Virtual Private Server Market by Operating System (Windows and Linux), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, Government and Defense, IT and Telecommunication, Retail, Healthcare), and Region - Global Forecast to 2023

Virtual Private Server Market by Operating System (Windows and Linux), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, Government and Defense, IT and Telecommunication, Retail, Healthcare), and Region - Global Forecast to 2023

Virtual Private Server Market by Operating System (Windows and Linux), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, Government and Defense, IT and Telecommunication, Retail, Healthcare), and Region - Global Forecast to 2023
Courtesy/News Source: marketsandmarkets.com

[99 Pages Report] The global virtual private server market size is expected to grow from USD 2.4 billion in 2018 to USD 5.0 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period. Major growth drivers for the market include several advantages of VPS such as availability of cost-effective virtual private server, provide greater customizations, and scalability and more control with virtual servers than shared hosting. VPS enables organizations avail dedicated servers in the virtual environment. The approach provides enhanced control over servers, agile deployment of virtualized workloads, reduced infrastructure cost, and improved operational efficiency.

With increasing virtualization, Small and Medium Enterprises (SMEs) are embracing both private and public cloud services to transform their business processes. The adoption of cloud services has, in turn, spurred the demand for virtual private server market for hosting and for supporting other critical business functions.

Virtual Private Server Market

The report provides detailed insights into the market by operating system, organization size, vertical, and region.
Linux operating system to be the largest contributor to the virtual private server market growth during the forecast period

Organizations use VPS for their Windows and Linux applications. Linux VPS is one of the best options if a user wants more control over the things that have been installed on the server where the website has been hosted. Linux VPS provides with a multi-tenancy feature, which means allocation of resources, such as email accounts or disk space can be done easily. Linux VPS is easy to install and viable to deploy tools and add-ons as per user’s requirement. Thus, the Linux segment is expected to register higher growth in adoption.
Small and Medium-sized enterprises (SMEs) to show high affinity toward VPS offerings to reduce cost of operations

The virtual private server market has been segmented by organization size into large enterprises and SMEs. Currently, the market share of the large enterprises segment is estimated to be higher; however, the market size of the SMEs is expected to increase at a higher CAGR in the coming years. The growing awareness of the benefits of VPS and the business expansions by global vendors in the SMEs segment are expected to be driving factors for the growth of VPS market.

Virtual Private Server Market

Asia Pacific (APAC) to account for the largest market size during the forecast period

APAC is expected to offer significant growth opportunities for VPS vendors during the forecast period, as enterprises and SMEs across industry verticals are now adopting VPS services owing to its numerous advantages over traditional and physical servers. Additionally, the emergence of many startups within the virtual private server market across APAC is expected to drive the market here. China, Japan, and India have significant potential for the global VPS vendors, because of the availability of significant proportion of end-user verticals, favorable economic conditions by extending services to these regions, multifold increase in the adoption rate of virtualization environment-based applications, and absence of intense competition for market entrants. The APAC region has always been cautious about investment plans in terms of funding, and hence the enterprises in the region are turning toward the adoption of affordable VPS.

Key Players for Virtual Private Server Market

Major vendors in the global market include AWS (US), United Internet (UK), GoDaddy (US), Endurance International Group (US), OVH (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Liquid Web (US), Linode (US), Vultr (US), DreamHost (US), InMotion Hosting (US), and TekTonic (US).

Rackspace, a leading managed cloud company, was founded in 1998 and is headquartered in Texas, US. It is a global hosting, cloud, and IT services company. Its product portfolio consists of public and private cloud services, network services, storage services, infrastructure and developer tools, and email hosting services. It offers robust support for VMware, AWS, GCP, Microsoft Azure, and OpenStack Cloud. It caters to customers in more than 120 countries. The company has a strong presence in Europe, North America, Latin America, and APAC.

Rackspace provides managed cloud services, managed hosting services, colocation services, application services, professional services, and security and compliance services. The company offers its products and services to more than 300,000 customers. Additionally, it offers IT transformation, application transformation, and database platform services. It maintains healthy partner relations with potential companies, such as HPE, AWS, and Cloud Technology Partners (CTP). It caters to various verticals, including education, finance, healthcare, government, manufacturing, retail, and business services. Please visit 360Quadrants to see the vendor listing of Virtual Private Servers.

Scope of the Report

Report Metric

Details

Market size available for years

2016–2023

Base year considered

2017

Forecast period

2018–2023

Forecast unit

Value (USD)

Segments covered

OS, Organization Size, Verticals, and Region

Geographies covered

North America, Europe, APAC, MEA, and Latin America

Companies covered

AWS (US), United Internet (UK), GoDaddy (US), Endurance International Group (US), OVH (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Liquid Web (US), Linode (US), Vultr (US), DreamHost (US), InMotion Hosting (US), and TekTonic (US)

The research report categorizes the virtual private server market to forecast the revenues and analyze the trends in each of the following subsegments:
By Operating System (OS)

Windows
Linux

By Organization Size

Large enterprises
Small and Medium-sized Enterprises (SMEs)

By Vertical

Banking, Financial Services, and Insurance (BFSI)
Government and Defense
IT and Telecommunication
Manufacturing
Retail
Healthcare
Others (Travel and Hospitality, Media and Entertainment, and Education)

By Region

North America
US
Canada
Europe
UK
Germany
Rest of Europe
Asia Pacific (APAC)
Australia and New Zealand (ANZ)
India
China
Rest of APAC
Middle East and Africa (MEA)
Middle East
Africa
Latin America
Brazil
Mexico
Rest of Latin America

Critical questions the report answers:

Where will all these developments take the industry in the mid to long-term?

What are the upcoming verticals for the virtual private server market?

Which segment provides the most opportunity for growth?

Which are the leading vendors operating in this market?

What are the opportunities for new market entrants?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst