Internet Hosting Services in the US - Industry Market Research Report

Staying Connected: Small- and Mid-Sized Businesses Require More Complex Websites, Boosting Industry Revenue

As the internet becomes ever more a part of the everyday experience, the Internet Hosting Services industry has benefited immensely. Industry operators specialize in providing leased server space and design tools to individuals and organizations. As a result, customers can make scalable, professional websites with minimal code. Industry operators also provide several add-on services, such as selling domain names, email hosting and search engine optimization. Increasing internet penetration and the proliferation of mobile devices have changed the way that consumers discover and transact with businesses, leading to greater demand for industry services from small- and mid-sized businesses (SMBs). As a result, the industry has grown steadily, with revenue expected to grow at a CAGR of 9.0% to $54.4 billion over the five years to 20223, including an anticipated 10.0% increase in 2023 alone, when profit, measured as earnings before interest and taxes, is estimated to comprise 6.0% of revenue. Despite the pandemic, industry revenue increased 8.5% in 2020 as internet usage increased significantly.

This industry provides internet hosting services to third parties. These services most commonly take the form of website hosting, where industry operators provide leased server space and internet connectivity to individuals and organizations to make their websites accessible over the internet. Operators also provide application-specific services, such as email application hosting and game hosting.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.