ID: MRFR/ICT/2034-CRR | August, 2018 | Region: Global | 108 pages | Cooked Research Reports
Web Hosting Services Market Research Report, Type (Website Builder, Dedicated Hosting, Collocated Hosting), Application (Public Website, Mobile Application, Intranet Site, Online Application), Connectivity (Fiber, MPLS, Ethernet), Deployment (Public, Private, Hybrid) – Global Forecast till 2023
The era of digitization has created boundless scopes for the World Wide Web, expanding it beyond our expectations. As a result, web hosting has come under the spotlight and internet companies are quickly recognizing the business opportunities that it brings along. In 2017, the global market for web hosting reached a valuation of USD 32.14 Bn and is projected to expand at 15.9% CAGR between 2018 and 2023. With rapid internet proliferation, enterprises are giving up their traditional representations to adopt the new-age virtual identity. Having a spot on the internet is a crucial part of the growth strategies of modern businesses. Demand for digital space continues to grow, creating opportunities for web hosting service providers. Advances in technology have made web hosting robust and more efficient, allowing individuals and enterprises to channelize their marketing efforts through various internet tools.
This MRFR report offers a comprehensive analysis of the global market for web hosting. The primary objective of the report is to provide a five-year (2018-2023) revenue analysis of the global web hosting market and identify the opportunities and threats. The report offers an unbiased outlook towards the advancements in web hosting services and potentials over the next five years. The primary web hosting services that have been assessed in the report include website builder, shared hosting, dedicated hosting and collocated hosting. For opportunity analysis, major application areas for web hosting such as public website, mobile application, Intranet site and online application were studied. The connectivity technologies discussed in the report include xDSL, fiber, MPLS, Ethernet, and IP-VPN. Evaluation of the market in terms of revenue also covers public cloud, private cloud, and hybrid cloud deployments. The report forecasts revenue for web hosting market at the global level covering North America, South America, Asia Pacific (APAC), Europe, and the Middle East & Africa (MEA).
Historical market trends, market dynamics, forecast, market value by region as well as by segmentation, country-level analysis for each market segment, key player’s market share analysis and market factor analysis which covers supply chain and Porter's five forces analysis of the market.
Hosting.co.uk (UK), AT&T Inc.(US), Amazon Web Services, Inc.(US), Combell NV (Belgium), Equinix Inc.(US), Endurance International Group (US), Just Host (UK), Google Inc.(US), GoDaddy Inc.(US), LeaseWeb (Netherlands), Easyhost (UK), 1&1 Internet Inc.(US).
A multi-layered and proven research methodology ensures the rendering of comprehensive market insights with critical observation and extrapolation of current and historical market trends. The extensive primary and secondary research processes ensure reliability and objectivity of the market insights. Primary collection of data is carried out by conducting surveys and first-hand interviews with company executives and opinion holders across the value chain (CEOs, MDs, and VPs). Secondary research process verifies the authenticity and accuracy of primary data by gleaning and analyzing information from credible sources such as SEC filings, white paper references, research publications and other sources available in public domain. Furthermore, top-down and bottom-up approaches are utilized to validate the data offered in our reports.
For the scope of the research, MRFR’s report offers a comprehensive segmental analysis of the global market for web hosting
Global Web Hosting Services Market-Report Summary:
Global web hosting services market is set to grow from USD 32.14 Bn in 2017 to USD 76.2 Bn in 2023. Market Research Future (MRFR) projects that the market will thrive saliently at 15.9% CAGR during the forecast period 2018 to 2023. Over the years, the focus has been shifting towards website and application speed as a key experience metric, which has boosted the market for web hosting services. The surge in demand for better performances of websites coupled with seamless user experience is likely to influence the market growth positively. The competitive landscape of the market is consolidated with various regional, national, and international players striving to gain traction in the market. The unexplored opportunities in developing and under developing nations have attracted the attention of market operators and are poised to encourage market proliferation. The competition among the vendors is intensified based on factors such as cost, service quality, reliability, and aftermarket service.
Increased consumption of smartphones and changing preferences of consumers have necessitated the adoption of web hosting services across different platforms and screen resolutions. The market exhibits tremendous potential for growth in the foreseeable future. Additionally, the rising threats posed by cyber attacks and data breaches have catapulted the web hosting services market on an upward trajectory. The market players are investing massive amounts for upgrading the web hosting domain and assuring data protection to the clients. Furthermore, the emerging trend of green web hosting technology as a means to reduce carbon emissions and reach cost-effectiveness has catalyzed the market expansion. Nevertheless, challenges related to backup and restoration of data remains an impediment for the market.
By type, the website builders segment is likely to retain its dominance through the forecast period registering a CAGR of 14.6%. Meanwhile, the collocated hosting segment is expected to exhibit a relatively steeper rise in market size, growing at 18.5% CAGR. The segment is poised to reach a valuation of USD 12750.1 Mn across the review period.
By application, the mobile application segment is projected to capture the maximum share of the market. The segment is set to thrive from USD 10,509.1 Mn in 2017 to USD 26713.2 Mn by the end of the assessment period. The accelerated adoption of mobile application hosting is attributable to low maintenance, easily accessible, easy integration, and customer support service.
By connectivity, the fiber segment is estimated to capture a dominant market share, expanding at 16% CAGR. Meanwhile, MPLS segment is set to value at USD 11,092 Mn by 2023-end up from USD 4,026.5 Mn in 2017. MPLS opens avenues of next-gen intelligent networks for providing a wide variety of advanced, value-added services over a single infrastructure.
By deployment, the public cloud segment exhibited dominance over the market in 2017. The segment is estimated to register a robust CAGR of 14.6%. On the other hand, the private cloud segment is set to witness accelerated adoption due to a higher level of security offered. Thriving at 17% CAGR, the segment is projected to reach a value over USD 28423.9 Mn over 2023.
Geographically, the market has been analyzed across five regions-North America, Europe, Asia-Pacific, and the Rest of the World. North America is projected to retain its pole position throughout the forecast period. The U.S. is estimated to be the most substantial market in the region. The value of the revenue generated by the U.S. is poised to reach USD 21,862.6 Mn in 2023 up from USD 9,232.8 Mn in 2017. Additionally, the economic acceleration in Canada and Mexico are further expected to aid market proliferation. Europe is anticipated to remain a highly lucrative market over 2023. Germany is expected to retain its prominence in the region, striking a CAGR of 19.5% from 2018 to 2023. The market in Germany is projected to grow from USD 9,232.8 Mn in 2017 to USD 21,862.6 Mn in 2023. Asia Pacific is an emerging growth pocket in the global web hosting services market. The surge in demand for hosting services in the region is expected to aid market proliferation.
Market players covered in the report by MRFR are Amazon Web Services, Inc. (US), Google Inc. (US), AT&T Inc. (US), GoDaddy Inc. (US), Combell NV (Belgium), LeaseWeb (Netherlands), Equinix Inc. (US), 1&1 Internet Inc. (US), Endurance International Group (US), Easyhost (UK), Just Host (UK) and Hosting.co.uk (UK).
Increasing need to upsurge the website performance is driving the web hosting services market creating a highly competitive landscape
The global Web hosting services market consists of various global, regional, and local service providers that are evolving to enhance their market position. Intense competition and rapid advances in technology are key factors that aid the market growth. The vendors compete based on cost, service quality, reliability, and aftermarket service. It is important for the vendors to provide cost-efficient, reliable and robust security standards to survive and succeed in an intensely competitive market environment.
Vendors in the Web hosting market are focused on improving their services and expanding into the under-developed and developing economies. Moreover, the growth of the market vendors is dependent on the market conditions, government support, and industry development. GoDaddy Inc., Amazon Inc., Equinix Inc., Google Inc., and AT&T Inc. are the major companies in the market, which compete in terms of security standards, overall service suite, quality, price, and website performance. Their primary focus is to provide Web hosting services coupled with powerful data encryption. Although the international players are dominating the market, regional and foreign players with small market shares also have a presence. The international players may strengthen their presence worldwide through acquisitions & partnership during the forecast period. Projections also indicate that improvement of the global economic scenario combined with Web hosting awareness in emerging nations, will fuel the market growth.
GoDaddy Inc. is one of the prominent players in the global Web hosting market and holds a 15% market share. GoDaddy offers Web hosting, business hosting and managed WordPress, providing fast, secure and reliable services to businesses. The company keeps enhancing its product offerings to help customers connect with their users and run their ventures. Recently, GoDaddy launched "Virtual Private Server" (VPS), a high performance managed hosting solution, designed for web professionals in India.
Amazon Inc. holds the share of 14% as of 2016. Amazon Web Services offers cloud Web hosting solutions that provide businesses, non-profits, and governmental organizations to deliver their websites and web applications with low-cost. It offers content management system (CMS), such as WordPress, an eCommerce application, such as Magento, or a development stack, like LAMP, and also provide SDKs for popular platforms like Java, Ruby, PHP, Node.js, and .Net. It focuses on offering valuable services to customers through their technical expertise. It also emphasizes on becoming the lowest cost customer-centric online marketplace. It has set several strategic priorities that would drive growth and improve revenue.
Equinix Inc. is another prominent player that held the share of 12% in 2016. Equinix key strategy is to expand its global position as a premier network and cloud-neutral data center provider. It also aims to provide an interconnection platform for enterprises, cloud and IT service providers, media & content companies, financial services firms, IoT and big data providers, and network and mobile service providers. Equinix announced the expansion of its LD4 International Business Exchange (IBX) data center at its London Slough campus which is expected to enable customers to interconnect securely with more than 1,000 businesses in London including leading capital markets participants, insurers and electronic payments firms, as well as more than 200 network service providers and more than 275 cloud and IT service providers.
Google Inc. holds the share of 7% as of 2016. Google offers fully-managed and self-managed Web hosting and deployment solutions to small and medium businesses. Google Cloud Platform provides services and infrastructure that enable users to develop and deploy scalable, globally available applications and websites. H2, a premier global leadership network for the technology industry collaborated with Google to bring together the worldwide networks and resources of both H2 and Google for entrepreneurs to support technology leaders in innovation centers globally.
Service providers with better technical and financial resources can develop innovative hosting feature that render the competitors' products, obsolete and non-competitive even before they are launched, or costs are recovered. Therefore, vendors must leverage innovation to stay abreast of emerging technologies that could affect the continuing competitiveness of their service in the market. The competitive environment in the market is likely to intensify further due to rise in hosting service providers, need to improve website performance, strong security standards, and partnership.