Bare Metal Cloud Market growing at a CAGR of 21.4% from 2026 to 2033

The global bare metal cloud market size was estimated at USD 11.66 billion in 2025 and is projected to reach USD 52.66 billion by 2033, growing at a CAGR of 21.4% from 2026 to 2033. The market growth is attributed to rising enterprise demand for high-performance, secure, and dedicated infrastructure as organizations shift latency-sensitive workloads to bare metal cloud solutions.

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This growth is accelerated by enterprises seeking dedicated, high-performance infrastructure to support real time dependent workloads, artificial intelligence applications, and data-intensive operations, while avoiding the limitations of virtualization overhead. Key drivers include the rising adoption of hybrid cloud strategies, enhanced security for regulated sectors such as BFSI and healthcare, and the demand for customizable compute resources that ensure predictable performance and full hardware control. The regional scenario in the market for bare metal cloud, where North America maintains a dominant position due to its advanced IT ecosystems, and Asia Pacific emerging as the fastest-growing region, is driven by digital transformation initiatives.

The market continued to evolve with significant advancements in cloud infrastructure. For instance, in June 2025, OVHcloud partnered with Crayon to deliver transformative, cost-effective cloud solutions globally, including in Europe. The agreement enabled organizations to access secure, high-performance infrastructure across 45+ countries. Crayon provided strategic and technical expertise, while OVHcloud offered sustainable, sovereign cloud options, including bare metal servers, hosted private cloud, public cloud, and managed Kubernetes, supporting digital transformation and optimized performance-price outcomes. Such innovations highlight the market’s shift toward automated, GPU-optimized solutions tailored for AI and high-performance computing, positioning bare metal cloud as a critical enabler for next-generation enterprise IT.

Type Insights

The hardware segment accounted for the largest revenue share of 62.3% in the global market in 2025, including the physical servers, networking, and storage infrastructure that clients rent on a dedicated, non-virtualized basis. The market is driven by the growing demand for high-performance computing (HPC), Artificial Intelligence (AI)/Machine Learning (ML) workloads, and other data-intensive applications, which require the maximum raw computational power, lowest latency, and complete hardware control that bare metal affords by eliminating the virtualization overhead inherent in traditional cloud environments. Industry providers continue to introduce more advanced and powerful infrastructure solutions. In November 2023, OVHcloud launched its second-generation Bare Metal Scale servers in France, delivering enhanced compute performance for demanding workloads across various industries. These servers are powered by AMD and NVIDIA processors. This development will drive demand for high-performance server components in the hardware segment of the market.

The services segment is expected to register the CAGR over the forecast period from 2026 to 2033, driven by the need for simplified operations and expertise to fully leverage the raw performance of dedicated infrastructure. As enterprises adopt bare metal for complex, high-performance workloads such as AI/ML training, big data analytics, and high-frequency trading, they increasingly require professional support to manage the complex tasks of initial provisioning, infrastructure lifecycle management, and ensuring regulatory compliance. By outsourcing these operational complexities to providers, businesses can focus on their core applications and innovation, making the sophisticated bare metal offering as accessible and easy to manage as a virtualized public cloud service.

Bare Metal Cloud Market Report Scope