Global Virtual Private Server (VPS) Market Research Report: by Service Type (Fully Managed, Self-Managed), by Component [Operating System, Servers (Cloud VPS, VPS SSD)], Organization Size (SME), by Industry Vertical (BFSI), and Region (North America and Asia-Pacific)—Forecast till 2024

Market Highlights

According to MRFR analysis, the global VPS market was valued at USD 2,773.6 million in 2018 and it is expected to reach USD 7,181.3 million, growing at a CAGR of 15.0% during the forecast period. The market growth is attributed to the growth in the adoption of virtualization technology across industry verticals, increasing need for curbing IT expenses over infrastructure, and the growing demand for secured accessibility of web hosting applications. However, the availability of shared hosting, dedicated hosting, and cloud servers are likely to limit the growth of the global VPS market during the assessment period.

The global VPS market has been segmented based on component, service type, organization size, industry verticals, and region.

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Segments

By component, the global VPS market has been divided into servers and operating system. The server segment has been categorized as VPS solid state drives (SSD), VPS cloud RAM, and cloud VPS. The cloud VPS segment expected to have the highest market share and is projected to register the highest CAGR during the forecast period. The market growth is attributed to the rising adoption of cloud-based solutions as they provide the scalability in managing the database. The operating system segment has further been categorized into Windows, Linux, and others. The Windows segment is expected to be leading the market whereas the Linux segment is projected to be the fastest growing segment during the forecast period. The growth of the Linux operating segment is attributed to its convenience of installation and easy accessibility of the tools.

Based on service type, the VPS market has been segmented into fully managed and self managed services. The fully managed services segment is expected to account for the larger market share in 2018, whereas the self -managed service segment is expected to exhibit the higher CAGR during the forecast period owing to the ease of accessibility in the deployment of customization tools and secured environment offered by the self-managed services.

Based on organization size, the VPS market has been segmented into large enterprises and small and medium-sized enterprises (SME). The large enterprises segment accounted for the larger market in 2018 whereas the SMEs are expected to register a high CAGR. The market growth for large enterprises is attributed to monetary capabilities to adopt the cloud-based VPS solutions to gain better visibility in operating the hosting services. However, the small enterprises are likely to exhibit the fastest growth rate during the forecast period. The market growth is attributed to the increase in adoption of web hosting solution that reduces the additional financial constraints on the infrastructure expenses.

By vertical, the global VPS Market has been divided into banking, financial services and insurance (BFSI), healthcare and life sciences, telecom and IT, government and defense, retail and e-commerce, energy and utilities, and others. The retail and e-commerce vertical segment accounted for the largest market share in 2018; it is expected to dominate the market during the forecast period, owing to the growth of e-commerce platforms such as Amazon.com, Flipkart, and Alibaba. Whereas, the telecom and IT segment is expected to register the highest CAGR during the assessment period.

Regional Analysis

By region, the global VPS market has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. North America accounted for the largest market in 2018 owing to the presence of tech giants in the US. Moreover, Asia-Pacific is expected to be the fastest-growing VPS Market over the next few years. The market growth is attibuted to the high investments by vendors in emerging economies such as China and India, as the enterprises and SMEs across industry verticals are now adopting VPS services. Also, the VPS services offer numerous advantages over traditional and physical servers that allows SMEs and startups to adopt VPS services across Asia-Pacific.

Key Players

The key players in the global VPS market are DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Amazon Web Services (US), United Internet (UK),Liquid Web (US), Linode (US), DreamHost (US), InMotion Hosting (US), TekTonic (US), GoDaddy (US), Endurance International Group (US), Vultr (US), and OVH Group (France).

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