Virtual Private Server Market Study

Virtual Private Server Market Growing at a CAGR of 16.2% from 2019 to 2026

According to a recent report published by Allied Market Research, titled, "Virtual Private Server Market by Type, Operating System, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global virtual private server market was valued at $2.6 billion in 2018, and is projected to reach $8.3 billion by 2026, growing at a CAGR of 16.2% from 2019 to 2026.

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VPS is an independent server different than user’s hosted website, which can be used for backup environment and disaster recovery. Hence, although the machine gets affected by any threat, it would not harm the website or data. In addition, VPS provides increased resources, power, and complete control to its users, which allow them to manage their websites liberally. Moreover, web hosting services are gaining traction globally, which are, in turn, expected to fuel the demand for virtual private server solutions. In addition, virtual private server hosting is a feasible solution for organizations that want the abilities of a dedicated server but do not have the resources to maintain the server hardware and physical host. Furthermore, virtualization technology incorporated with the private server allows organizations to gain revenue growth opportunities, supports back-of-house logistics, manages category & inventory, and stores data associate with customer and employee on one remote location. Thus, all these factors are expected to create major opportunities for the market growth in forthcoming years.

Moreover, current virtual private server market trends include, increase in need to reduce the overall hardware requirement in the data center infrastructure and rise in security concerns among enterprises, which are some of the factors driving the virtual private server market growth. To manage online platforms in a cost-effective manner, small & medium and large organizations are shifting their preference toward virtual private servers, which further boosts the market growth. In addition, organizations are largely adopting cloud services to manage the massive volume of web data generated on a daily basis, which is anticipated to provide lucrative opportunities for virtual private server market expansion.

Depending on operating system, the Linux segment is expected to garner major virtual private server market share revenue during the forecast period, owing to increase in demand for secure operating systems by majority of enterprises.

On the basis of organization size, the large enterprises segment dominated the overall market in 2018, and is expected to retain its position throughout the virtual private server market forecast period. On the contrary, the small & medium size enterprise segment is expected to exhibit highest growth throughout the forecast period. Increase in need to stay competitive in the global market and limited availability of resources are the key factors boosting the VPS market growth of the SME segment.

North America dominated the overall virtual private server market size in 2018, and is expected to continue this trend in the near future, due to presence of major market players and alarming increase in cyber threats in the region. In addition, presence of majority of data centers is one of the key factors driving the VPS market growth in this region. However, Asia-Pacific is expected to exhibit highest growth rate throughout the forecast period due to increase in support by government for virtualized data centers.

Key Findings of the Virtual Private Server Market :

- Depending on type, the managed VPS segment dominated the overall virtual private server market in 2018, and is expected to generate highest revenue during the forecast period. The growth of this segment is - majorly attributed to increase in the demand for managed VPS systems by majority of enterprises to save time on handling technical issues.
- In terms of industry vertical, the BFSI segment generated the highest in 2018, and is expected to dominate throughout the forecast period. Increase in need to streamline the banking processes and manage strict budgets along with the server costs are the major factors fueling the growth of this segment.

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Some of the key virtual private server industry players profiled in the report include Amazon Web Services Inc., DreamHost LLC, Endurance International Group, GoDaddy Operating Company LLC, IBM, InMotion Hosting, Liquid Web, OVH, Rackspace US Inc., and United Internet AG.

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