APAC Bare Metal Cloud Market Research Report By Service Type (Computing Services, Networking Services, Database Services, Identity and Access Management Services, Volume and Object Storage Services), By Organization Type (Small and medium Enterprises, Large Enterprises), By Vertical (BFSI, Government, Healthcare, IT and Telecommunication, Manufacturing, Retail) and By Regional (China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC) - Forecast to 2035.

APAC Bare Metal Cloud Market Overview

As per MRFR analysis, the APAC Bare Metal Cloud Market Size was estimated at 2.33 (USD Billion) in 2023. The APAC Bare Metal Cloud Market Industry is expected to grow from 2.79(USD Billion) in 2024 to 20.71 (USD Billion) by 2035. The APAC Bare Metal Cloud Market CAGR (growth rate) is expected to be around 19.992% during the forecast period (2025 - 2035).

Key APAC Bare Metal Cloud Market Trends Highlighted

The growing need for high-performance computing and the spread of digital transformation projects in different industries are driving notable trends in the APAC Bare Metal Cloud Market. Regional governments are aggressively encouraging the expansion of digital infrastructure, especially in nations like China and India, where strong IT and telecommunications infrastructures are being built. This emphasis backs up the demand for bare metal cloud solutions, which provide improved security, performance, and management for companies trying to better manage their workloads. 

Additionally, because of their scalability and flexibility, which appeal to businesses with fluctuating workloads, firms are looking into ways to use bare metal cloud options. As they transition to hybrid and multi-cloud strategies, both startups and well-established companies are seeing the advantages of bare metal infrastructure. Consolidating operations while guaranteeing high availability and lower latency in service delivery across areas like Southeast Asia is made possible by the recent push for more managed services in data centers. Investments in secure bare metal solutions to manage sensitive data have been spurred by recent developments that indicate a tendency towards compliance with strict data privacy requirements in the APAC region. The emergence of cloud-native applications, which demand strong data processing frameworks, makes this especially pertinent.

Furthermore, there is a growing trend of improved cooperation between cloud service providers and telecom carriers, which makes it easier to expand bare metal cloud capabilities in developing nations. Because of this, the APAC area is well-positioned for the bare metal cloud industry to continue expanding, which is consistent with broader economic trends toward cloud adoption and digital agility.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

APAC Bare Metal Cloud Market Drivers

Increased Demand for High-Performance Computing

The APAC Bare Metal Cloud Market Industry is witnessing a significant rise in demand for high-performance computing (HPC) solutions. This demand is primarily driven by industries such as finance, healthcare, and scientific research, which require extensive computational power for data analysis and simulations. A report from the Asia-Pacific High-Performance Computing Forum indicated that the region has seen a 15% annual increase in enterprise-level HPC initiatives over the past three years.

Moreover, major organizations like Alibaba Cloud and NTT Communications have been expanding their bare metal offerings to cater to this growing need. The rise in data-intensive applications, driven by industries relying on big data analytics and artificial intelligence, is likely to sustain this trend in the APAC Bare Metal Cloud Market, fueling substantial growth foreseeable through the coming years.

Growing Focus on Data Security and Compliance

As organizations in the APAC region increasingly handle sensitive data, the need for robust security is becoming paramount. The APAC Bare Metal Cloud Market Industry is benefiting from this trend as bare metal cloud solutions provide enhanced security features compared to traditional virtualized environments. According to a survey by the Asia Cloud Computing Association, 72% of businesses in APAC have cited improving data security and compliance as their top priority in cloud adoption.

This focus has led numerous companies, including IBM and Oracle, to enhance their bare metal cloud offerings with additional security protocols, ensuring that they can meet the strict regulations imposed by governments in countries like Singapore and Australia. The country's robust digital regulations further bolster demand for secure IT infrastructures.

Expansion of E-commerce and Digital Services

The rapid digital transformation, notably the surge in e-commerce, is a key driver of the APAC Bare Metal Cloud Market Industry. With online sales in Asia projected to exceed USD 3 trillion by 2025, companies are increasingly turning to bare metal cloud solutions to manage enhanced workloads and peak traffic periods effectively. For instance, the Japan E-commerce Association reported a 20% growth in online shopping during the last year, prompting businesses to seek reliable infrastructure that enables high availability and scalability.

Major players such as Rackspace and DigitalOcean have recognized this trend. They are actively investing in bare metal cloud solutions that cater specifically to e-commerce and digital service providers in the APAC region, ensuring they capitalize on this burgeoning market.

Increased Adoption of Internet of Things (IoT) Solutions

The proliferation of Internet of Things (IoT) devices across the APAC region is spurring growth in the Bare Metal Cloud Market Industry. With the Asia-Pacific IoT market projected to reach USD 1 trillion by 2030, the need for robust backend infrastructure is more apparent than ever. According to the Ministry of Electronics and Information Technology in India, the IoT ecosystem has grown remarkably, with over 1 billion connected devices expected by 2025.

This explosion necessitates more processing power and reduced latency, which bare metal servers provide. Leading companies such as Huawei and Cisco are already heavily investing in bare metal cloud solutions to facilitate this IoT growth, thus positively influencing the APAC Bare Metal Cloud Market as they roll out more scalable offerings tailored to IoT deployments.

APAC Bare Metal Cloud Market Segment Insights

Bare Metal Cloud Market Service Type Insights

The Service Type segment of the APAC Bare Metal Cloud Market presents a diverse landscape showcasing substantial growth and potential across various offerings. This segment includes Computing Services, which plays a pivotal role in enabling organizations to run high-performance applications with dedicated hardware. It aids businesses in optimizing workloads without the limitations of virtualization, thus ensuring enhanced speed and efficiency. Networking Services facilitate seamless connectivity within the cloud infrastructure, which is crucial for organizations looking to leverage various cloud-based platforms effectively.

Reliable networking solutions enhance data transmission speeds and support the increasing demands for robust digital communication, making it a significant player in the overall market dynamics. Database Services in this segment address the growing need for data storage, management, and analytics, which is essential for industries heavily reliant on data-driven decision-making. As businesses across the APAC region transition to cloud solutions, the ability to maintain, analyze, and secure databases using bare metal infrastructure has become increasingly important.

Identity and Access Management Services focus on securing sensitive information and ensuring compliance with regulations, which is essential in today's landscape marked by rising cyber threats. These services play a crucial role in providing businesses with the ability to manage user access and authorization effectively, thus safeguarding their resources while promoting operational efficiency. Volume and Object Storage Services also contribute significantly to the Service Type segment, as they allow organizations to store vast amounts of data efficiently.

This capability is vital to businesses that require scalable storage solutions to accommodate the exponential data growth in the region. With an increasing emphasis on data protection, performance, and scalability, these services within the APAC Bare Metal Cloud Market are set to address the unique needs of different industry verticals effectively. The anticipated market growth and evolving demands reflect the dynamic nature of service offerings in the APAC region, showcasing opportunities for innovation and enhanced user experiences within this segment.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Bare Metal Cloud Market Organization Type Insights

The APAC Bare Metal Cloud Market showcases a diverse segmentation based on Organization Type, primarily categorized into Small and Medium Enterprises (SMEs) and Large Enterprises. SMEs contribute significantly to economic growth in the region, often seeking affordable and scalable cloud solutions that enhance operational efficiency without the complexity of traditional infrastructure. This demand drives innovation in the Bare Metal Cloud sector, as these businesses look for flexible deployment models to support their growth and digital transformation initiatives. Conversely, Large Enterprises leverage Bare Metal Cloud solutions to enhance performance and build robust IT infrastructures that support complex workloads and data-intensive applications. 

Their adoption is essential as they often require high levels of security, dedicated resources, and compliance capabilities, which Bare Metal Cloud addresses effectively. The market growth is driven by trends such as the increasing digitalization across APAC, with enterprises prioritizing agility and efficiency. Furthermore, regulatory frameworks and government initiatives aimed at boosting technology adoption further propel the demand for Bare Metal Cloud services in both categories of organizations, marking a significant opportunity for service providers in the APAC region.

Bare Metal Cloud Market Vertical Insights

The APAC Bare Metal Cloud Market has shown a notable trajectory in the Vertical segment, which encompasses various industries such as Banking, Financial Services and Insurance (BFSI), Government, Healthcare, IT and Telecommunication, Manufacturing, and Retail. Each of these sectors has recognized the advantages of Bare Metal Cloud solutions, particularly due to their performance efficiency, enhanced security, and customization capabilities. The BFSI sector, for example, has benefited from these solutions due to the need for data security and compliance, making it a significant player within the market.

The Government segment is also leveraging Bare Metal Cloud infrastructure to improve public services and manage vast amounts of data securely. In Healthcare, the demand for secure data storage and processing for sensitive patient information has propelled the adoption of Bare Metal Cloud solutions, while the IT and telecommunications industries rely heavily on such technologies to enhance service delivery and operational efficiency. Manufacturing companies are seeing opportunities to improve production and supply chain processes through cloud solutions, and the Retail sector's move towards omnichannel strategies is further driving growth in this area.

The combination of these dynamics and the region's push towards digital transformation has contributed to the overall market's expansion in the APAC region, signifying the importance of the Vertical segment within this industry landscape.

Bare Metal Cloud Market Regional Insights

The APAC Bare Metal Cloud Market has shown strong regional dynamics, driven by the increasing demand for cloud solutions among various industries. Countries like China and India are emerging as significant contributors, leveraging their vast technology sectors and investments in cloud infrastructure. China leads in technological advancements, while India benefits from its expanding IT services market and skilled workforce. Japan presents robust opportunities through its focus on innovation and modernization of aging infrastructure. South Korea, known for its advanced connectivity, continues to embrace cloud technologies, enhancing its competitiveness in the global market.

Meanwhile, Malaysia and Thailand are also witnessing substantial growth, as they adopt cloud services to optimize business operations and drive digital transformation. Indonesia and the Rest of the APAC region exhibit a burgeoning interest in bare metal cloud solutions, driven by an increase in digital startups and the need for flexibility in IT deployments. The overall market is supported by trends towards automation, scalability, and resource efficiency, ensuring that the APAC region plays a vital role in the global Bare Metal Cloud Market landscape.

As businesses prioritize agility and performance, the demand for tailored cloud services across these countries is expected to evolve significantly.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

APAC Bare Metal Cloud Market Key Players and Competitive Insights

The APAC Bare Metal Cloud Market is characterized by intense competition among various service providers, each striving to establish a robust foothold in this rapidly evolving space. The market has witnessed significant growth due to increasing demand for high-performance computing and the need for enhanced flexibility in IT infrastructure. Providers in this region are differentiating themselves through advanced technological offerings, improved service delivery, and strategic partnerships aimed at expanding their market share. As businesses transition to more complex workloads and require customized solutions, the competition intensifies, making it essential for market players to continuously innovate and respond to evolving customer needs. Various trends, including the adoption of hybrid cloud environments and the alignment of offerings with industry-specific requirements, are shaping the landscape.

NTT Communications has solidified its presence in the APAC Bare Metal Cloud Market by leveraging its extensive global infrastructure and comprehensive range of managed services. With a strong emphasis on security and reliability, the company positions itself as a trusted partner for enterprises seeking to optimize their IT operations. NTT Communications excels by offering seamless integration of bare metal servers with its other cloud services, resulting in enhanced performance and reduced latency. Additionally, the company benefits from its established reputation and extensive experience in network services, which allows it to provide tailored solutions that meet the unique demands of various industries. Its ability to deliver both high-quality customer support and significant scalability makes it a formidable player in the competitive landscape of the APAC Bare Metal Cloud Market.

Aiven has emerged as a notable contender in the APAC Bare Metal Cloud Market, primarily focusing on delivering cloud-based database services. The company is recognized for its strengths in open-source technologies and aims to simplify data management for businesses across the region. Aiven offers various services, including managed cloud databases, stream processing, and data analytics tools, which cater to a range of customer requirements. The company’s robust market presence is underpinned by its commitment to providing managed services with minimal downtime and a user-friendly interface. 

Aiven’s strategic focus on partnerships and collaborations enhances its market position, enabling it to tap into emerging trends and expanding service capabilities. The company's emphasis on continuous innovation, along with potential opportunities for mergers and acquisitions, further indicates its ambition to grow and solidify its status in the APAC region's Bare Metal Cloud Market.

Key Companies in the APAC Bare Metal Cloud Market Include

• NTT Communications


• Aiven


• Oracle


• Microsoft Azure


• DigitalOcean


• Google Cloud


• Vultr


• Nutanix


• OVHcloud


• Tencent Cloud


• Rackspace


• Alibaba Cloud


• IBM


• ZNet Technologies

APAC Bare Metal Cloud Market Industry Developments

The APAC Bare Metal Cloud Market has been witnessing significant developments recently, especially with companies like Alibaba Cloud and Tencent Cloud expanding their offerings to enhance customer experience and meet growing demands. In August 2023, NTT Communications launched a new Bare Metal Cloud service designed to support enterprise-level applications with improved scalability and performance. DigitalOcean and Linode have been increasing their presence in Asia, leveraging their competitive pricing and simplified user interfaces to attract new customers. 

In terms of mergers and acquisitions, Vultr announced its acquisition of a regional data center in June 2023 to expand its infrastructure in the APAC region, aiming to improve latency and service delivery. Furthermore, market growth has been bolstered by increased adoption of cloud solutions among businesses, driven by the ongoing digital transformation initiatives across various industries. The APAC region is projected to see a compound annual growth rate that reflects a robust demand for Bare Metal Cloud services, emphasizing the region's strategic importance in the global cloud landscape. Companies like IBM and Oracle continue to invest heavily in local partnerships to enhance their service capabilities in APAC, further driving this dynamic market.

APAC Bare Metal Cloud Market Segmentation Insights

Bare Metal Cloud Market Service Type Outlook

• Computing Services


• Networking Services


• Database Services


• Identity and Access Management Services


• Volume and Object Storage Services

Bare Metal Cloud Market Organization Type Outlook

• Small and medium Enterprises


• Large Enterprises


• Bare Metal Cloud Market Vertical Outlook


• BFSI


• Government


• Healthcare


• IT and Telecommunication


• Manufacturing


• Retail

Bare Metal Cloud Market Regional Outlook

• China


• India


• Japan


• South Korea


• Malaysia


• Thailand


• Indonesia


• Rest of APAC

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	2.33(USD Billion)
MARKET SIZE 2024	2.79(USD Billion)
MARKET SIZE 2035	20.74(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	19.992% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	NTT Communications, Aiven, Oracle, Microsoft Azure, Linode, DigitalOcean, Google Cloud, Vultr, Nutanix, OVHcloud, Tencent Cloud, Rackspace, Alibaba Cloud, IBM, ZNet Technologies
SEGMENTS COVERED	Service Type, Organization Type, Vertical, Regional
KEY MARKET OPPORTUNITIES	5G technology adoption, AI and machine learning integration, Data privacy regulations compliance, Hybrid cloud solutions demand, Gaming and streaming services expansion
KEY MARKET DYNAMICS	Growing demand for customization, Increasing adoption of hybrid cloud, Enhanced performance and scalability, Rising need for data security, Cost-effective infrastructure solutions
COUNTRIES COVERED	China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC