Web Hosting Services Market Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020 - 2025

Procurement Outlook

Web hosting services provide shared or dedicated hosting of one or more services for their customers. It is majorly used for hosting websites, company email, files, games, and other content. Following are the most common types of web hosting services:

• Shared web hosting: In this system, several websites are kept on the same server.

• Reseller web hosting: This service package includes a shared hosting account with extra tools to resell hosting space.

• Cloud-based web hosting: It refers to a technology that lets many individual servers work together in one giant server.

• Virtual private server: This type of server share one physical server but act like multiple, separate servers. It is a link between shared hosting and getting an in-house dedicated machine.

• Dedicated web server: Dedicated server gives owners exclusive rental rights over a web server.

• Colocation web hosting: In this hosting, owners are responsible for their server software, data storage, backup procedures, etc. Owners are solely responsible to replace the hardware in case of any malfunction.

• Self-service web hosting: In this type of hosting, owners need to buy the servers, install and configure the software.

Web hosting services enable companies to subcontract one or more web-based core functions to a hosting provider. Hence, the procurement need for web hosting services is becoming very important.

Demand Outlook

The global web hosting services market is valued at USD 65.5 billion in 2020 and it is expected to grow at a CAGR of 15.5% from 2020 to 2025 due to growth in the business activities of the organizations and the subsequent need of handling web traffic. North America dominated the market with a revenue share of 35.28% in 2020 followed by Europe and APAC. The shared hosting segment is the largest web hosting service segment due to the high adoption rate among the small and medium enterprises.

Cost Drivers

Software development cost that includes the salary of multiple developers, UI/UX designers, etc., are the major cost component in web hosting service development. Many suppliers preferred to outsource the development activity to low-cost destinations like India.

Constraints

Problems related to limited backup facilities, challenges associated with providing scalability, and maintaining uptime are the major constraints in the web hosting services market.

Supply Chain

Amazon Web Services, Endurance International Group 1&1 IONOS Inc., Liquid Web, LLC, GoDaddy Operating Company, Google LLC, Hetzner Online Gmb, Alibaba Cloud, Equinix, Inc., WPEngine Inc. are some of the key suppliers of web hosting services. Leading suppliers are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.