DUBLIN--(BUSINESS WIRE)--The "Virtual Private Server Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The Virtual Private Server Market is expected to grow at a CAGR of 17.1% over the forecast period 2020 to 2025
Major growth drivers for the market include several advantages of VPS, such as availability of the cost-effective virtual private server, growing insecurity concerns among enterprises, enhanced customization, scalability, and downtime and more control with virtual servers than shared hosting.
- A significant rise in the number of cyber-attacks and a surge in demand for cloud-based security solutions is expected to boost the virtual private servers market over the forecast period, as according to US-based Ixia, 90% of IT professionals are concerned about their data and application security in the cloud.
- Virtual private servers are the best solution to increase mobility for small to mid-size businesses which are embracing both private and public cloud services to transform their business processes, as according to Acronis International GmbH, 67% of small business proprietors and 81% of medium business proprietors assume that technology solutions assist them in running their businesses better or that technology solutions help them significantly improve business outcomes.
- There is a growth of the VPS market due to the emergence of trends, such as BYOD. VPS Hosting, the concept of BYOD, and cloud computing combined becomes more useful means of conducting business, as according to a survey conducted by IBM Corporation, 82% of respondents expect smartphones to play a "critical role in business productivity in the next two years, and 36% of those surveyed deemed laptops vital to overall productivity.
- Moreover, according to Cisco, 95% of organizations allow personal devices in some way in the workplace, and the other 5% are probably high-security oriented. Apperian, Inc. says 53% of enterprises indicate mobility improves business processes and productivity. According to Syntonic Inc., 87% of companies are dependent to some extent on their employee's ability to access mobile business apps from their smartphones.
- The Linux segment is expected to be the major revenue contributor throughout the forecast period, owing to an increase in demand for secure operating systems by a majority of enterprises. Besides, VPS hosting on Linux costs less maintenance and service than Windows VPS hosting, which is also the primary reason most organizations are opting for Linux-based VPS solutions.
- The virtual private server market's significant challenges are the availability of shared hosting, dedicated hosting, and cloud servers, along with limited physical resource and bandwidth availability, apart from that Integration of Machine Learning, Artificial Intelligence with VPS along with the adoption of cloud-based services among global organizations to provide growth opportunities for VPS providers.
- With several nations in lockdown due to COVID-19 and so many people working (and learning) from home, online usage has grown significantly, but so far, the internet is catching up well. Akamai has witnessed a 20% rise in daily DDoS attacks between February and March, and Nokia measured a 40% rise.
- Verizon saw a 20% boost in web traffic in a week as U.S. users began staying home in March and it's still 27% greater than usual; VPN and VPS usage are higher 49% with employees working from home, video is up by 36% and online gaming by 115%.
Key Market Trends
Small and Medium-sized enterprises (SMEs) to Show Enhanced Association towards VPS Offerings
The VPS market has been segmented by company size into SMEs and large enterprises. The market share of the large enterprise segment is expected to be higher; however, the SMEs' market size is expected to grow at a higher CAGR in the coming years.
- Mobility solution benefits for SMEs include faster analytic reporting, more significant social media presence, better client presentations, SMS marketing response rates are much higher than direct mail, and access to mobile banking.
- Alone, VPS Hosting, and the concept of BYOD offer some real advantages. But when combined, cloud computing and the establishment of BYOD becomes an even more useful means of conducting business in SMEs.
- According to Ingram Micro, 69% of IT decision-makers in the US believe BYOD is good. This figure rises to 88% in some countries. IT decision-makers consider BYOD is a positive move for SMEs.
- The growing awareness of VPS's benefits and the business expansions by global vendors in the SME segment is expected to be driving factors for the growth of the VPS market.
- With progressing virtualization, Small and Medium Enterprises (SMEs) are adopting both private and public cloud services to change their business methods. The selection of cloud services has, in turn, pushed the demand for a virtual private server market for hosting and for assisting additional essential business purposes.
The Virtual Private Server Market is moderately competitive and has many large players present. There are many mergers and partnerships in this market, thereby helping to propel the growth of the market. The market is witnessing an increase in the level of competition from both the start-ups as well as the leading global VSP providers.
Furthermore, the principal firms in the market studied are expanding their addressable markets by growing product portfolio, expanding their client base, and promoting new applications area.
Key Topics Covered:
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Security Concerns Among Enterprises
4.2.2 Increased Customization, Scalability, and Downtime
4.2.3 Greater Control with VPS than Shared Hosting
4.3 Market Restraints
4.3.1 Limited Efficiency Compared to Shared Hosting, Dedicated Hosting, and Cloud Servers
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.5 Industry Value Chain Analysis
4.6 Assessment of Impact of Covid-19 on the Industry
5 MARKET SEGMENTATION
5.1 By Operating System
5.1.3 Other Operating Systems
5.2 By Organization Size
5.2.1 Small and Medium-Sized Enterprises (SMEs)
5.2.2 Large Enterprises
5.3 By End-user Vertical
5.3.1 IT & Communication
5.3.5 Other End-user Verticals
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Amazon Web Services, Inc.
6.1.2 GoDaddy Inc.
6.1.3 Rackspace Inc.
6.1.4 DigitalOcean, Inc.
6.1.5 Liquid Web, LLC
6.1.6 United Internet AG
6.1.7 OVH Group
6.1.8 Endurance International Group
6.1.9 DreamHost, LLC.
6.1.10 Plesk International GmbH
6.1.11 A2 Hosting Inc.
6.1.12 Vultr Holdings Corporation
6.1.13 InMotion Hosting
6.1.14 Linode, LLC
6.1.15 Tektonic Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/5l6y2r