Global Web Hosting Services Market Overview
The key drivers impacting the web hosting services market are the rise in the number of SMEs globally and their huge efforts to have an online presence. For Instance, The World Bank report estimations show SMEs represent 90% of businesses and over 50% of employment across the globe. Formal SMEs account for 40% of national income (GDP) in emerging nations. These numbers could be much advanced when informal SMEs are added. The World Bank estimated that over 600 million jobs would be needed by 2030 to take in the rising global workforce, making SME development a major concern for several governments globally. Moreover, the growing demand for managed web hosting services and the availability of web hosting services with outstanding server performance and features at low prices contributes to web hosting services market demand in the later years.
According to Value Market Research, the global web hosting services market size was valued at about USD 66.12 billion in 2020 and is estimated to grow at a CAGR of around 16% during the forecast period 2021 to 2027.
The proliferation of mobile marketing platforms will likely augment the need for web hosting services in the forecast period. Also, several benefits offered by the advanced web hosting services like superior performance and increased security lead to its high adoption. However, the challenges associated with providing scalability and maintaining uptime hampers the market in the long run. In addition, the issues regarding data loss and difficulties in data recovery impede the market growth. Nevertheless, the market trends, such as artificial intelligence (AI) in web hosting and the growing adoption of cloud-based gaming solutions, might provide considerable opportunities to the market's leading players.
The web hosting services market is widespread, with many local and international players. The market leaders follow diverse strategies such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to strengthen their market share globally. The key players in the report are Amazon Web Services, 1&1 IONOS Inc., Google LLC, Hetzner Online GmbH, Equinix, Inc., Endurance International Group, Liquid Web, LLC, GoDaddy Operating Company, LLC, Alibaba Cloud, and WPEngine, Inc.
In this research report, the web hosting services market is segmented by type, application, deployment, end-user, and region.
Analysis by Type:
By Type, the report is divided into shared hosting, dedicated hosting, virtual private server (VPS) hosting, colocation hosting, and others. The shared hosting segment dominates the type segment with the highest market share of 38% in 2020. It is due to the high adoption rate of shared hosting servers, especially among small and medium enterprises. Moreover, it has low website traffic received, and the cost associated with shared hosting is lower than any other type of hosting.
Analysis by Application:
By Application, the report is divided into intranet website, public website, mobile application. The public website segment dominates the application segment with a high market share of 53% in 2020. It is because most of the websites are accessible to everyone across the globe. Moreover, the internet penetration rate and use of smartphones are increasing rapidly across the globe, thereby contributing to the high growth of the public website application segment.
Analysis by Deployment:
By deployment, the report is segmented into public, private, and hybrid. The public segment dominates the deployment type segment with the highest share of 44% in 2020. It is due to the benefits such as low cost and high scalability that the public cloud offers. Moreover, the small and medium-sized businesses majorly prefer this type of service to host their websites which contributes to the growth of the public segment.
Analysis by End-user:
By End-user, the report is divided into the enterprise, individual. The BFSI segment dominates the end-user segment with the highest market share of 91% in 2020. It is due to the increasing focus of enterprises on expanding their business presence through online channels. Moreover, growing customer's inclination towards online shopping which force businesses to focus on online channels, thus contributing to the high market demand from the enterprise sector.
Analysis by Region:
In the regional outlook of the global web hosting services market, the North America region dominates with the largest market share of 36% in 2020. It is due to the rise in the concentration on the development and the deployment of advanced hosting services. Moreover, the existence of several leading market players and the huge acceptance of digital platforms amongst businesses across the U.S. contributes to the tremendous market growth across North America.
Market Segmentation covered in the Report:
By Type
- Shared Hosting
- Dedicated Hosting
- Virtual Private Server (VPS) Hosting
- Colocation Hosting
- Others
By Application
- Intranet Website
- Public Website
- Mobile Application
By Deployment
By End-user
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
In case you have any custom requirements, do write to us. Our research team can offer a customized report as per your need.