The global web hosting services market size is expected to reach USD 320.62 billion by 2030, registering a compound annual growth rate (CAGR) of 20.2% over the forecast period, according to a new study by Grand View Research, Inc. The rapidly growing adoption of smartphones, coupled with the increasing internet penetration rate is anticipated to boost the market growth. The growing number of websites has also contributed to the growth of the market.
The rising number of small and medium enterprises is one of the significant growth contributors. These enterprises use web hosting services to increase their presence over the internet. The shift in the customer buying behavior from brick and mortar stores to online channels has made organizations develop and expand their online presence. Companies all over the globe are massively investing in increasing their business presence over the online channels. Additionally, the growth in internet users, coupled with growing inclination toward online purchasing, has also resulted in increased traffic on big business websites and mobile applications, especially those engaged in e-commerce activities. Therefore, these large-scale enterprises opt for private servers to host their website. Private servers enable these companies to effectively manage their heavy traffic on websites with improved security accesses.
Moreover, individuals also host their content over the internet to make it available for everyone who wants to access it. This content can be in the form of a personal website, blogs, and vlogs, among others. People access these websites or blogs to gain information or insights related to a wide variety of topics, including science, technology, medicine, environment, among several others. Although individuals are observed to be contributing less than 10% in the overall market, web hosting service providers tend to offer various plans to increase their customer base.
The market is expected to witness significant growth as a result of COVID-19 outbreak. The pandemic has resulted in increased use of websites for placing orders and hence made most of the companies to change the way business is conducted. Most of the companies have switched to doing their business online. Therefore, in the coming years, companies will focus on developing their online presence to cater to such unprecedented times. This increasing focus on conducting online business activities is expected to positively influence the market growth over the forecast period.
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The shared hosting segment dominated the market with a share of 35.3% in 2022, attributed to the high adoption and lower cost of shared hosting plans offered by the companies
The public website segment held the largest share in the market owing to the growing number of small and medium businesses, especially in the e-commerce sector
The hybrid segment is anticipated to register a CAGR of more than 22.8% in 2022 owing to its benefits of an affordable cost and enhanced security
In 2022, small and medium enterprises accounted for the largest share in the market due to the presence large number of SMEs across the globe
North America dominated the market with a revenue share of 39.1% in 2022. This dominant share can be attributed to the rapid development of the U.S. market, which has the highest number of websites available online.
Grand View Research has segmented the global web hosting services market on the basis of type, application, deployment, end-use, and region:
Web Hosting Services Type Outlook (Revenue, USD Million, 2017 - 2030)
Shared Hosting
Dedicated Hosting
Virtual Private Server (VPS) Hosting
Colocation Hosting
Others
Web Hosting Services Application Outlook (Revenue, USD Million, 2017 - 2030)
Intranet Website
Public Website
Mobile Application
Web Hosting Services Deployment Outlook (Revenue, USD Million, 2017 - 2030)
Public
Private
Hybrid
Web Hosting Services End-use Outlook (Revenue, USD Million, 2017 - 2030)
Enterprise
SMEs
Large Enterprises
Individual
Web Hosting Services Regional Outlook (Revenue, USD Million, 2017 - 2030)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Spain
Italy
Asia Pacific
China
India
Japan
Australia
South Korea
Latin America
Brazil
Mexico
Middle East & Africa
United Arab Emirates (UAE)
Saudi Arabia
South Africa
List of Key Players of Web Hosting Services Market
Amazon Web Services
Endurance International Group
1&1 IONOS Inc.
Liquid Web LLC
Google LLC
GoDaddy Operating Company, LLC
Hetzner Online GmbH
Alibaba Cloud
Equinix, Inc.
WPEngine, Inc.
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