Web Hosting Services Market Size was valued at USD 85.9 billion in 2021. The web hosting services market industry is projected to grow from USD 99.9 Billion in 2022 to USD 287.49 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 16.3% during the forecast period (2022 - 2030). Key factors that are driving the web hosting services market growth include growing number of startups, increasing internet penetration and increasing web-traffic worldwide.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Rapid growth of cloud technology to propel market growth
Cloud-based technology offers integration of services and solutions, which helps websites to work efficiently. This is boosting the adoption of cloud in web hosting services. Cloud-based services offer scalable pricing options, such as pay-as-you-use or the subscription model. It is convenient for expanding businesses to upgrade the package as per the changing traffic on the website. This is expected to drive the growth rate of the market share.
Further, small & medium businesses are also witnessing a growing demand for cloud-based web services. Thus, recognizing the lucrative business opportunities, several companies are entering into strategic acquisitions and collaborations. In June 2020, Liquid Web, LLC acquired Microsoft Windows CMS hosting provider Server Side. With this acquisition, the company aims to provide cloud hosting services to small and medium businesses.
With the growing demand for the integration of advanced technologies by enterprises and to keep their own storage space, the demand for cloud services is likely to surge. Moreover, cloud hosting services offer a disaster recovery solution for clients to increase website operational safety. Therefore, the trend of cloud adoption in the market will grow in the coming years. For instance, in February 2020, Clearlake Capital Group L.P. acquired Endurance international group and strategic investment transaction with Siris and Web.com. Further, the company has launched Newfold digital a web presence solution that serves about 6.7 customers globally and will help small and medium businesses to establish themselves.
The web hosting services market segmentation, based on type, includes website builder, dedicated hosting, and collocated hosting. The website builder segment held the majority share in 2021 contribution to around ~65-67% in respect to the web hosting services market revenue. The shared cloud offers capabilities of shifting to partial-cloud with on-site applications and ease of data migration. With high scalability and accessibility, hybrid hosting offers full control and security of the website. This is likely to drive the demand for hybrid hosting services.
Moreover, the dedicated hosting is likely to gain rapid growth during the forecast period as it offers flexibility in customizing the server. This helps in upgrading requirements as the business grows in the future. Further, the complete administrative control offered to the customer in dedicated hosting is driving its demand.
The web hosting services market segmentation, based on application, includes public website, mobile application, intranet site, and online application. The public website segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030 owing to the increasing number of small and medium enterprises. The rapidly growing competition among SMEs is driving the demand for online websites to expand their business presence.
Moreover, the online application is expected to gain rapid growth during the forecast period. The growing adoption of online and cloud-based gaming is driving the demand for online applications.
The web hosting services market data has been bifurcated by deployment into public, private, and hybrid. The public cloud segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The public cloud offers various subscription options along with high flexibility. The increasing business operations and growth opportunities for enterprises are driving the demand for the public cloud.
Moreover, the hybrid cloud is expected to gain traction during the forecast period owing to the increasing availability of platform-based services. For instance, the rapidly increasing e-commerce platforms are expected to drive hybrid cloud demand to maintain business websites and servers.
Based on connectivity, the web hosting services industry has been segmented into Fiber, MPLS, and ethernet. MPLS held the largest segment share in 2021. The infrastructure can be located at the hosting provider’s facility and managed by the service provider. Enterprises that have a large legacy system and an already deployed infrastructure opt for the managed hosting type. These enterprises leverage their infrastructure to the managed service providers, and the service providers offer the essential hosting services to the enterprises.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American web hosting services market is anticipated to expand at a significant CAGR during the study period, accounting for USD 36.85 billion in 2021. The high business competition in the region is boosting business focus on maintaining an online presence. The growing adoption of smartphones and social media is increasing the demand for dedicated websites for businesses. This is surging the demand for web hosting services. Further, advancements in cloud technology are driving the regional market growth. The U.S. is amongst the top web hosting countries due to the presence of various key service providers in the country.
Moreover, the major countries covered in the market report include the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, India, Japan, Australia, China, South Korea, and Brazil.
The European web hosting services market is the world's second-largest. The growing governmental support for businesses in improving internet connectivity, infrastructure, digitalization, and IT outsourcing is likely to drive market expansion. For instance, with the increasing growth opportunities in Finland, in May 2020, Google Cloud announced an investment of USD 670 million for building a cloud data center. This is expected to drive the European web hosting market. Further, the German web hosting services market held the largest market share, and the France web hosting services market was the fastest-growing market in the European region.
The Asia Pacific web hosting services market is expected to grow at the fastest rate of CAGR during the forecast period due to the increasing shift of businesses toward online platforms. The governments of Singapore, South Korea, India, Australia, and China are focusing on expanding small and medium enterprises to boost job opportunities. For instance, in 2019, China announced a special investment of USD 894 million for SMEs. Similarly, in 2020, it announced an investment of USD 140 million for developing start-ups in the country. This is expected to drive market growth in the region. Moreover, China’s web hosting services market held the largest market share, and the Indian web hosting services market was the fastest-growing market in the Asia-Pacific region.
The prominent market players, such as GoDaddy Inc., Amazon, Inc., Alibaba, AT&T Inc., Google Inc., Cloudflare, and DreamHost, among others, are focusing on business expansion through the adoption of cloud technology. The companies are heavily investing in integrating advanced technologies such as the cloud, artificial intelligence, and machine learning. Through acquisitions, these players are expected to gain expertise in the market and are likely to achieve a vast loyal customer base. The companies are not aiming only to share house knowledge, domain management, local infrastructure, and gain more clients, but they are also concentrating on providing more value-added services to the client.
Cloudflare, Inc. is an American content delivery network and DDoS mitigation company, founded in 2009. It primarily acts as a reverse proxy between a website's visitor and the Cloudflare customer's hosting provider. Its headquarters are in San Francisco, California. In November 2020, Cloudflare announced the launch of Cloudflare Pages, its own cloud-based hosting services. Integrating the company’s latest product JAMstack, the services are expected to offer quicker and more collaborative ways of building a website.
Liquid Web is a leader in Managed Hosting solutions for mission critical sites & apps. In September 2020, Liquid Web LLC, launched managed cloud servers offering that helps enterprises to deploy high demand applications and websites easily and quickly to cloud environment. Further, this helps enterprises to increase consistency and agility low operating cost to grow their businesses.
AT &T Inc
Endurance International Group
Google Inc
Equinix Inc
Easyhost
1&1 IONOS Inc
December 2020: Amazon Web Services announced a hosting deal with Twitter to improve its application performance and services. To provide Twitter timelines and to increase computing capacity, the company is likely to use AWS cloud infrastructure.
February 2020: GoDaddy Inc announced the acquisition of Uniregistry's Registrar, Marketplace & Portfolio to provide domain purchasers with end-to-end solutions. Further, the company acquired a domain portfolio of up to 350,000.
June 2020: Liquid Web LLC acquired ServerSlide to support Liquid Web’s VMware cloud hosting capabilities for SMB’s. Further, ServerSlide will add content management solution to Liquid Web’s portfolio, it will also boost the company’s entrance into Sitecore Hosting market and Sitefinity Kentico.
November 2019: A key player in the web hosting services domain, Endurance International Group was acquired by Clearlake Capital Group in the United States. The company gained 5 million clients of Endurance through the purchase of the company for USD 3 billion.
Website Builder
Dedicated Hosting
Collocated Hosting
Public Website
Mobile Application
Intranet Site
Online Application
Public
Private
Hybrid
Fiber
MPLS
Ethernet
| Attribute/Metric | Details |
| Market Size 2021 | USD 85.9 billion |
| Market Size 2022 | USD 99.9 billion |
| Market Size 2030 | USD 287.49 billion |
| Compound Annual Growth Rate (CAGR) | 16.3% (2022-2030) |
| Base Year | 2021 |
| Market Forecast Period | 2022-2030 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, Connectivity, Deployment, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Amazon Web Services Inc, AT &T Inc, GoDaddy Inc, Endurance International Group, Google Inc, Combell NV, Equinix Inc, Easyhost, 1&1 IONOS Inc |
| Key Market Opportunities | Opportunities presented by web hosting platforms |
| Key Market Dynamics | Adoption of advanced technologies by SMEs |
Frequently Asked Questions (FAQ) :
The web hosting services market size was valued at USD 85.9 Billion in 2021.
The market is projected to grow at a CAGR of 16.3% during the forecast period, 2022-2030.
In 2022, North America had the largest revenue share of the market.
The key players in the market are Amazon Web Services Inc, AT &T Inc, GoDaddy Inc, Endurance International Group, Google Inc, Combell NV, Equinix Inc, Easyhost, and 1&1 IONOS Inc.
The website builder category dominated the market in 2021.
In 2021, the public website had the largest market share.
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