Southeast Asia Web Hosting Services Market Size 2017 by Product (Web-Site Builders, Shared Hosting, Dedicated Hosting, Collocation Hosting, VPS Hosting, and Cloud Hosting), By Application (IT & Telecom, BFSI, Aerospace & Defense, Healthcare, Manufacturing, Government & Utilities, Retail, Consumer Electronics and Others), By Organization Size (Small, Medium and Large enterprises), By Countries (Vietnam, Malaysia, Philippines, Indonesia, Singapore, Thailand and Rest of Southeast Asia) and Forecast 2018 to 2025

Web hosting is an internet hosting that enables businesses and individuals to make their online presence in the form of a website, accessible to the public via the internet. A website requires two things to be hosted or to become accessible to everybody i.e. Web space and bandwidth. Website files, HTML codes, images and everything else is stored in web space and in the web hosting industry, bandwidth denotes the amount of data, which can be transferred to and from a server or a website. It is the allocated internet bandwidth, which makes a website manageable and accessible to everybody online. The higher the bandwidth leads to better network services, connection, and system. Bandwidth requirements are directly proportional to the numeral of visitors, visiting the site. More hits on websites mean more bandwidth is required. Southeast Asia web hosting market was valued at USD 1.55 billion in 2017 and is projected to grow at a CAGR of 14.6% during the forecast period.

Dedicated web hosting typically offers an exclusive server along with builds and maintains the server, which further eliminates a business upfront cost. Dedicated web hosting guarantees maximum uptime for the user’s website by providing more stability and reliability. These factors further enhanced performance and security than any other hosting services like shared, VPS. This server has its own unique IP address. This service is mostly preferable by large running e-commerce sites such as Amazon, Alibaba that requires SSL for credit card processing. Dedicated web hosting service market is anticipated to grow at CAGR 14.7% during the forecast year.

Large Enterprise has invested heavily in web hosting services as these services have assisted them to manage their large business in the simplest and efficient way. Large enterprises require to manage huge traffic and web space to manage an extensive database. Due to which they have surged in demand. Thus large enterprise are anticipated to grow at CAGR of 14.1% during the forecast period.

Thailand web hosting market has seen a steady growth rate and is anticipated to grow at a CAGR of 14.4% during the forecast period. Increase in a number of tourist in Thailand has positively impacted the demand for websites in the travel and tourism sector. Owing to which, web hosting service market has surged in demand as they have successfully streamlined travel and tourism, BFSI in Thailand web hosting service market was thus valued at USD 111.7 million in 2017.

1.3.1    Segmental Findings
•    IT & Telecom segment is valued USD 273.7 million in the year 2017 and projected to reach USD 733.6 million in the year 2025, with a growing CAGR of 12.9%. IT & Telecom segment has played a vital role in the development of web hosting service market in Southeast Asia. For instance, ASEAN invested heavily in mobile infrastructure during 2014, which helped the ASEAN community to rank third globally for mobile connectivity. Moreover, the growth of this sector has been extraordinary. According to the ‘We Are Social’ Global Digital Report 2018, the average mobile connectivity in Southeast Asia was 141% as of January 2018, enabling 81% mobile broadband penetration. These figures are higher than global averages (connectivity 112 % mobile broadband 63 %). Moreover, ASEAN mobile subscriptions grew by 2.2 % in 2017, reaching 4 billion. The inclination for multi-SIM ownership is driving further organic growth in IT & Telecom. All these factors have directed this region towards digitalization, which promoted website expansion, and a further rise in the demand for web hosting servers.
•    Large Organization size segment is expected to rise South East Asia Web Hosting Market by USD 2.23 billion in the year 2025 at growing CAGR of 14.1%. Growing urbanization has increased trade and investment due to integration and emerging new business models like e-commerce, travel, and tourism. These factors have shifted the whole traditional method of doing business in a large enterprise into the online platform. Moreover, the online platform has raised the demand for website and servers for expanding customer base and retaining old customers. Therefore to expand the growth of large enterprises, the demand for web hosting services have increased notably for dedicated web services, VPS and cloud hosting services.  
•    Cloud hosting segment is projected to reach USD 1.08 billion in the year 2025 and expected to grow at CAGR of 19.2%. Cloud hosting provides ease of scalability by expanding up the possibility for infrastructure to encompass multiple servers to provide extra capacity. Thereby it reduces and avoids the unexpected traffic surges, hence increasing availability for their customers. Moreover, cloud hosting makes disaster recovery much easier, particularly if the user deploying a multi-server hosting architecture. 

1.4    Countries analysis
Digitalization has offered tremendous opportunities for Southeast Asian Countries, such as the growth of reasonable and economic products and services, opening up possibilities to develop social welfare, and transform numerous sectors (IT & Telecom, Retail, and Healthcare) in the economy. Digital technologies related to automation, connectivity and digital customer interfaces, Big Data, foster innovation and encourage the creation of new businesses. In an individual level, digitalization offers the establishment of large corporates in the Southeast Asia region. The development of corporate and MNCs have supported the growth of both rural and urban households, further reducing income inequality. At the business level, digitization helps in scaling operation, improve innovation and its efficiency, it also supports the value creation and offer new opportunities for revenue diversification. Moreover, digitalization has switched the traditional way of doing business into online businesses. This factor has increased the demand for web hosting services in Southeast Asian countries.
Furthermore, the government of this region has embraced the importance of digitalization, and hence they have started taking initiatives for implementing it. For instance, Thai government has drawn a 20 years strategic digital ambition plan. Their digital vision includes "a transformed country that makes the most of the use of digital technologies in socioeconomic activities", in order to "advance, human capital, innovation, data, infrastructure and other digital resources that will eventually drive the country in the direction of wealth, sustainability and stability ". There is already an improvement in executing the digital vision. This includes the development of digital master plans, implementation of smart city pilots, and ICT infrastructure improvements.
Thailand has witnessed a huge growth in tourism in recent years which has led to the rise of economic and technology development in the country. Tourism has increased the number of travel agency in the country. These companies attract tourist through their website. Hence, this website must be appealing and flexible at the time of high traffic in order to expand the customer base.  Further, to make the website attractive, and traffic free these companies prefer to take assistance from web hosting companies. This factor has increased the market size of web hosting services in Thailand.