Web Hosting Service Market By Type (Shared Hosting, Dedicated Hosting), By Application (Intranet Website, Public Website), By Deployment (Public, Private), And Region For 2024-2031
Report ID: 89851|No. of Pages: 202
Web Hosting Service Market By Type (Shared Hosting, Dedicated Hosting), By Application (Intranet Website, Public Website), By Deployment (Public, Private), And Region For 2024-2031
Web Hosting Service Market Valuation – 2024-2031
The growing need for online presence among organizations and individuals. As more businesses move to digital platforms, web hosting services become critical infrastructure for website development, maintenance, and data storage. Thus, the increasing need for online presence in organizations surged the growth of market size surpassing USD 70.96 Billion in 2023 to reach the valuation of USD 228.18 Billion by 2031.
The rising use of advanced hosting technologies such as cloud-based hosting, VPS (Virtual Private Server), and managed hosting is redefining the industry landscape. Businesses are looking for scalable and secure hosting solutions that will meet their changing digital needs while maintaining dependability and performance. Thus, the increasing use of advanced hosting technologies enables the market to grow at a CAGR of 15.72% from 2024 to 2031.
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Web Hosting Service Market: Definition/ Overview
A web hosting service is a service that provides space on a server for a website to be accessed on the internet. It involves storing website files, images, and other content on a server that is connected to the internet. When someone types in the website’s address, the web hosting service delivers the website’s content to their browser.
There are several types of web hosting services, including shared hosting, dedicated hosting, and cloud hosting. Shared hosting is the most affordable option, as multiple websites share the resources of a single server. Dedicated hosting provides a private server for a single website, offering more control and resources. Cloud hosting utilizes a network of servers to provide scalable and flexible web hosting solutions.
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How does the Digital Transformation Across Industries Surge the Growth of the Web Hosting Services Market?
The accelerating pace of digital transformation across industries is fueling the demand for web hosting services. As businesses increasingly shift their operations online, the need for reliable and scalable web hosting solutions has surged. According to the International Telecommunication Union (ITU), a United Nations agency, global internet usage has grown from 25.8% of the world’s population in 2009 to 51% in 2018 and reached 66% in 2022. This significant increase in internet users translates to a growing number of websites and applications that require hosting services.
The shift towards cloud-based hosting solutions is a major driver of growth in the web hosting service market. Cloud hosting offers benefits such as scalability, cost-effectiveness, and improved performance, making it an attractive option for businesses of all sizes. According to the U.S. National Institute of Standards and Technology (NIST), the global public cloud services market was projected to grow from $182.4 billion in 2018 to $331.2 billion in 2022, representing a compound annual growth rate (CAGR) of 12.6%. This substantial growth in cloud adoption directly impacts the web hosting service market, as many businesses opt for cloud-based hosting solutions.
How do High Initial Costs Affect the Adoption of Web Hosting Services by Small Businesses and Startups?
Small businesses often struggle with tight budgets, making it challenging to invest in high-quality web hosting. According to the U.S. Small Business Administration, 27% of businesses surveyed reported a lack of capital as their top challenge. This financial constraint can lead to compromises in hosting quality or delayed online presence, potentially hindering growth.
Startups frequently prioritize other essential expenses over web hosting. The U.S. Bureau of Labor Statistics reports that about 20% of small businesses fail within the first year. To avoid this fate, many allocate resources to inventory, marketing, or staffing instead of robust web hosting. A survey by the National Small Business Association found that 43% of small businesses spend less than $500 annually on technology, including web services, indicating a tendency to minimize technology expenses.
Category-Wise Acumens
How the Cost-Effective Solution Surges the Growth of Shared Hosting Segment?
The shared hosting segment dominates in the web hosting service market driven by the cost-effective solution for those with limited budgets. By allowing multiple websites to share server resources, providers can offer competitive pricing. According to the U.S. Small Business Administration, 44% of small businesses spent less than $500 on their websites in 2021, making shared hosting an attractive option.
Shared hosting offers simplicity and convenience. Most providers handle technical aspects like server maintenance and security updates, allowing users to focus on their core activities. This is particularly beneficial for individuals and small businesses without dedicated IT staff. Shared hosting typically includes user-friendly control panels and one-click installers for popular applications, enabling even those with limited technical knowledge to establish and manage their online presence effectively.
How the Broad Reach Accessibility Propel the Growth of Public Website Segment?
The public website segment stands out as the dominant in the web hosting services market, owing to its accessibility and broad reach. Public websites are designed to be open to all users globally, making them essential for businesses seeking to engage with a wide audience. This segment has been especially promising for small and medium-sized enterprises (SMEs), which are the primary adopters of web hosting services for public websites. SMEs leverage these platforms to reach the general population, aiming to promote their products or services to a large, diverse audience across various regions.
The popularity of the public website segment is driven by the need for businesses to establish an online presence that is accessible to potential customers worldwide. Companies increasingly rely on public websites as a key tool for marketing, e-commerce, and customer engagement, providing information about their offerings and facilitating transactions in a seamless, global manner. This broad accessibility contributes to the high adoption rates of public web hosting services.
While public websites dominate the market, intranet websites also play a critical role for companies internally. These private, internal platforms—such as Huddle, Microsoft SharePoint, Jostle, and Igloo—are designed for employees, enabling secure communication, collaboration, and data sharing within the organization, though they cater to a smaller, more targeted audience.
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Country/Region-wise Acumens
How Does the Presence of Major Technology Companies in North America Contribute to its Dominance in the Market?
North America substantially dominates the web hosting service market. North America’s tech giants drive innovation, setting global industry standards and trends. Companies like Apple, Google, Amazon, and Microsoft consistently invest in research and development, pushing technological boundaries. This innovative leadership attracts talent and capital, reinforcing North America’s position at the forefront of technological advancement. According to the National Science Foundation, businesses in the United States spent $441 billion on research and development in 2019, with the software and computer services industry accounting for a substantial portion.
The major tech companies have an enormous economic impact, contributing significantly to North America’s GDP and creating a robust ecosystem of supporting businesses. Their success attracts further investment and fosters the growth of startups and smaller tech firms, creating a self-reinforcing cycle of economic growth and technological innovation. The U.S. Bureau of Economic Analysis reported that the digital economy accounted for 9.6% of the U.S. gross domestic product (GDP) in 2019, totaling $2.05 trillion. This economic strength not only cements North America’s market dominance but also provides the resources and infrastructure necessary to maintain its competitive edge in the global technology landscape.
What are the Key Challenges Web Hosting Providers Face in the Fast-Growing Asia Pacific Region?
Asia Pacific is anticipated to witness the fastest growth in the web hosting service market during the forecast period. The diverse and sometimes underdeveloped infrastructure across the region poses a major challenge. Many areas lack reliable high-speed internet connections and stable power supplies, which are crucial for hosting services. This necessitates substantial investments in data centers and network infrastructure to ensure service quality and reliability. According to the Asian Development Bank, the region needs to invest $26 trillion in infrastructure from 2016 to 2030 to maintain growth momentum, eliminate poverty, and respond to climate change, highlighting the scale of the infrastructure challenge.
Navigating the complex and varied regulatory landscape across different countries in the Asia Pacific region presents a significant hurdle for web hosting providers. Each country has its own set of data protection laws, content regulations, and licensing requirements. For instance, China’s Cybersecurity Law requires certain data to be stored within the country, while India’s proposed data protection bill has strict data localization provisions. Compliance with these diverse regulations often requires local partnerships, multiple data centers, and tailored service offerings, increasing operational complexity and costs for hosting providers seeking to expand in this dynamic market.
Competitive Landscape
The competitive landscape of the Web Hosting Service Market is shaped by innovation, service differentiation, and pricing strategies. Providers compete by offering scalable, secure, and reliable hosting solutions, including cloud-based and managed services, to meet the diverse needs of businesses. Enhanced security and customer support are also key factors in competition.
Some of the prominent players operating in the web hosting service market include:
Amazon Web Services, WPEngine, Endurance International Group, Equinix, 1&1 IONOS Inc., Alibaba Cloud, Liquid Web, LLC, Hetzner Online GmbH.
Web Hosting Service Market Latest Developments
- In March 2024, GoDaddy announced the acquisition of Pagely, a managed WordPress hosting provider. This acquisition aims to enhance GoDaddy’s WordPress offerings and expand its market share in the managed hosting segment. The move is expected to provide GoDaddy customers with more robust and scalable WordPress solutions.
- In February 2024, DigitalOcean announced the launch of its new “Managed Kubernetes” service. This offering simplifies container orchestration for developers and small businesses, allowing them to deploy, manage, and scale applications more easily.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2018-2031 |
| Growth Rate | CAGR of ~15.72% from 2024 to 2031 |
| Base Year for Valuation | 2023 |
| Historical Period | 2018-2022 |
| Forecast Period | 2024-2031 |
| Quantitative Units | Value in USD Billion |
| Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
| Segments Covered |
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| Regions Covered |
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| Key Players |
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| Customization | Report customization along with purchase available upon request |
Web Hosting Service Market, By Category
Type:
- Shared Hosting
- Dedicated Hosting
- Virtual Private Server (VPS) Hosting
- Colocation Hosting
Application:
- Intranet Website
- Public Website
- Mobile Application
Deployment:
- Public
- Private
- Hybrid
Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our Sales Team at Verified Market Research.
Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players
• The current as well as future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post sales analyst support
Customization of the Report
In case of any Queries or Customization Requirements please connect with our sales team, who will ensure that your requirements are met.
Frequently Asked Questions
1 INTRODUCTION OF GLOBAL WEB HOSTING SERVICE MARKET
1.1 Overview of the Market
1.2 Scope of Report
1.3 Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH
3.1 Data Mining
3.2 Validation
3.3 Primary Interviews
3.4 List of Data Sources
4 GLOBAL WEB HOSTING SERVICE MARKET OUTLOOK
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 GLOBAL WEB HOSTING SERVICE MARKET, BY TYPE
5.1 Overview
5.2 Shared Hosting
5.3 Dedicated Hosting
5.4 Virtual Private Server (VPS) Hosting
5.5 Colocation Hosting
6 GLOBAL WEB HOSTING SERVICE MARKET, BY APPLICATION
6.1 Overview
6.2 Intranet Website
6.3 Public Website
6.4 Mobile Application
7 GLOBAL WEB HOSTING SERVICE MARKET, BY DEPLOYMENT
7.1 Overview
7.2 Public
7.3 Private
7.4 Hybrid
8 GLOBAL WEB HOSTING SERVICE MARKET, BY GEOGRAPHY
8.1 Overview
8.2 North America
8.2.1 U.S.
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 U.K.
8.3.3 France
8.3.4 Rest of Europe
8.4 Asia Pacific
8.4.1 China
8.4.2 Japan
8.4.3 India
8.4.4 Rest of Asia Pacific
8.5 Rest of the World
8.5.1 Latin America
8.5.2 Middle East & Africa
9 GLOBAL WEB HOSTING SERVICE MARKET COMPETITIVE LANDSCAPE
9.1 Overview
9.2 Company Market Ranking
9.3 Key Development Strategies
10 COMPANY PROFILES
10.1 Amazon Web Services
10.1.1 Overview
10.1.2 Financial Performance
10.1.3 Product Outlook
10.1.4 Key Developments
10.2 WPEngine, Inc.
10.2.1 Overview
10.2.2 Financial Performance
10.2.3 Product Outlook
10.2.4 Key Developments
10.3 Endurance International Group
10.3.1 Overview
10.3.2 Financial Performance
10.3.3 Product Outlook
10.3.4 Key Developments
10.4 Equinix, Inc.
10.4.1 Overview
10.4.2 Financial Performance
10.4.3 Product Outlook
10.4.4 Key Developments
10.5 1&1 IONOS Inc.
10.5.1 Overview
10.5.2 Financial Performance
10.5.3 Product Outlook
10.5.4 Key Developments
10.6 Alibaba Cloud
10.6.1 Overview
10.6.2 Financial Performance
10.6.3 Product Outlook
10.6.4 Key Developments
10.7 Liquid Web, LLC
10.7.1 Overview
10.7.2 Financial Performance
10.7.3 Product Outlook
10.7.4 Key Developments
10.8 Hetzner Online GmbH
10.8.1 Overview
10.8.2 Financial Performance
10.8.3 Product Outlook
10.8.4 Key Developments
10.9 Google LLC
10.9.1 Overview
10.9.2 Financial Performance
10.9.3 Product Outlook
10.9.4 Key Developments
10.10 GoDaddy Operating Company, LLC.
10.10.1 Overview
10.10.2 Financial Performance
10.10.3 Product Outlook
10.10.4 Key Developments
11 Appendix
11.1 Related Research
Report Research Methodology
Verified Market Research uses the latest researching tools to offer accurate data insights. Our experts deliver the best research reports that have revenue generating recommendations. Analysts carry out extensive research using both top-down and bottom up methods. This helps in exploring the market from different dimensions.
This additionally supports the market researchers in segmenting different segments of the market for analysing them individually.
We appoint data triangulation strategies to explore different areas of the market. This way, we ensure that all our clients get reliable insights associated with the market. Different elements of research methodology appointed by our experts include:
Exploratory data mining
Market is filled with data. All the data is collected in raw format that undergoes a strict filtering system to ensure that only the required data is left behind. The leftover data is properly validated and its authenticity (of source) is checked before using it further. We also collect and mix the data from our previous market research reports.
All the previous reports are stored in our large in-house data repository. Also, the experts gather reliable information from the paid databases.
For understanding the entire market landscape, we need to get details about the past and ongoing trends also. To achieve this, we collect data from different members of the market (distributors and suppliers) along with government websites.
Last piece of the ‘market research’ puzzle is done by going through the data collected from questionnaires, journals and surveys. VMR analysts also give emphasis to different industry dynamics such as market drivers, restraints and monetary trends. As a result, the final set of collected data is a combination of different forms of raw statistics. All of this data is carved into usable information by putting it through authentication procedures and by using best in-class cross-validation techniques.
Data Collection Matrix
| Perspective | Primary Research | Secondary Research |
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| Supplier side |
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Econometrics and data visualization model
Our analysts offer market evaluations and forecasts using the industry-first simulation models. They utilize the BI-enabled dashboard to deliver real-time market statistics. With the help of embedded analytics, the clients can get details associated with brand analysis. They can also use the online reporting software to understand the different key performance indicators.
All the research models are customized to the prerequisites shared by the global clients.
The collected data includes market dynamics, technology landscape, application development and pricing trends. All of this is fed to the research model which then churns out the relevant data for market study.
Our market research experts offer both short-term (econometric models) and long-term analysis (technology market model) of the market in the same report. This way, the clients can achieve all their goals along with jumping on the emerging opportunities. Technological advancements, new product launches and money flow of the market is compared in different cases to showcase their impacts over the forecasted period.
Analysts use correlation, regression and time series analysis to deliver reliable business insights. Our experienced team of professionals diffuse the technology landscape, regulatory frameworks, economic outlook and business principles to share the details of external factors on the market under investigation.
Different demographics are analyzed individually to give appropriate details about the market. After this, all the region-wise data is joined together to serve the clients with glo-cal perspective. We ensure that all the data is accurate and all the actionable recommendations can be achieved in record time. We work with our clients in every step of the work, from exploring the market to implementing business plans. We largely focus on the following parameters for forecasting about the market under lens:
- Market drivers and restraints, along with their current and expected impact
- Raw material scenario and supply v/s price trends
- Regulatory scenario and expected developments
- Current capacity and expected capacity additions up to 2027
We assign different weights to the above parameters. This way, we are empowered to quantify their impact on the market’s momentum. Further, it helps us in delivering the evidence related to market growth rates.
Primary validation
The last step of the report making revolves around forecasting of the market. Exhaustive interviews of the industry experts and decision makers of the esteemed organizations are taken to validate the findings of our experts.
The assumptions that are made to obtain the statistics and data elements are cross-checked by interviewing managers over F2F discussions as well as over phone calls.
Different members of the market’s value chain such as suppliers, distributors, vendors and end consumers are also approached to deliver an unbiased market picture. All the interviews are conducted across the globe. There is no language barrier due to our experienced and multi-lingual team of professionals. Interviews have the capability to offer critical insights about the market. Current business scenarios and future market expectations escalate the quality of our five-star rated market research reports. Our highly trained team use the primary research with Key Industry Participants (KIPs) for validating the market forecasts:
- Established market players
- Raw data suppliers
- Network participants such as distributors
- End consumers
The aims of doing primary research are:
- Verifying the collected data in terms of accuracy and reliability.
- To understand the ongoing market trends and to foresee the future market growth patterns.
Industry Analysis Matrix
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