According to a new market report published by Transparency Market Research, the global virtual private server market was valued at US$ 1,104.2 Mnin 2016 and is projected to expand at a compound annual growth rate of 15.4% from 2018 to 2026, reaching US$ 4,453.7 Mn by the end of the forecast period. According to the report, North America was the largest contributor in terms of revenue to the virtual private server market in 2016. This is primarily due to strong technological advancement and substantial application of virtual private servers by several end-users such as BFSI and IT & telecom across the region.
Growing security concerns among enterprises driving the global virtual private server market
There is a considerable increase in the number of data breaches which needs to be avoided. VPS provides guaranteed dedicated resources such as RAM, CPU, bandwidth, and storage which is increasing its adoption among enterprises. Continuous spending by enterprises of all sizes on secured web hosting is the major factor which is expected to fuel the growth of the virtual private server market across the globe. Furthermore, rising adoption of virtualization which allows one server to be divided into multiple virtual servers is expected to boost the virtual private server market.
Apart from this, the growth of the market is mainly driven by the growing adoption of VPS over traditional web hosting. This is due to its various benefits such as shared cost of services and complete OS access. Furthermore, VPS hosting has fewer sites per server. These sites share cost of running on the server that results in lower monthly or yearly charge as compared to dedicated hosting. VPS hosting is expected to grow prominently for websites that need to tackle high web traffic and cannot endure small downtimes due to business purposes, for instance e-commerce sites.
Furthermore, increasing adoption of Windows based servers is expected to offer significant opportunities to vendors present in the virtual private server market.
The global market for virtual private server has been segmented on the basis of operating system, enterprise size, end-users, and geographic regions. Based on operating system, the market is segmented into Linux and Windows. Linux is expected to hold prominent share in the VPS market. In terms of enterprise size, the market is segmented into small & medium enterprises, and large enterprises. Small and medium enterprises are expected to grow significantly due to the rising demand for storage by SMEs. In terms of end-users, the market has been segmented into IT & telecommunication, BFSI, retail, medical & healthcare, manufacturing, government, and others. IT & telecom is expected to hold the major share due to high data traffic and huge databases in the industry which require scalable hosting.
Based on geography, the global virtual private server market has been segmented into North America, Asia Pacific, Europe, South America, and Middle East & Africa. Among these regions, the market for virtual private servers in North America is anticipated to hold dominant position throughout the forecast period. Asia Pacific and Europe are expected to contribute substantial market share during the forecast period. Furthermore, the Asia Pacific virtual private server market is anticipated to expand at a prominent growth rate. Increasing data center services in the region is expected to boost the market growth during the forecast period.
Virtual private server providers are expanding their product portfolio through mergers and acquisitions which is providing them a larger customer base.The global virtual private server market includes different players such as Amazon Web Services, Inc., DreamHost, LLC, Endurance Group, GoDaddy Operating Company, LLC, Kamatera, Inc., OVH, Rackspace US, Inc., Savari Technologies Pvt. Ltd (MediaStroke), TekTonic, and United Internet AG.