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The email hosting services market size is estimated to grow at a CAGR of 18.76% between 2022 and 2027. The market size is forecast to increase by USD 29.72 billion. The growth of the market depends on several factors, including increasing demand for cloud-based applications, increasing focus on BYOD policy in various enterprises, and the need to reduce IT expenditure. Email hosting refers to the conveyance of email messages and the storage of associated files on third-party email servers. The process of sending emails is routed across the Internet, and the emails are stored on the recipient server. The server administrators then carry out appropriate actions, such as replying to emails, filtering spam emails, blocking emails based on blacklists, and rerouting emails on request.
This email hosting services market report extensively covers market segmentation by application (large enterprise, small, and medium-sized enterprises), type (webmail and hosted email), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The need to reduce IT expenditure is notable,y driving the market growth. The adoption of email hosting has various advantages including low software maintenance, no requirement for servers and storage facilities, and the automation of mailbox sizes. Installation and maintenance are done by service providers. The maintenance or upgrades of operating systems and security applications are also handled by the service providers in email hosting. Also, the infrastructure will have built-in backup and recovery functionalities and require less administrative time.
Moreover, mailboxes are configured with GB storage and the individual and group limits are automatically adjusted to the mailbox space in email hosting. However, the computing resources are evenly distributed across the users of an email system. Due to such benefits of email hosting, the global email hosting services 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. Financial institutions are rapidly adopting email hosting services to improve their operations and the adoption of such services is deemed an ascertained solution for many core banking-related problems. The requirements for 24/7 uptime, interoperability, scalability, and secure storage are being addressed by such services. Further, its adoption eliminates the burden of internally hosting an email server. Also, it helps in minimizing the cost of Microsoft Exchange, client access, Server OS licenses, data backup, security, and maintenance. Several financial institutions are also adopting customized email platforms with added compliance and security layers. Hence, companies are delivering solutions as per customer demand.
For instance, Safe Systems Inc. (Safe Systems) offers SafeSysMail, which is a hosted email solution that is specifically designed for the banking sector. Due to the scalability and security, financial institutions are increasingly adopting Microsoft Exchange Online solutions. Hence, the growing adoption by financial institutions will be a favorable trend in the growth of the global email hosting services market during the forecast period.
Difficulties in keeping pace with changing customer demand are a significant challenge hindering market growth. The adoption of cloud-based email services can prevent users from accessing their old email systems. Consequently, the adoption of such services demands the complete migration of contacts, calendars, and emails to the newly hosted email. The migration process is considered a difficult task, particularly for those enterprises that are accustomed to the conventional email system. Nevertheless, the migration process can be done at a time or in batches.
Also, it is very important to analyze which parts need to be migrated and retained, when it comes to the migration of hybrid solutions. Moreover, a rapid migration process can lead to confusion among users. Therefore, the problems faced while migrating to a hosted environment can restrict the adoption of email hosting 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 was the largest and was valued at USD 6.36 billion in 2017. 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 56% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US was the major contributor to the email hosting services 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 email hosting services 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 email hosting 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 COVID-19 outbreak had a negative impact on the regional market, especially in the region. However, the lifting of lockdown restrictions in the region was followed by the initiation of vaccination efforts, which had a favorable impact on the Internet services and infrastructure industry. For instance, GoDaddy Inc. experienced a 15% increase in its Q2 2021 revenue when compared to that in Q2 2020. Therefore, for Internet services, the recovery of the regional economy from the pandemic-induced crisis expanded the demand, which positively impacted the demand for email hosting services and will contribute to the growth of the market in North America during the forecast period.
The Email Hosting Services Market report includes the adoption lifecycle of the market, 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 growth strategies.
Global Email Hosting Services 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.
A2 Hosting Inc. - The company offers email hosting services such as POP3, IMAP, and SMTP support, for businesses and individuals.
Alphabet Inc. - The company offers email hosting services through Google Workspace, which provides Gmail, for efficient communication and collaboration.
Amazon.com Inc. - The company offers email hosting services such as Amazon WorkMail, a secure hosting service with integrated calendaring and contact features for businesses.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 email hosting services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Email Hosting Services Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.76% |
Market growth 2023-2027 |
USD 29.72 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.12 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 56% |
Key countries |
US, China, Japan, Germany, and UK |
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, 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, Zoho Corp. Pvt. Ltd., and Hostinger International 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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