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The web hosting services market size is estimated to grow at a CAGR of 14.13% between 2022 and 2027. The market size is forecast to increase by USD 87.14 billion. The growth of the market depends on several factors, including the growth of the e-commerce industry, the increase in adoption of cloud computing services, and the increasing Internet penetration. Web hosting services refer to the provision of space on the web server for hosting, managing, and accessing the company's website through the Internet. Websites are hosted on web servers and assigned a unique domain name that can be accessed through the browser with an active Internet connection. Web hosting services offer customized domains, security protection, and attached email services, among other benefits to the users.
This web hosting services market report extensively covers market segmentation by service (shared hosting, dedicated hosting, VPS hosting, and website builder), deployment (public, private, and hybrid), and geography (North America, Europe, APAC, Middle East and Africa, and South America). 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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Increasing Internet penetration is the key factor driving the growth of the market. Web hosting services are important for those looking to launch an online presence and share content with a global audience. Increased internet penetration has allowed businesses to reach a wider customer base through online channels. As businesses expand their online presence with websites, e-commerce platforms, and web applications, they need reliable web hosting services to ensure their online properties can be accessed and function normally.
Moreover, the popularity of smartphones and mobile devices has played a key role in increasing internet penetration. As more and more people access the Internet through their mobile devices, web hosting services must adapt to serve a mobile audience. Mobile-friendly websites and responsive designs have become a necessity, leading to a demand for mobile-optimized hosting solutions. Hence, these factors are expected to drive the growth of the global web hosting market during the forecast period.
An increase in the adoption of managed hosting services is the primary trend in the market. Businesses are increasingly choosing managed hosting solutions for a variety of reasons. Managed hosting permits businesses to focus on their core competencies and strategic goals. By outsourcing infrastructure management and technical aspects of hosting to a managed service provider (MSP), businesses can reduce the tedious tasks of administration, maintenance, management, and troubleshooting servers.
Furthermore, managed hosting services typically provide scalability and flexibility to adapt to changing business needs. As a business grows or experiences traffic spikes, the hosting infrastructure can easily scale to meet raised demand. Managed hosting providers can quickly provision additional resources, such as CPU, RAM, and storage to ensure optimal performance and user experience. These factors are expected to drive the growth of the global web hosting market during the forecast period.
Website server downtime is a challenge that affects the growth of the market. Website server downtime is a significant challenge for businesses because most of a company's core business operations are managed through the cloud. Slow access to the website results in the website server being unavailable. The main server downtime issues affecting businesses are slow access to websites, cyber-attacks, website traffic overload, hardware or software failures, and server outages.
Furthermore, e-commerce businesses see heavy online traffic on their websites during festivals and online sales, so they need high availability for their websites. Web server downtime during these events damages a business's SEO model and negatively impacts search engine rankings, leading to high revenue losses for the business. Thus, such factors are expected to create a challenge to the growth of the global web hosting market during the forecast period.
The market share growth by the shared hosting segment will be significant during the forecast period. Shared hosting refers to hosting multiple websites from multiple companies on a single web server connected to the Internet. Shared hosting offers a standard web server framework, including additional custom domain options, web statistics support, email services, website building tools, and the availability of web hosting tools. tools such as PHP, structured query language (SQL), and automation scripting languages.
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The shared hosting segment showed a gradual increase in the market share of USD 25.37 billion in 2017. Cloud computing is growing alongside technological advances, opening up potential opportunities for businesses to reduce IT infrastructure costs by migrating to a cloud environment. The shared hosting segment is growing due to the increased migration of small and medium-sized businesses to the cloud, increased creation of startups, and growth in the e-commerce market. Small and medium-sized businesses are increasingly adopting shared hosting services. Hence, these factors are expected to propel the growth of the shared hosting segment of the global web hosting market during the forecast period.
The public segment refers to the deployment of web hosting services on shared infrastructure, where multiple users and websites share the same server resources. Public hosting services often provide scalability, allowing users to upgrade hosting plans or allocate additional resources as their website or application grows. Public hosting is popular with individuals, small businesses, and startups because of its affordability, ease of use, and scalability. It allows users to quickly establish an online presence without requiring significant initial investments in infrastructure or technical expertise. Hence, such factors are expected to propel the growth of the public hosting segment in the global web hosting market during the forecast period.
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North America is estimated to contribute 35% 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 growth of small and medium businesses is one of the main reasons for the growing demand for web hosting services in the region. The US is the dominant country in the region. North America is also witnessing growth in the e-commerce market and is expected to influence web hosting adoption.
Furthermore, growth in data traffic and e-commerce sites is driving demand for web hosting services. Adopting web hosting improves data security, improves server uptime, and enhances website and email performance. Hosting a website on a server also lowers costs and enhances operational benefits, such as scalability, flexibility, and reliability. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, the outbreak of COVID-19 positively impacted the growth of the North American web hosting market. The COVID-19 pandemic has pushed many businesses to shift operations to remote work. The lockdown has also shown a boom in e-commerce. This has led to a growing demand for web hosting services for e-commerce websites. However, in 2021, businesses continue to adopt cloud-based services and meet e-commerce needs. This, in turn, will boost the demand for web hosting services, which will spur the growth of the regional web hosting market during the forecast period.
The Web 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 Web 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.
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 web 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.
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Web Hosting Services Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.13% |
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Market growth 2023-2027 |
USD 87.14 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
13.36 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alibaba Group Holding Ltd., Alphabet Inc., Amazon Web Services Inc., Equinix Inc., GoDaddy Inc., GreenGeeks LLC., Hetzner Online GmbH, Liquid Web LLC, Newfold Digital Inc., Ocom B.V., OVH Groupe SA, Phoenix Web Development, Rackspace Technology Inc., Shinjiru Technology Sdn Bhd, SiteGround Hosting Ltd., Techfly Solutions, United Internet AG, WPEngine Inc., INMOTION HOSTING Inc., and Hostinger International Ltd. |
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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, and Market condition analysis for the forecast period. |
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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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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