Virtual Private Server Market Size (2023 - 2030)

The global virtual private server market size is estimated to be worth USD 3.4 billion in 2022 growing with a CAGR of 16.4% to reach a value of USD 8.1 billion by 2030 during the forecasted period. 

Generally, a server is a computer where it stores all the files and data. A virtual private server is also called a virtual dedicated server. The server is dedicated to a particular user and is installed on the computer using many websites. A computer can have many virtual private servers, each with its operating system (OS). 

Virtual Private Server (VPS) is a hosting service that uses virtualization technology for delivering dedicated resources on the server with multiple users. Virtual Private Server (VPS) is a stable and strong solution and VPS hosting is generally selected by website owners. Virtual Private Servers (VPS) solutions often have more than one hosting plan. 

A virtual private server is both virtual and private as we have complete control. Virtual private servers that are on the same machines operate autonomously from other virtual spaces. Virtual Private Servers are used to erase power consumption, availability concerns, and cooling. 

Market Drivers

The extensive expansion of the virtualization field is considered as the momentous growth influencer in the VPS market. The small and large enterprises' demand for Virtual Private Servers hugely with intensifying issues regarding data security and the rise in cyber threat cases. These factors help the market to grow magnificently. 

The user should have minimum knowledge of server security, software updates, and maintenance. The increasing number of cyber-attacks on businesses across some business verticals surge the market growth. The increasing awareness of virtual private servers assets and the business expansions by major vendors in the small and medium-sized enterprises fuels the market growth during the foreseen period. The snowballing adoption of Window-based servers is projected to provide substantial growth opportunities to market players in the virtual private servers. 

Market Restrains

However, with the less availability of resources, the adoption of virtual private servers is being affected, obstructing market growth. Not known about the server software, software updates result in the dearth of technical knowledge and also the unavailability of physical resources. These factors restrain the Virtual Private Server (VPS) market growth. 

Market Segmentation

As per our research report, the global virtual private server market is based on the operating system, organization size, and end-user.

Virtual Private Server Market - By Operating System

• Windows
• Linux

The Linux operating system dominated the virtual private server market in 2018. The growth owes to the growing demand for secure operating systems by major enterprises. 

Virtual Private Server Market - By Organization Size

• Large enterprises
• Small and Medium-sized Enterprises (SMEs)

By organization size, the large enterprise segment is leading the virtual private server market in 2018. The segment continues to retain its dominant position. 

The small and medium-sized enterprises segment is showcasing the highest growth rate due to the rise in the need to stay ambitious in the market globally. The availability of resources is limited driving the virtual private server market. 

Virtual Private Server Market - By Type

• Managed VPS

• Unmanaged VPS

Virtual Private Server Market - By End-User

• 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 end-user, the IT and telecom segment is expected to hold a major share because of high traffic and immense databases in the industry that needs strong hosting. 

Regional Analysis

Regional-wise, the Virtual Private Server market in North America commands the largest share during the timeframe period. Due to the strong adoption rate and entry of virtual private servers in small and large enterprises snowball the VPS market growth. 

Europe is the second-leading market for Virtual Private Server (VPS) throughout the review period. 

However, Asia-Pacific is expected to exhibit gainful growth in the Virtual Private Server market. Upgrading strong internet infrastructure and internet perforation throughout the APAC provides immense opportunities for the market players operating in the market. China, India, and Japan have significant potential for Virtual Private Server vendors due to the easy availability of a considerable share of end-users. 

Latin America is witnessing a momentous growth in the virtual private servers market. The rising use of Windows servers due to its low-cost, high processing power, better flexibility, and brilliant adaptability expand the market growth. 

In the Middle East and Africa, the market for virtual private servers is anticipated to have remarkable growth over the coming time. Durable economic progress and the rising strength of interconnected devices along with the threat of security breaches drive the virtual private server market growth in MEA. 

Key players in the global Virtual Private Server Market

Some of the major vendors involved in the Virtual Private Server Market include:

1.    AWS (US)
2.    United Internet (UK)
3.    GoDaddy (US)
4.    Endurance International Group (US)
5.    OVH (France)
6.    DigitalOcean (US)
7.    Plesk (Switzerland)
8.    Rackspace (US)
9.    A2 Hosting (US)
10.    Liquid Web (US)
11.    Linode (US)
12.    Vultr (US)
13.    DreamHost (US)
14.    InMotion Hosting (US)
15.    TekTonic (US)

COVID-19 Impact on Virtual Private Server Market 

The reason behind the sudden eruption of the novel coronavirus (COVID-19) is SARS-CoV-2. The novel virus that has affected the global economy disturbing the balance between supply and demand, making the supply chain weak with influencing revenue losses in companies and the finance sector. 

After the COVID-19 pandemic quick outburst, the data breaching cases have risen considerably. The hackers are taking advantage of exposing the IT field. Organizations of various sized enterprises are spending immensely on the best infrastructure to safeguard the databases that are in danger in the public cloud environment. The COVID-19 has brought a significant demand for Virtual Private Servers or VPS among enterprises, to allow users to safely and strongly place situation software. 

Additionally, the e-commerce sector has been a rescuer of sorts for the virtual private server market. Considering the rising need to run some operations in a safe environment, particularly during the distrust times.

VIRTUAL PRIVATE SERVER MARKET REPORT COVERAGE

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Recent Market Developments

• On May 26, 2022, OVHCloud US, circulated the launch of the recent line of virtual private servers (VPS). The new VPS line provides five configurable resource configurations with a wide range of software options and add-on features to meet the software development.
• On September 07, 2022, DigitalOcean acquired Nimbella to accept serverless computing. The company DigitalOcean is known for its Infrastructure-as-a-Service (IaaS) platform.
• On November 20, 2022, Linode launched its Kubernetes Engine into beta.
• On September 20, 2017, GoDaddy launched a Hosting Platform for small businesses in India. The company offers products for small businesses that need advanced solutions with power.