and brokers.
By End-User
The end-user includes healthcare, IT, BFSI, retail, and telecommunication. The BFSI pouches segment led the bare metal cloud market with a market share of around 23.08% in 2021. Due to the increase in transactions and the information that go along with them, the banking industry is primarily in need of bare-metal cloud services. Additionally, the demand for bare metal cloud solutions has been driven by the vital need for high security and data protection during online banking, secure transactions, and access violations. Additionally, financial institutions rely significantly on technology and data across the board. High-performance computing (HPC) is being used more frequently in fields like risk analytics, derivatives pricing, quantitative modelling, portfolio optimization, and bank stress testing to quickly complete difficult computations on massive data sets.
By Regional Analysis:
The regions analyzed for the bare metal cloud market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the bare metal cloud market and held a 42% share of the market revenue in 2021.
Global Bare Metal Cloud Market- Country Analysis:
Germany's Bare Metal Cloud market size was valued at USD 0.47 billion in 2021 and is expected to reach USD 1.54 billion by 2029, at a CAGR of 16% from 2022 to 2029.
Germany is contributing to the European Data Infrastructure initiative, which aims to improve local cloud and data capabilities. The initiative to make the European cloud region independent, known as Gaia-X, is also being led by the German government. 45% of German companies prioritize cloud enablement when acquiring new IT or digital services, claims an industry expert. Frankfurt is the hub of Germany's digital economy in terms of infrastructure. When it comes to data center density and access to major internet hubs, Frankfurt leads all of Germany and Europe. Frankfurt is home to the greatest Internet hub in the world thanks to DE-CIX, which has top transfer rates of almost two terabits per second and handles 90% of German and 35% of European Internet traffic.
China Bare Metal Cloud’s market size was valued at USD 0.80 billion in 2021 and is expected to reach USD 3.04 billion by 2029, at a CAGR of 18.2% from 2022 to 2029. The industry is being pushed by rising internet traffic in the nation and technological advancements in electrical components. Bare metal cloud provides the highest level of customization, dedicated servers, and great performance with continuous scale. Growing reliance on data bases and the IT sector is a clear indication of the market, which is expected to drive demand in China.
India's Bare Metal Cloud market size was valued at USD 0.70 billion in 2021 and is expected to reach USD 2.46 billion by 2029, at a CAGR of 17.7% from 2022 to 2029. India is expected to gain a significant market share throughout the Projection period owing to the presence of prominent players Wipro, L&T InfoTech, Tech Mahindra, Tata Communication Services, and other established businesses in the region. Additionally, India, a powerhouse for startups, is anticipated to considerably influence the industry. Given that India's economy is one of the world's fastest-growing, the nation is anticipated to experience a variety of expansion prospects in the future.
Key Industry Players Analysis:
To increase their market position in the global bare metal cloud market, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
6% |
Market Size |
22 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Enterprise Size, By End-User, and Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
IBM Corporation, Internap Corporation, Bigstep, Joyent, Incorporation, Centurylink Incorporation, Limestone Networks, Inc, Scaleway Incorporation, Dell Technologies, Inc., Lumen, Equinix, Oracle Corporation, Rackspace Hosting, Incorporation, Packet, Google, Spotinst, Storm, Amazon Web Services, Inc, MEDIA TEMPLE, Microsoft, and Alibaba Cloud, among others |
By Enterprise Size |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Bare Metal Cloud Market by Enterprise Size:
Global Bare Metal Cloud Market by End-User:
Global Bare Metal Cloud Market by Region:
Surging investment in emerging technologies is primarily driving the growth of the bare metal cloud market.
Leading market players active in the global bare metal cloud market are IBM Corporation, Internap Corporation, Bigstep, Joyent, Incorporation, Centurylink Incorporation, Limestone Networks, Inc, Scaleway Incorporation, Dell Technologies, Inc., Lumen, Equinix, Oracle Corporation, Rackspace Hosting, Incorporation, Packet, Google, Spotinst, Storm, Amazon Web Services, Inc, MEDIA TEMPLE, Microsoft, and Alibaba Cloud.
Global bare metal cloud market will reach to USD 29.44 billion by 2029, at a CAGR of 22% from 2022 to 2029.
North America region dominated the bare metal cloud market and held a 42% share of the market revenue in 2021
Political Factors- More weight is placed on the political factor that affects the company. The government can have an impact on the sector in several ways. With elections that are regarded as fair and transparent, the USA has a robust democratic system and an efficient rule of law. In a presidential democracy like that of the USA, the people elect a single person to serve as both the head of state and the head of government. Numerous tech behemoths, including Microsoft, Amazon, Google, Apple, and others, call the USA home, which supports a robust economy. As a result, the government works to develop more business-friendly regulations. Numerous concerns are associated with the nation's political climate. Risks can include monetary controls, currency restrictions, and trade restrictions. To reduce political risks, businesses should take specific actions. For example, companies can avoid investments where this type of risk is greater. Large potential losses may be offset by political risk insurance. Therefore, the political environment directly impacts the success and income of each operating business.
Economical Factors- The software and information technology (IT) sector in the US is the most developed and expanding. And evidence of this may be found in the growth of the USA's GDP contribution and the creation of numerous job opportunities. The sector generates 11.8 million jobs and $1.6 trillion of the US value-added GDP, or more than 8% of the US economy. The USA is a high-income nation with a per capita income of more than $65,112. The American economy is capitalist, or you might say market-based. The global economy exposes the US economy to more external shocks. A slowdown in the economies of Europe or Asia has a greater impact on the US economy. For instance, the Indian IT industry depends heavily on foreign clients, particularly the USA, for more than 70% of its revenue; therefore, changes in the exchange rate can significantly impact the IT industry's performance as well as other sectors. The USA's inflation rate in 2019 was 2.3%, 0.4% higher than the inflation rate in 2018, which was 1.9%. Most of the physical and human resources needed for the information and technology sector are readily available because the USA is a developed country. Infrastructure refers to all of the hardware and networking tools required to maintain an IT operation. Most empirical investigations have concluded that greater use of information and technology can boost GDP, productivity, and employment.
Social Factor- A social environment comprises a group of people's values, beliefs, habits, and activities. A company is impacted by both its internal social environment and the external social environment. Other social issues also have a strong impact on business. For instance, there is no official language in the United States. However, English is spoken by the majority of Americans, or close to 30 million people. English has been designated as an official language in 31 US states. There are 350 languages spoken in the USA besides English, some of which are Spanish, Chinese, French, etc. Given the variety of languages spoken there, communication in the nation is made simple. Additionally, the fact that English is a universal language makes it easier for IT companies to interact and collaborate with global businesses. For international corporations and businesses operating there, the task is fairly simple due to the high level of education in economies like India, China, Japan, France, and the United States. There are plenty of qualified workers readily available for IT organisations.
Technological Factors- Technological features including R&D effort, automation, technology incentives, and the pace of technological progress are examples of technological factors. They can establish entry barriers, the minimum effective production level, and have an impact on outsourcing choices. Additionally, changes in technology can have an impact on prices, quality, and innovation. A company should analyse the industry's technological state as well as how quickly it is being disrupted by technology. Slow technological disruption will allow more time, whereas rapid disruption may give a firm little time to adapt and be profitable.
Environmental Factors- Environmental considerations include ecological and environmental elements including weather, climate, and climate change, which may have a particularly negative impact on some sectors of the economy like tourism, agriculture, and insurance. Additionally, as people become more aware of the possible effects of climate change, it is changing how businesses run and the products they offer, creating new markets but also eroding or eliminating existing ones. Climate changes such as climate change, greenhouse gas emissions, and growing pollution, effectively by prominent market players. It should put more emphasis on waste management, recycling, renewable energy sources, and wastage that decomposes naturally or artifically. It should also be aware of how its resources and waste are being used up, as this could have a detrimental effect on its brand reputation and consumer loyalty.
Legal Factors- Legal considerations include those related to discrimination, consumers, antitrust, employment, and health and safety laws. These elements may have an impact on a company's operations, expenses, and product demand. The IT industry are subject to very strict legislative requirements. Market players to gain consumer loyalty and their faith in its brand products, it is crucial that it abide by all laws and binding rules and regulations. Nearly all nations now have laws that must be followed for consumer protection, data privacy, intellectual property rights (IPR), health and safety, employees and the workplace, and other topics. Therefore, it becomes essential for this business to conduct itself in a lawful and ethical manner in order to prevent any legal proceedings or penalties or punishments from a court of law. The law is derived from five sources, similar to the United States, including common law, treaties, statutory law, and administrative regulations (which includes case law). Information technology law is a transaction-based discipline that deals with problems that come up when businesses create, licence, buy, or sell products and services related to information technology and computers.
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