Virtual Private Server Market

Global Virtual Private Server Market Size (2023 - 2028):

The global virtual private servers market size is foreseen to progress from $4.17 billion in 2022 to $9.0 billion by 2028, at a compound annual growth rate (CAGR) of 16% over the conjecture period.

A virtual private server (VPS) is a virtual machine (VM) that runs its specific copy of an operating system (OS) located on a computer. Various internet hosting service providers market it as a service. It works autonomously from other virtual spaces that are on the same machine. VPS hosting is preferred by companies wanting to switch from shared hosting due to the need for more resources and control over the website. VPS is also used in data centers because it eliminates the problems of power consumption, cooling and availability.

A virtual private server (VPS) is primarily a server within a larger server. Many web hosting companies offer this popular hosting option to satisfy users who do not want to share all server resources with other websites.

Recent Developments:

• April 2020: GoDaddy Inc. announced the acquisition of Neustar Inc.'s registry business. Financial details of the transaction were not disclosed. The new service will be called GoDaddy Registry. Neustar's registration business spans a broad portfolio of top-level domains, including .biz, .co, .in, .nyc, and .us, and supports more than 215 TLDs and approximately 12 million domains.
• February 2020: Liquid Web, LLC, published about the launch of its Acronis Cyber Backups for dedicated hosting, which offers users with extended capabilities and personalization. By partnering with Acronis, Liquid Web will be able to provide customers with easy-to-use and reliable backup solutions designed to improve recovery time while creating more efficient availability.

Impact of Covid-19 on Virtual Private Server Market:

With several countries stranded due to COVID-19 and so many people working (and learning) from home, online usage has increased dramatically, but so far, the internet is catching up well. Akamai saw a 20% increase in daily DDoS attacks between February and March, and Nokia saw a 40% increase. This is foreseen to create immense growth potential in the virtual private server market.

Market growth and trends:

Small and medium-sized enterprises (SMEs) show a better association with VPS offerings

• The VPS market has been segmented by company size into SMEs and large companies. The market share of the large companies is expected to be higher; however, the SME market size is expected to grow at a higher CAGR in the coming years.
• The benefits of the mobility solution for SMEs include faster analytical reports, greater presence on social networks, better presentations for clients, response rates of SMS marketing are much higher than direct mail and access to services of Mobile banking.
• Only VPS hosting and BYOD offer real benefits. But when combined, cloud computing and BYOD implementation become an even more useful way of doing business in SMEs.
• According to Ingram Micro, 69% of IT decision makers in the United States believe BYOD is good. This figure rises to 88% in some countries. IT decision makers see BYOD as a positive initiative for SMEs.
• The rising end-user awareness of VPS benefits and the expansion of global providers in the SME segment are foreseen to be promoting the expansion of the VPS business.
• With the advancement of virtualization, small and medium enterprises (SMEs) are adopting public and private cloud services to change the way they do business. The choice of cloud services, in turn, has driven demand for a market for virtual private servers for hosting and to help with additional essential business purposes.

Market Drivers and Restraints:

The main drivers for the growth of the global virtual private servers market are the growing concerns about network security and privacy and the growing vulnerabilities of the signalling system in several countries such as United States, India, China, UK, France and Germany. Furthermore, increasing dynamics of digitization of various verticals in various regions is expected to drive the growth of Virtual Private Servers market during the outlook period.

The main drawback in the global virtual private server market is the shortage of preventive IT maintenance in the end-industry verticals. Besides, macroeconomic situations such as currency exchange rates and economic hardship are among the major factors which may hamper the growth of global Virtual Private Servers market.

GLOBAL VIRTUAL PRIVATE SERVER MARKET REPORT COVERAGE:

Global Virtual Private Server Market segmentation:

Global Virtual Private Server By Operating System:

 plays a crucial role in the virtual private server. All virtual private server applications are installed and run in a segmented operating system based operating system virtual private server marketplace. On the basis of operating system, the market is subdivided into Windows, Linux, MacOS and others. Due to the rising call for secured server, the Linux segment is likely to record a CAGR of about 9% throughout the conjecture period.

Global Virtual Private Server By Enterprise Size:

• The Linux segment is expected to be the main contributor to revenue during the forecast period, due to the increased demand for secure operating systems from most companies. Additionally, Linux VPS hosting costs less maintenance and service than Windows VPS hosting, which is also the main reason why most organizations go for Linux based VPS solutions.

• Additionally, the virtual private server market is segmented on the basis of organization type. Segment of the organization type further subdivided into large enterprises and small and medium enterprises. Due to the high rate of adaptation of small and medium enterprises, the small and medium enterprises sub-segment is expected to experience strong market growth during the outlook period.

Global Virtual Private Server By Application:

•  comprises BFSI, Transportation, Healthcare, Hospitality, E-commerce, Telecommunications, Public Sector and other sub-segments. Due to the significant concerns regarding data security, the BFSI sub-segment is expected to be the largest market in the global Virtual Private Servers market during the foreseen period.

Regional Analysis:

North America dominated the global virtual private server market in 2018 and this trend is expected to continue during the conjecture period, owing to the presence of the major market players and the increase in cyber threats in the region. However, the Asia-Pacific region is expected to show the highest growth rate over the forecast period in the Virtual Private Servers market due to increased government support for virtualized data centers.

Key market players:

The main providers in the global virtual private sensors market are AWS (United States), United Internet (United Kingdom), GoDaddy (United States), Endurance International Group (United States), OVH (France), DigitalOcean (United States), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Liquid Web (US), Linode (US), Vultr (US), DreamHost (US), InMotion Hosting (US) and TekTonic (United States).