Today, so many factors influence the web hosting industry, such as advances in technology, innovations, an increase in the number of startups, or even events, such as the outbreak of the coronavirus epidemic, which has further increased the importance of online presence. It’s not easy to keep track of where the industry is right now, but we’ve just tried to collect the important facts.
Basic facts
There are currently about 1.21 billion registered names, but “only” 200 million of them are active. From another perspective, the global web hosting market was $ 102 million in 2020, with various forecasts expected to show an annual growth rate of 15.5-18% between 2021 and 2027, and by 2027 a market value of up to $ 171.4 billion. The experts predict that 75% of all the world (6 billion users) will be online in 2022, this promotes market growth.
Segments and types
In terms of revenue, shared hosting dominates the market, most small and medium-sized companies prefer this type and SMEs are present in large numbers in all regions. Usually, larger companies use dedicated hosting because they need to serve more traffic, and dedicated hosting provides a higher level of security and costs are much higher, which a small business might not be able or willing to pay for. In terms of end-user revenues, the corporate segment is dominant.
Regionally, North America dominates the market, there are here a lot of market leader companies (Google, Amazon, GoDaddy, etc.). In Europe, Germany and the United Kingdom are the best supports to high growth. The chart below shows the TOP3 countries with the most domains along with data.
Other trends
One of the constant trends in the web hosting market is that it is very domestic, the majority of the top 10 hosting providers in the countries are always companies in that country. It won’t change in the future.
Security will continue to play a central role in this industry, with a Gartner report predicting that cybersecurity spending could reach $ 133.7 million in 2022, so companies will continue to provide the most secure services.
More hosting providers invest in new tools and services for their customers because the expectations of customers will increase. More and more people want that one company will manage their website matters, saving time, energy and, in a good case, money.
The most interesting trend is the pursuit of carbon-free data centres, the green revolution is putting a lot of pressure on technology companies to switch to renewable energy sources such as wind or solar energy. In 2017, Google was the first company to take full advantage of renewable energy as well, and by 2030 it had set a goal to be completely carbon-free, with Amazon following them. Running on 24-hour carbon-free sources is difficult, as the energy has to be stored in the local grid to supply the centres with energy. Therefore, companies have built their renewable sources next to their data centres. True, this will only solve part of the problem, in the future, companies will be able to use renewable energy around the clock, it will need more innovation and the collective introduction of more technology.
Sources:
- https://www.grandviewresearch.com/industry-analysis/web-hosting-services-market
- https://financesonline.com/30-essential-web-hosting-statistics-2019-analysis-of-trends-data-and-market-share/
- https://financesonline.com/hosting-trends/
- https://www.hongkiat.com/blog/web-hosting-tech-trends/
Main photo: Photo by Annie Spratt on Unsplash