Virtual Private Server Market Forecasts to 2028 - Global Analysis By Server (VPS Cloud RAM, VPS Solid State Drives, Cloud VPS and Other Servers), Operating System, Organization Size, Service, End User and By Geography

According to Stratistics MRC, the Global Virtual Private Server Market is accounted for $4,290.77 million in 2022 and is expected to reach $11,199.84 million by 2028 growing at a CAGR of 17.34% during the forecast period. A virtual private server (VPS) is a type of hosting service that uses virtualization technology to allocate specific resources to customers on a single server. It provides a number of advantages such as high dependability, improved privacy, root access to the server and aids in the upgrading of server resources which are more reliable and secure. It assists businesses in safely accessing application software. With the help of the VPS, the end user may install any application software that is appropriate for their operating system on a dedicated or private server. VPS was used in applications such as transportation, healthcare, hospitality, e-commerce, telecommunication, and banking, financial services and insurance (BFSI) sectors worldwide.

According to The Wire news, NordVPN has reportedly stated that it may choose to remove VPN server services from India if it is unable to protect the privacy of its users.

Market Dynamics:

Driver:

Greater storage and reliability

VPS have access to very high levels of storage and bandwidth. This will help to improve both performance and reliability. It can also support very high volumes of server traffic without a glitch. The added space can hold sites with hundreds of blog posts, media-rich multimedia sites, and a lot more. With a VPS, the website uses only the server's resources. All these factors are propelling the market growth.

Restraint:

Technical administration troubles

Setting up a VPS involves a certain amount of work and knowledge. Its applications and services must be manually setup, which might be intimidating for newcomers. They will need to keep a tight eye on the server's administration, which might be challenging for new users. And if consumer need outside help for technical administration and management, it might result in additional costs which are hampering the market growth.

Opportunity:

Higher levels of security

Virtual Private Server is well known for its higher levels of security. It offers the most dedicated hosting services. VPS provides the opportunity to install custom security software, firewalls, and whatever other security features the customer desire to turn their website into a fortress. It helps the enterprises in managing their confidential data. It provides sandbox security without affecting physical server's operation which reduces cyber threats and data breach and therefore fuels the growth of the market.

Threat:

Highly expensive

The main downside of VPS is its financial issues. It is more expensive compared to the shared hosting. VPS server costs are high-priced as they do not require a dedicated server. It costs more than other server solutions since it has faster SSD storage, powerful technology and it is more dependable. The quality and technology of the virtualization system employed might make it more expensive as well. All these aspects are hindering the growth of the market.

COVID-19 Impact

The COVID-19 affected each and every business globally by disrupting the demand and supply chain. Many of the hosting providers faced sales dip because of the pandemic impact on hosting industry. But it has seen a significant impact due to rise in the number of people playing online games, increased demand for streaming services, rise in online shopping, and various other minor factors. People have spent more time online, consuming more content which increased the server traffic since the beginning of the lockdown.

The managed services segment is expected to be the largest during the forecast period

The managed services segment is estimated to have a lucrative growth, due to its most secure options. The data, software and operating system are isolated from other instances since each VPS instance is a distinct, independent and virtualized environment comparable to a dedicated server. It improves dependability and stability compared to shared hosting. Maintenance services like updating the core, software installation, backup, security will be look after the service provider itself which are driving the market share.

The linux segment is expected to have the highest CAGR during the forecast period

The linux segment is anticipated to witness the fastest CAGR growth during the forecast period, due to its less maintenance and service cost. Due to the surge in need for safe operating systems across most businesses, the majority of corporations are choosing linux-based VPS solutions. It is quite easy to install. It provides multi occupancy features and the user has good control over things which is driving the market growth.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to more cyber risks and large market competitors. The robust adoption and penetration by large industries are attributing huge share. The rising concentration of VPS in the IT and telecommunications industries and growing internet infrastructure are anticipated to boost the growth of the virtual private server market in the region.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the increased governmental backing for virtualized data centres. Many small and medium-sized businesses from various industrial sectors in this region are favouring virtual private server services due to advantages over conventional and physical servers. Moreover, the market for VPS in the area would develop even more due to the emergence of several start-ups in this industry.

Key players in the market

Some of the key players profiled in the Virtual Private Server Market include: DreamHost LLC, Amazon Web Services Inc, IBM, Endurance International Group, GoDaddy Operating Company LLC, Kamatera Inc, United Internet AG, TekTonic, Rackspace US Inc, InMotion Hosting, Savari Technologies Pvt Ltd, Liquid Web, OVH, A2 HOSTING, Namecheap Inc, DigitalOcean Inc, Plesk International GmbH, Hostwinds, Just Host and Linode LLC.

Key Developments:

In November 2022, Cloud service provider Amazon Web Services, Inc. has launched AWS Asia Pacific (Hyderabad) Region, its second such facility to augment services to customers in India. It will be investing an estimated $4.4 billion by 2030 in the country which will include capital expenditure on construction of data centres, operational expenses related to ongoing utilities and facility costs, and purchases of goods and services from regional businesses. The new region is also expected to support more than 48,000 full-time jobs annually at external businesses during this period.

In September 2022, IBM acquired Dialexa, a leading U.S. digital product engineering services firm, to help companies drive innovation and achieve their digital growth agendas. The acquisition is expected to deepen IBM's product engineering expertise and provide end-to-end digital transformation services for clients.

In February 2022, IBM announced key developments to help clients accelerate transformation with a series of new capabilities designed to modernize applications across hybrid cloud environments. These include plans to deliver IBM Z as-a-service on IBM Cloud for development and test, as well as additional tools for developing hybrid applications.

Servers Covered:

• VPS Cloud RAM
• VPS Solid State Drives (SSD)
• Cloud VPS
• Other Servers

Operating Systems Covered:

• Linux
• Windows
• Other Operating Systems

Organization Sizes Covered:

• Small Enterprises
• Medium Enterprises
• Large Enterprises
• Other Organization Sizes

Services Covered:

• Managed Services
• Unmanaged Services
• Self Managed Services
• Other Services

End Users Covered:

• Banking, Financial Services & Insurance (BFSI)
• Retail
• Government
• Manufacturing
• E-Commerce
• Healthcare & Life Sciences
• IT & Telecommunications
• Energy & Utilities
• Defence
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances