Virtual Private Server Market Expected to See Sustainable Growth in 2026 – Business

According to a new market study published by Transparency Market Research, the global virtual private server market was valued at US$1,104.2 million in 2016 and is expected to grow at a compound annual growth rate of 15.4% from 2018 to 2026, reaching US$4,453.7 million by the end of the year. forecast period. According to the report, North America was the largest revenue contributor to the virtual private server market in 2016. This is mainly due to strong technological advancements and substantial application of virtual private servers by several users end-users such as BFSI and IT & telecom across the region.

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Rising security concerns among companies driving the global virtual private server market

There is a huge increase in the number of data breaches that need to be prevented. VPS provides guaranteed dedicated resources such as RAM, CPU, bandwidth, and storage, which increases its adoption by businesses. Continued spending by businesses of all sizes on secure web hosting is the major factor expected to fuel the growth of the virtual private server market across the globe. Also, the increasing adoption of virtualization, which allows a server to be divided into multiple virtual servers, is expected to boost the virtual private server market. Apart from this, the market growth is mainly driven by the increasing adoption of VPS over traditional web hosting. This is due to its various advantages such as shared cost of services and full access to the operating system. Additionally, VPS hosting has fewer sites per server. These sites share the costs of running on the server, resulting in lower monthly or annual fees compared to dedicated hosting. VPS hosting is expected to grow significantly for websites that have to deal with high web traffic and cannot sustain small downtimes due to business purposes, for example e-commerce sites.

Additionally, the growing adoption of Windows-based servers is expected to provide significant opportunities for vendors in the virtual private server market.

Virtual Private Server Market: Report Scope

The global virtual private server market has been segmented on the basis of operating system, company size, end users and geographical regions. Based on operating system, the market is segmented into Linux and Windows. Linux is expected to hold a significant share of the VPS market. In terms of enterprise size, the market is segmented into small and medium enterprises and large enterprises. Small and medium businesses are expected to experience significant growth due to the growing demand for storage by SMBs. In terms of end users, the market has been segmented into IT & Telecom, BFSI, Retail, Medical & Healthcare, Manufacturing, Government, and Others. IT and telecommunications are expected to hold the major share due to high data traffic and huge databases in the industry that require scalable hosting.

Based on geography, the global virtual private server market has been segmented into North America, Asia-Pacific, Europe, South America, Middle East & Africa. Among these regions, the North America virtual private server market is expected to hold a dominant position throughout the forecast period. Asia-Pacific and Europe are expected to contribute substantial market share over the forecast period. In addition, the Asia-Pacific virtual private server market is expected to expand at a significant growth rate. Rising data center services in the region are expected to drive the market growth over the forecast period.

Global Virtual Private Server Market: Competitive Dynamics

Virtual private server providers are expanding their product portfolio through mergers and acquisitions, which provides them with a wider customer base. The global virtual private server market includes various players such as Amazon Web Services, Inc., DreamHost, LLC, Endurance Group, GoDaddy Operating Company, LLC, Kamatera, Inc., OVH, Rackspace US, Inc., Savari Technologies Pvt. Ltd (MediaStroke), TekTonic and United Internet AG.

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The virtual private server market has been segmented as follows:

Market Segmentation: Global Virtual Private Server Market

By operating system

By business size

  • Small and medium enterprises
  • Large companies

By end users

  • IT & Telecommunications
  • BFSI
  • Retail
  • Medical & Health
  • Manufacturing
  • Government
  • Others (Transport, Hospitality)

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