Virtual Private Server Market to Reach $8.38 Bn, Globally, by 2026, at 16.2% CAGR: Allied Market Research

Increase in security concerns among enterprises, better customization, rise in adoption of cloud-based services among enterprises, and reduction in overall hardware requirement in the data center infrastructure drive the growth of the market

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Allied Market Research

Nov 18, 2019, 08:50 ET

PORTLAND, Oregon, Nov. 18, 2019 /PRNewswire/ -- Allied Market Research published a report, titled, "Virtual Private Server Market by Type (Managed VPS and Unmanaged VPS), Operating System (Windows and Linux), Organization Size (Large Enterprises and Small & Medium Enterprises), and Industry Vertical (IT & Telecommunication, Retail, BFSI, Manufacturing, Healthcare, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026." 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.

Drivers, restraints and opportunities-

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.

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The managed VPS segment to lead the trail till 2026-

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.

The linux segment to rule the roost in terms of revenue-

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.

North America to maintain the lion's share 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.

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Key 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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