Need for Cost Effective Servers to boost the demand for Virtual Private Server Market

The virtual private server market worldwide is expected to grow with a CAGR of 16% during the forecast period from 2023 to 2030, starting from US$ 3.06 Bn in 2021. VPS is also known as virtual dedicated servers act as virtual machines and the user is accountable for managing and monitoring the server. Increase in need among enterprises for a higher control over server rather than using shared servers is driving the need of VPS private servers. The demand for VPS private servers will be backed by the benefits it offers. These servers are cost effective, offer greater customization, scalability and more control over the servers. Thus, we expect that the virtual private server market will show significant growth throughout the forecast period.

Small and Medium Enterprises Segment will continue its Dominance

The virtual private server market by organization size is segmented into small and medium enterprises and large enterprises. Small and medium enterprises segment is expected to register the fastest growth at a CAGR of 20% during the forecast period. The growth for VPS market is backed by the demand from the increasing numbers of startups, which cannot afford huge costs on servers and thus depend upon VPS providers to manage their data at a lower cost. The virtual private server providers have identified the need of the customers. They provide them a value addition without involving a huge investment in the hardware. As a result, we expect that small and medium enterprises will continue its dominance in the virtual private server market throughout the forecast period from 2023- 2030.

Asia Pacific to register the fastest growth

Asia Pacific is expected to grow at a significant pace during the forecast year. Backed by increase in adoption of VPS services due to various advantages offered over traditional and physical servers. Further, the flourishing startup ecosystem is expected to drive the virtual private server market. The growing economies of China, Japan and India shall support the virtual private server market and as the enterprises in this region look forward to low cost and affordable servers. Therefore, we expect that Asia-Pacific will grow at the fastest pace during the forecast period in the virtual private server market.

Some of the prominent players operating in the virtual private server market are Amazon Web Services,Inc., A2 Hosting, DigitalOcean, Inc., DreamHost, LLC, Endurance International Group, GoDaddy Operating Company LLC, Hostwinds, LLC, InMotion Hosting, Linode, LLC, Liquid Web, OVH, Plesk International GmbH, Rackspace Inc, Savari Technologies, United Internet AG, TekTonic, Vultr Holdings Corporation, Hostinger International, Ltd., Just Host, Inc., and Namecheap, Inc. among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Virtual Private Server market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Virtual Private Server market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Virtual Private Server market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Virtual Private Server market?
• Which is the largest regional market for Virtual Private Server market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Virtual Private Server market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Virtual Private Server market worldwide?