Virtual Private Server Market 2020 - SWOT Analysis, Business Overview & Key Market Players | Amazon Web Services Inc., DreamHost LLC, Endurance International Group, GoDaddy Operating Company LLC

The virtual private server market analysis in Asia-Pacific is projected to exhibit highest growth rate during the forecast period, owing to increase in support for virtualized data centers by government in emerging countries such as China and India.

The global virtual private server industry was estimated at $2.63 billion in 2018 and is expected to hit $8.38 billion by 2026, registering a CAGR of 16.2% from 2019 to 2026.

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Rise in security concerns among enterprises, improved customization, scalability, and downtime, surge in adoption of cloud-based services among enterprises, and reduction in overall hardware requirement in the data center infrastructure drive the growth of the virtual private server market. On the other hand, limited physical resource & bandwidth availability, and limited efficiency compared to dedicated hosting curtail down the growth to some extent. However, integration of Machine learning and AI with VPS is expected to create an array of opportunities for the frontrunners in the industry.

Based on operating system, the linux segment accounted for more than three-fifths of the global virtual private server market revenue in 2018 and is anticipated to maintain its top status during the study period. Less cost associated with Ubuntu Linux hosting and enhanced in-built security solutions are the major factors fueling the growth. The same segment is also projected to register the fastest CAGR of 16.7% throughout the estimated period.

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Based on type, the managed VPS segment contributed to more than four-fifths of the global virtual private server market share in 2018 and is expected to retain its dominance throughout 2019–2026. The increasing demand for website monitoring and set-up among majority of organizations has boosted the growth. The same segment would also cite the fastest CAGR of 16.5% by 2026.

Based on geography, North America held the major share in 2018, garnering more than half of the global virtual private server market. This is due to the presence of majority of market players and well-developed manufacturing industries in the region. At the same time, the region across Asia-Pacific would showcase the fastest CAGR of 18.9% by the end of 2026. This is attributed to the growth in government support for virtualized data centers in emerging countries such as China and India.

Pandemic disrupted the entire world and affected many industries.

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Some of the key virtual private server industry players profiled in the report include Amazon Web Services Inc., DreamHost LLC, Endurance International Group, GoDaddy Operating Company LLC, IBM, InMotion Hosting, Liquid Web, OVH, Rackspace US Inc., and United Internet AG.

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Moreover, current virtual private server market trends include, increase in need to reduce the overall hardware requirement in the data center infrastructure and rise in security concerns among enterprises, which are some of the factors driving the virtual private server market growth. To manage online platforms in a cost-effective manner, small & medium and large organizations are shifting their preference toward virtual private servers, which further boosts the market growth. In addition, organizations are largely adopting cloud services to manage the massive volume of web data generated on a daily basis, which is anticipated to provide lucrative opportunities for virtual private server market expansion.

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