A virtual private server is a type of server that runs within a server. A virtual private server has its own individual operating system on which it runs. Increasing demands for these servers from small and large enterprises for secured hosting, rising concerns about big data security of enterprises and increasing cyber threats are some of the factors that are expected to drive the growth of the market. Virtual Private Server offers benefits such as complete server operating system access. It is easy to add or remove virtual servers virtualization by adding or removing resources and is helpful in achieving business requirements. These features are anticipated to drive demand for this market.
The market for virtual private servers (VPS) is expected to grow at a rate of 14.53% CAGR to reach USD 7.8 billion by 2030.
However, unavailability of physical servers to operate virtual private servers can hamper adoption and growth of the virtual private server market. In order to create and operate virtual private servers network, highly skilled workforce are required to ensure security, maintenance and updation of the software. Hence, lacked of skilled professionals is another constraint for the market. The virtual private server provides data security, offers customized solutions, improves server control and improves operating efficiency. Two types of VPN are available in the market, which include managed VPS and unmanaged VPS. Unmanaged VPS is widely used by users that have command line interface knowledge.
A virtual private server consists of virtualization software that partitions physical servers into multiple virtual servers. A virtual private server (VPN) exists on servers and allows installation of other software that are unsupported or not allowed on shared hosting accounts. Rise in cyber threats and cyber-attacks in organizations across the globe, has boosted the VPN market. Also, increase in adoption of cloud computing has multiplied the deployment of VPS servers at a significant rate, adding to its virtualization feature that replicates similarity of security of VPS.
These factors are expected to drive the virtual private server market. But the market has constraints like availability of physical resource and bandwidth, and these factors can hamper the growth of the market. Conjunction of technologies such as Artificial Intelligence and Machine Learning algorithms with VPS solutions is expected to create major revenue and growth opportunities for industry players in the market. The Linux Operating System segment represented the highest market size of the Virtual Private Server technology growth industry in 2018. Operating systems play a crucial role in virtual private server. Due to high demand of secure server, the Linux Operation System segment is expected to grow the most. Due to high adaptation rate in small & medium enterprises, they accounted the highest revenue share in this segment.
Penetration of high end technologies such as Big Data and Artificial Intelligence which requires proper secured hosting to avoid data loss is expected to drive revenue from the IT & Telecom segment.
Global Virtual Private Server market is segmented into North America, Europe, APAC, Latin America and the Middle East & Africa. North America has a range of leading industry players supplying all end consumers in the country with Virtual Private Servers. The increasing concerns about security, owing to the utilization of the Internet and personal computers in the private sector, are expected to drive the demand in this region over the coming years. The Asia Pacific region is predicted to grow exceptionally in the Virtual Private Server market. Rapid advancements in the manufacturing sector in countries including India and China, coupled with flourishing retail and IT & telecom sectors, are major growth drivers for the Software Encryption Market in the coming years.
The major players of the global Virtual Private Server market are Amazon Web Services Inc., GoDaddy Inc., Rackspace Inc., DigitalOcean Inc., Liquidweb LLC and others.
Virtual Private Server Market Scope
Metrics | Details |
Base Year | 2023 |
Historic Data | 2018-2022 |
Forecast Period | 2024-2030 |
Study Period | 2018-2030 |
Forecast Unit | Value (USD) |
Revenue forecast in 2030 | USD 7.8 billion |
Growth Rate | CAGR of 14.53% during 2020-2030 |
Segment Covered | By Operating System, Organization Size, End User, Regions |
Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
Key Players Profiled | Amazon Web Services, Inc., A2 HOSTING, DigitalOcean, Inc., IBM, DreamHost, LLC., Endurance International Group., GoDaddy Operating Company LLC., Hostwinds.com, InMotion Hosting, Linode, LLC., Liquid Web, LLC, OVHcloud, Plesk International GmbH., RACKSPACE TECHNOLOGY, Savari Technologies, United Internet AG, TekTonic, Vultr, Hostinger.in, Just Host., Namecheap, Inc., |
Key Segments of the Global Virtual Private Server Market
Operating System Overview, (USD Billion)
- Windows Operating System
- Linux Operating System
Organization Type Overview, (USD Billion)
- Large Enterprises
- Medium Enterprises
- Small Enterprises
End User Overview, (USD Billion)
- BFSI
- Transportation
- IT & Telecom
- Healthcare
- E- Commerce
- Public Sector
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
- Middle East and Africa
- UAE
- South Africa
- Rest of Middle East and Africa
- Latin America
- Brazil
- Mexico
- Rest of Latin America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global Virtual Private Server market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global Virtual Private Server market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the Virtual Private Server industry and their strategic initiatives for the product development
- The study covers a qualitative and quantitative analysis of the market segmented based on Operating System, End User and Organization Size. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global Virtual Private Server market. The report will benefit:
- Every stakeholder is involved in the Virtual Private Server market.
- Managers within the Tech companies looking to publish recent and forecasted statistics about the global Virtual Private Server market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of global Virtual Private Server market.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.