Web Hosting Services Market Size
Web Hosting Services Market size was USD 79.3 billion in 2021 and projected to grow from USD 106.3 billion in 2023 to USD 406.2 billion by 2032, exhibiting a CAGR of 16.0% during the forecast period.
Web Hosting Service is a form of internet hosting service, hosting clients’ websites. It provides the services needed for them to build and maintain website and streamline its accessibility on www. The companies offering web hosting services are commonly known as Web Hosts. By using these services, businesses can delegate one or more of their key web-based operations to hosting provider, freeing up resources for customer support and business growth.
Market Highlights
Web Hosting Services Market is expected to project a CAGR of 16.0% during the forecast period, 2022-2032
Web Hosting Services Market is expected to reach USD 406.2 billion, growing at a CAGR of 16.0% during the forecast period owing to the growing number of small and medium enterprises worldwide and efforts by them to gain online presence. Furthermore, increasing demand by businesses for managed web hosting services, the proliferation of mobile marketing platforms, and the availability of web hosting services with exceptional server performance and features at the most competitive costs will propel the web hosting services market during the projection period.
Web Hosting Services Market Segmentation
Dedicated Hosting segment is expected to dominate in the forecast period
Web Hosting Services Market is classified based on the Type into Shared Hosting, Dedicated Hosting, Virtual Private Server (VPS) Hosting, Colocation Hosting, and Others. The Shared Hosting category dominates the market since to small and medium-sized businesses prefer shared servers over other hosting types. However, as businesses begin to acquire momentum and their traffic grows and this significantly drives the growth of Dedicated Hosting services in the upcoming years. This encourages them to choose different types of hosting like dedicated and VPS cloud hosting.
Public Website segment is expected to dominate in the forecast period
Web Hosting Services Market is classified based on the Application into Intranet Website, Public Website, and Mobile Application. The Public Website segment held a major market share in 2021 and is anticipated to grow with fastest CAGR during the forecast period owing to the rise in small and medium-sized businesses. The speedily growing competition in small and medium businesses is considerably driving the need for online websites to expand their presence on the web.
Market Dynamics
Growth Drivers
Growing Number of Startup Businesses and Government Initiatives are Expected to Boost the Market Growth
In recent years, the number of startups has increased significantly around the world. The governments of many emerging and developed countries offer non-financial and financial support to small company owners to aid in the growth of their enterprises. These initiatives by the government have encouraged more business owners to launch new enterprises throughout the nation. Also, growing number of businesses are putting their websites online to broaden their presence online and for marketing reasons. Hence, these factors are projected to strengthen the Web Hosting Market growth over the forecast period
Growing Need to Comply with Regulatory Compliances to Boost the Market Growth
The demand for web hosting services is fueled by factors like the growing need to satisfy regulatory compliance requirements, increasing pressure on businesses to keep up with technological improvements, and a lack of technical experience. Therefore, managed hosting, where hosting providers concentrate on the technical aspects of running the website, is becoming more and more popular, which is boosting the market for web hosting services.
Restraint
Costly Implementation and High Initial Cost of Hosting Services May Restrain the Market Growth
The adoption of hosting services may be hampered by their high initial and implementation expenses. Although SMEs are a major source of demand for hosting services, but the price may limit industry expansion. Also, difficulties with scalability and uptime maintenance may limit the market growth. As customers spend long period on easily accessible websites, uptime maintenance becomes essential.
Recent Developments
- UAE Telco DU collaborated with GoDaddy, an internet domain and web hosting registrar with headquarters in the United States, in October 2022 with the goal of assisting small and medium-sized enterprises (SMEs) and SoHo entrepreneurs to expand their digital presence.
- WP Engine grew their company by establishing a new office built in Singapore in August 2022. With the introduction of new regional and products services in Singapore, WP Engine will accelerate development. By creating cutting-edge websites and digital experiences, the company will work with APAC companies and agencies.
Web Hosting Services Market
Key Players Covered:
- Alibaba Cloud
- Google LLC
- AT&T INC.
- Amazon Web Services
- GoDaddy Operating Company LLC
- Endurance International Group
- IONOS Inc.
- WPEngine Inc.
- Liquid Web LLC
- InMotion Hosting
- Bluehost
- DreamHost
- JustHost
- Hetzner Online GmbH
- EasyHost
- Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)
Regional Analysis
Web Hosting Services Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America holds the largest market share due to its technological sophistication and quick adoption of the website hosting services. Moreover, significant expenditures and the use of cloud hosting offerings will promote regional market expansion. Asia Pacific will also expand with a higher CAGR over the projected period as due to regional and international businesses converting to online platforms from offline ones. These corporations use this tactic to grow and maintain their market leadership.
Impact of Covid-19 on Web Hosting Services Market
The COVID-19 outbreak had no effect on the expansion of the market since more people started using web hosting services due to the lockdown and other conditions. The pandemic had a tremendous impact on the demand for these services due to the majority of business owners starting to sell their goods & services online. Web hosting companies gave businesses a virtual space online wherein they can advertise their goods and services.
Web Hosting Services Market is further segmented by region into:
- North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
- Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
- Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
- Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
- Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA
Web Hosting Services Market Scope and Segments:
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2022-2032 |
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Historical Period |
2019-2021 |
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Growth Rate |
CAGR of 16.0% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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Type |
|
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Deployment |
|
|
Application |
|
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End User |
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By Region |
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Frequently Asked Questions (FAQ):
Web Hosting Services Market size was estimated at USD 79.3 billion in 2021 and is expected to reach USD 406.2 billion in 2032.
Web Hosting Service is a form of internet hosting service, hosting clients’ websites. It provides the services needed for them to build and maintain website and streamline its accessibility on www.
Dedicated Hosting and Public Website segments accounted for the largest Web Hosting Services Market share.
Key players: Alibaba Cloud, Google LLC, AT&T INC., Amazon Web Services, GoDaddy Operating Company LLC, Endurance International Group, IONOS Inc., WPEngine Inc., Liquid Web LLC, InMotion Hosting, Bluehost, DreamHost, JustHost, Hetzner Online GmbH, EasyHost, and Other Prominent Players are the key players in the Web Hosting Services Market.
Increasing demand for productivity by organizations and rising trend of digitalization across businesses are the factors driving the Web Hosting Services Market.
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