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The bare metal cloud market size is projected to increase by USD 19.11 billion at a CAGR of 32.14% between 2023 and 2028. Market growth hinges on various factors, notably the expanding online content landscape amidst widespread internet penetration, catering to the evolving preferences of digitally savvy consumers. The surge in popularity of SOA (Service-Oriented Architecture) solutions further fuels market expansion, offering scalable and efficient technological frameworks for businesses. Additionally, the rising adoption of new technologies, ranging from AI and machine learning to IoT and blockchain, plays a pivotal role in driving innovation and enhancing market competitiveness. As businesses leverage these advancements to streamline operations and deliver enhanced customer experiences, the market landscape is poised for continued growth and transformation. Embracing these trends enables companies to stay ahead in a dynamic marketplace, fostering opportunities for development and success in an increasingly digital-centric world.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including Alibaba Group Holding Ltd., Amazon.com Inc., Bigstep Cloud Ltd., Dell Technologies Inc., E2E Networks Ltd., Equinix Inc., G2.com Inc., Internap Holding LLC, International Business Machines Corp., Heficed, Leaseweb Global BV, Limestone Networks Inc., Lumen Technologies Inc., NetApp Inc., Oracle Corp., Platform9 Systems Inc., Rackspace Technology Inc., Samsung Electronics Co. Ltd., Unitied Internet AG, and Zenlayer Inc.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alibaba Group - The company offers bare metal cloud solutions such as Alibaba Cloud dedicated bare metal servers.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is shaped by various factors, with cloud computing serving as the cornerstone of modern infrastructure. While virtualized cloud instances offer flexibility, the demand for physical servers persists, particularly in industries prioritizing performance and reliability. Economic variables such as inflation and oil prices influence spending on cloud services and hardware components, driving businesses to seek cost-effective solutions. Infrastructure as a Service (IaaS) providers capitalize on this demand, offering bare metal options to cater to specific needs. As Big Data, IoT, and AI continue to drive innovation, lightweight hypervisors and virtual machines facilitate efficient resource utilization in servers, enhancing performance and scalability. IT professionals rely on central dashboards for streamlined management, ensuring reliability and adaptability in dynamic environments. Amidst the evolving landscape, bare metal solutions stand out for their dedicated resources and unparalleled performance, catering to the diverse needs of businesses seeking robust infrastructure solutions.
The market share growth by the BFSI segment will be significant during the forecast period. BFSI firms have invested significantly in cloud infrastructure and have been one of the earliest adopters of advanced IaaS, such as hosted bare metal services. Financial institutions are migrating to IaaS-based business tools to minimize IT expenditure. The BFSI industry requires such solutions for data security during online transactions and to prevent access violations.
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The BFSI segment was the largest segment and valued at USD 1.07 billion in 2018. Increasing online activities, such as online banking and online insurance, along with the integration of blockchain technologies in the BFSI industry, also require high-end proactive processing over a cloud network. Further, the BFSI sector is increasingly becoming an aggressive digital marketer through mobile channels, a trend that is gaining momentum across geographies. The growth of this segment is primarily attributed to the increasing adoption of the bare metal cloud, which is driven by an increase in global demand during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The development of the bare metal cloud infrastructure by companies in North America is aimed at gaining a competitive edge in the market. The increasing adoption of secured cloud services is a key driver of the growth of the market in the region during the forecast period. companies such as IBM and Rackspace, US Inc. are upgrading their offerings to maintain their market share owing to the competition among various hosted bare metal cloud providers.
The market is propelled by the increasing demand for cloud computing solutions that offer the performance and reliability of physical servers with the flexibility of virtualized cloud instances. Key drivers include the rising adoption of Infrastructure as a Service (IaaS) and the growing need for high-performance computing for Big Data, AI, and IoT applications. However, challenges such as optimizing server performance in shared resource environments and ensuring reliability and adaptability amidst fluctuating hardware component costs and inflation pose significant hurdles. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. A holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
The increasing online content with high Internet penetration is the key factor driving the market growth. One of the major drivers contributing to the growth of the market is the increased use of the Internet for day-to-day activities and critical operations. As the penetration of the Internet is increasing in every aspect of people's lives, they tend to share their personal information on the Internet, especially across social media channels. In addition, private companies and public sectors are storing their critical information on the cloud.
Further, payment card companies and banks are encouraging customers to make online transactions and payments using the Internet and to store details such as card numbers and passwords online. Cases such as data theft and phishing are on the rise, and new forms of cyberattacks are emerging. Hence, end-users are increasingly adopting such solutions to secure their systems from cyber threats. The deployment of bare metal cloud solutions helps organizations improve efficiency and productivity (in terms of storage systems and servers), thereby helping them meet their business demands quickly and remain competitive. Hence, such factors are driving the market during the forecast period.
The emergence of hyper-convergence technology will fuel the market growth. A hyper-convergence infrastructure solution is a software-defined approach that includes a combination of storage, computing, and virtual computing technologies in a single physical unit X-86-based server. Organizations can run all their applications in a virtualized environment using a single system. This solution reduces the complexities in storage systems by reducing power consumption and optimizing space, which helps improve the operational efficiency, speed, and agility of bare metal cloud solutions.
The bare metal cloud using hyper-converged storage is still in the nascent stage in terms of technology. Large and medium-sized organizations are increasingly investing in hyper-converged infrastructure-based storage solutions, and new companies are entering the market with the latest offerings. companies such as Dell Inc. provide hyper-converged storage solutions that use web-scale technologies and architecture; other leading companies in the market, such as IBM and Oracle are also expected to adopt these solutions. Hence, such factors are driving the market during the forecast period.
System integration and interoperability issues are major challenges to the market growth. The adoption of advanced technologies in several industry verticals, including BFSI, IT and telecom, healthcare, and media, is increasing significantly, which leads to system integration and interoperability issues in their current IT systems. Companies must provide unified bare metal cloud solutions to manage cloud infrastructure that can be seamlessly integrated with the IT infrastructure of organizations. Technical glitches during operations can result in additional costs for organizations and reduce their operational efficiencies.
System integration and interoperability issues in bare metal cloud arise mostly when organizations update their IT systems or merge their IT infrastructure with the infrastructure of acquired companies. The integration of multiple bare metal cloud systems and advanced technologies on traditional IT infrastructure can create several cross-platform system integration issues. Therefore, companies must integrate efficient systems in organizations along with infrastructure with the help of an IT team that has the technical expertise to manage the IT infrastructure. Hence, such factors are hindering the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Market Customer Landscape
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the dynamic landscape of the market, technological innovations like edge computing and the Internet of Things (IoT) fuel demand for robust infrastructure solutions. As businesses prioritize complex simulations and AI/ML model training, the bare metal cloud addresses the need for dedicated resources and enhanced performance. While multi-tenant environments offer scalability, concerns over security breaches and regulatory compliance drive the adoption of bare metal solutions, particularly in sectors like retail & consumer goods and healthcare and life science. Hybrid and multi-cloud solutions bridge the gap between on-premises and cloud environments, empowering businesses to leverage the benefits of both. With features like central dashboards and shared resources, bare metal cloud providers offer control and scalability while ensuring regulatory compliance and security. As the market expands, intensifying utilization of bare metal cloud promises cost-efficient benefits, revolutionizing industries and empowering businesses to innovate and thrive in an increasingly digital landscape.
Further, providers like Oracle Cloud cater to diverse needs, offering a range of server services and virtualization infrastructure to empower organizations. As businesses navigate trade regulations and seek product approvals, the need for robust infrastructure becomes paramount. Bare-metal cloud addresses this, offering dedicated resources for compute, database, and storage services, ensuring reliability and performance. While mobility drives demand for flexible solutions, concerns over security and negative aspects prompt careful consideration. Nonetheless, the intensifying utilization of bare metal cloud promises cost-efficient benefits, particularly for large enterprises and industries like IT & telecom and BFSI. As businesses embrace predictive analysis and risk analytics, bare metal cloud providers play a pivotal role, empowering stakeholders with advanced technological solutions tailored to their needs.
Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 32.14% |
Market growth 2024-2028 |
USD 19.11 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
24.42 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, UK, Germany, Japan, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Amazon.com Inc., Bigstep Cloud Ltd., Dell Technologies Inc., E2E Networks Ltd., Equinix Inc., G2.com Inc., Internap Holding LLC, International Business Machines Corp., Heficed, Leaseweb Global BV, Limestone Networks Inc., Lumen Technologies Inc., NetApp Inc., Oracle Corp., Platform9 Systems Inc., Rackspace Technology Inc., Samsung Electronics Co. Ltd., Unitied Internet AG, and Zenlayer Inc. |
Market dynamics |
Parent market analysis, market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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