Press Release

Sep, 18 2025

Surging Demand for High-Performance Computing (HPC), AI/ML Workloads, and Data-Intensive Applications

Surging demand for high-performance computing (HPC), AI/ML workloads, and data-intensive applications is driving the adoption of bare metal cloud. Unlike virtualized environments, bare metal servers offer direct access to underlying hardware, ensuring predictable performance, lower latency, and the ability to handle complex workloads such as AI model training, large-scale simulations, and advanced analytics. Industries ranging from healthcare and financial services to automotive and research institutions are increasingly turning to bare metal infrastructure to support GPU-intensive tasks and high-throughput computing requirements. This trend reflects the broader push for infrastructure that can handle modern workloads without the overhead of virtualization layers, while offering scalability and customization aligned with enterprise IT strategies.

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Data Bridge Market Research analyses that the Bare Metal Cloud Market is USD 85,660.77 million in 2032 from USD 10,318.01 million in 2024.

Key Findings of the Study

Bare Metal Cloud Market

Increasing adoption in telecom and 5G core infrastructure for ultra-low latency processing

The adoption of Kubernetes and containerized deployment on bare metal infrastructure is being increasingly embraced by organizations seeking the performance advantages of dedicated hardware alongside the scalability and flexibility of cloud-native workloads. By eliminating the virtualization layer, Kubernetes clusters are enabled to run directly on physical servers, offering enhanced throughput, lower latency, and greater resource efficiency—benefits that are especially pertinent for AI/ML, real-time analytics, and network function workloads. As such, enterprises across telecommunications, edge computing, and hybrid/cloud integration segments are being driven to explore and implement Kubernetes on bare metal setups.

Report Scope and Bare Metal Cloud Market Segmentation

Report Metric

Details

Forecast Period

2025 to 2032

Base Year

2024

Historic Years

2023 (Customizable from 2018-2023)

Quantitative Units

Revenue in USD Thousand

Segments Covered

By Component (Server and Services), Application (Real Time Analytics, Adtech/Fintech, Gaming, Streaming, Esports, and Others), Organization Size (SMEs and Large Enterprises), Infrastructure (Virtual Public Cloud and Classic Infrastructure), End User (IT & Telecom, BFSI, Government, Manufacturing, Media & Entertainment, Healthcare, Retail, and Others)

Countries Covered

U.S., Canada, Mexico, Brazil, Argentina, Colombia, Chile, Bolivia, Ecuador, Paraguay, Peru, Uruguay, Venezuela and Rest of South America, China, India, Japan, Australia, South Korea, Thailand, Indonesia, Malaysia, Singapore, Hong Kong, Taiwan, New Zealand, Philippines and Rest of Asia-Pacific, South Africa, Egypt, Saudi Arabia, U.A.E, Israel, Kuwait, Oman, Qatar, Bahrain, Rest of Middle East & Africa, Germany, U.K., France, Russia, Italy, Spain, Poland, Netherlands, Turkey, Switzerland, Denmark, Belgium, Sweden, Norway, Finland and Rest of Europe.

Market Players Covered

Microsoft, Amazon Web Services, Inc, Google LLC, SAMSUNG SDS, Rackspace Technology, Equinix Inc., OVH SAS, IBM Corporation, Alibaba Cloud, Lumen Technologies, Hivelocity, Inc, Joyent, Oracle Corporation, BigStep Technologies Pvt. Ltd., Liquid Web, LLC, HorizonIQ, Limestone Networks, Inc., Scaleway SAS, Cherry Servers, Fasthosts Internet Limited, Zenlayer, Inc., VULTR, Phoenixnap, Atlantic.Net

Data Points Covered in the Report

In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and PESTLE analysis.

Segment Analysis

The Global bare metal cloud market is segmented into five notable segments based on component, application, organization size, infrastructure and end-user.

On the basis of component, the global bare metal cloud market is segmented into server and services.

In 2025, the server segment is expected to dominate the Global Bare metal cloud Market

In 2025, the server segment is expected to dominate the market share 72.22% due to rising demand for high-performance computing, low-latency infrastructure, and growing reliance on dedicated hardware to support data-intensive workloads. The rising demand for high-performance computing and low-latency applications is propelling the adoption of bare metal cloud servers. These servers offer direct hardware access, enhancing speed and control, crucial for workloads like gaming, scientific simulations, and enterprise databases.

On the basis of application, the global bare metal cloud market is segmented into real-time analytics, adtech/fintech, gaming, streaming, esports, and others.

In 2025, the real-time analytics segment dominates the Bare metal cloud market

In 2025, the real-time analytics segment is expected to dominate the market share 32.61% owing to increasing adoption of AI, big data, and IoT applications that require rapid processing, minimal latency, and secure infrastructure. Bare metal cloud enables ultra-fast data processing, making it ideal for real-time analytics. Industries leverage this capability to gain immediate insights, supporting instant decision-making in sectors like finance, healthcare, and e-commerce where milliseconds can impact outcomes significantly.

On the basis of organization size, the global bare metal cloud market is segmented into SMEs and Large Enterprises.

In 2025, SME segment dominates the Bare metal cloud market

In 2025, the SME segment is expected to dominate the market share 60.69% due to cost-effective adoption of bare metal cloud for scalability, flexibility, and secure IT infrastructure without heavy capital investment. SMEs are increasingly turning to bare metal cloud solutions for their cost-effective scalability and enhanced control over IT resources. Without the overhead of virtualization, they gain enterprise-level performance while maintaining flexibility and optimizing infrastructure costs for growth.

On the basis of infrastructure, the global bare metal cloud market is segmented into virtual public cloud and classic infrastructure.

In 2025, the virtual public cloud segment dominates the Bare metal cloud market

In 2025, the virtual public cloud segment is expected to dominate the market share 66.37% due to its agility, easy deployment, and widespread use in hybrid and multi-cloud strategies across industries. While public clouds offer flexibility, virtual environments may hinder performance-sensitive tasks. Bare metal cloud bridges this gap by delivering dedicated resources in a cloud-like model, allowing users to maintain agility without compromising on speed, security, or customization.

On the basis of end-user, the global bare metal cloud market is segmented into IT & Telecom, BFSI, government, manufacturing, media & entertainment, healthcare, retail and others.

In 2025, the IT & Telecom segment dominates the Bare metal cloud market

In 2025, the IT & Telecom segment is expected to dominate the market share 24.90% due to growing digital transformation initiatives, adoption of 5G networks, and increasing demand for reliable, high-capacity infrastructure to manage massive data traffic. The IT and telecom sectors rely heavily on bare metal cloud to manage large-scale, latency-sensitive workloads like network functions virtualization (NFV) and 5G deployment. It supports robust, scalable infrastructure with enhanced security and compliance for global service delivery.

Major Players

Data Bridge Market Research analyzes Microsoft, Amazon Web Services, Inc, Google LLC, SAMSUNG SDS, Rackspace Technology, Equinix Inc., OVH SAS, IBM Corporation, Alibaba Cloud, Lumen Technologies, Hivelocity, Inc, Joyent, Oracle Corporation, BigStep Technologies Pvt. Ltd., Liquid Web, LLC, HorizonIQ, Limestone Networks, Inc., Scaleway SAS, Cherry Servers, Fasthosts Internet Limited, Zenlayer, Inc., VULTR, Phoenixnap, Atlantic.Net

Bare Metal Cloud Market

Market Developments

  • In Feb 2025, Liquid Web, LLC expanded its Bare Metal Cloud by launching data centers in San Jose, Ashburn, Sydney, and London, enhancing global performance. It also introduced encrypted cross-region private networking, delivering secure, compliant, and seamless connectivity across all Bare Metal hosting plans
  • In February 2025, AWS revealed plans to invest over USD 100 billion this year in AI-specific infrastructure, far surpassing rivals, reinforcing its lead in cloud and AI infrastructure expansion globally. AWS also announced a USD 13 billion investment in Australian data centers through 2029, including three solar farms, to bolster its AI compute capacity and renewable operations
  • In 2025, Alphabet (Google’s parent) committed approximately USD 75 billion in capital expenditures for the year, primarily to scale up AI-focused data centers, servers, and networking infrastructure. In addition, Google Cloud secured a record USD 10 billion, six-year deal with Meta to support AI infrastructure needs, marking one of its largest cloud agreements.
  • In 2025, Samsung SDS reported 20% year-over-year growth in its cloud business, driven by expansion in public cloud services, HPC, and managed services—including generative AI projects—on its Samsung Cloud Platform (SCP)

Regional Analysis

Geographically, the countries covered in the Bare metal cloud market report are U.S., Canada, Mexico, Brazil, Argentina, Colombia, Chile, Bolivia, Ecuador, Paraguay, Peru, Uruguay, Venezuela, Rest of South America, China, India, Japan, Australia, South Korea, Thailand, Indonesia, Malaysia, Singapore, Hong Kong, Taiwan, New Zealand, Philippines, Rest of Asia-Pacific, South Africa, Egypt, Saudi Arabia, U.A.E, Israel, Kuwait, Oman, Qatar, Bahrain, Rest of Middle East & Africa, Germany, U.K., France, Russia, Italy, Spain, Poland, Netherlands, Turkey, Switzerland, Denmark, Belgium, Sweden, Norway, Finland and Rest of Europe.

As per Data Bridge Market Research analysis:

For more detailed information about Bare metal cloud market click here – https://www.databridgemarketresearch.com/reports/global-bare-metal-cloud-market


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