Global Web Hosting Services Market to Reach $152.7 Billion by 2026

Web hosting is a kind of service in which companies acting as web hosts provide individuals and companies the means to make their websites available in the World Wide Web. Websites are almost a sacrosanct need in the emerging on-demand era and have become the new battleground for companies to stay competitive and increase revenues. Key factors driving the on-demand era include growing consumer demand for higher levels of customization of products and services, and rising preference for prompt and rapid delivery of services. The on-demand economy, where goods and services are immediately provisioned, is creating a paradigm change in consumer behavior. The Internet, supported by the cloud, is additionally influencing this change by offering convenience, speed and instant gratification. Anytime, anywhere access to messaging, email and media is generating consumer demand for immediate entitlement. Until the emergence of the pandemic digital services were only optional for retailers but ecommerce is now common. Over the coming years, there would be drastic decline in the number of department stores in developed countries and ecommerce would grow significantly. Against this backdrop, demand for web technologies including website design and architecture, is growing as companies scramble to expand and strengthen their online presence.

Amid the COVID-19 crisis, the global market for Web Hosting Services estimated at US$71.1 Billion in the year 2020, is projected to reach a revised size of US$152.7 Billion by 2026, growing at a CAGR of 13.2% over the analysis period. Shared Hosting, one of the segments analyzed in the report, is projected to grow at a 15% CAGR to reach US$72.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Dedicated Hosting segment is readjusted to a revised 11.1% CAGR for the next 7-year period. This segment currently accounts for a 25.5% share of the global Web Hosting Services market. In a shared hosting environment, a website is located on the same server as other websites. Some shared servers host up to several thousands of websites. In this hosting type, the domain names share a number of resources including CPU, and RAM. Since cost of shared hosting is relatively low, this type of hosting is ideal for websites experiencing moderate flow of traffic and running on standard software. A Dedicated hosting service ensures maximum control of the server a website is hosted on since each server is rented by a single user. However, dedicated hosting in expensive and therefore is ideal for large businesses with high traffic websites.

The U.S. Market is Estimated at $30 Billion in 2021, While China is Forecast to Reach $16.9 Billion by 2026

The Web Hosting Services market in the U.S. is estimated at US$30 Billion in the year 2021. The country currently accounts for a 37.35% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$16.9 Billion in the year 2026 trailing a CAGR of 15.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 10.9% and 11.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.9% CAGR while Rest of European market (as defined in the study) will reach US$19.1 Billion by the end of the analysis period.

Collected Hosting Segment to Reach $20.7 Billion by 2026

In the global Collected Hosting segment, USA, Canada, Japan, China and Europe will drive the 11.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$8.5 Billion in the year 2020 will reach a projected size of US$18.3 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.5 Billion by the year 2026.We bring years of research experience to this 17th edition of our report. The 293-page report presents concise insights into how the pandemic has impacted production and the buy side for 2020 and 2021. A short-term phased recovery by key geography is also addressed.