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Segmental Growth of Web Hosting Services Industry in 2020

Introduction to Web Hosting Services

The web hosting services can be defined as the services and systems that allow individuals and organizations to host a webpage or website on the Internet. With increased digitization, web hosting allows the companies to interact with the customers and make their offerings visible through their websites. This makes marketing and communication more comfortable with current and upcoming customers.

Web Hosting Industry in 2020

The global web hosting services market is estimated to rise up to $76.2 bn with a CAGR of 15.9% during the forecast period of 2018-2023. The global web hosting industry has witnessed rapid growth in recent years, mostly due to the presence of a significant number of the regional and global market players which has created a competitive nature of the market, encouraging the market players to primarily focus on product innovations. 

The Web Hosting Services Industry can be segmented as-

ParameterClassification
Based on typeWebsite BuilderShared HostingDedicated HostingCollocated Hosting
Based on applicationPublic WebsiteMobile ApplicationIntranet SiteOnline Applications
Based on connectivityXDSLFiberMPLSEthernetIP-VPN
Based on deploymentPrivate CloudPublic CloudHybrid Cloud
Based on regionNorth AmericaEuropeAsia-PacificRest of the World

The web hosting services grew concurrently with the escalating e-commerce trade, as the e-commerce market players need web hosting service providers for their smooth operations, maintenance, and data security of their websites.

Also, the global rise in the number of SMEs which are digitizing their markets has also influenced the web hosting services market. With rising awareness of environmental sustainability, most of the players in the industry have opted for eco-friendly hosting services, known as the green hosting. Green hosting has significantly contributed to the growth of this market.

Also Read: Common Misconceptions about Dedicated Server Hosting

Web Hosting Market Share by Country (2019)
  • Based on Application

The mobile application segment is expected to have the maximum market share and is predicted to rise from $10,591 million in the year 2017 to $26713.2 million towards the end of the forecasted period. The growth in mobile application hosting is driven by low maintenance, easy access, uncomplicated integrations, and customer support services.

  • Based on Connectivity 

The fibre segment is expected to hold the dominant market share with a predicted growth of 16% CAGR. The MPLS segment is likely to be at $11,092 million by the end of 2023, rising from $4026.5 million in the year 2017. MPLS has initiated the opportunities of next-generation intelligent networks to deliver a diverse array of innovative and value-based services over a single structure.

  • Based on Deployment 

The public cloud dominated the market in 2017 and is estimated to maintain a steady CAGR of 14.6%. The private clouds are expected to witness the growth in their adoption as they offer a high level of security. It is estimated to grow at 17% CAGR, reporting valuation above $28423.9 million in 2023.

  • Based on Region 

North American region can remain the leading region in the forecasted period, with the US to be the most significant region in the market. The US market is predicted to reach levels of $31,748.3 million in 2023 from $14039.8 million in 2017.

Europe is expected to be a highly profitable market in the forecasted period, with Germany leading the market in Europe. It is expected to register a CAGR of 19.5% from 2018 to 2023 with the German market growing to $6804 million in 2023 from $2417.6 million in 2017.

Drivers of Growth of Web Hosting Industry

Some key drivers of this industry include- the rapid development of e-commerce, an increase in demand for promotional platforms by the entrepreneurs in various sectors. Also, due to a high influx of various small to large players present in the e-commerce industry is also a contributing factor towards the expansion of the global web hosting services market.

With advancements in technology, the demand for cloud-based solutions in various business verticals is also increasing at a rapid pace, which leads to the expansion of the global web hosting services market. Blogging is also a significant driver for the expansion of the global web hosting services market.

Also Read: How AI is Helping the Web Hosting Industry

Upcoming Trends in the Web Hosting Industry

  • Cloud Hosting

It is predicted that cloud hosting is going to prevail in the web hosting market. Due to factors such as- high security and uptime, thousands of brands that are online have opted for them.

The cloud server itself consists of physical servers that are located in a secured room. Websites are hosted on the virtual servers that obtain resources from the network of physical servers. Cloud servers are based on the physical ones but are virtual in nature, which excludes the possibility of any hardware-related issues which can slow down or interrupt the working of a website.

  • New Authentication Tools

To keep the website protected against any unauthorized access and any suspicious activities, the businesses need to implement the latest authentication protocols. 2-factor authentication is the solution that is highly demanded by several web hosts. With new authentication tools, user authentication has become a more complicated and intricated issue for Internet hackers  

  • Automated Backups

The Magento and WordPress platforms are already offering CMS-specific automated backup solutions and are saving the website owners form the tiresome task of data-archiving. Because of their quick operational speeds, automated backups can be performed easily regularly

  • New Hosting Hardware

Advanced web hosting technologies need more powerful hardware, thus besides the use of operative memories and advanced processors, many hosts now use the Solid State Disks, making the overall performance of server faster.

  • Eco-friendly Hosting

Eco-friendly or green hosting refers to running a website that can work with the energy-efficient technologies in use. This comprises of low-voltage hardware, coolers, renewable energy devices, etc.

Web hosting forms the backbone of any website and is responsible for providing complete resources on which the site runs. It is essential to choose the right web hosting provider to make sure that the website never goes down and is always ready to perform error-free whenever there is a visitor.

Also Read: The Best Web Design Process in 5 Simple Steps

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