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2021

Web Hosting Services Market

Web Hosting Services Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Deployment Model, Application and End User : Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Software and Services

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Author's: Vikas Gaikwad & Rachita Rake | Onkar Sumant
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Web Hosting Services Market Statistics - 2027

The global web hosting market size was valued at $57.46 billion in 2019, and is projected to reach at $183.05 billion by 2027, growing at a CAGR of 15.2% from 2020 to 2027. Web hosting is an online service that allows to publish web application or website on the Internet. The web hosting services are provided by the individual host of website in the form of collective service offerings. The services offered by hosts includes virtual private servers, collocated hosting, dedicated hosting, shared hosting, and cloud hosting. The advanced web hosting services provide various benefits such as superior performance, increased security, and increased security.

On the basis of deployment mode, the public cloud segment exhibited the highest growth in the web hosting services market in 2019, and is expected to maintain its dominance in the upcoming years, due to public cloud hosting benefits such as scalability, flexible pricing, extreme reliability, and high performance. Aforementioned benefits fuel the growth in adoption of this type of deployment model by small and medium sized enterprises. However, the hybrid segment is expected to witness the highest growth, due to the advantages that hybrid cloud provides in contrast with the private and public cloud. For instance, in comparison with public cloud, these types of deployment models offer a higher level of security and uptime.

Web-Hosting-Market,-2020-2027

By end user, the global web hosting services market share was dominated by the enterprise segment in 2019, and is expected to maintain its dominance in the upcoming years, due to surge in a number of enterprises around the globe and their efforts to expand online presence. However, the individual segment is expected to witness the highest growth, owing to the availability of simple and affordable hosting plans.

Web Hosting Services Market
By End User
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Individual users are projected as one of the most lucrative segments.

By application, the global web hosting services market share was dominated by the public website segment in 2019 and is expected to maintain its dominance in the upcoming years, due to the fact that such websites are accessible to anyone around the world. Hence, companies are using these websites to target a general population to sell their services or products. However, the mobile application segment is expected to witness the highest growth, due to the rapid growth in use of smartphone and upsurge in internet penetration across the globe.

Web Hosting Services Market
By Deployment Mode
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Hybrid cloud deployment mode is projected as one of the most lucrative segments.

North America dominates the web hosting services market due to the presence of key market players such as AT&T, Amazon Web Services, and GoDaddy Inc. along with the excess of cloud data centers. Key players in this region are increasingly focusing on development and deployment of advanced hosting services based on artificial intelligence (AI) abilities. However, Asia-Pacific is expected to observe highest growth rate during the forecast period, owing to the upsurge in a number of small & medium sized enterprises (SMEs) and rise in adoption of digital platforms among such businesses. Moreover, introduction of digitization initiatives by governments in this region boosts the web hosting services market growth.

Web Hosting Services Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific is projected as one of the most significant region.

The report focuses on the growth prospects, restraints, and web hosting services market analysis. The study provides Porter’s five forces analysis of the Web Hosting Services industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the web hosting services market trends.

Segment review

The web hosting services market is segmented on the basis of type, deployment model, application, end user, and region. On the type, it is categorized into website builders, shared hosting, dedicated hosting, collocated hosting, and others. As per the deployment model, it is classified into private cloud, public cloud, and hybrid cloud. Depending on application, it is divided into public website, intranet site, mobile application, and web application. On the basis of end user, it is categorized into enterprise and individual. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Impact of COVID-19 Pandemic on Web Hosting Services Market (Pre and Post Analysis):

The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on the growth of the web hosting services market, as the web hosting services adoption have increased in the face of unprecedented circumstances. The pandemic significantly drives the demand for web hosting services as most of the business owners have started to sell their products & services online. Web hosting providers have enabled the businesses to showcase their products & services on the website by providing an online virtual space. 

In addition, several market players offered free hosting services for a few months to help businesses during COVID-19 and uplift them in the time of the pandemic. In July 2020, Mailchimp announced to help small businesses during the COVID-19 crisis with custom domains free for up to 5 years, along with free website builder, until June 30, 2020.

Top impacting factors    

The growth of the global web hosting services market is mainly driven by factors such as surge in a number of SMEs around the globe and their efforts to have online presence; proliferation of mobile marketing platforms; rise in demand for managed web hosting services; and availability of web hosting services with excellent server performance and features at cheapest prices. In addition, rise in demand for best hosting services during COVID-19 pandemic is projected to drive the growth of the web hosting services market. However, challenges associated with providing scalability and maintaining uptime may hamper the market growth to some extent. On the other hand, artificial intelligence (AI) in web hosting and rise in adoption of cloud-based gaming solutions are expected to provide lucrative opportunities for the market growth during the forecast period.

Surge in a number of SMEs around the globe and their efforts to have online presence 

Irrespective of the industry vertical they operate in; it has become essential for businesses to have an online presence. For instance, recent studies by search engine Google, 97% of customers around the globe are using web to search for local businesses, as well as the services that they offer. Hence, there is rise in demand for startup and SMEs to adopt web hosting services to reach their audience and make the business more viable and genuine to them.

On the other hand, the number of SMEs is growing significantly across the globe. For instance, according to the March 2020 study by Hampshire Trust Bank, across the UK, there has been a 17% rise in a number of SMEs and the British manufacturing sector has seen a 6% increase in SMEs since 2010.

Rise in demand for managed web hosting services 

The factors such as rise in need to meet demands of regulatory compliance, increase in pressure on enterprises to keep pace with technological advancements, and the lack of technical expertise fuel the demand for managed web hosting services. This has fueled the growth of the market, owing to increased adoption of managed hosting where the hosting providers focus on the technical side of running the website.

Key Benefits For Stakeholders

  • This study includes the web hosting services market analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and web hosting services market opportunity.
  • The web hosting services market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in web hosting services market forecast.

Web Hosting Services Market Report Highlights

Aspects Details
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By Type
  • Website Builders
  • Shared Hosting
  • Dedicated Hosting
  • Collocated Hosting
  • Others
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By Deployment Mode
  • Private Cloud
  • Public Cloud
  • Hybrid Cloud
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By Application
  • Public Website
  • Intranet Site
  • Mobile Application
  • Web Application
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By End User
  • Enterprise
  • Individual
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

AMAZON WEB SERVICES INC., INMOTION HOSTING, GOOGLE INC, DREAMHOST INC., GODADDY INC., EASYHOST, AT&T INC., 1&1 INTERNET INC., BLUEHOST INC., JUST HOST

Analyst Review

The web hosting services market is going through enormous transformation and growth. As the online traffic is ramping up across the board, there is significant demand to ensure that website is always up and running. In addition, there is significant demand to ensure adoption of a good web hosting platform for the launch of an eCommerce or other kind of websites. In addition, it has become necessary for the businesses and individuals to have a reliable source of the web hosting plan so that their audiences can access the website from anywhere and anytime with no hassle. Hence, a greater number of market players are integrating the improvements in their web hosting services for customer satisfaction and better user experiences. For instance, in March 2017, GoDaddy Inc., the leading provider of web hosting services launched Business Hosting, a powerful and easy-to-manage hosting platform designed for e-commerce, high-traffic, and resource-intensive websites.

In addition, rise in trend of cloud technology is observed across the web hosting industry. Due to the emergence of cloud technology in this industry, the web hosting has become much more affordable as all the data are stored in a virtual server and can be pulled out from them whenever required. It has played an imperative role to offer web hosting services to the audiences who cannot afford the normal web hosting; hence, most of the companies operating in the market are providing this hosting. This factor is expected to significantly drive the web hosting services market.

Moreover, due to the upsurge in demand for web hosting services, the price wars among the key players are continuing to heat up. This is attributed to the extreme competitiveness in web host industry. Therefore, along with the unique features & tools, market players often compete with their prices to attract new customers. For instance, key players such as InMotion Hosting, Dreamhost Inc., and GoDaddy Inc. are actively introducing coupons and promo codes to attract more customers.  

Furthermore, the annual CO2 output of the internet is equal to around 31 million cars driving across the globe all at once. Hence, the web hosting companies are investing in carbon offsetting schemes. There is an emerging trend of green web hosting, where the web hosts participate in eco-friendly initiatives for the reduction of negative environmental impacts. This is achieved by gaining carbon offset certificates (VER) or renewable energy certificates (REC).

The web hosting services market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of services, reliability, and support services. The growth of the market is impacted by rapid advances in the web hosting technologies offerings, whereas the vendor performance is impacted by COVID-19 conditions and industry development. Owing to the competition, vendors operating in the market are offering advanced web hosting products and services, driving the market growth. In addition, the key players in the market are actively introducing innovative web hosting services products to enhance their market presence.

Author Name(s) : Vikas Gaikwad & Rachita Rake | Onkar Sumant

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Web Hosting Services Market

Global Opportunity Analysis and Industry Forecast, 2020-2027