The Global Market for Web Hosting Services is Projected to Reach US$143.8 Billion by 2020

Growing Focus on Reducing the Total Cost of Website Ownership Drives Opportunities for Web Hosting Services, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Web Hosting Services market. The global market for Web Hosting Services is projected to reach US$143.8 billion by 2020, driven by the growing focus on reducing the total cost of website ownership and the need to hedge the hidden costs of web technology and infrastructure.

As increasing number of consumers use the Internet as the primary source for information access, entertainment, social interaction, and for carrying out myriad of life’s transactions, there is increasing pressure on businesses to maintain robust online presence to attract new customers and retain existing customers. Over 95% of consumers’ purchase decision starts with an Internet search and a 24/7 website enables companies to flexibly respond to customer needs even beyond business hours. Websites are almost a sacrosanct need in the emerging on-demand era and have become the new battleground for companies to stay competitive and increase revenues. The ubiquity of the Internet has escalated to a point where companies without websites are perceived by customers as being poorly managed and lacking in professionalism. In this emerging era of Internet indispensability, “Websites” represent a critical medium that facilitates relationships between businesses and their customers and also among businesses. Building customer relationships online through websites is therefore a vital prerequisite for survival in the modern market environment.

The scenario is poised to benefit demand for web technologies including website design and architecture and trigger the evolution of hosted business models that rent out the infrastructure needed to make websites accessible via the World Wide Web. Websites are increasingly expensive to design, own, manage and maintain. Against a backdrop where companies are adopting the “Do More With Less” motto, web hosting services offer numerous cost and efficiency benefits such as pay as you use billing options; on-demand scalability of infrastructure; elimination of the need to hire in-house webmasters since troubleshooting is provided by hosted service provider; and low cost maintenance as managing servers, security updates, technical support are part of the packaged service fee. One of the major factors driving growth in the market is the spurt in eCommerce and the ensuing focus being shed on the importance of websites. eCommerce websites are informative, replete with click-through images, animation and videos as these websites are important for not just disseminating product related information but also for infusing consumer confidence in making a purchase from an online store. The resulting complexity in website hosting, development and maintenance is encouraging companies to outsource the same to third party service providers.

As stated by the new market research report on Web Hosting Services, the United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 16.1% over the analysis period led by factors such as developments in Internet infrastructure, broadband speeds, improvements in telecom connectivity, mushrooming of Internet inspired enterprises with strong online presence, growing number of cloud ready Asian countries and the resulting rise in demand for Website as a Service (WaaS).

Major players covered in the report include Amazon Web Services, AT&T Inc., DreamHost, EarthLink, Inc., Equinix, Inc., Endurance International Group, Bluehost, HostGator.com, Hostway, iPage, Google, Inc., Go Daddy Operating Company, LLC, Hetzner Online GmbH, IBM Corporation, SoftLayer Technologies, Locaweb, Network Solutions, LLC, Rackspace Hosting Inc., ReadySpace LLC, SunGard, United Internet, 1&1 internet Inc., and Verizon Terremark among others.

The research report titled “Web Hosting Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, product innovations and strategic industry activities of major companies worldwide. The report provides market estimates and projections for web hosting services in US$ Million for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, and Rest of Europe), Asia-Pacific, and Rest of World.

Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.