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Virtual Private Server Market Size

ID: MRFR//6284-HCR | 100 Pages | Author: Ankit Gupta| June 2024

As more and more organizations bring their operations online, the need for efficient and flexible services is growing larger all of the time. Virtual private servers (VPSs), for example, offer companies the opportunity to have their own resources at smaller prices than those charged by dedicated servers or shared hosting. Along with the surge in SMEs migrating online, these factors are boosting development of this industry.
Technological developments also have a great impact on the VPS industry. Increasingly popular cloud-based solutions and the ever shifting face of virtualization are driving growth in this market. This source of savings exists because virtual private server providers can create multiple isolated virtual servers on the same piece of physical hardware. They do this by using a technique called “virtualization.” Cloud infrastructure has made VPS even more scalable and accessible to businesses in need of fast, flexible hosting solutions.
Another consideration for the industry is security. As the sophistication of cyber attacks increases, businesses are highlighting hosting solutions with strong security features. Because VPS offers separated server environments, it is more secure than shared hosting. This function encourages companies handling sensitive information-- such as client records or financial transactions- to use virtual private server hosting. Because service providers are always trying to find new ways of securing their customers, the industry is quick to adopt novel security procedures and features.
A number of economic variables affect the virtual private server industry. Cheap is good At difficult times for business, VPS solutions are especially popular. Most businesses are penny-wise, so the flexibility to increase resources only when needed and on demand while still not needing expensive dedicated servers is a good fit. Secondly, the industry is attractive because VPS providers employ competitive pricing strategies. As a result, all manner of enterprises are likely to have access to and benefit from use of VMS hosting services.
Vendor strategy and market competitiveness are two key factors influencing the environment of the VPS. The industry is full of service providers offering the same thing, so competition is fierce. Provider differentiation occurs in performance, customer service and extra features. To obtain an edge in competition, it is usually necessary to constantly create new service offerings and add value added services. In today's dynamic VPS market, providers who offer low-priced yet high quality services will be the ones to stand out.

Covered Aspects:

Report Attribute/Metric Details

Virtual Private Server (VPS) Market Overview

According to the reports, the virtual private server (VPS) market size is worth USD 2.525 million and is anticipated to grow at a rate of 14.53 percent over the next five years, reaching USD 7.8 Billion by 2030.

Due to various fast technical developments in virtualization, the web hosting sector has had a revolutionary influence on small and medium businesses (SMEs). However, the surge in virtualization use has inevitably resulted in a higher risk of the data breach. Furthermore, businesses of all sizes spend a significant amount of money on extra equipment to prevent databases from being easily accessible in a public cloud environment. As a result, virtual private servers (VPS) assist businesses in safely accessing application software.

Figure 1: Virtual Private Server (VPS) Market Size, 2023-2030 (USD Billion)

Virtual Private Server (VPS) Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Virtual private servers (VPS) function as virtual machines that end users identify as a dedicated/private server that is installed on a physical computer and may run numerous software applications under a single operating system. A virtual dedicated server (VDS) or virtual root server is another name for a VPS (VRS). These are commonly used by e-commerce websites to carry out a variety of tasks. To execute various application software, the VPS contains web server software, a file transfer protocol program, and a mail server program. The VPS provides the end-user with a dedicated or private server on which to install any sort of application software that is compatible with their operating system. With the advent of virtualization software, businesses are now able to provide virtual private server hosting at a low cost.

VPS hosting services are classified as either fully managed or self-managed, depending on how they are administered. The user is completely responsible for administering and maintaining the server using these services, and they can send an infinite amount of data across a fixed bandwidth connection. IT spending, more tailored solutions, greater server control, agile deployment of virtualized workloads, and increased operational efficiency are all on the horizon. The availability of shared hosting and dedicated hosting services, on the other hand, is projected to hinder the worldwide VPS market's development over the forecast period.

This report contains all the information on the virtual private server (VPS) market and its strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. And a detailed analysis of the global virtual private server market analysis and forecast for 2023 is also included in the report.

Virtual Private Server (VPS) Market COVID-19 Analysis

COVID-19 has three major effects on the global economy: it directly affects production and demand, disrupts supply chains and marketplaces, and has a financial impact on companies and financial markets. The COVID-19 outbreak has had a wide-ranging impact, including canceled flights, travel bans and quarantines, restaurant closures, and restrictions on all indoor events; a state of emergency declared in over forty countries; a huge slowing of the supply chain; stock market deflation; falling jobs growth, increasing panic among the population, and uncertainty about the future.

Market Dynamic


Growing network security and privacy concerns, as well as rising vulnerabilities in signaling systems in nations such as the United States, India, China, the United Kingdom, France, and Germany, are the primary growth drivers of the virtual private server industry. Furthermore, throughout the forecast period, the rising momentum of digitalization of various business verticals in various regions is expected to fuel the virtual private server (VPS) market growth.


The use of virtualization technology in conjunction with a private server enables companies to obtain revenue development potential, assist back-of-house operations, manage category and inventory, and store data associated with customers and employees in a single distant place. As a result, all of these variables are likely to provide significant opportunities for market expansion in the future years. Furthermore, companies are increasingly relying on cloud services to handle the huge amount of online data created daily, which is expected to give lucrative opportunities for virtual private server market trends development.


During the forthcoming years, the accessibility of shared hosting and dedicated hosting services is likely to hinder the growth of the worldwide virtual private server market.


The lack of preventative IT maintenance among various business verticals is one of the major issues facing the virtual private server market. Furthermore, macroeconomic issues such as currency exchange rates and economic challenges are among the key reasons that might stymie the global expansion of the virtual private server (VPS) market.

Cumulative Growth Analysis

Rackspace, a prominent managed cloud provider, was founded in 1998 and is based in Texas, United States. It is a global provider of hosting, cloud, and IT services. Its product offerings include public and private cloud services, network services, storage services, infrastructure and developer tools, and email hosting. It provides extensive support for VMware, AWS, GCP, Microsoft Azure, and OpenStack Cloud. It serves consumers in over 120 countries. The firm is well-represented throughout Europe, North America, Latin America, and the Asia Pacific.

Value Chain Analysis

According to the reports, the worldwide virtual private server (VPS) market is divided into service type, component, organization size, and industry vertical. The worldwide VPS market has been split into two categories based on service type: self-managed services and fully managed services. The virtual private server market has been divided into two parts: servers and software platforms. VPS Solid State Drives (SSD), VPS cloud RAM, and cloud VPS are different servers. The virtual private server market has been divided into three categories based on operating systems: Windows, Linux, and others. The VPS market has been divided into two categories based on the size of the organization: small and medium businesses (SMEs) and big organizations. Furthermore, the worldwide virtual private server market has been segmented by industry vertical into IT & telecom, banking, financial services and insurance (BFSI), healthcare and life sciences, government and defense, retail and e-commerce, power and utilities, and others.

Segmentation Overview

The virtual private server market is segmented based on service type, component, organization size, industrial vertical, and region. The global virtual private server (VPS) market is expected to witness decent growth during the forecast period.

By Application

Based on the application, the virtual private server market is segmented into VPS Solid State Drives (SSD), VPS cloud RAM, and cloud VPS.

By end-users

Based on the propulsion types, the virtual private server market is segmented into industry vertical into IT & telecom, banking, financial services and insurance (BFSI), healthcare and life sciences, government and defense, retail and e-commerce, power and utilities, and others.

Virtual Private Server (VPS) Market Regional Analysis

According to the reports, the worldwide VPS market has been divided into five regions: North America, Europe, Asia-Pacific, the Middle East, and Africa, and South America. North America dominated the virtual private server (VPS) market sales in 2018, while Asia-Pacific is anticipated to expand at the highest rate from 2019 to 2024. During the evaluation period, Europe is anticipated to take second place in the VPS market in terms of market share. North America held the biggest market share in 2018 and is anticipated to continue to dominate the global VPS market throughout the forecast period. The early use of virtualization technology by companies, as well as the existence of industry heavyweights like Rackspace, Amazon Web Services (AWS), and GoDaddy, are linked to market growth.

Asia-Pacific will be the most expanding sector on the virtual private server (VPS) market profit during the evaluation period. The growth is attributed to an increased number of small and small- and medium-sized business (SME) web hosters adoptions and heavy vendor investments developing a robust cloud infrastructure that enables the adoption by emerging countries such as China, India,centerscanThe and other south-eastern Asian countries of environmentally sound virtualization applications.

Virtual Private Server (VPS) Market Competitive Landscape

The majority of virtual private server (VPS) market industries suppliers are from the United States and Europe. To remain competitive in the virtual private server industry, market participants generally employ inorganic growth methods such as partnerships, agreements, and collaborations.

Virtual Private Server (VPS) Market Players

  • DreamHost (US)

  • Endurance International Group (US)

  • InMotion Hosting (US)

  • OVH Group (France)

  • TekTonic (US)

  • DigitalOcean (US)

  • GoDaddy (US)

  • Plesk (Switzerland)

  • Rackspace (US)

  • A2 Hosting (US)

  • Amazon Web Services (US)

  • United Internet (UK)

  • Liquid Web (US)

  • Linode (US)

  • Vultr (US)

Report Overview

The following report comprises of –

  • Market Overview 

  • Covid 19 Analysis

  • Market Dynamic

  • Drivers

  • Opportunities

  • Restraints 

  • Challenges

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segmentation Overview 

  • By Application 

  • By End-Users

  • Regional Analysis

  • Competitive landscape

Recent Developments

  • Rackspace, for example, bought Datapipe, a prominent supplier of managed hosting services and data centers based in the United States, in September 2017. Rackspace is able to improve its professional services and conventional colocation services sector as a result of this purchase, which will help it to expand its product offering in the VPS market.

Virtual Private Server (VPS) Market Segments

By Operating System (OS)

  • Windows

  • Linux

By Organization Size

  • Large enterprises

  • Small and Medium-sized Enterprises (SMEs)

By Vertical

  • Banking, Financial Services, and Insurance (BFSI)

  • Government and Defense

  • IT and Telecommunication

  • Manufacturing

  • Retail

  • Healthcare

  • Others (Travel and Hospitality, Media and Entertainment, and Education)

By Region

North America

  • US

  • Canada


  • UK

  • Germany

  • Rest of Europe

Asia Pacific (APAC)

  • Australia and New Zealand (ANZ)

  • India

  • China

  • Rest of APAC

The Middle East and Africa (MEA)

  • Middle East

  • Africa

Latin America

  • Brazil

  • Mexico

  • Rest of Latin America

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