Some analytics say that an increase in the global hosting market is expected to reach the billions. This information confirms various trends in the internet market have been confirmed. But what has caused such a spike in the market, and can these numbers be held as reliable. We think so. According to the report, the services and demand will cause an increase. Here is what you need to know.
The current market
The global market is currently at a $57.46 billion estimation. This number is from 2019 and has increased in 2020. The number continues to increase as of 2020 and is expected to increase up to 15.2% by 2027. For the top-rated web hosting sites, this predicted increase is good news. But it is equally suitable for the low-price web hosting platforms, as some studies have shown that the shared hosting market is quickly gaining traction to rival even the more common cloud-based hosting services.
The current market is high, primarily due to the Covid 19 pandemic. This has caused a bit of concern in the analytical department of the market value. Yet, the predictions are still being reliable due to the mentality behind the spikes. Specifically, business owners see the value in having an online presence. The pandemic caused many owners to scramble for an online presence to keep their business afloat. Now, businesses are seeing the benefits of using domain and web hosting services for a portion of their day-to-day functions. Because of this, it is not expected that the number of sites demanded will decrease as more businesses open up.
The numbers for shared hosting and cloud hosting
Shared hosting is expected to dominate a large portion of the market by 2027. The shared hosting only contributes about a third to the global market currently. However, this gap is expected to close in the next few years. Mainly this is because the SME prefers this hosting. SMEs receive lower traffic to the site, so there is no need for the extra cost and space that higher domain and web hosting services offer. Shared domain and web hosting services are cheaper, giving the user more funds for functionality. Per predictions, the hosting is expected to have the fastest CAGR (compound annual growth rate) at 18%.
The growth of the shared hosting should not be confused with the dominant hosting service growth expected. Public cloud segments are still to be the dominant source in 2027. The market in 2019 accounted for 2/5th of the market. Mainly, consumers like the scalability of public cloud-based hosting. This, coupled with the flexible pricing and the market's high performance, gives numbers an expected 17.2 growth from 2020 to 2027.
The key players in hosting growth
As the demand has been abundant, the major hosting players have seen the demand and acted accordingly. New features and services have sparked a demand for hosting sites to offer backups, uploading, data encryption, updating, and CMS management. Because of this, those hosting sites which have already been established have thrived and are expected to continue to do so for the foreseeable future. The companies which have the most impact upon the hosting industry include:
- Google Inc
- Amazon Web services
- AT&T Inc
- Dreamhost Inc.
- GoDaddy
It is clear why these have such an impact on the hosting community. Apple and AT&T work together, so the iPhones and other mobile devices put out by the company are catered to that platform. Amazon has dominated the online shopping industry and, therefore, is interested in hosting and providing a means for people to sell their products online. Godaddy and Dreamhost cater to those who wish to have their sites, whether e-commerce or personal use. As these two have been some of the top-rated web hostings for some time, their interest in the market's growth is understandable.
Global growth expected
Growth within the hosting market is not just intended for the U.S. Because of the overall surge in online users in 2020. It is expected that markets across the globe will increase. The CAGR is expected to meet a 19.2% forecasted high in the Asia Pacific. Again this is due to the SMEs (small and medium-sized enterprises). As more businesses flock to find domain and web hosting services, the markets will continue to do well.
Look for shared hosting and other hosting sites to become more abundant between now and 2027. While these numbers may seem some fluctuate, little will cause them to decrease. Those investing in such markets should keep an eye on the trends within web hosting and the demand to leverage themselves for the growth to come correctly.
Monday, November 22, 2021