Web Hosting Services Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The global web hosting services market value is estimated to grow in the forecast period of 2025-2034 at a CAGR of 12.00%.

Global Web Hosting Services Market Growth

Web hosting service is a type of internet hosting service that permits individuals and organisations to enable their websites to be accessible through the world wide web.

The web hosting services market dynamics and trends are driven by their ability to offer scalable and flexible resource management, improve website performance and reliability, and deliver technical support and security features. These advantages enable businesses to efficiently manage their websites, ensure consistent uptime, and safeguard against cyber threats.

Global Web Hosting Services Market Analysis

The global web hosting services industry growth is driven by the proliferation of mobile computing services as well as the availability of cost-effective data plans. The market is further aided by the several advantages offered by e-commerce platforms, including home delivery and cashback offers, resulting in a rise in consumer shift towards e-commerce platforms from retail stores.

The increasing use of e-commerce platforms is resulting in the use of mobile applications and websites for commercial transactions, thus, further aiding the growth of the web hosting services industry.

Global Web Hosting Services Industry Outlook

According to the China Internet Network Information Center, as of June 2023, China had 3.83 million websites. The number of search engine users rose to 841 million, up by 39.63 million since December 2022, representing 78.0% of all netizens. This increase highlights the growing demand for reliable and scalable web hosting solutions, as more businesses and individuals strive to establish and maintain their online presence, fuelling the need for advanced hosting services.

According to Eurostat, in 2023, 42.5% of European Union businesses utilised cloud computing services, mainly for email, file storage, and office software, marking a 4.2 percentage point increase since 2021. This growing adoption of cloud services boosts web hosting services industry revenue, as businesses seek reliable and scalable hosting solutions to manage their cloud-based applications and data.

According to the Australian Bureau of Statistics, by June 2023, the total number of businesses in Australia rose to 2,589,873, including 2,520,419 small businesses, 64,559 medium-sized businesses, and 4,895 large enterprises. This growth in the number of businesses drives up the web hosting services market revenue, as more companies seek hosting solutions to support their online presence and digital operations.

The number of Department for Promotion of Industry and Internal Trade (DPIIT) recognised startups in India has increased to 117,254 as of 31st December 2023 as reported by the Ministry of Commerce & Industry. Increasing startups and businesses will create the need for reliable and scalable hosting solutions to establish their online presence and support their digital operations.

Providers offer flexible solutions that can easily scale according to business needs, accommodating the growth of the web hosting services market and fluctuating traffic.

• High-quality web hosting ensures reliable uptime, fast loading times, and optimised website performance.
• Comprehensive technical support and robust security features protect against cyber threats and resolve issues promptly.

Pricing models can be complex, with hidden costs or expensive add-ons impacting overall affordability.

• Occasional outages or disruptions can affect website availability and user experience.
• Switching providers can be challenging and costly, potentially leading to vendor dependency.

Increasing demand for digital presence and e-commerce drives market expansion and new opportunities in the web hosting services market.

• Growth in cloud computing presents opportunities for innovative and scalable hosting solutions.
• Advancements in AI and automation can enhance hosting services and attract new customers.

A crowded market with many providers can lead to price wars and reduced profit margins.

• Evolving cyber threats pose risks to data security and require constant updates and protection measures.
• New data protection and privacy regulations can impact operations and increase compliance costs.

Key Players in the Global Web Hosting Services Market and Their Key Initiatives

Alibaba Group Holding Ltd

• Expand its cloud services globally to meet the growing demand of the web hosting services market.
• Introduced eco-friendly data centres.

Amazon.com, Inc.

• Rolled out new security features.
• Introduced new services to boost performance and efficiency.

GoDaddy Inc.

• Expanded its product offerings to include new applications.
• Launched AI-powered tools to enhance website creation to capture the web hosting services market opportunities.

Microsoft Corporation

• Enhanced web hosting services with AI.
• Developed hybrid cloud solutions to cater to diverse customer needs.

Global Web Hosting Services Industry Segmentation

“Global Web Hosting Services Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Website Builder
• Shared Hosting
• Dedicated Hosting

Market Breakup by Deployment Type

• Public Cloud
• Private Cloud
• Hybrid Cloud

Market Breakup by Connectivity Type

• XDSL
• Fibre
• MPLS
• Ethernet
• IP-VPN

Market Breakup by Application

• Public Website
• Mobile Application
• Intranet Site
• Online Application

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Web Hosting Services Market Share

The growth of the web hosting services industry is driven by the advantages of website builders and shared hosting. Website builders provide an easy-to-use design, cost-effective bundled hosting solutions, and fast setup with templates. Shared hosting offers budget-friendly pricing, user-friendly management tools, and managed maintenance and updates, making it ideal for small businesses and newcomers.

Leading Companies in the Web Hosting Services Market

• Alibaba Group Holding Ltd
• Amazon.com, Inc.
• GoDaddy Inc.
• Microsoft Corporation
• Alphabet Inc (Google)