ID: MRFR/ICT/6284-HCR | February 2021 | Region: Global | 100 pages
The web hosting industry has made a revolutionary impact across small and medium enterprises (SMEs) owing to the rapid technological advancements in virtualization. However, the rise in the adoption of virtualization has eventually led to an increased risk of data breaching. Moreover, the enterprises of all sizes invest heavily on additional infrastructure to prevent the databases that can be easily accessed in a public cloud environment. Thus, virtual private servers (VPS) help enterprises to access application software in a secure environment.
Virtual private servers (VPS) work as virtual machines in a way that the end users recognize it as a dedicated/private server, installed on a physical computer that can execute multiple software applications over a single operating system. The VPS is also known as a virtual dedicated server (VDS), or virtual root server (VRS). These are largely adopted by e-commerce websites to run various operations. The VPS includes web server software, a file transfer protocol program, and a mail server program to run various application software. The VPS offers a dedicated or private server to the end user to install any type of application software installed in their operating system. With the emergence of virtualization software, enterprises are offering virtual private server hosting at an affordable cost. The VPS hosting services offered are based on their management and can be either fully managed or self- managed services. Under these services, the user is solely responsible for managing and monitoring the server and able to transfer an unlimited amount of data on a fixed bandwidth line.
Some of the factors driving the market growth include the adoption of virtualization software, attributes offered by VPS such as reduction in IT expenditure, more customized solutions, enhanced control over servers, agile deployment of virtualized workloads, and improved operational efficiency. However, the availability of shared hosting and dedicated hosting services are expected to limit the growth of the global VPS market during the forecast period.
The global virtual private server market is valued USD 2.525 million and is expected to register a CAGR of 15.4% during the forecast period to reach USD 7,181.3 million by 2024.
Source: MRFR Analysis
The global virtual private server (VPS) market has been segmented based on service type, component, organization size, and industry vertical.
Based on the service type, the global VPS market has been divided into self-managed services and fully managed services. By component, the VPS market has been categorized as servers and operating systems. The servers segment has further been divided into VPS Solid State Drives (SSD), VPS cloud RAM, and cloud VPS. By operating systems, the market has been categorized as Windows, Linux, and others.
Based on the size of the organization, the VPS market has been categorized as small and medium enterprises (SMEs), and large enterprises.
Furthermore, on the basis of industry vertical, the global VPS market has been divided into IT & telecom, banking, financial services and insurance (BFSI), healthcare and life sciences, government and defense, retail and e-commerce, energy and utilities, and others.
Geographically, the global VPS market has been categorized as North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.
North America led the VPS market in 2018, however, Asia-Pacific is expected to be the fastest growing market from 2019 to 2024. Europe is expected to attain the second spot in the VPS market in terms of market share during the assessment period.
North America accounted for the largest market share in 2018 and expected to dominate the global VPS market during the forecast period. The market growth is attributed to the early adoption of the virtualization technology by enterprises and the presence of market giants such as Rackspace, Amazon Web Services (AWS), and GoDaddy.
Asia-Pacific is expected to be the fastest growing segment in the VPS market during the assessment period. The market growth is attributed to the increasing number of adoption of web hosting services by the small and medium enterprises (SMEs) and heavy investments by the vendors to develop a robust cloud infrastructure to allow the adoption of virtualization environment-based applications in emerging economies such as China, India, and other Southeast Asian countries.
Some of the key players in the global VPS market include DreamHost (US), InMotion Hosting (US), TekTonic (US), GoDaddy (US), Endurance International Group (US), OVH Group (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Amazon Web Services (US), United Internet (UK),Liquid Web (US), Linode (US), and Vultr (US).
The vendors operating in the VPS are majorly from the US and Europe. The market players primarily follow inorganic growth strategies such as partnerships, agreements, and collaborations to remain competitive in the virtual private server market. For instance, In September 2017, Rackspace acquired Datapipe, a US-based leading provider of managed hosting services and data center. Through this acquisition, Rackspace is able to strengthen its professional services and traditional colocation services space that eventually allows enhancing its product portfolio in the VPS market.
Frequently Asked Questions (FAQ) :
The market can record a growth rate of 15.4% in the coming years.
The market size is set to increase to USD 7,181.3 million by 2024.
The most renowned companies in the market are GoDaddy (US), InMotion Hosting (US), Rackspace (US), DigitalOcean (US), TekTonic (US), OVH Group (France), A2 Hosting (US), Amazon Web Services (US), Liquid Web (US), United Internet (UK), DreamHost (US), Linode (US), Vultr (US), Endurance International Group (US), Plesk (Switzerland), and others.
North America accounted for the biggest share in the global market in the year 2018.
IT & telecom, healthcare and life sciences, energy and utilities, retail and e-commerce, financial services and insurance (BFSI), banking, government and defense, are the verticals are adopting virtual private servers in the market.