Market Scope

The virtual private server market size 2020 could gain a decent CAGR of 15.4% between 2020 and 2027 (evaluation period). The market is performing reasonably well and is expected to touch a valuation of USD 7,181.3 million by 2027, says MRFR. We will provide COVID-19 impact analysis with the report. The COVID-19 impact on the market has been carefully studied, following which the report outlines the key developments post the coronavirus disease outbreak.

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COVID-19 Analysis

SARS-CoV-2 has impacted the worldwide economy by disrupting the balance between supply and demand, making the supply chain weak, and inducing major revenue losses across companies and the finance sector. The novel coronavirus and the resultant lockdown has led to travel bans, closed restaurants; flight cancellations; restrictions on various events; stock market fluctuations; declining business confidence and surge in chaos among people.

Furthermore, after the pandemic outbreak, the cases of data breaching have increased significantly, as hackers are trying to take advantage of the vulnerability of the IT sector. As a result, different sized enterprises are spending massively on better infrastructure to protect the databases that are at risk in the public cloud environment. This situation brought on by the COVID-19 outbreak has caused significant demand for virtual private servers/VPS among enterprises, to enable users to securely and safely deploy application software. Also, the e-commerce sector has been a life saver of sorts for the VPN market, in light of the growing need to run several operations in a secure environment, especially during these uncertain times.

Key Boosters and Main Barriers

Product innovation and new launches remain some of the most favored strategies that the leading vendors employ in order to expand their global presence and also boost their customer base, which also induces market growth. To cite a reference, in June 2020, OVHcloud US launched the latest range of virtual private servers, which boasts of resource configurations that can be customized with various software options as well as add-on features. The VPS line includes different options of advanced Windows and Linux operating systems along with applications such as Docker and WordPress.

Virtual private servers are in great demand among small as well as large enterprises in the wake of escalating concerns with regard to data security and the surge in cyber threat cases. Additionally, the significant expansion of the virtualization field has been a notable growth inducer in the virtual private network market.

Some of the major trends include the increase in share hosting being upgraded to virtual network among several enterprises, which works in favor of the virtual private server industry. The growing use of Windows servers, given its low cost, high processing power, excellent scalability and better flexibility can also boost the market’s growth potential in the coming years.

Market Segmentation

The virtual private server industry can be dissected in terms of service type, component, organization size as well as industry vertical.

The key service types in the market include self-managed services as well as fully managed services.

The market sections, depending on component, are operating systems and servers.

The ranges with respect to the organization size can be narrowed down to small & medium enterprises/SMEs coupled with large enterprises.

The industry verticals studied in the market research are retail and e-commerce, energy and utilities, IT & telecom, healthcare and life sciences, government and defense, banking, financial services and insurance/BFSI, and more.

Regional Outlook

The regional categorization of the VPS market covers North America, Asia Pacific/APAC, South America Europe, and the Middle East and Africa/MEA.

In 2018, the global leader was North America in the market while APAC was anticipated to acquire the highest growth rate between 2020 and 2027. Europe can be the second leading market for VPS over the review period.

The high prevalence of high-end and innovative technologies like Big Data along with fast uptake of the virtualization technology among enterprises ensures North America’s lead in the global market. The massive pool of highly renowned tech giants such as Amazon Web Services, GoDaddy and Rackspace also promotes market expansion in the region.

The APAC market’s dramatic growth in the coming years can be the result of the surge in internet use, escalating consumption rate of smartphones, and the rising penetration of cloud-based services among SMEs and large companies. With the steadily expanding start-up ecosystem in India and China, VPS services are expected to observe significant demand in the following years. In addition, the continuous efforts by government to promote digitalization among industries stimulate the demand for server hosting services.

Leading Market Firms

Leading market firms across the world include Endurance International Group (US), Linode (US), GoDaddy (US), OVH Group (France), A2 Hosting (US), Vultr (US), DreamHost (US), United Internet (UK), DigitalOcean (US), Plesk (Switzerland), InMotion Hosting (US), TekTonic (US), Amazon Web Services (US), Liquid Web (US), Rackspace (US), to mention a few.

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