Web Hosting Services Market Rising at 18.0% CAGR to Reach USD 267.10 Billion by 2028

Top Players in Web Hosting Services Market are SiteGround (Sofia, Bulgaria), Digitalocean, Inc. (New York, United States), Equinix, Inc. (California, United States), Clearlake Capital Group (California, United States), Hostinger International, Ltd. (Kaunas, Lithuania), com, Inc. (Washington, United States), GoDaddy Operating Company, LLC (Arizona, United States), Google Inc. (California, United States), Liquid Web LLC (Michigan, United States), WPEngine, Inc. (Texas, United States), 1&1 IONOS Inc. (Montabaur, Germany), Cloudflare (California, United States), Alibaba Cloud (Hangzhou, China), DreamHost (California, United States), AT&T Inc. (Texas, United States) and others


Pune, India, April 20, 2021 (GLOBE NEWSWIRE) -- The global web hosting services market size is projected to reach USD 267.10 billion by 2028, exhibiting a CAGR of 18.0% during the forecast period. According to the Fortune Business Insights™ report, titled “Web Hosting Services Market, 2021-2028”, the market value stood at USD 75.03 billion in 2020.

COVID-19 Impact

The COVID-19 pandemic outbreak has caused unprecedented upheavals in physical business infrastructures as governments across the globe have had to impose lockdowns and social distancing measures to curb the spread of the virus. For example, a survey by the National Bureau of Economic Research (NBER) found that 43% of the respondents faced a temporary or permanent shutdown of business in the US in 2020 due to the pandemic. Similarly, a private survey in India revealed that the pandemic is set to hit 74% of the startups in the country. This dire situation has, therefore, led the market to register a lower CAGR of 11.9% and reach a value of 83.99 billion in 2021.

List of Key Players Covered in this Market Report:

  • SiteGround (Sofia, Bulgaria)
  • Digitalocean, Inc. (New York, United States)
  • Equinix, Inc. (California, United States)
  • Clearlake Capital Group (California, United States)
  • Hostinger International, Ltd. (Kaunas, Lithuania)
  • Amazon.com, Inc. (Washington, United States)
  • GoDaddy Operating Company, LLC (Arizona, United States)
  • Google Inc. (California, United States)
  • Liquid Web LLC (Michigan, United States)
  • WPEngine, Inc. (Texas, United States)
  • 1&1 IONOS Inc. (Montabaur, Germany)
  • Cloudflare (California, United States)
  • Alibaba Cloud (Hangzhou, China)
  • DreamHost (California, United States)
  • AT&T Inc. (Texas, United States)

Click here to get the short-term and long-term impact of COVID-19 on this market.

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Market Drivers

Emergence of Hosting Services for Startups to Boost the Market

The proliferation of startups and small businesses around the world has created an intense need for cost-efficient and sustainable online platforms. Since the accessibility to the internet is speedily increasing, these entities are placing a high importance on maintaining a strong virtual presence and growing their businesses in the digital space. To cater to this demand, several companies providing web hosting services to startups have emerged and are gathering momentum worldwide. For example, Hostwinds is a virtual private server (VPS) hosting service provider that offers reliable services and round-the-clock technical support to small enterprises and startups in the US and the UK. Similarly, Bluehost provides a web hosting platform with features such as GB file transfer, free templates, domain names, and unlimited domain hosting, all under one account. Thus, the emergence of web hosting companies delivering specialized services to startup businesses will accelerate the growth of this market.

Incorporation of AI in Web Hosting Services to Open New Vistas for Market Growth

One of the most promising factors propelling the web hosting services market growth is the incorporation and integration of artificial intelligence (AI) and machine learning (ML) technologies in hosting platforms. AI and ML are enabling web service providers to create and deliver more enhanced and comprehensive products to clients. For example, the persistent threat of cyber-attacks and associated crimes can be mitigated using AI. Algorithms and firewalls powered by AI can detect bugs and malware and alert the provider of the potential threats they can cause to the platform. AI can also augment the accuracy and proficiency of a website by taking care of routine tasks. AI-enabled chatbots, for instance, can communicate with site visitors and supply them with basic information about the service. This, in turn, can also optimize domain performance. Thus, AI holds limitless opportunities for web service companies, which favors the growth of this market.

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Market Segments

On the basis of type, the market segments include shared hosting, dedicated hosting, collocated hosting, virtual private server hosting, and others.

Based on application, the market has been divided into public websites, mobile applications, intranet sites, and online applications.

In terms of deployment, the market has been categorized into public cloud, private cloud, and hybrid cloud. Here, the public cloud segment led the market in 2020 with a share of 51.6%.

By region, the market has been segregated into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Regional Insights

North America Revenue Generation Stood at $34.32 Billion in 2020, to Lead the Market till 2028

North America is expected to dominate the web hosting services market share during the forecast period, having generated revenue worth USD 34.32 billion in 2020. The leading position of the region is attributable to the intense competition among small business enterprises in the region in the virtual space. Moreover, the widespread adoption of smartphones and social media in the US and Canada are also prompting companies to focus their energies on maintaining a dynamic presence on digital platforms.

Europe is set to emerge as the second-highest revenue-generating region, backed by a robust network infrastructure, 5G rollout, and IT outsourcing trends in the region. In Asia Pacific, the steady shift of businesses to online platforms, with growing policy support, will stoke the demand for web hosting services in the foreseeable future.

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Competitive Landscape

Agreements between Social Media Giants & Web Service Companies to Intensify Competition

Companies providing specialized web hosting services are actively collaborating with social media bigwigs to widen the horizons of their businesses. These collaborations are also aiding small & medium businesses to access next-gen technologies and leverage digital tools to expand their market presence.

Industry Developments:

  • December 2020: Twitter inked a new agreement with Amazon Web Services (AWS) to harness AWS’s capabilities to improve app and service performance. Under the deal, Twitter will deploy AWS to offer a global cloud infrastructure to deliver Twitter timelines.
  • February 2020: GoDaddy announced the acquisition of Uniregistry’s marketplace and domain registrar businesses. Besides these, GoDaddy will also take over Uniregistry’s domain portfolio consisting of more than 350,000 names.

Major Table of Contents:

  • Introduction
    • Definition, By Segment
    • Research Methodology/Approach
    • Data Sources
  • Key Takeaways
  • Market Dynamics
    • Macro and Micro Economic Indicators
    • Drivers, Restraints, Opportunities and Trends
    • Impact of COVID-19
      • Short-term Impact
      • Long-term Impact
  • Competition Landscape
    • Business Strategies Adopted by Key Players
    • Consolidated SWOT Analysis of Key Players
    • Porter’s Five Force Analysis
  • Global Web Hosting Services Key Players Market Share Insights and Analysis, 2020          
  • Key Market Insights and Strategic Recommendations
  • Companies Profiled (Covered for key 10 players only)
    • Overview
      • Key Management
      • Headquarters etc.
    • Offerings/Business Segments
    • Key Details (Key details are subjected to data availability in public domain and/or on paid databases)
      • Employee Size
      • Key Financials
        • Past and Current Revenue
        • Gross Margin
        • Geographical Share
        • Business Segment Share
    • Recent Developments
  • Annexure / Appendix
    • Global Web Hosting Services Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2017-2028
      • By Type (Value)
        • Shared Hosting
        • Dedicated Hosting
        • Collocated Hosting
        • Virtual Private Server Hosting
        • Others (Reseller hosting, etc.)
      • By Application (Value)
        • Public Website
        • Mobile Application
        • Intranet Site
        • Online Application
      • By Deployment (Value)

TOC Continued…!

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