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The email hosting services market size is projected to increase by USD 54.24 billion and is estimated to grow at a CAGR of 25.43% between 2023 and 2028. The market's growth trajectory is influenced by a myriad of factors, foremost among them being the escalating demand for cloud-based applications. This surge is complemented by a noticeable shift in enterprises' focus towards BYOD policies (Bring Your Own Device), which is becoming increasingly prevalent across various industries. BYOD policies allow employees to use their personal devices for work purposes, contributing significantly to workforce flexibility and efficiency. Moreover, the imperative to curtail IT expenditure is another pivotal driver shaping the market landscape. As businesses seek more cost-effective solutions without compromising functionality and security, cloud-based applications and BYOD policies emerge as strategic choices. This strategic alignment helps businesses optimize their operational efficiency, enhance data accessibility, and streamline IT infrastructure management. Overall, these trends underscore a paradigm shift towards modern, flexible, and cost-efficient IT solutions, driving the market's growth momentum in response to evolving enterprise needs and technological advancements.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Alphabet Inc., Amazon.com Inc., Digital Energy SS DMCC, FastComet Inc., Fastmail Pty Ltd., GoDaddy Inc., Greatmail LLC, Hostinger International Ltd., IceWarp Inc., Liquid Web LLC, Microsoft Corp., Newfold Digital Inc., OVH Groupe SA, Rackspace Technology Inc., Runbox Solutions AS, SmarterASP.NET, TMDHosting Inc., Unitied Internet AG, and Zoho Corp. Pvt. Ltd. Additionally, A2 Hosting Inc offers email hosting services such as POP3, IMAP, and SMTP support, for businesses and individuals.
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The market caters to the needs of Large Enterprises and E-commerce Platforms in the IT industry for hosting their Email servers. Hosted Email solutions are available in various forms, including Webmail, Private Cloud, Public Cloud, and Hybrid Cloud. These services offer Unique domain addresses, Effective spam filtering, High uptime reliability, and Strong security measures. Telecommunications carriers and Specialized hosting firms provide Cloud-based communication solutions for Information sharing and Remote Access via Smartphones. Email hosting solutions are integral to business operations, making Customer service and Cloud-based systems essential. Artificial intelligence is increasingly being integrated into Email servers to enhance functionality and improve User Experience. The Market continues to grow, driven by the increasing demand for secure and reliable Email hosting solutions. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The need to reduce IT expenditure is notably driving market growth. The Market is experiencing significant growth due to the widespread adoption of cloud-based communication solutions. Webmail and Hosted Email services have become essential tools for businesses of all sizes, enabling remote access to emails via the Internet. Large Enterprises are increasingly turning to cloud solutions, including Private Cloud, Public Cloud, and Hybrid Cloud, to enhance their email infrastructure. Email hosting solutions offer numerous benefits, such as quick implementation through web browsers and easy configuration.
Moreover, these services provide unique domain addresses, ensuring professional communication. Data security is a top priority, with strong security measures in place to protect against phishing attempts, malware-laden emails, and spam filtering. High uptime reliability is another advantage, ensuring effective communication and collaboration. Due to such benefits of email hosting, the global market is anticipated to increase during the forecast period.
The adoption of email hosting services by financial institutions is an emerging trend shaping the market growth. These services have become a preferred choice for financial institutions seeking to optimize their core banking operations. Known as hosted email or webmail solutions, these services offer several advantages over traditional on-premise email servers. Large enterprises, telecommunications carriers, and specialised hosting firms provide these services, offering various deployment models such as Public Cloud, Private Cloud, and Hybrid Cloud. Webmail solutions offer high uptime reliability, ensuring constant access to email services via the internet.
Moreover, they provide secure storage, eliminating the need for internal email servers and reducing costs associated with Microsoft Exchange, client access, Server OS licenses, data backup, security, and maintenance. Email hosting solutions offer unique domain addresses, enabling effective spam filtering and collaboration tools like calendars, document sharing services, and project management software. Hence, the growing adoption by financial institutions will be a favorable trend in the growth of the global market during the forecast period. Workspace delivery networks enhance the accessibility and performance of email hosting solutions by optimizing network infrastructure and facilitating secure data transmission. These solutions ensure seamless integration and management of email hosting services across distributed environments, enhancing operational efficiency and reducing IT overhead costs for organizations.
Difficulties in keeping pace with changing customer demand are a significant challenge hindering market growth. In the realm of business communication, the shift towards cloud-based services, also known as Hosted Email or Webmail, is a significant trend. This transition can necessitate the complete migration of contacts, calendars, and emails from legacy systems. For large enterprises, this process may present challenges, particularly those accustomed to traditional email systems.
Moreover, the migration can be executed in one go or in batches, depending on the organization's preference and capabilities. When dealing with hybrid solutions, it is crucial to assess which components require migration and retention. Cloud-based email hosting solutions offer numerous advantages, such as remote access via the internet, compatibility with smartphones, and integration with e-commerce platforms and IT industry tools. Therefore, the problems faced while migrating to a hosted environment can restrict the adoption of services during the forecast period.
The market share growth by the large enterprise segment will be significant during the forecast period. Large enterprises are huge organizations with extensive operations, a substantial workforce, and a global or regional presence and they exert major economic impact and operate across various sectors. Such entities have intricate structures and various communication needs, which necessitate cutting-edge email hosting solutions. Examples of large enterprises include international companies such as Apple Inc., which operates worldwide in the technology and consumer electronics verticals, and ExxonMobil, a major player in the oil and energy sector.
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The large enterprise segment was the largest and was valued at USD 7.44 billion in 2018. For both internal and external communication, large enterprises generate a high volume of emails daily. Notable, large enterprises are an integral part of the global economy, and their email hosting requirements reflect the intricacy and scale of their operations. Therefore, increasing business activities in large enterprises are anticipated to boost the growth of the market in the large enterprises segment during the forecast period.
The webmail segment includes email hosting services for small businesses and individuals for free. Such services are delivered by web portals, web hosting providers, and Internet service providers (ISPs). Also. webmail providers are adding email support of Internet Message Access Protocol access to smart devices. Such support enables employees to access emails on the move and from remote locations. Additionally, in data centers for faster performance and upgrading security protocols such as standard SSL certification and acquiring compliance checks for CMS vulnerabilities, hosting service providers are opting for SSDs. Such developments in the market are indicators that the companies are constantly emphasizing bolstering their foothold in the potentially high growth anticipated from the webmail segment in the market during the forecast period.
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North America is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The US was the major contributor to the market in the region in 2022. The region is experiencing large demand for network security, due to the strong digital presence in IT, manufacturing, healthcare, BFSI, retail, and education industries in the US. Other countries, such as Canada, are also contributing to the regional market. The migration from existing on-premises email accounts to the cloud to reduce the deployment and maintenance costs of enterprises are the major factors driving the market growth in the region.
However, major service providers based in the US, like Microsoft Corp. and Alphabet Inc., are witnessing growth trends in their cloud businesses, which is directly attributed to the growth of email hosting. Due to the rising adoption of services in the retail, consumer goods, telecom and IT, and energy and utility industries, the market is anticipated to grow at a fast pace during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc. - The company offers email hosting services through Google Workspace, which provides Gmail, for efficient communication and collaboration.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Email hosting services refer to the provision of storage space and management tools for email communication by a third-party provider. The email hosting market is witnessing significant growth due to the increasing number of businesses and individuals relying on email for communication. Email hosting providers offer various features such as spam filtering, virus protection, and email backup solutions. The market is competitive, with several players offering different pricing models and service levels. It enables businesses to maintain a professional image by providing customized email addresses and ensuring email deliverability. Additionally, email hosting providers offer scalability and flexibility, allowing businesses to easily add or remove email accounts as needed. Overall, it plays a crucial role in effective business communication and is an essential tool for organizations of all sizes.
Moreover, the Market is thriving, spurred by the emergence of specialized email hosting companies offering a range of solutions tailored to meet modern business needs. These companies are renowned for their security and dependability reputations, providing robust measures for threat identification and mitigation. One of the key aspects of email hosting services is email routing, ensuring efficient and reliable delivery of emails across networks. Moreover, the market is witnessing a significant shift towards cloud-based services, enabling seamless access to emails from anywhere, anytime. Bring Your Own Device (BYOD) strategies are also shaping the market landscape, as businesses integrate mobile devices and technology into their operations. This integration necessitates robust data storage and backup solutions to ensure data integrity and availability. Enterprises are increasingly turning to enterprise email hosting services, Specialised email hosting companies, Bring Your Own Device strategies attracted by pay-as-you-go and subscription-based models that offer flexibility and scalability. These services often come with self-service support, empowering users to manage their email accounts efficiently. Overall, the Market is marked by innovation, flexibility, and reliability, driven by the growing demand for secure and efficient email communication solutions in today's dynamic business environment.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.43% |
Market growth 2024-2028 |
USD 54.24 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.93 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 57% |
Key countries |
US, Germany, China, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A2 Hosting Inc., Alphabet Inc., Amazon.com Inc., Digital Energy SS DMCC, FastComet Inc., Fastmail Pty Ltd., GoDaddy Inc., Greatmail LLC, Hostinger International Ltd., IceWarp Inc., Liquid Web LLC, Microsoft Corp., Newfold Digital Inc., OVH Groupe SA, Rackspace Technology Inc., Runbox Solutions AS, SmarterASP.NET, TMDHosting Inc., Unitied Internet AG, and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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