A virtual private server consists of virtualization software that partitions physical servers into multiple virtual servers. These virtual machines are capable of running independent operating systems. They are widely used for hosting web services. A VPS service is provided by service providers through an internet hosting software.
Moreover, owing to its ability to host an independent operating systems, VPS services enable users to install and execute any software, as these users have superuser-level access to that OS interface. This facility provides end users with substantial control over system configuration and authorizes the user for all administration operations. A virtual private server (VPS) exists on servers and allows installation of other software that are unsupported or not allowed on shared hosting accounts. Tw- types of VPS are available in the market, which include managed VPS and unmanaged VPS. Among these, the unmanaged VPS is widely used by users that have command-line interface knowledge and perform system administration tasks at a high level.
Rise in cyber threats & cyber-attacks in data centers across the globe has boosted the demand for VPS, which acts as a key driver of the global virtual private server market. This is attributed to the capability of VPS server that provides sandbox security features. In addition, an increase in adoption of cloud computing has proliferated the deployment of VPS severs at a significant rate, owing to its virtualization feature that replicates similarity of security and performance of VPS services. This factor is expected to augment the growth of the global market during the forecast period. On a contrary, limitations on availability of physical resource and bandwidth is a major restraining factor, which is anticipated to hamper the market growth to a certain extent. However, convergence of technologies such as artificial intelligence and machine learning algorithms with VPS solutions is expected to create significant revenue growth opportunities for players operating in the global market.
The global virtual private server market is segmented into type, operating system, organization size, industry vertical, and region. On the basis of type, the market is bifurcated into managed VPS and unmanaged VPS. By operating system, it is divided into Windows and Linux. As per organization size, it is classified into large enterprises and small & medium enterprises. Depending on industry vertical, it is segregated into IT & telecommunication, retail, BFSI, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report includes the profiles of key players operating in the market analysis. These 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.
KEY BENEFITS FOR STAKEHOLDERS
KEY MARKET SEGMENTS
By TYPE
By OPERATING SYSTEM
By ORGANIZATION SIZE
By INDUSTRY VERTICAL
By Region
North America
Europe
Asia-Pacific
LAMEA
KEY MARKET PLAYERS PROFILED IN THE REPORT
Moreover, owing to its ability to host an independent operating systems, VPS services enable users to install and execute any software, as these users have superuser-level access to that OS interface. This facility provides end users with substantial control over system configuration and authorizes the user for all administration operations. A virtual private server (VPS) exists on servers and allows installation of other software that are unsupported or not allowed on shared hosting accounts. Tw- types of VPS are available in the market, which include managed VPS and unmanaged VPS. Among these, the unmanaged VPS is widely used by users that have command-line interface knowledge and perform system administration tasks at a high level.
Rise in cyber threats & cyber-attacks in data centers across the globe has boosted the demand for VPS, which acts as a key driver of the global virtual private server market. This is attributed to the capability of VPS server that provides sandbox security features. In addition, an increase in adoption of cloud computing has proliferated the deployment of VPS severs at a significant rate, owing to its virtualization feature that replicates similarity of security and performance of VPS services. This factor is expected to augment the growth of the global market during the forecast period. On a contrary, limitations on availability of physical resource and bandwidth is a major restraining factor, which is anticipated to hamper the market growth to a certain extent. However, convergence of technologies such as artificial intelligence and machine learning algorithms with VPS solutions is expected to create significant revenue growth opportunities for players operating in the global market.
The global virtual private server market is segmented into type, operating system, organization size, industry vertical, and region. On the basis of type, the market is bifurcated into managed VPS and unmanaged VPS. By operating system, it is divided into Windows and Linux. As per organization size, it is classified into large enterprises and small & medium enterprises. Depending on industry vertical, it is segregated into IT & telecommunication, retail, BFSI, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report includes the profiles of key players operating in the market analysis. These 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.
KEY BENEFITS FOR STAKEHOLDERS
- The report provides an in-depth analysis of the global virtual private server market trends, key driving factors, and potential areas for product investments.
- Key players are analyzed with respect to their primary offerings, recent investments, and future development strategies.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the virtual private server industry.
- The quantitative analysis of the global virtual private server market share from 2018 to 2026 is provided to determine the market potential.
KEY MARKET SEGMENTS
By TYPE
- Managed VPS
- Unmanaged VPS
By OPERATING SYSTEM
- Windows
- Linux
By ORGANIZATION SIZE
- Large Enterprises
- Small & Medium Enterprises
By INDUSTRY VERTICAL
- IT & Telecommunication
- Retail
- BFSI
- Manufacturing
- Healthcare
- Others
By Region
North America
- U.S.
- Canada
Europe
- Germany
- France
- UK
- Rest of Europe
Asia-Pacific
- Japan
- China
- India
- Rest of Asia-Pacific
LAMEA
- Latin America
- Middle East
- Africa
KEY MARKET PLAYERS PROFILED IN THE REPORT
- Amazon Web Services, Inc.
- DreamHost, LLC
- Endurance International Group
- GoDaddy Operating Company, LLC
- IBM
- InMotion Hosting
- Liquid Web
- OVH
- Rackspace US, Inc.
- United Internet AG
Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Overview
Chapter 4: Global Virtual Private Server Market, By Type
Chapter 5: Global Smart Space Market, By Operating System
Chapter 6: Global Virtual Private Server Market, By Organization Size
Chapter 7: Global Virtual Private Server Market, By Industry Vertical
Chapter 8: Global Virtual Private Server Market, By Region
Chapter 9: Competitive Landscape
Executive Summary
According to the report titled, 'Virtual Private Server Market by Type, Operating System, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026,' the global virtual private server market was valued at $2.6 billion in 2018, and is projected to reach $8.3 billion by 2026, growing at a CAGR of 16.2% from 2019 to 2026.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.
Depending on operating system, the Linux segment is expected to garner major virtual private server market share revenue during the forecast period, owing to increase in demand for secure operating systems by majority of enterprises.
On the basis of 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.
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 Findings of the Virtual Private Server 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.
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.
Companies Mentioned
- Amazon Web Services Inc.
- DreamHost LLC
- Endurance International Group
- GoDaddy Operating Company LLC
- IBM
- InMotion Hosting
- Liquid Web
- OVH
- Rackspace US Inc.
- United Internet AG
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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