There has been growing requirement for reliable load balancing of data-intensive, non-locking compute and storage resources to improve the distribution of workloads and ensure higher data security. Further, the market growth is attributed to increasing requirement of cloud resource-based customization owing to its capabilities such as high speed and easy access to consumers. These factors are anticipated to significantly expand the global bare metal cloud service market.
The increasing development in technologies with the help of artificial intelligence (AI) and big data, and the ability to provide on-demand access to servers makes the bare metal cloud service easy to manage by consumers. Further, the flexibility in cost factors such as lower data transfer costs and reduced software licensing fees are expected to fuel the market growth. On the back of these, the global bare metal cloud service market is predicted to grow over the forecast period.
Growing demand for high performance, high speed, flexible cloud services and easy access for consumers to store and perform operations related to data, along with the growing internet penetration worldwide are some of the significant factors anticipated to promote the growth of the global bare metal cloud service market. According to the statistics by the International Telecommunications Union (ITU), individuals using the internet increased from 29.3 per 100 inhabitants in the year 2010 to 51.4 per 100 inhabitants in the year 2018.
The global bare metal cloud service market is anticipated to record a significant CAGR over the forecast period, i.e., 2020-2028. The market is segmented by enterprise size into small, medium and large. Among these segments, the segment for large enterprise is anticipated to hold the leading share in the market on account of the need of large enterprises to regulate their own IT cloud infrastructures and servers. Additionally, they require effective storage service and automated datacenter to manage their continuous production of huge data volume in order to increase work efficiency.
Despite the advancement in cloud services, there is a limited awareness among consumers about the potential applications of bare metal cloud service. Also, there is a higher capital investment from the service provider coupled with the stringent cloud regulations and risk of data loss. This is estimated to hinder the growth of the global bare metal cloud service market in the future.
Our in-depth analysis of the global bare metal cloud service market includes the following segments:
On the basis of regional analysis, the global bare metal cloud service market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market for bare metal cloud service in North America is anticipated to hold the largest share in the market on account of presence of leading market players in the region which provides and market bare metal cloud services. Moreover, the increasing demand for high-speed and flexible cloud computing services in this region along with the contribution from many companies in investing in research and development activities in building new technologies such as internet of things (IoT), DevOps and big data are met in this region which further promotes bare metal cloud service. The market in Asia Pacific region is predicted to grow at the highest rate during the forecast period on account of various initiatives taken by government to built-up the digital economy and improve the IT efficiency in the region. The increasing innovation such as cloud computing are facilitating the work transformation from back end operations to core business functions. Additionally, the major cloud initiatives such as ‘G-Cloud’ undertaken by the Singapore government to provide software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS), further raise the demand for bare metal cloud service
The global bare metal cloud service market is further classified on the basis of region as follows:
November 2018: Oracle announced that it has made available the new bare metal Oracle cloud infrastructure that can compute instances and further help enterprises run various performance sensitive workloads that include artificial intelligence (AI) and engineering simulations amongst others.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.