Market Overview
The web hosting industry has made a revolutionary impact across small and medium enterprises (SMEs) owing to the rapid technological advancements in virtualization. However, the rise in the adoption of virtualization has eventually led to an increased risk of data breaching. Moreover, the enterprises of all sizes invest heavily on additional infrastructure to prevent the databases that can be easily accessed in a public cloud environment. Thus, virtual private servers (VPS) help enterprises to access application software in a secure environment.
Virtual private servers (VPS) work as virtual machines in a way that the end users recognize it as a dedicated/private server, installed on a physical computer that can execute multiple software applications over a single operating system. The VPS is also known as a virtual dedicated server (VDS), or virtual root server (VRS). These are largely adopted by e-commerce websites to run various operations. The VPS includes web server software, a file transfer protocol program, and a mail server program to run various application software. The VPS offers a dedicated or private server to the end user to install any type of application software installed in their operating system. With the emergence of virtualization software, enterprises are offering virtual private server hosting at an affordable cost. The VPS hosting services offered are based on their management and can be either fully managed or self- managed services. Under these services, the user is solely responsible for managing and monitoring the server and able to transfer an unlimited amount of data on a fixed bandwidth line.
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Some of the factors driving the market growth include the adoption of virtualization software, attributes offered by VPS such as reduction in IT expenditure, more customized solutions, enhanced control over servers, agile deployment of virtualized workloads, and improved operational efficiency. However, the availability of shared hosting and dedicated hosting services are expected to limit the growth of the global VPS market during the forecast period.
The global virtual private server market is valued USD 2.525 million and is expected to register a CAGR of 15.4% during the forecast period to reach USD 7,181.3 million by 2024.
Key Players:
Some of the key players in the global Virtual Private Server Market include DreamHost (US), InMotion Hosting (US), TekTonic (US), GoDaddy (US), Endurance International Group (US), OVH Group (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Amazon Web Services (US), United Internet (UK),Liquid Web (US), Linode (US), and Vultr (US).
Segments
By component, the global VPS market has been divided into servers and operating system. The server segment has been categorized as VPS solid state drives (SSD), VPS cloud RAM, and cloud VPS. The cloud VPS segment expected to have the highest market share and is projected to register the highest CAGR during the forecast period. The market growth is attributed to the rising adoption of cloud-based solutions as they provide the scalability in managing the database. The operating system segment has further been categorized into Windows, Linux, and others. The Windows segment is expected to be leading the market whereas the Linux segment is projected to be the fastest growing segment during the forecast period. The growth of the Linux operating segment is attributed to its convenience of installation and easy accessibility of the tools.
Based on service type, the VPS market has been segmented into fully managed and self managed services. The fully managed services segment is expected to account for the larger market share in 2018, whereas the self -managed service segment is expected to exhibit the higher CAGR during the forecast period owing to the ease of accessibility in the deployment of customization tools and secured environment offered by the self-managed services.
Based on organization size, the VPS market has been segmented into large enterprises and small and medium-sized enterprises (SME). The large enterprises segment accounted for the larger market in 2018 whereas the SMEs are expected to register a high CAGR. The market growth for large enterprises is attributed to monetary capabilities to adopt the cloud-based VPS solutions to gain better visibility in operating the hosting services. However, the small enterprises are likely to exhibit the fastest growth rate during the forecast period. The market growth is attributed to the increase in adoption of web hosting solution that reduces the additional financial constraints on the infrastructure expenses.
By vertical, the global VPS Market has been divided into banking, financial services and insurance (BFSI), healthcare and life sciences, telecom and IT, government and defense, retail and e-commerce, energy and utilities, and others. The retail and e-commerce vertical segment accounted for the largest market share in 2018; it is expected to dominate the market during the forecast period, owing to the growth of e-commerce platforms such as Amazon.com, Flipkart, and Alibaba. Whereas, the telecom and IT segment is expected to register the highest CAGR during the assessment period.
Regional Analysis
By region, the global VPS market has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. North America accounted for the largest market in 2018 owing to the presence of tech giants in the US. Moreover, Asia-Pacific is expected to be the fastest-growing VPS Market over the next few years. The market growth is attibuted to the high investments by vendors in emerging economies such as China and India, as the enterprises and SMEs across industry verticals are now adopting VPS services. Also, the VPS services offer numerous advantages over traditional and physical servers that allows SMEs and startups to adopt VPS services across Asia-Pacific.
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TABLE OF CONTENTS
1 Executive Summary
1.1 Market Attractiveness Analysis
1.1.1 Global Virtual Private Server (VPS) Market, By Service Type
1.1.2 Global Virtual Private Server (VPS) Market, By Component
1.1.3 Global Virtual Private Server (VPS) Market, By Organization Size
1.1.4 Global Virtual Private Server (VPS) Market, By Industry Vertical
1.1.5 Virtual Private Server (VPS) Market, By Region
2 Scope Of The Report
2.1 Market Definition
2.2 Scope Of The Study
2.3 Market Structure
3 Market Research Methodology
3.1 Research Process
3.2 Primary Research
3.3 Secondary Research
3.4 Market Size Estimation
3.5 Forecast Model
3.6 List Of Assumptions
Continued…
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