Virtual Private Server Market Analysis

Virtual Private Server Market Analysis

The managed VPS hosting market is expected to witness the fastest growth rate over the forecast timespan. In managed VPS hosting, the managed hosting provider is responsible for VPS server configuration, maintenance, server security, and software related updates. A service provider also constantly checks for any vulnerabilities on the sites as well as malware or suspicious traffic patterns to keep user’s websites safe from viruses. The demand for managed VPS hosting will increase and it will save time as the client only needs to handle the website and online business performance, whereas all the technical issues are handled by the web hosting provider.
 

The Linux VPS hosting segment held a major market share of over 60% in 2018 and is projected to maintain its dominant position in the market over the forecast period. Linux operating system is one of the widely used operating systems for web hosting as it is an open source, easy to install, and supports multitenancy, making the allocation of resources such as space and email accounts an easy task. Linux VPS hosting is gaining more popularity as it is more cost-effective & secure as compared to Windows operating systems and helps its customers to upload multiple files, manage multiple domains, and run business applications with no hassle. Among all the Linux web hosting options, the Ubuntu operating system held a major portion of the market revenue share in 2018 as it is ideal for both remote desktop and server applications.
 

Small and Medium Enterprises (SME) segment in the virtual private server market is projected to exhibit the fastest growth rate from 2019 to 2025 due to the rising trend of VPS hosting to reduce costs. VPS enables organizations to avail the capabilities of a virtual dedicated server and minimizes the overall hardware required in the data center infrastructure. With a growing startup ecosystem, small enterprises and startups do not have resources to build their own servers. Thus, they are relying on the VPS providers for managing their network resources in a cost-effective way. The companies operating in the market are offering several VPS plans to empower small businesses and enabling them to add extra value to their business without any hardware investments.
 

The retail VPS market size is expected to witness the fastest growth from 2019 to 2025 due to the increasing proliferation of e-commerce platforms. The retail industry is witnessing rising adoption of digital platforms to establish a strong omnichannel presence and improve customer experience. This will result in a surge in demand among enterprises for private web servers with dedicated resources to host several websites for business purposes. E-commerce platforms often require dynamic scalability of bandwidth and other server resources to accommodate the periodic increase in traffic flow on the website. Hosting service providers offer such flexible resource usage for e-commerce companies, which results in significant cost savings on the IT infrastructure.
 

The Asia Pacific virtual private server market revenue is expected to grow at a CAGR of over 15% from 2019 to 2025 due to the increasing internet penetration, a rise in the number of smartphone users, and the growing utilization of cloud-based platforms by emerging SME in the region. With a rapidly growing start-up ecosystem in major markets such as India and China, the demand for VPS services is likely to proliferate consistently over the forecast timeline. Also, government initiatives for the digitalization of administrative and industrial infrastructure in the region are supporting the rising adoption of server hosting services. With the growing internet penetration, the uptake of VPS by organizations of all sizes will increase swiftly during the forecast period.