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VPS Hosting is a rapidly growing industry. In this article, we will present statistics for 2023 and beyond, discuss the latest trends, predictions, and the reasons behind the industry’s surge in sales from users and enterprises.
The Internet plays a significant role in people’s lives today. As the world has shifted towards a more digital future due to the pandemic, there is a greater demand for hosting services. This has led to a global increase in the usage and demand for Internet and hosting services.
What Is VPS Hosting?
VPS, also known as a virtual private server or a virtualized machine, is an environment that aims to replicate a dedicated hosting service in an isolated and shared setting. Simply put, it provides the same capabilities as a dedicated server but in a virtual environment.
One of the main advantages of this type of hosting is that it allows you to host your website and all its files and data on a secure virtual drive. This drive is separated and accessible only to the administrator, ensuring security and privacy. From a security and privacy perspective, this enables you to perform tasks as you would on a dedicated server but at a lower cost and with greater privacy.
Another benefit of VPS hosting is that once you purchase the service from your chosen provider, you immediately gain your own virtual space on the virtual server. Unlike waiting for a team to set up your dedicated server, here you can quickly access all your site files and start using your hosting service without unnecessary delays or expenses.
Most customers who opt for this type of hosting are in the segment that demands a service that closely resembles dedicated hosting but meets the requirements of VPS servers. Another advantage is the high level of customization. As a customer, you can choose the amount of space you need according to your specific website requirements, and you only pay for what you use. Additionally, you have the ability to customize your operating system and everything at the server level, similar to dedicated hosting.
VPS Hosting Statistics
The total worth of the web hosting industry used to be around $70 billion, according to Global Industry Analyst. In this industry, reports show that a growingly higher number of users are in demand for setting up VPS Hosting services.
VPS Hosting is a rapidly-growing market. Although VPS favours larger websites and small businesses first, it keeps finding more and more customers in the general public worldwide.
VPS hosting is expected to reach USD 8.3 billion market size by 2026.
Experts from GrandViewResearch have made a forecast about the hosting market. According to their research the Compound Annual Growth Rate (CAGR) of the hosting industry will be 15.5% until the year of 2027.
VPS Hosting Statistics by Market Share
When a deeper examination of the market share of this particular type of hosting in comparison to others, a quick establishment has been conducted that VPS hosting is expected to expand with a rapid rate compared to how the whole market is growing. Managed Virtual Private Server is the most widely-used form of VPS and as such has a CAGR of 16.5%.
Currently, the Shared web hosting segment had a 37.64% share of the market. Dedicated hosting is with 27.9% market shares, followed by Collocated hosting with 27.9%, Reseller with 13.6%, and VPS with 10.3%. VPS will be the fastest growing in the next 3 years:
Data Centers Consumption Statistics
Data centers consume about 1% of the world’s electricity.
As VPS Hosting derives physically from data centers, it is important to review them. The year 2017 saw a peak of roughly 8.6 million data centers, while numbers in 2023 decrease. Here is how the percentage by country looks like in terms of how data centers are spread across the world:
As the Internet expands with more domains bought from customers, logically more data centers are needed. However, the maintenance of the data centers is costly and requires a lot of energy. This has a negative impact on the environment.
Many Data Centers still use Hydrofluorocarbons, including R-134a and R-410A for cooling.
They should use CO2 or other, greener solutions, instead. More eco-friendly renewable energy sources for data centers are on the verge of being built. This is only a part of the solution, but also, data centers are being used in a more smart way, decreasing their actual number.
That is due mainly to the migration of smaller, in-house centers to data centers operated by bigger hosting providers.
The carbon footprint of the Internet accounts for 3.7% of global greenhouse emissions.
Gaining renewable energy certificates (REC) or carbon offset certificates (VER) are key into decreasing this footprint and making the services more eco-friendly.
VPS Hosting Companies Statistics
Currently, there are some hosting companies that take up a significant share of the VPS market. The Global Market share for VPS Hosting is lead by GoDaddy, taking up about 23.33% of this specific market. DreamHost is second with a huge difference, having only 1,46% of this market.
However, recent data discoveries show that it appears as if customer satisfaction may differ among popular hosting companies in an overall statistics research we performed.
If compared based on a research we have made about 363 hosting companies concerning customer satisfaction data, taken from TrustPilot and HostAdvice, which was gathered by hth.guide, based on the star-rating mechanism and information extracted from multiple credible sources, the following groups among companies were formed as a result:
- Group 1 with given customer score from 4.1 to 5.0 (highest): 77 companies.
- Group 2 with given customer score from 3.1 to 4.0: 148 companies.
- Group 3 with given customer score from 2.1 to 3.0: 96 companies.
- Group 4 with given customer score from 1.1 to 2.0: 30 companies.
- Group 5 with given customer score from 1.0 to 0.1: 12 companies.
Graph-wise, these statistics suggest the highest number of customers being decently satisfied with an average score between 3.1 and 4.0. When the results of the analysis conducted were ranked, here is how they would compare to one another:
As clearly visible from the chart beneath, the groups with the most average score 2 and 3 amount up to 148 and 96 companies respectfully. They are closely followed by 77 companies, which were rated the highest customer satisfaction score of 4.1 to 5.0. These companies were the following:
HostArmada, ChemiCloud, Krystal Hosting, 20i, EUKHost, FastComet, MissHosting, StableHost ScalaHosting, TMDHosting, ProHoster.gr, InterServer, A2 Hosting, SmarterASP.net, LWS, Eco Web Hosting, HostWinds VidaHost, 5 Quid Host, DreamHost, 123-reg, TheBeastHosting, GreenGeeks, Contabo, Netsons, Daily.co.uk, Hosthavoc Dataflame, Liquid Web, Zap Hosting, Hostinger, GreenGeeks, TSOHost, MochaHost, Sered, Hostens, KaliWeb, , Unlimited Hosting UK, Midphase, Free Web Hosting Zimbabwe, Digital Pacific, Shinjuru, Flaunt 7, Ultahost, Gandinet Hosting UK Net, Inmotion Hosting, NameCheap, Ionos, HostPapa, GoDaddy, DeinServerHost, Kinsta, AbeloHost EasySpace, UK2.net, Host Round, Register.it, Heart Internet, Znet Live, Scala Cube, HostITSmart, WebTropia Names.co.uk, TransIP, Hostever, Hosting24.com, CAISC, Zomro.com, WebGo, Premium RDP, MyGlobalHOST, FSData DomainFactory, Hostmalabar, HostMyCode
When these companies were summed up in a more detailed look of the customer score, the following chart can establish the number of companies that reportedly have earned a maximum customer trust, given if the data provided is mostly objective:
Interesting information can be gathered by this specific research in terms of comparison primarily between companies, existing in the global marketplace in the VPS segment, like GoDaddy and DreamHost, which were mentioned beforehand to take most of the VPS hosting market. It seems that both retain a high score in terms of customer satisfaction with DreamHost leading with a score of 4.7 stars over GoDaddy with 4.4, which occupies a significantly higher percentage of the VPS hosting market.
VPS Hosting – More Statistics & Facts
How Has the Demand for Hosting Changed Since the Covid-19 Pandemic?
Since Covid-19, the demand for Hosting increased, and is expected to reach $152.7 Billion net worth by 2026.
VPS Servers and Edge Computing
Decent VPS servers with Edge computing cost around $40.
VPS is now a faster hosting service, as it now offers Edge computing. Edge computing is where data is stored and computed where it was initially received from a device. This offers more speed and reliability, while the price is amped just a bit more.
Edge computing refers to a distributed IT architecture where data is processed at the network’s periphery, or as close to the source as possible. Shortly said, it brings enterprise applications closer to data sources. The architecture goes well with cloud technologies, too, adding more to the value of VPS services in 2023.
What Improvements Can Edge Computing Bring to VPS Services?
Edge computing can increase the US economy with $500 million on yearly basis.
Edge computing is a decentralized service, reducing latency and increasing app performance. The US economy loses $500 million each year because of slow loading sites.
Did you know that even a one-second delay can reduce conversion rates by as much as 7% across US businesses?
Here are the main reasons as to why VPS (and edge computing, respectively) can help the US economy with improved conversion rates:
- VPS-hosted sites load between 15% and 35% faster than those hosted on Shared plans.
- VPS hardware configurations have from 1 to 32 CPU cores and from 1GB to 128GB RAM.
- SSD-powered VPS servers have been benchmarked to load web pages in under 200ms.
- Edge computing largely increases VPS hosting speeds and it is trending in 2023.
VPS Statistics 2023: Regions, Servers, Market Value, Type, Industry
More than 2,500 companies offer VPS hosting services. Adding to the statistics, Managed VPS services are bought more, rather than cheaper VPS Hosting plans. Companies offer management in addition to user-friendly control panels and point-and-click management tools available for VPS plans.
40% of all websites are in the US, while the Asia-Pacific Region turns to VPS.
North America has some of the World’s biggest data centers. No doubt, the market will keep growing there due to the decrease of private and small data centers.
China is the second country that has the highest number of domains registered after the USA.
In the Asia-Pacific, with giants such as Australia, China, India and Japan, governments turn to Virtualized Data Centers. That will be an important factor for the faster growth of VPS over any other region, according to experts.
60% of all VPS servers run Linux.
Many companies are turning to Linux-based servers which allow them to offer better and more automatic services to their users. The Linux kernel with its KVM-virtualization technology allows for full virtualization which is hardware bound, more flexibility, and added security.
GoDaddy (23.33%) and DreamHost (1.46%) hold the top of the Global VPS market shares.
The overall market value of VPS would be around USD 171.4 billion by 2027.
Here are more facts about Hosting Market shares:
- There are over 340,000 web hosting service providers worldwide, with the United States accounting for over 101 million hosted domains, more than any other country.
- In contrast, despite its population, China has over 22 million registered domains but by 2027 should be in the second spot.
- 40.2% of all websites use Apache hosting servers. Nginx is the second most preferred option at 2.67%. The OS with most users worldwide is Windows Server (11.26%), followed by UNIX at 2.23%.
- Plesk (81.81%) and cPanel (16.8%) are the most popular web hosting panels in the Alexa top 1 million sites. WHMCS comes in third, with a 1% market share.
- The volume of the Internet will grow from 33 zettabytes in 2018 to 175 zettabytes by 2025.
VPS Hosting Statistics by Industry Type
Based on the most recent analysis of the types of industries, conducted by “Alliedmarketresearch.com” (see References after this report) choosing to use VPS hosting, it appears that Healthcare, Bfsi (Banking, financial services and insurance), Retail, IT and Telecommunication and Manufacturing industries all share the leaderboard. This further elaborates the strengthening of the position of VPS Hosting on the more larger scale industries:
Managed VS Unmanaged VPS Hosting Statistics
When we take a look at how Unmanaged VPS hosting (where the Hosting provider does not take care of the VPS and all is left to the customer) and Managed (the opposite of unmanaged), it appears, that compared to previous period of time, both have shown growth in terms of new customers:
As visible from the most recent chart above, the Managed vs Unmanaged VPS services show a significantly higher rate of increase of customers towards the managed VPS.
In a nutshell, VPS will be the fastest growing hosting service since recent years and will have a huge success in the Asia-Pacific region. VPS Hosting is predicted to continue growing at a CAGR of 15.5% until 2027.
List with References used for our research:
- Alliedmarketresearch.com (Report on Virtual Private Server Market)