Global VPS Hosting Market Expected to Reach $8.38 Billion by 2026

The global virtual private server (VPS hosting) market is expected to reach $8.38 Billion by 2026, according to Allied Market Research. Surge in security concerns among organizations, improved customization, scalability, and downtime, increase in adoption of cloud-based services among enterprises, and reduction in overall hardware requirement in data centers would fuel the growth of the global virtual private server market.

The global VPS hosting market was estimated at $2.63 billion in 2018 and is expected to hit $8.38 billion by 2026, registering a CAGR of 16.2% from 2019 to 2026. The report by Allied Market Research (AMR) provides an in-depth analysis of the top investment pockets, top winning strategies, drivers & opportunities, market size & estimations, competitive scenario, and wavering market trends.

Although there’s significant growth ahead in the global VPS hosting market, limited physical resource & bandwidth availability, and inadequate efficiency compared to dedicated hosting would restrain the growth to some extent. Nevertheless, integration of machine learning (ML) and artificial intelligence (AI) with VPS hosting is projected to pave the way for an array of new opportunities in the future.

Covid-19 Effects

The outbreak of the pandemic led to decrease in the production of virtual private server machines that enable users to attach or detach hardware components as per the needs and business size.

However, the VPS hosting market is projected to recoup soon with the relaxations imposed on the existing rules and regulations, and the mass rollout of vaccinations in several countries across the world.

Linux Segment

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In this report published by AMR, the global VPS hosting market is analyzed across type, operating system, organization size, industry vertical, and region. On the basis of type, the managed VPS hosting segment accounted for more than four-fifths of the total market share in 2018 and is anticipated to lead the trail from 2019 to 2026. The same segment would also exhibit the fastest CAGR of 16.5% by 2026.

On the basis of operating system, the Linux segment garnered more than three-fifths of the total market revenue in 2018 and is expected to dominate during the forecast period. The same segment would also cite the fastest CAGR of 16.7% throughout the estimated period.

Based on geography, North America held the highest share in 2018, generating more than half of the global virtual private server market. Simultaneously, the market across Asia-Pacific would register the fastest CAGR of 18.9% by 2026.

Key market players analyzed by Allied Market Research in this global VPS hosting market report include DreamHost, Endurance International Group, AWS, GoDaddy, IBM, United Internet, InMotion Hosting, Liquid Web, OVH, and Rackspace US.