Virtual Private Server Market Outlook 2031
The global virtual private server market size was valued at USD 2.13 Billion in 2022 and is estimated to reach USD 7.67 Billion by 2031, expanding at a CAGR of 15.3% during the forecast period, 2023-2031. Data security is a big tension for businesses in the modern internet era.
To secure enterprise data, numerous businesses have begun to use virtual private servers for their IT operations. Virtual private servers provide the capabilities of a dedicated server while running on a shared hosting architecture. The user has more control over their environment with a virtual private server than with traditional hosting servers.
Furthermore, numerous VPSs are deployed on a single powerful dedicated server and run independently. VPS has several advantages over shared hosting, including the availability of low-cost virtual private servers, better flexibility, scalability, and more control over virtual servers. As virtualization spreads, SME's are embracing both private and public cloud services to improve their business processes.
Virtual Private Server Market Trends, Drivers, Restraints, and Opportunities
- Current virtual private server market trends include an increase in the need to minimize overall hardware requirements in data center architecture and an increase in enterprise security concerns, which are some of the causes driving the virtual private server market.
- Small and medium-sized businesses to show increased interest in VPS offerings which is projected to boost the market.
- The VPS industry is expanding as a result of the advent of trends such as BYOD.
- Growing momentum of digitization of various business verticals in several regions is expected to boost the market.
- VPS growth is hampered by a lack of physical and bandwidth availability. One of the key challenges that the sector faces is a lack of efficiency when compared to dedicate hosting.
- Availability of cost-effective virtual private servers, as well as better customization, scalability, and control with virtual servers over shared hosting, are major growth drivers.
- The integration of AI, machine learning, and containers with virtual private servers, as well as worldwide businesses adoption of cloud-based services, are projected to create immense opportunities for market players.
Scope of Virtual Private Server Market Report
The report on virtual private server market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Virtual Private Server Market - Global Industry Analysis, Size, Share, Growth, Trends And Forecast
Service Types (Fully Managed Services and Self-managed Services), Operating Systems (Windows Operating System and Linux Operating System), Organization Size (Large Enterprises and Small & Medium-sized Enterprises), Applications (Banking, Financial Services, & Insurance Government, Defense, IT & Telecommunication, Manufacturing, Retail, Healthcare, Travel & Hospitality, Media & Entertainment, Education, and Others)
Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
Market scope, Analysis, share, Competitive analysis, Growth facts, Restraints, Opportunities, and Revenue forecast
Key Players Covered in the Report
AWS; United Internet; GoDaddy; Bluehost Vidahost; OVH; Kamatera; Plesk; Rackspace; A2 Hosting Liquid Web; Linode; Vultr; DreamHost; InMotion Hosting; DigitalOcean and TekTonic;
Virtual Private Server Market Segment Insights
Service Type Segment Analysis
In terms of service types, the virtual private server market can be split into fully managed services and self-managed services. The fully managed services segment is projected to hold significant market share.
The managed hosting provider is in charge of VPS server configuration, server security, maintenance, and software updates in managed VPS hosting. A service provider regularly monitors the sites for any malware, vulnerabilities, or strange traffic patterns in order to keep users' websites virus-free.
The need for managed VPS hosting has increased, and it saves time because the client simply needs to focus on the website and online company performance, while the web hosting provider handles all technical concerns.
Operating System Segment Analysis
Based on operating system, the market is bifurcated into windows and Linux. The Linux system segment is projected to hold major market share during the forecast period. If a user wants more control over the things that have been put on the server where the website is housed, Linux VPS is one of the major possibilities.
The multi-tenancy functionality of Linux VPS allows for the easy allotment of resources such as email accounts and disc space. Linux VPS is simple to set up and allows for the deployment of tools and add-ons based on the needs of the user.
Organization Size Segment Analysis
On the basis of organization size, the market is segregated into large companies and small & medium-sized organizations (SMEs). The market share of large companies segment holds the major market share.
However, the SMEs segment is expected to grow at a rapid CAGR in the coming years. Rising awareness of the benefits of VPS and company expansions by global vendors in the SMEs segment is projected to drive the VPS market.
Application Segment Analysis
Based on applications, the virtual private server market can be fragmented into banking, financial services, & insurance government, defense, IT & telecommunication, manufacturing, retail, healthcare, travel and hospitality, media & entertainment, education, and others.
The retail segment is projected to grow at a substantial rate in the coming years, owing to the growing prevalence of e-commerce platforms. The retail business is increasingly embracing digital platforms in order to develop a strong multichannel presence and enhance customer experience.
This increases demand among companies for private web servers with resources allocated to host multiple websites for commercial purposes. To handle the periodic rise in traffic flow on the website, e-commerce platforms frequently demand dynamic scalability of connectivity and other server resources. Hosting service providers allow such flexible resource utilization for e-commerce businesses, leading to significant cost savings on IT infrastructure.
In terms of regions, the market is classified as North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific is projected to provide significant growth opportunities for VPS vendors, as companies and SMEs across industry verticals increasingly utilize VPS services due to their advantages over traditional and physical servers.
The entry of new startups in the region is expected to propel the market. Asia Pacific has always been careful about financial investment plans, so they are turning to the use of low-cost VPS.
- Fully Managed Services
- Self-managed Services
- Large enterprises
- Small and Medium-sized Enterprises
- Banking, Financial Services, & Insurance
- Government & Defense
- IT & Telecommunication
- Healthcare Travel & Hospitality
- Media & Entertainment
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
- United Internet
- Bluehost Vidahost
- A2 Hosting Liquid Web
- InMotion Hosting
Key players in the virtual private server market include AWS; United Internet; GoDaddy; Bluehost Vidahost; OVH; Kamatera; Plesk; Rackspace; A2 Hosting Liquid Web; Linode; Vultr; DreamHost; InMotion Hosting; DigitalOcean and TekTonic; and others.
These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.