Virtual Private Server Market

Global Virtual Private Server Market Size (2024 to 2032)

The global market for virtual private servers was valued at USD 4.81 billion in 2023. It is projected to grow at a compound annual growth rate (CAGR) of 16%, reaching USD 5.61 billion in 2024 and USD 18.39 billion by 2032.

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 power consumption, cooling, and availability problems. 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 only want to share some server resources with other websites.

MARKET TRENDS

• The VPS market has been segmented by company size into SMEs and large companies. The market share of 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, a greater presence on social networks, better presentations for clients, SMS marketing response rates that are much higher than direct mail, and access to Mobile banking services.
• Only VPS hosting and BYOD offer real benefits. However, when combined, cloud computing and BYOD implementation have become even more useful ways 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

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 signaling system in several countries, such as the United States, India, China, the UK, France, and Germany. Furthermore, increasing digitization dynamics of various verticals in various regions is expected to drive the growth of the Virtual Private Servers market during the outlook period.

MARKET RESTRAINTS

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 that may hamper the growth of the global Virtual Private Server market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Virtual Private Server Market Analysis By Operating System

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

Global Virtual Private Server Market Analysis 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 choose Linux-based VPS solutions.

Additionally, the virtual private server market is segmented on the basis of organization type. Segment of the organization type is 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 Market Analysis By Application

 comprises BFSI, Transportation, Healthcare, Hospitality, E-commerce, Telecommunications, Public Sector, and other subsegments. Due to significant concerns regarding data security, the BFSI subsegment 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,. 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 PLAYERS IN THE GLOBAL VIRTUAL PRIVATE SERVER MARKET

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).

RECENT DEVELOPMENTS IN THE GLOBAL VIRTUAL PRIVATE SERVER MARKET

• In 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.

• In February 2020, Liquid Web, LLC, published about the launch of its Acronis Cyber Backups for dedicated hosting, which offers users 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.

DETAILED SEGMENTATION OF THE GLOBAL VIRTUAL PRIVATE SERVER MARKET INCLUDED IN THIS REPORT

This research report on the global virtual private server market has been segmented and sub-segmented based on the operating system, enterprise size, application, and region.

By Operating System

• Windows 
• Linux          
• MacOS      

By Enterprise Size

• Large Enterprise   
• SMEs         

By Application

• BFSI            
• Transportation      
• Healthcare              
• Hospitality               
• E-Commerce          
• Telecommunications          
• Public Sector          

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa