Web Hosting Services Market Size Worth $171.4 Billion By 2027

June 2020 | Report Format: Electronic (PDF)

Web Hosting Services Market Growth & Trends

The global web hosting services market size is expected to reach USD 171.4 billion by 2027, registering a compound annual growth rate (CAGR) of 15.5% over the forecast period, according to a new study by Grand View Research, Inc. The rapidly growing adoption of smartphones, coupled with the increasing internet penetration rate is anticipated to boost the market growth. The growing number of websites has also contributed to the growth of the market.

The rising number of small and medium enterprises is one of the significant growth contributors. These enterprises use web hosting services to increase their presence over the internet. The shift in the customer buying behavior from brick and mortar stores to online channels has made organizations develop and expand their online presence. Companies all over the globe are massively investing in increasing their business presence over the online channels. Additionally, the growth in internet users, coupled with growing inclination toward online purchasing, has also resulted in increased traffic on big business websites and mobile applications, especially those engaged in e-commerce activities. Therefore, these large-scale enterprises opt for private servers to host their website. Private servers enable these companies to effectively manage their heavy traffic on websites with improved security accesses.

Moreover, individuals also host their content over the internet to make it available for everyone who wants to access it. This content can be in the form of a personal website, blogs, and vlogs, among others. People access these websites or blogs to gain information or insights related to a wide variety of topics, including science, technology, medicine, environment, among several others. Although individuals are observed to be contributing less than 10% in the overall market, web hosting service providers tend to offer various plans to increase their customer base.

The market is expected to witness significant growth as a result of COVID-19 outbreak. The pandemic has resulted in increased use of websites for placing orders and hence made most of the companies to change the way business is conducted. Most of the companies have switched to doing their business online. Therefore, in the coming years, companies will focus on developing their online presence to cater to such unprecedented times. This increasing focus on conducting online business activities is expected to positively influence the market growth over the forecast period.


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Web Hosting Services Market Report Highlights

  • The shared hosting segment dominated the market with a share of 37.64% in 2019, attributed to the high adoption and lower cost of shared hosting plans offered by the companies

  • The public website segment held the largest share in the market owing to the growing number of small and medium businesses, especially in the e-commerce sector

  • The hybrid segment is anticipated to register a CAGR of more than 15% in 2019 owing to its benefits of an affordable cost and enhanced security

  • In 2019, small and medium enterprises accounted for the largest share in the market due to the presence large number of SMEs across the globe

  • The U.S. market is anticipated to account for the highest market share from 2020 to 2027, owing to the presence of large number of service providers in the country

Web Hosting Services Market Segmentation

Grand View Research has segmented the global web hosting services market on the basis of type, application, deployment, end user, and region:

Web Hosting Services Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Shared Hosting

  • Dedicated Hosting

  • Virtual Private Server (VPS) Hosting

  • Colocation Hosting

  • Others

Web Hosting Services Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Intranet Website

  • Public Website

  • Mobile Application

Web Hosting Services Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • Public

  • Private

  • Hybrid

Web Hosting Services End-user Outlook (Revenue, USD Million, 2016 - 2027)

  • Enterprise

    • SMEs

    • Large Enterprises

  • Individual

Web Hosting Services Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

List of Key Players of Web Hosting Services Market

  • Amazon Web Services

  • Endurance International Group

  • 1&1 IONOS Inc.

  • Liquid Web, LLC

  • Google LLC

  • GoDaddy Operating Company, LLC

  • Hetzner Online GmbH

  • Alibaba Cloud

  • Equinix, Inc.

  • WPEngine, Inc.

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