Rising security concerns, better customization, cloud adoption, and reduced hardware needs in data centers drive virtual private server market growth.

WILMINGTON, DE, UNITED STATES, November 21, 2024 /EINPresswire.com/ -- Rise in security concerns among enterprises, improved customization, scalability, and downtime, surge in adoption of cloud-based services among enterprises, and reduction in overall hardware requirement in the data center infrastructure drive the growth of the global virtual private server market size.

On the other hand, limited physical resource & bandwidth availability, and limited efficiency compared to dedicated hosting curtail down the growth to some extent. However, the integration of Machine learning and AI with VPS is expected to create an array of opportunities for the frontrunners in the industry.

As per the report, the global virtual private server industry 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.

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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.

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

Based on type, the managed VPS segment contributed to more than four-fifths of the global virtual private server market share in 2018 and is expected to retain its dominance throughout 2019–2026. The increasing demand for website monitoring and set-up among majority of organizations has boosted the growth. The same segment would also cite the fastest CAGR of 16.5% by 2026.

Based on 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.

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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 market players-

DreamHost, LLC
GoDaddy Operating Company, LLC
United Internet AG
Amazon Web Services, Inc.
IBM
InMotion Hosting
Liquid Web
OVH
Rackspace US, Inc.
Endurance International Group

The report focuses on the growth prospects, restraints, and trends of the virtual private server market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global market.

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