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TMCNet:  Global $16.4 Billion Bare Metal Cloud Market to 2026: Driven by Critical Need for Reliable Load Balancing of Data-Intensive and Latency-Sensitive Operations

[June 10, 2021]

Global $16.4 Billion Bare Metal Cloud Market to 2026: Driven by Critical Need for Reliable Load Balancing of Data-Intensive and Latency-Sensitive Operations

DUBLIN, June 10, 2021 /PRNewswire/ -- The "Bare Metal Cloud Market by Service Type (Compute, Networking, Database, Security, Storage, Professional, and Managed), Organization Size, Vertical (BFSI, Manufacturing, Healthcare and Life Sciences, and Government), and Region - Global Forecast to 2026" report has been added to's offering.

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The global Bare Metal Cloud market size is expected to grow at a CAGR of 24.1% during the forecast period, to reach USD 16.4 billion by 2026 from USD 4.5 billion in 2020.

Digital business transformation has entered a more challenging and urgency-driven phase due to the COVID-19 pandemic. Global giants are providing customers with cost-effective and productive digital solutions as every industry is economically hard-hit from the pandemic. The sudden shutdowns of organizations and institutions increased the demand for cloud solutions and other online services.

In current times, the bare metal cloud market is profitable for bare metal cloud vendors as several companies from diverse verticals are progressively adopting cloud-based solutions and services. This market is expected to grow further in North America and Europe, whereas it is expected to hold a significant growth rate in APAC, Latin America, and MEA. Factors such as the increased adoption of cloud among SMEs and the Work From Home (WFH) business model due to COVID-19 are expected to drive the market growth.

Need for no noisy neighbors and hypervisor tax with the help of advanced technologies

Noisy neighbor refers to the co-tenant of virtualized cloud environment, which dominates or necessarily shares the bandwidth, disk I/O, CPU, and other resources of the infrastructure and negatively affects the performance of other users resulting in lower throughput among processes. The advantage of no noisy neighbor has been one of the USPs for bare metal infrastructure vendors, and the majority of them have been vouching for an entirely new scheme for enabling processing through dedicated resources.

The bare metal infrastructure vendors primarily focus on offering a single-tenant architecture wherein multiple resources are clubbed together for dedicatd instances of data-intensive operations resulting in delivering higher performance. Hypervisors in a virtualized environment consume higher server-side processing power causing a tradeoff for enterprises to adjust between latency hit operations and low-cost cloud computing infrastructure.

The custom-based lightweight hypervisors have been offered as an alternative to bare metal offerings since public cloud owners have been creating dedicated instances offering a greater share of resources to clients whose data migration costs from the public cloud are significant.

The BFSI vertical expected to hold the largest market share in 2020.

Banking, Financial, Services, and Insurance (BFSI) is one of the fastest-growing segments. The banking vertical predominantly requires bare-metal cloud services with the rise in the transactions and details related to them.

Moreover, the critical need for high security and data protection during online banking, secure transactions, and access violations has also pushed the data traffic demanding the use of bare metal cloud solutions. In areas, such as risk analytics, derivatives pricing, quantitative modeling, portfolio optimization, and bank stress-testing, the use of High-Performance Computing (HPC) for a quick performance of complex calculations on large data sets is becoming increasingly prevalent.

North America to hold the largest market size and Asia Pacific (APAC) to grow at a higher rate during the forecast period

APAC is one of the fastest-growing regions in terms of technology adoption, and the demand for digitization is driven by various initiatives carried out by different governments and large enterprises in the region. Countries such as China, Japan, Australia, Singapore, India, and Indonesia are leading this technology adoption, which includes embracing new-age technologies such as AI, edge, IoT, analytics, and cloud.

The region houses a large number of enterprises related to retail and consumer goods, telecommunications, healthcare and Lifesciences, manufacturing, and media and entertainment, which is further expected to drive the demand for bare metal cloud market.

The leading bare metal cloud server vendors in the region include IBM, Oracle Lumen, Internap, Rackspace, AWS, Dell, Equinix, Google, Microsoft, Alibaba Cloud, Scaleway, Joyent, HPE, OVHcloud, Limestone Networks, Media Temple, Bigstep, Zenlayer, and phoenixNAP.

Premium Insights

  • Critical Need for Reliable Load Balancing of Data-Intensive and Latency-Sensitive Operations to Drive the Market Growth
  • Compute Services Segment to Hold the Largest Market Share During the Forecast Period
  • Large Enterprises Segment to Hold a Larger Market Share in 2020
  • Banking, Financial Services, and Insurance Vertical to Hold the Largest Market Share During the Forecast Period
  • Asia-Pacific to Emerge as the Best Market for Investments in the Next Five Years

Market Dynamics


  • Critical Need for Reliable Load Balancing of Data-Intensive and Latency-Sensitive Operations
  • Necessity of Non-Locking Compute and Storage Resources
  • Advent of Fabric Virtualization
  • No Noisy Neighbors and Hypervisor Tax
  • Decommissioning of Workloads After the Termination of Slas


  • Stringent Cloud Regulations
  • Lightweight Hypervisors


  • Bare Metal Cloud for Big Data and DevOps Applications
  • Bare Metal Cloud for Microservices and Batch Processing Applications
  • Growing Interest in Ocp


  • Premium Pricing Model
  • Hindrances Faced in the Bare Metal Restore


  • Pricing Analysis

Use Cases

  • Use Case 1: Rackspace
  • Use Case 2: Inap
  • Use Case 3: Scaleway
  • Use Case 4: Zenlayer

COVID-19-Driven Market Dynamics

For more information about this report visit

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