At 19.7% CAGR, the Middle East & Africa Bare Metal Cloud Market is Projected to be Worth US$ 1,709.65 Million by 2030, Says Business Market Insights

According to Business Market Insights' research, the Middle East & Africa bare metal cloud market was valued at US$ 406.37 in 2022 and is expected to reach US$ 1,709.65 million by 2030, registering a CAGR of 19.7% from 2022 to 2030. Demand for scalable, flexible, efficient, and easy IT Infrastructure and low CAPEX and OPEX required for bare metal cloud infrastructure are among the critical factors attributed to the Middle East & Africa bare metal cloud market expansion.

The biggest advantage of deploying bare metal cloud models for organizations is reducing the capital expenditure (CAPEX) and operational expenditure (OPEX) for organizations. Bare metal cloud avails the use of hardware and software services only on a subscription basis as per the amount used. The end-user of this service does not have to pay for owning the hardware and software. Third-party vendor owns, maintains, and upgrades the hardware and software. Also, In the deployment of a bare metal cloud-based solution, the need for servers, backups, upgrade complexity, and version control is eliminated. As bare metal cloud deployments are generally low capital intensive, end-use companies can install cheap and consistent IT infrastructure models. Also, they can focus on their core competencies.

Bare metal cloud model offers significant profits for most organizations at an early stage. The cost savings from the shared infrastructure model are accumulated from:

- Consultant fees

- Data center space

- Electricity

- Cost of hardware such as servers and storage devices

- IT personnel

- Servers

- Software licenses

- Maintenance fees



Bare metal cloud empowers an organization to go for a pay-as-you-go model that could reduce the amount of up-front fees. The fees charged by bare metal cloud vendor is proportional to the usage of bare metal cloud applications. The fee would always be lesser than the installed infrastructure on-premise model. Additionally, concerns regarding maintenance, servicing, and other repairing or downtime due to failure are eliminated in this model. Based on the kind of application deployed, the fee may be significant if multiple integrations are required, and data transfers from old legacy-based systems are required for a smooth transition. These benefits of bare metal cloud solutions drive their demand.

Moreover, the bare metal cloud market players provide their services at low cost to gain a larger customer base. In July 2019, IBM announced that they had reduced the prices of IBM Cloud Bare Metal Servers by 25% for single, dual, quad, and workload-certified bare metal servers. In addition, they increased the standard bandwidth allotments up to 20TB for full bare metal server portfolio and offered the same raw performance, similar premium security, and same customization options of the solutions at significantly lower hourly and monthly operating expenses. Currently. India-based BIGSTEP offers a 50% discount on bare metal dedicated servers services. G-Core Labs S.A. currently offering bare metal servers at 64% off using promocodes. Thus, low-cost bare metal servers offered by market players bolster the bare metal cloud market growth.

On the contrary, complex infrastructure hampers the growth Middle East & Africa bare metal cloud market.

Based on service type, the Middle East & Africa bare metal cloud market is segmented into networking services, storage & database services, compute services, security services, and others. The storage & database services segment held 44.1% share of the Middle East & Africa bare metal cloud market in 2022, amassing US$ 179.38 million. It is projected to garner US$ 728.01 million by 2030 to expand at 19.1% CAGR during 2022-2030.

In terms of enterprise size, the Middle East & Africa bare metal cloud market is bifurcated into SMEs and large enterprises. The large enterprises segment held 76.8% share of the Middle East & Africa bare metal cloud market in 2022, amassing US$ 311.91 million. It is projected to garner US$ 1,292.78 million by 2030 to expand at 19.5% CAGR during 2022-2030.

By application, the Middle East & Africa bare metal cloud market is segmented into BFSI, manufacturing, government, retail, healthcare, IT & telecommunications, and others. The IT & telecommunications segment held 39.2% share of Middle East & Africa bare metal cloud market in 2022, amassing US$ 159.20 million. It is projected to garner US$ 695.26 million by 2030 to expand at 20.2% CAGR during 2022-2030.

Based on country, the Middle East & Africa bare metal cloud market is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The Rest of Middle East & Africa held 30.5% share of Middle East & Africa bare metal cloud market in 2022, amassing US$ 123.86 million. It is projected to garner US$ 445.88 million by 2030 to expand at 17.4% CAGR during 2022-2030.

Key players operating in the Middle East & Africa bare metal cloud market are International Business Machines Corp, Oracle Corp, Rackspace Technology Inc, Lumen Technologies Inc and Equinix Inc, among others.

- In Feb 2023, IBM Cloud Bare Metal Servers for VPC was recognized as the 2022-2023 Cloud Awards winner in the Best Cloud Infrastructure category.


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