Virtual Private Server Market is Expected to Reach USD 8.3 Billion by 2026 | Top Players such as-OVH, Rackspace and AWS

Virtual Private Server Market

Virtual Private Server Market

A significant rise in cyber-attacks and a surge in demand for cloud-based security solutions are expected to boost the virtual private servers market.

PORTLAND, PORTLAND, OR, UNITED STATE, March 28, 2023 / -- Allied Market Research published a new report, titled, "Virtual Private Server Market is Expected to Reach USD 8.3 Billion by 2026 | Top Players such as-OVH, Rackspace and AWS." The report offers an extensive analysis of key growth strategies, drivers, opportunities, key segment, Porter’s Five Forces analysis, and competitive landscape. This study is a helpful source of information for market players, investors, VPs, stakeholders, and new entrants to gain thorough understanding of the industry and determine steps to be taken to gain competitive advantage.

The virtual private server market size was valued at USD 2.6 billion in 2018, and is projected to reach USD 8.3 billion by 2026, growing at a CAGR of 16.2% from 2019 to 2026.

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

The global virtual private server market is segmented into type, operating system, organization size, industry vertical, and region. As per type, the market is bifurcated into managed VPS and unmanaged VPS. By operating system, the market is divided into Windows and Linux. On the basis of organization size, the market is segregated into large enterprises and small & medium enterprises. Depending on industry vertical, it is fragmented into IT & telecommunication, retail, BFSI, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

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Based on operating system, the linux segment accounted for more than three-fifths of the global virtual private server market revenue in 2018 and is anticipated to maintain its top status during the study period. Less cost associated with Ubuntu Linux hosting and enhanced in-built security solutions are the major factors fueling the growth. The same segment is also projected to register the fastest CAGR of 16.7% throughout the estimated period.

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.

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Based on geography, North America held the major share in 2018, garnering more than half of the global virtual private server market. This is due to the presence of majority of market players and well-developed manufacturing industries in the region. At the same time, the region across Asia-Pacific would showcase the fastest CAGR of 18.9% by the end of 2026. This is attributed to the growth in government support for virtualized data centers in emerging countries such as China and India.

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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Key Findings of the 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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