Web Hosting Services Can Expect Healthy Growth Over the Next Five Years
Hosting has become a big business in the past few decades with many businesses going online through hosted services.
10:33 30 October 2020
When choosing a hosting service, it is essential that the businessman chooses the best possible service provider. These reviews for dedicated server hosting offer advice on making the best hosting choice for your business.
A recently published trends and forecast report on the Web hosting services market offers good news for those in the business. Growing Internet use across the globe is set to positively impact the server industry by a massive 15.08% between 2019 and 2026.
The report offers many useful insights for businesses in the industry. These include competitive analysis, challenges and opportunities.
The forecast gives a complete analysis of the global players in the market dividing the globe into five sectors;
- North America
- Asia Pacific
- South America
- The Middle East and Africa
The report offers both volume and revenue forecasts for seven years from the base year of 2018 and looks back at 2017 for reference. Researchers used both primary and secondary evidence as the basis for the report. An Expert validated all the information before publication.
The global web hosting services industry is enormous. In 2019 revenue earned was a cool $56.7 billion. If the forecast is anything to go by, revenue will reach $65.20 billion by 2025.
Defining the Global Web Hosting Industry
Web hosting services provide the servers upon which other businesses can hold their data, making it easily accessible. The host maintains and upgrades the servers to ensure that users enjoy a high level of uptime.
These hosts offer a range of services from private to shared and collocated hosting. Many companies prefer the convenience of hosted services because they don’t have the specialized ve the administration and maintenance of such equipment to the experts.
Growing online commerce and the growth in the number of new businesses that offer analytics and business intelligence is driving industry growth. Covid-19 and the associated social distancing has had an enormous impact on the size of the market. There is also a growing number of small businesses in the world economy all aiming to grow through access to the Internet. Indeed, the Internet is transforming the business world.
Growing Trends in Web Hosting
- Businesses big and small now understand the power of the web and they’re all eager to get their businesses into the Internet. Web hosts offer businesses the technology need to do that, along with the expertise to ensure security and maintain the hardware and software.
- Increased costs of inhouse web design and hosting is driving companies to adopt cloud technologies which reduce the need for maintenance and the cost of operating their own IT departments.
- Increased demand for improved marketing solutions.
- The need for centralised computing and the trend of working from home and moving devices also has an impact on demand.
- IT equipment has a limited lifespan, and most will need replacement within five years. Add to that the speed of technological change and many companies will change their equipment even sooner. This adds to the costs of individually managed servers and often leads companies to transfer to hosted services.
- As companies grow so do their data requirements. Faced with the prospect of scaling their IT operations many companies will consider the efficiency and cost-effective option of hosted servers. Larger servers need more effective cooling systems and use more energy.
- As Internet security becomes a problem, web hosts can offer businesses the protection and security that they need. Artificial Intelligence gives these hosts the ability to track would-be hackers.
- Artificial intelligence also cuts inefficiencies and costs by doing self-scans and website analysis and then self-repairing.
- As companies adopt newer technologies, they often need cloud technologies to operate efficiently. Machine learning technologies and IoT enabled technologies is driving the demand for cloud technologies
- Government’s use of IT technologies to collect and disseminate information through e-portals will lead to a greater demand for servers for the collation and storage of the information so collected.
According to the report, the United States is home to the lion’s share of the web hosting facilities with a revenue share of 30%. The US is not expected to lose its dominant position over the period as investments in large scale cloud servers is expected to grow considerably.
Europe is the second largest market, but it is the Asia Pacific market that will benefit the most from that growth, with 7% annual revenue growth predicted for the period. The growth in this area will be driven by Asia-Pacific’s dominance in smart gadget technologies.
Latin America will experience the second-highest increase in growth.
The last interesting bit of information offered by the report is a forecast that the Average Selling Price of servers will continue to grow as businesses demand top end servers that can support larger workloads.
The webhosting market is evolving quickly and is highly competitive which is why a business competing in this environment must stay abreast of the trends in the industry and continually adapt to changes in the market if they are thrive and grow. Research such serves the market well as it clearly articulates the direction that this market is likely to take. skills to manage servers in-house. The fast pace of technological change and easy obsolescence also attracts businesses to hosted services since they can avoid infrastructure investment.
Managed hosting can reduce IT costs by as much as 30% and 40%. It is also more secure as any hosting company worth its salt would install the best anti-virus and anti-hacking technology to ensure data integrity.
A good host also ensure that files download quickly and that the information is easily accessible and looks good on all digital devices. It is essential that the businessman looking for web hosting carefully checks the credentials of the organization offering these services. Trust in such a partnership is all-important.
Drivers of the growth
Servers provide businesses with access to data and tools to facilitate communication across a network. While many businesses have opted to invest in their own servers, many more prefer to lea