Vancouver, Oct. 31, 2023 (GLOBE NEWSWIRE) — The global web hosting services market is experiencing remarkable growth, with a 21.3% revenue Compound Annual Growth Rate (CAGR) expected during the forecast period. In 2022, the market reached a substantial value of USD 86.00 billion. Several key factors are driving this remarkable expansion, including the increasing number of Small and Medium-sized Enterprises (SMEs), technological advancements, heightened focus on security, and a growing trend toward green hosting.
SMEs Drive Growth
The increasing number of SMEs is a major driving force behind the market’s success. SMEs prioritize their online presence, and web hosting companies are increasingly catering to their needs. India, with its 50 million MSMEs, stands as one of the world’s largest contributors to this growth. Small organizations often opt for shared web hosting and virtual private server hosting, which are cost-effective options that allow them to gradually expand their customer base.
Technological Advancements
Technological advancements in web hosting are propelling the market forward. Cloud-based hosting is gaining popularity due to its scalability, reduced energy consumption, and enhanced reliability. This approach ensures customers only pay for the resources they use, offering robust security features and promoting collaboration and accessibility. The market is also witnessing a strong emphasis on security measures, including SSL certificates and encryption, addressing concerns about data breaches.
Challenges to Overcome
While the market is on a growth trajectory, challenges persist. Delivering scalability and sustaining uptime remains a significant concern. Issues such as slow website loading, outdated software and hardware, network security, and limited server resources prevent web hosting providers from meeting scalability needs, resulting in downtime and performance issues.
Green Hosting Trend
A notable trend is the increasing popularity of green hosting, an eco-friendly approach that aligns with corporate social responsibility practices. Providers are using renewable energy resources, resource-optimized servers, and natural cooling methods to reduce their carbon footprint. Major tech companies like Facebook, Apple, and Google have embraced green practices in data centers. This trend not only reduces environmental impact but also enhances brand credibility in search engine results.
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Segment Analysis
In terms of hosting types, managed Virtual Private Server (VPS) hosting witnessed the fastest revenue growth in 2022. It caters to growing businesses with a balance of resources and cost-effectiveness, offering independence, high availability, and dedicated resources. On the other hand, shared hosting remains popular due to its cost-effectiveness and user-friendliness, making it an attractive option for beginners.
Applications Driving Growth
The online website application segment accounted for the largest revenue share in 2022. As internet penetration continues to rise, online applications, including e-commerce, social media, and cloud-based tools, are in high demand. The public website hosting segment, catering to websites accessible to the general public, is expected to dominate during the forecast period, offering maximum visibility and potential customer engagement.
Regional Insights
North America led the market in 2022, driven by a mature and technologically advanced market, a robust e-commerce sector, digital transformation initiatives, and high internet penetration. Europe is expected to register fast revenue growth, thanks to a dynamic digital landscape and government support for technological advancements. The Asia Pacific region is witnessing a moderately fast revenue growth rate, primarily due to the increasing number of organizations adopting digital media, the rise of mobile marketing platforms, and the availability of cost-effective web hosting services.
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Scope of Research
| Report Details | Outcome |
| Market size in 2022 | USD 86.00 Billion |
| CAGR (2023–2032) | 21.3% |
| Revenue forecast to 2032 | USD 590.58 Billion |
| Base year for estimation | 2022 |
| Historical data | 2019-2021 |
| Forecast period | 2023–2032 |
| Quantitative units | Revenue in USD Billion and CAGR in % from 2023 to 2032 |
| Report coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments covered | Type, application, deployment, enterprise size, component, vertical, and region |
| Regional scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Country scope | U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Benelux, Rest of Europe, China, India, Japan, South Korea, Rest of APAC, Brazil, Rest of LATAM, Saudi Arabia, UAE, South Africa, Turkey, Rest of MEA |
| Key companies profiled | Amazon Web Services, Inc., Google Cloud, GoDaddy Operating Company, LLC, SQUARESPACE, A2 HOSTING, AT&T, Automattic Inc., bluehost Inc., Cyfuture India Pvt. Ltd, DigitalOcean, LLC, EUKHOST LTD, GreenGeeks.com, Hetzner Online GmbH, HostGator.in, HostMonster, HostPapa, Inc, InMotion Hosting, Inc, IONOS Inc and Just Host |
| Customization scope | 10 hours of free customization and expert consultation |
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Major Companies and Competitive Landscape
The global web hosting services market is moderately fragmented, with many large and medium-sized players accounting for the majority of market revenue. Major businesses are using a variety of tactics, making mergers and acquisitions, strategic agreements, and contracts, as well as creating, experimenting with, and introducing more efficient web hosting services solutions. Some major players included in the global web hosting services market report are:
- Amazon Web Services, Inc.
- Google Cloud
- GoDaddy Operating Company, LLC
- SQUARESPACE
- A2 HOSTING
- AT&T
- Automattic Inc.
- bluehost inc.
- Cyfuture India Pvt. Ltd.
- DigitalOcean, LLC.
- DreamHost, LLC
- EUKHOST LTD.
- GreenGeeks.com
- Hetzner Online GmbH
- HostGator.in
- HostMonster
- HostPapa, Inc.
- InMotion Hosting, Inc.
- IONOS Inc.
- Just Host
Strategic Development
- On 26 April 2023, CloudMinister Technologies Pvt. Ltd. introduced new web hosting plans tailored for small, medium, and enterprise businesses. These plans aim to provide reliable, scalable, and cost-effective web hosting solutions, offering features such as free SSL certificates, unlimited bandwidth, SSD storage, 24/7 technical support, and a 99.9% uptime guarantee.
- On 29 August 2023, IONOS, Europe’s largest web hosting company, chose Infinera’s GX Series Compact Modular Platform to enhance its network and connect data centers across Europe. This deployment enables IONOS to efficiently scale capacity and deliver high-capacity services such as 100 GbE and 400 GbE to meet growing data center connectivity demands, especially for its expanding cloud business. Additionally, Infinera’s GX G30 solution aligns with IONOS’ sustainability goals by providing energy-efficient transport solutions.
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For the purpose of this report, Emergen Research has segmented the global web hosting services market on the basis of type, application, deployment, enterprise size, component, vertical, and region:
- Type Outlook (Revenue, USD Billion; 2019-2032)
- Shared Hosting
- Dedicated Hosting
- Collocated Hosting
- Virtual Private Server (VPS) Hosting
- Managed Hosting
- Managed VPS Hosting
- Self-Managed Hosting
- Free Hosting
- Application Outlook (Revenue, USD Billion; 2019-2032)
- Public Website
- Mobile Application
- Intranet Site
- Online Application
- Deployment Outlook (Revenue, USD Billion; 2019-2032)
- Public Cloud
- Private Cloud
- Hybrid Cloud
- Enterprise Size Outlook (Revenue, USD Billion; 2019-2032)
-
- Large Enterprise
- Small and Medium Enterprise
- Component Outlook (Revenue, USD Billion; 2019-2032)
- Vertical Outlook (Revenue, USD Billion; 2019-2032)
- Regional Outlook (Revenue, USD Billion; 2019–2032)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Benelux
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Turkey
- Rest of MEA
- North America
-
- Banking, Financial Services, And Insurance
- IT and Telecom
- Government and Public Sector
- Manufacturing
- Retail and Consumer goods
- Healthcare and Life Sciences
- Energy and Utilities
- Other Verticals
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