PUBLISHER: Markets & Data | PRODUCT CODE: 1778865
PUBLISHER: Markets & Data | PRODUCT CODE: 1778865
Global bare metal cloud market is projected to witness a CAGR of 15.34% during the forecast period 2025-2032, growing from USD 10.32 billion in 2024 to USD 32.32 billion in 2032. The global bare metal cloud market is rapidly expanding as businesses seek high-performance computing that is secure and flexible. Businesses demand total control over the hardware and the software. Bare metal cloud provides them with direct access to the physical servers while repurposing hardware. This will maximize performance and security. Bare metal cloud is being used across a different variety of applications including gaming, AI and big data. The demand for bare metal cloud continues to rise as companies migrate from traditional systems to more efficient cloud-based services.
Bare metal cloud means implementing dedicated physical servers that are running without virtualization to take full advantage of the dedicated resources. This refocuses the power back onto the user, so they regain control over their computing resources. This differs from traditional cloud services that share the resources that are available from one physical server. Bare metal cloud has become a popular option for many businesses that require better performance with higher security and more options that the additional capabilities afforded flexibility of dedicated bare metal servers. Generally, organizations absolutely prefer bare metal cloud servers for various applications like game development, financial systems, artificial intelligence and data analysis. The market is expanding which is evident as more organizations look for reliable and fast cloud projects every day. Bare metal cloud servers also help companies perform their tasks with fast and reliable turnaround periods and meet the expectations of their end users which is huge when dealing with high workloads.
For example, in May 2024, G-Core Labs S.A. publicly announced its partnership to deliver bare metal infrastructure for a global multiplayer game ecosystem that focused upon scalable, high-performance physical servers without virtualization.
GPU-Powered Workloads in Demand Influencing the Global Bare Metal Cloud Market
More industries are adopting graphic and AI tools that require powerful computing. Such as Video editing, 3D modeling and machine learning applications benefit from having a powerful GPU. Running these workloads on a bare metal cloud server with a GPU helps complete heavy workloads without latency. A bare metal server gives a single user the entire hardware for their workloads and performance needs. This means better effort for a better outcome, faster. As an increasing number of organizations adopt AI and data tools to help their businesses, they are proactively using GPU-based bare metal servers and infrastructures to meet their increasing performance requirements.
For example, in June 2024, Liquid Web, LLC launched high-performance, GPU-powered bare metal servers targeted for professionals working in AI, ML, and high-end graphics, that provide maximum power and allocation dedicated to the workload.
Growth of AI and Cloud-Based Processing Proliferating the Global Bare Metal Cloud Market
Artificial intelligence and data science are growing rapidly, and organizations are moving to faster and smarter computing. Bare metal cloud provides fast computing with direct access without delays. It is ideal for many AI models to run cloud-based software models and especially research that requires heavy processing. Organizations can use bare metal servers to train AI, conduct massive applications or just store massive data files. As the demand for faster, real-time processing is increasing, many more organizations are looking to bare metal cloud to drive their digital growth.
For example, in March 2025, Oracle Corporation announced the general availability of AMD MI300X GPUs on its Oracle Cloud Infrastructure designed for large AI and ML workloads on bare metal solutions. This Infrastructure allows compute resources to be harnessed fully and provides optimal data throughput.
Service Segment is Influencing the Global Bare Metal Cloud Market
The service segment is expected to register faster growth in the bare metal cloud market. Numerous organizations in the service segment use managed services that include gaming hosting, web applications, and data platforms that require strong and dedicated server configurations. These managed services require robust performance and strong security. Bare metal cloud provides high-level full control, strong performance and improved security for that managed service. Demand for solutions that can provide flexible service delivery models has continued to grow as organizations transition from ownership of physical servers to using cloud services. Service providers use bare metal in part because it provides high availability, low delay and secure environments for their customer's operations.
For example, in February 2024, OVH US LLC, part of OVH Groupe SAS, announced third-generation bare metal game servers designed for service providers managing large multiplayer gaming through its previous experience in the industry. Also, these dedicated resources deliver better control, speed, and user experience.
North America is the Leading Region in Global Bare Metal Cloud Market
Bare metal cloud services are rapidly gaining traction in North America, all of this is because this region is home to many tech companies, data center locations, and cloud service providers. Companies in the United States and Canada are increasingly adopting high-performance cloud as the preferred infrastructure. Bare metal cloud solutions can provide competitive capabilities for many firms by combining direct server access with a higher level of security and rapid processing. Many sectors from this region including healthcare, finance and gaming, are utilizing these services to support their operations. North America's strong digital infrastructure and early adoption of technology have made it the lead market for bare metal cloud growth.
For instance, Equinix, Inc. expanded its bare metal as a service offering to meet the worldwide increased demand in January 2024. Although this offering was introduced in India to meet demand from that country, once again shows a more mature country being the jumping off point of an overall broader growth in developed areas, like North America, where both digital infrastructure and cloud have already been established. Equinix Metal is now available in 25 global metros including the North America (such as Atlanta, Chicago, Dallas, Los Angeles, Montreal, New York, Seattle, Toronto and Washington, DC).
Impact of U.S. Tariffs on Global Bare Metal Cloud Market
U.S. tariffs on imported technology components can be a factor in price hikes for bare metal cloud services by impacting their component or hardware costs. Tariffs increases hardware costs including those on processors, memory and servers, thereby increasing costs for the cloud providers which they may pass onto the customer.
Tariffs of this kind can restrict any market growth and can result in non-participation for some small businesses looking for high-performance but cost-effective cloud solutions.
Key Players Landscape and Outlook
The bare metal cloud business is forecasted to steadily grow because industries look for speed and a greater degree of control in their computing. Bare metal providers are continuing to develop new features and expand capabilities for their server technology, allowing users to run workloads that are relevant in the modern computing environment. With advanced chips, smart networking and better storage, cloud providers can supply relevant solutions. Organizations are increasingly turning to bare metal solutions for artificial intelligence, big data and regulated workloads requiring secure hosting. Increased demand and applications for advanced workloads will drive cloud providers to continue building and enhancing technologies. The future perspective is still promising, and innovation will continue to be a factor for success.
For instance, in April 2024, International Business Machines Corporation (IBM) announced new bare metal servers that utilized fourth generation Intel Xeon processors to accommodate workloads requiring hyper-scalability as an alternative to either virtualization or containers, for customers that had workload processing needs that involved analytics, AI or any high-volume data processing activity.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.