Virtual Private Server Market to Garner USD 8.38 Billion | Elevate Your Digital Presence with Cutting-Edge VPS Hosting

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.

As per the report, 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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Enterprises worldwide are grappling with challenges related to the management of their confidential data because of conventional data management practices. Furthermore, the increasing risk of cyber threats and data breaches is driving the demand for various cloud services in enterprises. Additionally, the management of servers relies entirely on the user, making it imperative for enterprises to implement robust security measures. As a result, virtual private servers offer sandbox security without impacting the operation of physical servers. Moreover, virtual private servers enhance security, safeguarding sensitive enterprise data, which is a key factor boosting the adoption of VPS solutions among startups, small enterprises, and large corporations.

Machine learning is a data science technique that empowers computers to utilize existing data for predicting future outcomes, trends, and behaviors. Website owners who rely on big data no longer need to invest in expensive hardware for processing the vast amount of collected information. Instead, virtual private servers enable them to execute complex algorithms without disrupting their website's performance. For example, the SAP machine learning research team has already been collaborating on integrating Amazon Virtual Private Cloud (VPC) infrastructure with machine learning to ensure data privacy. Furthermore, artificial intelligence (AI) can facilitate load balancing solutions, server performance monitoring, and disk control in virtual private servers by leveraging historical data.

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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 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 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.

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Leading Market Players

➢ DreamHost, LLC

➢ GoDaddy Operating Company, LLC

➢ United Internet AG

➢ Amazon Web Services, Inc.

➢ IBM

➢ InMotion Hosting

➢ Liquid Web

➢ OVH

➢ Rackspace US, Inc.

➢ Endurance International Group

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