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The bare metal cloud market is estimated to grow at a CAGR of 25.59% and the size of the market is forecast to increase by USD 10,993.03 million between 2022 and 2027. The growth of the market depends on several factors, including the increasing online content with high internet penetration, the rise in popularity of SOA, and the increasing adoption of new technologies.
This report extensively covers market segmentation by end-user (BFSI, government, IT and telecom, healthcare, and others), type (hardware and service), and geography (APAC, North America, Europe, Middle East, and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing online content with high Internet penetration is notably driving the bare metal cloud market growth, although factors such as system integration and interoperability issues may impede the market growth. 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. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Bare Metal Cloud Market Driver
The increasing online content with high Internet penetration is the key factor driving the global bare metal cloud 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 bare metal cloud 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.
Key Bare Metal Cloud Market Trend
The emergence of hyper-convergence technology will fuel the global bare metal cloud 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 vendors are entering the market with the latest offerings. Vendors such as Dell Inc. provide hyper-converged storage solutions that use web-scale technologies and architecture; other leading vendors in the market, such as IBM and Oracle are also expected to adopt these solutions.
Key Bare Metal Cloud Market Challenge
System integration and interoperability issues are major challenges to the global bare metal cloud 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. Vendors 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, vendors must integrate efficient bare metal cloud systems in organizations along with cloud infrastructure with the help of an IT team that has the technical expertise in managing the IT infrastructure.
Key Bare Metal Cloud Market Customer Landscape
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Japan, China, the UK, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Bare Metal Cloud Market Customer Landscape
Vendors 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on end-user, the market is segmented into BFSI, government, IT and telecom, healthcare, and others. 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 cloud services. Financial institutions are migrating to IaaS-based business tools to minimize IT expenditure. The BFSI industry requires bare metal cloud solutions for data security during online transactions and to prevent access violations.
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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. Our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the bare metal cloud, which is driven by an increase in the global demand for the bare metal cloud industry.
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North America is projected to account for 39% of the global market share growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The development of the bare metal cloud infrastructure by vendors 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. Vendors 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.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 led to a surge in demand for bare metal cloud services in North America. The COVID-19 pandemic had a favorable influence on the market in this region in 2020. Owing to the pandemic, governments in countries, including the US, Canada, and Mexico, imposed stringent lockdowns in 2020, forcing people to stay at home to prevent the disease from spreading. As a result, industries across the region were forced to undertake numerous trade activities online, leading to the widespread use of virtual private networks (VPNs) for remote work and teleconferencing in North America in 2020. Moreover, the easing of lockdowns and large-scale vaccination drives conducted across the region, coupled with increased funding for the expansion of 5G technology and the development of data centers in 2021, led to the gradual growth of the regional market, which, in turn, will propel the growth of the market in focus during the forecast period.
Technavio categorizes the global bare metal cloud market as a part of the global Internet services and infrastructure market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. The global Internet services and infrastructure market covers companies providing services and infrastructure for the Internet industry, including data centers and cloud networking and storage infrastructure. It also includes companies providing hosting services. It excludes companies offering software products. The global Internet services and infrastructure market also includes IT security services and cloud computing services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by end-user, type, and region.
Bare Metal Cloud Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.59% |
Market growth 2023-2027 |
USD 10,993.03 million |
Market structure |
Fragmented |
YoY growth (%) |
21.94 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 39% |
Key consumer countries |
US, Japan, China, UK, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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., IPXO UK Ltd., Leaseweb Global BV, Limestone Networks Inc., Lumen Technologies Inc., NetApp Inc., Oracle Corp., Platform9 Systems, Inc., Rackspace Technology Inc., Samsung Electronics Co. Ltd., United Internet AG, and Zenlayer Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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