Virtual Private Server Market size, share, trends analysis

The global Virtual Private Server (VPS) market size is expected to grow from USD 2.4 billion in 2018 to USD 5.0 billion by 2023

The global Virtual Private Server (VPS) market size is expected to grow from USD 2.4 billion in 2018 to USD 5.0 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period. Increasing adoption of cloud-based services among global organizations is expected to create growth opportunities for VPS vendors. With increasing virtualization, Small and Medium Enterprises (SMEs) are largely embracing both private and public cloud services to transform their business processes. The adoption of cloud services has, in turn, led to a steady rise in the demand for VPS for hosting and supporting other critical business functions.

The VPS market includes major vendors, such as AWS (US), United Internet (UK), GoDaddy (US), Endurance International Group (US), OVH (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Liquid Web (US), Linode (US), Vultr (US), DreamHost (US), InMotion Hosting (US), and TekTonic (US). These players have embraced various growth strategies to expand their presence and market shares. New product launches and business expansions are significant growth strategies adopted by the major players to grow further in the VPS market.

The Linux operating system segment to grow at a higher CAGR during the forecast period

Organizations use VPS for their Windows and Linux applications. Linux VPS is one of the best options if a user wants more control over the things that have been installed on the server where the website has been hosted. Linux VPS provides with a multi-tenancy feature, which means allocation of resources, such as email accounts or disk space can be done easily. Linux VPS is easy to install, and it is viable to deploy tools and add-ons as per user’s requirement. Thus, the Linux segment is witnessing higher growth in adoption.

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The small and medium-sized enterprises (SMEs) segment to grow at a higher CAGR during the forecast period

The SMEs segment usually faces challenges in terms of IT infrastructure resources. However, these organizations are trying to gain enhanced control over their servers. VPS offers a virtually dedicated server options, which is gaining popularity among SMEs. Thus, the SMEs segment is expected to grow at a higher CAGR during the forecast period.

North America to dominate the VPS market during the forecast period

The global VPS market by region covers 5 major regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. North America is estimated to hold the largest market size in 2018, owing to the presence of several vendors and huge investments in adopting VPS solutions in the region. The VPS market in APAC is expected to grow at the highest CAGR during the forecast period, due to the rapid developments of the required infrastructure and the increasing need to adopt innovative technologies.

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