Web Hosting Services Market Size, Share & Trends Analysis Report By Type, By Application, By Deployment (Public, Private, Hybrid), By End User (Enterprises, Individuals), And Segment Forecasts, 2020 - 2027

Report Overview

The global web hosting services market size was valued at USD 56.7 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 15.5% from 2020 to 2027. Web hosting services can be categorized into various types such as shared, colocation, dedicated, and Virtual Private Server (VPS). The service allows enterprises and individuals to leverage a website over the internet to publish their business-related as well as personalized content. A growing number of organizations across the globe are anticipated to bolster the market growth over the forecast period. These organizations publish their websites over the internet to increase their online presence as well as for marketing purposes.

Type Insights

In terms of revenue, the shared hosting segment dominated the market with a revenue share of 37.64% in 2019. This high share is attributed to the high adoption rate of shared hosting servers, especially among the small and medium enterprises. Most of the small and medium businesses prefer this type of hosting owing to the low website traffic that they receive. Additionally, these SMEs are present in large numbers across every region and represent more than 90% share out of the total number of businesses. Although the cost associated with shared hosting is lower as compared to any other type of hosting, however, a large number of SMEs, as well as individuals, are opting for shared hosting. Therefore, this segment holds the highest share in the market.

As the businesses grow and companies start to get more web traffic, they opt to shift from shared hosting to different other types of hosting services, including VPS, dedicated, or cloud hosting, among others. Large organizations generally opt dedicated hosting as they need to cater to a very high amount of web traffic. Another reason for opting dedicated hosting is the budget availability as the cost associated with it is quite high. Due to budget constraints, small or medium organizations find it challenging to choose dedicated servers for their business requirements. However, the high levels of security and uptime that dedicated hosting offers is expected to contribute to the decent growth rate of the segment.

Application Insights

In terms of revenue, the public website segment dominated the web hosting services market with a share of 52.48% in 2019. This high share is attributed to the fact that most of the websites are accessible to everyone across the globe. Therefore, companies prefer to host their websites in a way that they can target a huge chunk of the general population in order to sell their products or solutions. However, companies also use intranet websites that are widely preferred for their internal employees. Some of the examples of intranet websites include huddle, Microsoft SharePoint, Jostle, and Igloo.

Nowadays, the internet penetration rate and use of smartphones are increasing rapidly across the globe. This has resulted in a rapid shift in consumer buying patterns as they prefer to buy products or services online and get them delivered at their doorsteps. Therefore, companies especially engaged in e-commerce businesses have started to widen their sales channel by providing the products through mobile applications. This helps the e-commerce companies provide their customers' easy access to their online stores through using their cellphones. As a result, it is anticipated to see the modest growth of this segment in near future.