logo

Virtual Private Server Market Size (2024 - 2029)

The virtual private server market is poised for significant growth, driven by its cost-effectiveness, enhanced customization, and scalability compared to shared hosting. Increasing cybersecurity concerns and the demand for cloud-based security solutions are key factors contributing to the market's expansion. The integration of machine learning and artificial intelligence, along with the adoption of cloud services by global organizations, presents further opportunities for market growth. Emerging trends such as bring your own device (BYOD) and the increased reliance on personal devices for business productivity are also expected to boost the market. However, challenges such as limited resource availability and efficiency compared to other hosting options may restrain growth. The market's expansion is further accelerated by the rise in online usage and cyber threats, particularly during the COVID-19 pandemic.

Home Market Analysis Technology, Media and Telecom Research Information Technology Research IT Hardware Research Computer Hardware Research Virtual Private Server Market Market Size

Market Size of Virtual Private Server Industry

Virtual Private Server Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 17.10 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Virtual Private Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Virtual Private Server (VPS) Market Analysis

The virtual private server market is expected to register a CAGR of 17.1% over the forecast period.

  • Major growth drivers for the market include several advantages associated with the virtual private server (VPS), such as the availability of the cost-effective virtual private server, growing insecurity concerns among enterprises, enhanced customization, scalability, and downtime, and more control with virtual servers than shared hosting.
  • A significant rise in cyber-attacks and a surge in demand for cloud-based security solutions are expected to boost the virtual private servers market over the forecast period. Moreover, integrating machine learning (ML) and artificial intelligence (AI) with VPS and adopting cloud-based services among global organizations is expected to provide growth opportunities for VPS providers.
  • According to US-based Ixia, 90% of IT professionals are concerned about their data and application security in the cloud. VPSs are the best solution to increase mobility for small to mid-size businesses embracing private and public cloud services to transform their business processes. According to Acronis International GmbH, 67% of small business proprietors and 81% of medium business proprietors assume that technology solutions assist them in running their businesses better or that technology solutions help them significantly improve business outcomes.
  • Also, the VPS market has a significant growth opportunity due to emerging trends such as bring your own device (BYOD). VPS hosting, the concept of BYOD, and cloud computing combined have become more useful means of conducting business. According to a survey conducted by IBM Corporation, 82% of respondents expect smartphones to play a 'critical role in business productivity in the next two years, and 36% of those surveyed deemed laptops vital to overall productivity. Moreover, according to Cisco, 95% of organizations allow personal devices in some way in the workplace, and the other 5% are probably high-security oriented.
  • However, limited availability and efficiency compared to shared hosting, dedicated hosting, and cloud servers, along with limited physical resource and bandwidth availability, could be major factors that could significantly restrain the overall market's growth.
  • With several nations in lockdown due to COVID-19, and people working (and learning) from home, online usage grew significantly. Akamai witnessed a 20% rise in daily distributed denial of service (DDoS) attacks between February and March, and Nokia measured a 40% rise. Hence, the market is expected to rise exponentially during the forecast period.

Virtual Private Server (VPS) Industry Segmentation

A VPS-or virtual private server-is a virtual machine that provides virtualized server resources on a physical server that is shared with other users. With VPS hosting, you get dedicated server space with a reserved amount of resources, offering greater control and customization than shared hosting.

The virtual private server market is segmented by operating system (Windows, Linux, and other operating systems), organization size (small and medium-sized enterprises (SMEs) and large enterprises), end-user vertical (iIT& communication, BFSI, retail, healthcare, and other end-user verticals), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.

By Operating System
Windows
Linux
Other Operating Systems
By Organization Size
Small and Medium-Sized Enterprises (SMEs)
Large Enterprises
By End-user Vertical
IT & Communication
BFSI
Retail
Healthcare
Other End-user Verticals
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
Need A Different Region Or Segment?
Customize Now

Virtual Private Server Market Size Summary

The virtual private server (VPS) market is poised for significant growth, driven by the increasing demand for cost-effective and secure hosting solutions. The market is benefiting from the rising concerns over cybersecurity, which have prompted enterprises to seek more secure alternatives to shared hosting. VPS offers enhanced customization, scalability, and control, making it an attractive option for businesses looking to improve their IT infrastructure. The integration of machine learning and artificial intelligence with VPS, along with the adoption of cloud-based services, is expected to further propel market growth. The trend of bring your own device (BYOD) is also contributing to the market's expansion, as more organizations embrace mobile computing solutions to enhance productivity and flexibility.

The Asia-Pacific region is anticipated to be a key growth area for the VPS market, fueled by the increasing rate of cybercrime and the demand for high-end IT services. SMEs in this region are increasingly adopting VPS solutions to safeguard their business operations from cyber threats. The market is characterized by moderate competition, with numerous major players and startups vying for market share. Companies are expanding their product offerings and client bases through mergers, partnerships, and new service launches. The ongoing digital transformation and the need for robust cybersecurity measures are expected to sustain the market's growth trajectory over the forecast period.

Explore More

Virtual Private Server Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Security Concerns Among Enterprises

      2. 1.2.2 Increased Customization, Scalability, and Downtime

      3. 1.2.3 Greater Control with VPS than Shared Hosting

    3. 1.3 Market Restraints

      1. 1.3.1 Limited Efficiency Compared to Shared Hosting, Dedicated Hosting, and Cloud Servers

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Industry Value Chain Analysis

    6. 1.6 Assessment of Impact of COVID-19 on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Operating System

      1. 2.1.1 Windows

      2. 2.1.2 Linux

      3. 2.1.3 Other Operating Systems

    2. 2.2 By Organization Size

      1. 2.2.1 Small and Medium-Sized Enterprises (SMEs)

      2. 2.2.2 Large Enterprises

    3. 2.3 By End-user Vertical

      1. 2.3.1 IT & Communication

      2. 2.3.2 BFSI

      3. 2.3.3 Retail

      4. 2.3.4 Healthcare

      5. 2.3.5 Other End-user Verticals

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Latin America

      5. 2.4.5 Middle East and Africa

Virtual Private Server Market Size FAQs

The Virtual Private Server Market is projected to register a CAGR of 17.10% during the forecast period (2024-2029)

Amazon Web Services, Inc. , GoDaddy Inc., Rackspace Inc., DigitalOcean, Inc. and Liquid Web, LLC are the major companies operating in the Virtual Private Server Market.

Virtual Private Server Market Report Snapshots

Virtual Private Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)