"Smart Strategies, Giving Speed to your Growth Trajectory"
The global web hosting services market size was valued at USD 94.64 billion in 2022 and is projected to grow from USD 108.54 billion in 2023 to USD 395.84 billion by 2030, exhibiting a CAGR of 20.3%. North America dominated the global market with a share of 41.98% in 2022.
Web hosting is a service when a hosting vendor allots space on a web server for a website to store its files. These hosting providers typically require users to own a domain, or can help them secure a domain.
This report showcases a dedicated study on adopting and applying web hosting services across various sectors. In the research scope, we have considered hosting services offered by companies such as Google LLC (Alphabet, Inc.), Alibaba Cloud, Amazon Web Services, Inc., and GoDaddy Operating Company, LLC.
The adoption of web hosting services across small and medium-scale enterprises is a major driving factor for market growth. Additionally, government initiatives empowering SMEs and the increasing number of relevant partnerships among these SMEs is augmenting the web hosting services market share of companies.
Shift of Business Operations Online Amid the Pandemic Boosted Market Expansion
The pandemic significantly impacted the adoption of hosting services. The shutdown forced businesses to shift their business operations to the cloud. With the rise in ownership of smartphones and internet penetration, it became essential for businesses to have an online presence. Companies adopted hosting services to target general customers for future growth plans. Further, the pandemic increased consumers' reliance on the internet for purchasing decisions. Businesses saw the pandemic as an opportunity to adopt hosting services and scale up their consumer services thus facilitating market proliferation.
Request a Free sample to learn more about this report.
Rising Popularity of Multi-cloud Hosting to Propel Market Augmentation
Companies have been focusing on adopting multi-cloud web hosting services as it helps enterprises to avoid the downsides of single-vendor reliance. Different web hosting vendors have diverse specialities; the multi-cloud hosting environment allows enterprises to opt for several web hosting capabilities simultaneously. No single hosting provider could provide hosting services at a granular level to all the problems the enterprise may encounter with its online presence. Thus, web hosting providers target multi-cloud hosting customers to scale their businesses. For instance, in November 2022, WP Engine extended its multi-cloud solution by implementing its Managed WordPress Platform on Microsoft Azure. This extension allows Microsoft customers to access the multi-cloud platform on Azure. Thus, the increasing popularity of multi-cloud hosting solutions is expected to impact the web hosting services market growth positively.
Growing Number of SMEs to Increase the Demand for Web Hosting Services
Small and Medium Enterprises (SMEs) play an important role in every nation's economic growth. The existence of SMEs aids efficient consumption of nearby assets and augments economies across the globe.
According to Siteefy, there are 1.13 billion websites worldwide, with only 200,121,724 being actively visited and maintained in 2023. Companies have realized the importance of online presence, especially after the COVID-19 pandemic. This helps them reach a wider audience and stay competitive in today’s digital landscape.
Consumers are increasingly reliant on the internet to purchase, implying business success potential. Thus, small businesses have understood the importance of strong online presence and have made website hosting services a top priority for their growth plans. Additionally, web hosting service providers have targeted small and medium-sized enterprises to augment their business growth. For instance, in March 2021, DreamHost introduced a complete suite of professional web services to help its small business consumers enhance their growth and find success online. Thus, the rising number of small and medium-sized businesses and their need for web hosting services are driving market expansion in recent years.
Challenges Associated with Ensuring Scalability and Maintaining Uptime Might Restrain Market Growth
The hosting services' high initial and implementation costs might hinder the service adoption. As demand from SMEs is a major driver of hosting services, the cost might restrain market growth. Moreover, challenges that arise while ensuring scalability and maintaining uptime might restrain this market. Maintaining uptime becomes crucial as consumers spend more time on websites that are easily available to them.
Rising Adoption of Shared Hosting Services among SMEs is Positively Impacting the Market Growth
Based on type, the market is categorized into shared hosting, dedicated hosting, collocated hosting, virtual private server hosting, managed hosting, self-managed hosting, and others. Shared hosting segment dominates the market as small and medium-scale enterprises prefer shared servers over other hosting types. SMEs prefer shared hosting services as they are cost-effective and work effectively with low traffic, as SMEs gain low traffic.
However, as companies start gaining traction, their traffic increases. This bids them to opt for other hosting services such as VPS and dedicated cloud hosting. In the coming years, dedicated hosting services are expected to grow significantly. Along with this, other features that have been updated in the services are increased uptime and high levels of security.
To know how our report can help streamline your business, Speak to Analyst
Public Website Application to Lead Backed by Ease of Accessibility
Based on application, the market is categorized into public website, mobile application, intranet site, and online application. In 2022, the public website segment was the most promising application segment, owing to its ease of accessibility. SMEs have been the prime adopters of web hosting services for public website applications as they aim to target the general population. In the coming years, online application segment is expected to grow at the highest CAGR due to rising internet penetration across the globe.
Rising Popularity of Public Cloud Hosting Services across SMEs to Gain Traction Further Augmenting the Market Growth
The pandemic accelerated the investments in cloud infrastructure services, which further augmented the shift of users into cloud hosting services. SMEs adopt public cloud deployment of hosting services due to their easy manageability. Thus, in 2022, public cloud deployment of web hosting services accounted for the highest among other deployment types.
However, in the coming years, hybrid cloud deployment of hosting services is expected to gain popularity and grow at the highest CAGR over the forecast period.
North America Web Hosting Services Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market is studied across North America, Latin America, Europe, the Middle East & Africa, and Asia Pacific. These regions are further studied across leading countries.
North America is the most promising region, holding 42.0% of the global market share. The region holds the highest market share owing to its technologically advanced nature and early adoption of web hosting services. Moreover, heavy investments and the adoption of cloud hosting services will aid regional market proliferation. Amid the pandemic, cloud hosting services have gained popularity due to their advantages over other hosting services such as enhanced security, ability to handle vast amounts of data, and other additional features.
Furthermore, Asia Pacific will grow at the highest CAGR during the forecast period due to local and global companies shifting from offline to online platforms. These companies adopt this strategy to expand and keep their businesses in leading positions. Moreover, companies have been opening regional data centers to help their customers with seamless customer service. For instance, in January 2023, GreenGeeks, a green energy web hosting platform, announced its new data center location in Singapore.
Europe accounted for the second highest global market share owing to growing internet usage and traffic across the region. With this increase, the need for digital transformation became necessary for companies. According to the EIB Investment Survey (EIBIS) conducted from April to July 2021, 46% of companies changed their business operations to digital ones.
The below stats showcased the percentage of European enterprises to host their databases on the cloud in 2021.
Request a Free sample to learn more about this report.
Moreover, Latin America and the Middle East & Africa regions are estimated to grow gradually during the forecast period owing to increasing digital population and technological advancements. In addition, increase in adoption of cloud computing services across both regions is expected to augment e market growth.
Prominent Players have been Engaging into Relevant Partnerships to Strengthen Market Positioning
Key market vendors are engaging in relevant partnerships to develop new, advanced solutions aligned with customers’ requirements. They are also focusing on integrating their existing product portfolio with advanced technologies to provide flexible solutions with unique features. Additionally, government initiatives empowering SMEs to bring their online business fuel market growth.
An Infographic Representation of Web Hosting Services Market
To get information on various segments, share your queries with us
The research report covers the prominent areas worldwide to study the industry comprehensively. Additionally, the report provides insights into the most current market trends and an analysis of technologies being adopted globally. It also highlights some of the growth-stimulating economic indicators and restrictions, allowing the reader to gain a thorough understanding of the market.
Value (USD Billion)
CAGR of 20.3% from 2023 to 2030
The market is projected to reach USD 395.84 billion by 2030.
In 2022, the market stood at USD 94.64 billion.
The market is projected to grow at a CAGR of 20.3% in the forecast period (2023-2030).
By application, the public website segment is likely to lead the market.
Rise in small and medium-sized businesses to increase the demand for web hosting services.
GoDaddy Operating Company, LLC, Google LLC (Alphabet, Inc.), Amazon.com (Amazon Web Services, Inc.), and IONOS Inc. are the top players.
North America is expected to hold the highest market share.
The online application segment is expected to grow with the highest CAGR over the forecast period.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry