Market Scope

A Virtual Private Server (VPS) is a type of web hosting service that allows virtualized server resources to be used by multiple users on a physical server 12. It can be seen as a middle ground between shared hosting and a dedicated server, giving users greater control over their hosting environment while still maintaining affordability. Users on a VPS have their own dedicated operating system, and can install and run software as if they had a dedicated server. VPS hosting is commonly used by web developers and businesses that require more resources and control than what shared hosting can provide. Popular providers of VPS hosting include Digital Ocean, Linode, and Amazon Web Services.

Virtual Private Server (VPS) Market Growth is worth USD 2.525 million and is anticipated to grow at a rate of 14.53 percent over the next five years, reaching USD 7.8 Billion by 2030.

The market growth is attributed to the growth in the adoption of virtualization technology across industry verticals, increasing need for curbing IT expenses over infrastructure, and the growing demand for secured accessibility of web hosting applications. However, the availability of shared hosting, dedicated hosting, and cloud servers are likely to limit the growth of the global VPS market during the assessment period.

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Key Boosters and Main Barriers 

Product innovation and new launches remain some of the most favored strategies that the leading vendors employ in order to expand their global presence and also boost their customer base, which also induces market growth. To cite a reference, in June 2020, OVHcloud US launched the latest range of virtual private servers, which boasts of resource configurations that can be customized with various software options as well as add-on features. The VPS line includes different options of advanced Windows and Linux operating systems along with applications such as Docker and WordPress.

Virtual private servers are in great demand among small as well as large enterprises in the wake of escalating concerns with regard to data security and the surge in cyber threat cases. Additionally, the significant expansion of the virtualization field has been a notable growth inducer in the virtual private network market. 

Some of the major trends include the increase in share hosting being upgraded to virtual network among several enterprises, which works in favor of the virtual private server industry. The growing use of Windows servers, given its low cost, high processing power, excellent scalability and better flexibility can also boost the market’s growth potential in the coming years.

Market Segmentation 

The virtual private server industry can be dissected in terms of service type, component, organization size as well as industry vertical.

The key service types in the market include self-managed services as well as fully managed services. 

The market sections, depending on component, are operating systems and servers. 

The ranges with respect to the organization size can be narrowed down to small & medium enterprises/SMEs coupled with large enterprises.

The industry verticals studied in the market research are retail and e-commerce, energy and utilities, IT & telecom, healthcare and life sciences, government and defense, banking, financial services and insurance/BFSI, and more.

Regional Outlook 

The regional categorization of the VPS market covers North America, Asia Pacific/APAC, South America Europe, and the Middle East and Africa/MEA.

In 2018, the global leader was North America in the market while APAC was anticipated to acquire the highest growth rate between 2020 and 2027. Europe can be the second leading market for VPS over the review period.

The high prevalence of high-end and innovative technologies like Big Data along with fast uptake of the virtualization technology among enterprises ensures North America’s lead in the global market. The massive pool of highly renowned tech giants such as Amazon Web Services, GoDaddy and Rackspace also promotes market expansion in the region.

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The APAC market’s dramatic growth in the coming years can be the result of the surge in internet use, escalating consumption rate of smartphones, and the rising penetration of cloud-based services among SMEs and large companies. With the steadily expanding start-up ecosystem in India and China, VPS services are expected to observe significant demand in the following years. In addition, the continuous efforts by government to promote digitalization among industries stimulate the demand for server hosting services. 

Key Players

The key players in the global VPS market are DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Amazon Web Services (US), United Internet (UK),Liquid Web (US), Linode (US), DreamHost (US), InMotion Hosting (US), TekTonic (US), GoDaddy (US), Endurance International Group (US), Vultr (US), and OVH Group (France).

 Table of Contents

1 Executive Summary

2 Scope of The Report

2.1 Market Definition

2.2 Scope of The Study

2.2.1 Research Objectives

2.2.2 Assumptions & Limitations

2.3 Market Structure

Continued…

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