The global virtual private server market 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.
Major industry players – DreamHost, LLC, Endurance International Group, Amazon Web Services, Inc., GoDaddy Operating Company, LLC, IBM, United Internet AG, InMotion Hosting, Liquid Web, OVH, and Rackspace US, Inc.
Surge in security concerns among organizations, improved customization, scalability, and downtime, increase in adoption of cloud-based services among enterprises, and reduction in overall hardware requirement in data centers fuel the growth of the global virtual private server market. On the other hand, limited physical resources & bandwidth availability, and inadequate efficiency compared to dedicated hosting restrain the growth to some extent. Nevertheless, the integration of Machine learning and AI with VPS is projected to pave the way for an array of opportunities in the future.
The global virtual private server market is analyzed across type, operating system, organization size, industry vertical, and region. On the basis of type, the managed VPS segment accounted for more than four-fifths of the total market share in 2018 and is anticipated to lead the trail from 2019 to 2026. The same segment would also exhibit the fastest CAGR of 16.5% by 2026.
On the basis of the operating system, the linux segment garnered more than three-fifths of the total market revenue in 2018 and is expected to dominate during the forecast period. The same segment would also cite the fastest CAGR of 16.7% throughout the estimated period.
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Based on geography, North America held the highest share in 2018, generating more than half of the global virtual private server market. Simultaneously, the market across Asia-Pacific would register the fastest CAGR of 18.9% by 2026.
Covid-19 scenario-
- The outbreak of the pandemic led to decrease in the production of the virtual private server machines that enable users to attach or detach hardware components as per the needs and business size.
- However, the market is projected to recoup soon with the relaxations imposed on the existing rules & regulations and the mass rollout of vaccinations in several countries across the world
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