Data Processing and Hosting Service Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Data Processing and Hosting Service Market Analysis
The Data Processing and Hosting Services Market is expected to register a CAGR of over 4.2% over the next five years. The data processing and hosting services market is primarily driven by an increase in the requirement for new servers to keep the data up-to-date and growing demand for hosting and data processing services from small and medium businesses owing to the increasing digital transformation.
- The rapid digital transformation of various end-user industries worldwide as consumers increasingly play online video games, shop online, communicate via online-based messenger services, and stream content online. This trend is expected to increase demand for data processing and hosting services to analyze the increasingly complex, growing volume of collected data for helpful business insights.
- Businesses across emerging markets have increasingly outsourced their IT infrastructure needs, benefiting hosting operators and driving market demand further. In addition, the growing demand from companies such as retail for online presence is causing the condition for hosting services.
- Further, the data value in an organization is significant since it enhances operational excellence and allows for quick access to information. Using additional staffing to handle data processing is expensive for small or large organizations; thus, organizations rapidly outsource data processing services for efficient business insights and outcomes. Such a trend further drives the studied market.
- The significant data analytics deployment also elevated the stakes for successful data preparation from many sources utilizing multiple data analysis techniques, thereby maintaining substantial ROI cleaning, combining, and transforming unstructured data. Though Artificial intelligence (AI) may have familiarized big data, applications such as the internet of things (IoT) are taking it to the next level. The need to analyze large datasets to develop insights and increase internet traffic is increasing the demand for data processing and hosting services.
- The COVID-19 pandemic spurred cloud services adoption across all industries as they rapidly pivoted to support remote work and collaboration. According to Verizon, video game usage during peak hours had shot up by approximately 75% a week after the quarantine was imposed. These surges for entertainment options have left many ISPs globally unable to cope with the increased traffic, directing the need for the market studied.
Data Processing and Hosting Service Market Trends
This section covers the major market trends shaping the Data Processing & Hosting Services Market according to our research experts:
Web Hosting is Gaining Traction Due to Emergence of Cloud-based Platform
- Web hosting services are gaining traction to cater to the rising demand from the client requirement that is suitable as per the selected web hosting service. In addition, the growing cloud services adoption in organizations is also creating opportunities for the web hosting segment over the forecast period.
- The cloud emergence is monumental in modernizing data management and hosting services. It is a cost-effective method for companies to take advantage of modern technology and architecture without the enormous upfront cost of purchasing, installing, and configuring the required hardware, software, and infrastructure.
- Also, the large enterprises were able to adapt to an evolving data-driven marketplace very quickly, with the help of their existing resources and capabilities to manage them very effectively. Further, SMBs worldwide also witness a growing demand for cloud-based hosting services, which is expected to drive the web hosting segment over the forecast period. For instance, according to Digital Ocean, in 2021, 74% of enterprises indicated using cloud hosting/infrastructure services. Moreover, 66% of tech-based SMBs and 44% of traditional SMBs indicated using cloud hosting services.
- The substantial presence of BFSI across the emerging regions of North America, Asia Pacific, and Europe have significantly driven an increased digital services penetration. It generates massive demand for analyzing enormous data generated through multiple data processing techniques, thereby fueling the market demand during the forecast period.
Asia Pacific to Register as the Largest Growth During the Forecast Period
- The Asia-Pacific region is expected to witness significant growth over the forecast period, owing to the region's high percentage of the World Internet Population and rapid shift towards cloud services by large organizations and SMEs. Besides international market vendors like IBM and Amazon setting up in the region, some homegrown giants like Huawei Investment & Holding Company are transforming the IT landscape.
- Further, the growing digitalization in every industry across countries like China, Japan, and India will significantly drive the demand for data processing and hosting services. Due to constantly evolving technology and the relatively low additional cost of most new services, many end-user industries frequently upgrade their existing services and offer new ones to attract or retain customers.
- Strong government backing and substantial private sector investments are boosting the cloud computing industry's growth. The South Korean government deployed cloud computing technologies to improve its e-government services, banking on the country's super-fast internet connectivity and stable LTE availability. It is expected to positively contribute to the market's growth over the forecast period.
- Additionally, the region is expected to witness growth, owing to small and medium organizations' investments. SMEs are investing to increase the adoption of cloud-based and technologically advanced solutions. For instance, according to recent data from the Ministry of Micro, Small, and Medium Enterprises, India includes 50 million MSMEs, making it among the world's largest MSMEs. Given that the government and MSMEs are relying on scalable IT systems and solutions, it is understandable that they shift their processes and sensitive information to the cloud, thus significantly driving the market's growth.
Data Processing and Hosting Service Industry Overview
The Data Processing and Hosting Services Market is moderately competitive and consists of major players such as GoDaddy Operating Company LLC., Bluehost (Endurance International Group), HostGator.com LLC, Hostinger International, Ltd., and Amazon Web Services Inc. Some of the players currently dominate the market in terms of market share. However, with the advancement in hosting solutions across professional services, new players are increasing their market presence, thereby expanding their business footprint across emerging economies.
- November 2022 - Teradata and Vicinity announced a partnership to help companies create a single, available dataset for operational efficiency and diverse and dispersed data for business insight. The combined solution offers increased speed, performance, and deployment flexibility across distances, lowering costs by reducing data management expenses and increasing the efficiency of the world's leading global enterprises across multi-location, multi-cloud and hybrid environments.
- October 2022 - Hostinger launched a next-generation web hosting solution nodes cluster for APIs and helper systems to provide a better performance in a simplified format keeping the cost low and making the solution available for all customers that is resilient to scaling, hardware failure, and maintenance time, reducing the time needed for website response.
Data Processing and Hosting Service Market Leaders
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GoDaddy Operating Company LLC.
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Hostinger International Ltd.
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Teradata Corporation
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IBM Corporation
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Bluehost (Endurance International Group)
*Disclaimer: Major Players sorted in no particular order
Data Processing and Hosting Service Market News
- December 2022 - TetraScience, the Scientific Data Cloud company, announced that Gubbs, a lab optimization, and validation software leader, joined the Tetra Partner Network to increase and enhance data processing throughput with the Tetra Scientific Data Cloud.
- November 2022 - Kinsta, a hosting provider that provides managed WordPress hosting powered by Google Cloud Platform, announced the launch of Application Hosting and Database Hosting. It is adding these two hosting services to its Managed WordPress product ushers in a new era for Kinsta as a Cloud Platform, enabling developers and businesses to run powerful applications, databases, websites, and services more flexibly than ever.
Data Processing and Hosting Service Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.4 Assessment of COVID-19 Impact on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Adoption of Cloud Computing to Accomplish Economies of Scale
5.1.2 Rising Demand for Outsourcing Data Processing Services
5.2 Market Restraints
5.2.1 Lack of Flexibility and Scalability in terms of Hosting Infrastructure
6. MARKET SEGMENTATION
6.1 By Organisation
6.1.1 Large Enterprise
6.1.2 Small & Medium Enterprise (SME)
6.2 By Offering
6.2.1 Data Processing Services
6.2.1.1 Data Entry Services
6.2.1.2 Data Mining Services
6.2.1.3 Data Cleansing and Formatting
6.2.1.4 Data Scanning and Indexing
6.2.2 By Hosting Services
6.2.2.1 Web Hosting
6.2.2.2 Cloud Hosting
6.2.2.3 Shared (Reseller) Hosting
6.2.2.4 Virtual Private Server (VPS) Hosting
6.2.2.5 WordPress Hosting
6.2.2.6 Application Hosting
6.3 By End-user Industry
6.3.1 IT & Telecommunication
6.3.2 BFSI
6.3.3 Retail
6.3.4 Other End-user Industries
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 GoDaddy Operating Company LLC.
7.1.2 Bluehost (Endurance International Group)
7.1.3 HostGator.com LLC
7.1.4 Hostinger International, Ltd.
7.1.5 Amazon Web Services Inc.
7.1.6 SiteGround Hosting Ltd.
7.1.7 A2Hosting
7.1.8 DreamHost LLC.
7.1.9 GreenGeeks.com
7.1.10 IBM Corporation
7.1.11 Teradata Corporation
7.1.12 Hewlett Packard Enterprise Development LP
7.1.13 SAP SE
7.1.14 Oracle Corporation
7.1.15 Alteryx Inc.
7.1.16 Cloudera Inc.
7.1.17 Salesforce.com Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Processing and Hosting Service Industry Segmentation
Data processing includes collecting and manipulating different forms of data to extract meaningful insights. Companies extend their access to a large dataset to gain a competitive edge and deliver critical business insights to their clients. Data processing is done to convert data into a usable and desired form. Hosting services include web hosting, off-site backup, virtual desktops, and cloud services. Hosted services accessed from an external provider take various conditions that may be categorized differently.
The Data Processing and Hosting Services Market are segmented by the organization (large enterprise, small & medium enterprise) offering (data processing services (data entry services, data mining services, data cleansing and formatting, and data scanning and indexing), hosting services (web hosting, cloud hosting, shared (reseller) hosting, virtual private server (VPS) hosting, WordPress hosting, and application hosting)), end-user industry (IT & Telecommunication, BFSI, retail, and other end-user industries), and geography (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa).
The market sizes and forecasts are in terms of value (USD billion) for all the above segments.
| By Organisation | |
| Large Enterprise | |
| Small & Medium Enterprise (SME) |
| By Offering | ||||||||
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| By End-user Industry | |
| IT & Telecommunication | |
| BFSI | |
| Retail | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Data Processing and Hosting Service Market Research FAQs
What is the current Data Processing and Hosting Services Market size?
The Data Processing and Hosting Services Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)
Who are the key players in Data Processing and Hosting Services Market?
GoDaddy Operating Company LLC., Hostinger International Ltd., Teradata Corporation, IBM Corporation and Bluehost (Endurance International Group) are the major companies operating in the Data Processing and Hosting Services Market.
Which is the fastest growing region in Data Processing and Hosting Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Processing and Hosting Services Market?
In 2024, the North America accounts for the largest market share in Data Processing and Hosting Services Market.
What years does this Data Processing and Hosting Services Market cover?
The report covers the Data Processing and Hosting Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Processing and Hosting Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Data Processing and Web Hosting Services Industry Report
Statistics for the 2023 Data Processing and Web Hosting Services market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Data Processing and Web Hosting Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Data Processing and Web Hosting Services Market Report Snapshots
