Dedicated Server Hosting Market: Global Industry Analysis and Forecast (2023-2029)

The Dedicated Server Hosting Market was valued at US$ 14.26 Bn. in 2022. Global Dedicated Server Hosting Market size is expected to grow at a CAGR of 18.9 % through the forecast period.
Dedicated Server Hosting Market Overview:
Essentially, dedicated hosting means that a customer's website has access to a separate server. It has great flexibility and power but typically costs more. Along with cloud hosting, dedicated hosting is one of the most potent server types available. If a website is having trouble keeping up with an increase in traffic, dedicated server hosting may be necessary to resolve the problem. The demand for dedicated server hosting is forecast to increase with the growth of the IT and telecommunications sectors. A dedicated server is simply a server that only serves consumer websites. It can enhance site performance, speed up page load times, and help optimize security.

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2022 is considered as a base year to forecast the market from 2022 to 2029. 2022’s market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years' trends are considered while forecasting the market through 2029. 2020 is a year of exception and analysis especially with the impact of lockdown by region.
Dedicated Server Hosting Market Dynamics:
Market Drivers

Businesses are concerned about the security of their internet data. With dedicated server hosting, users can take security precautions like software tools and firewalls rather than relying on the hosting service provider to protect the website and apps. Virtualization technology is being more widely used as a result of rising demand from businesses for on-demand services, real-time user interaction, and efficient storage device utilization. The expense of dedicated server hosting is one of the main factors preventing the market from growing as much as shared hosting and virtual private servers. The sourcing market in India is still growing faster than the IT-BPM market.

The technical infrastructures needed to service foreign markets are much more complicated than what software companies have previously encountered. The performance of applications must be consistent across a wide range of PC configurations, thousands of different mobile device kinds, and a wide range of ISPs and mobile carrier networks. While offering more growth potential, this typically implies a distribution of redundant data centers, expensive and specialized scaling technologies, and cloud service integration.

Market Opportunity

Whenever it comes to distributing company online content to the target audience, hosting service providers are essential. Hosting servers make it possible to store website data and online content securely. In shared hosting, users share physical servers and resources like RAM, bandwidth, and storage. As it is shared among several users, the provided disc space and bandwidth are both constrained.

This means that if a user or website hosted by the same server is under attack due to a data breach, it could put other users at risk. On the other hand, dedicated server hosting dedicates the entire server to a single subscriber or one specific organization. The subscriber has complete access to and control over their server, security measures, operating system, hardware, and software while using dedicated server hosting. The subscriber can add their preferred scripts, programs, and applications as needed. Additionally, with shared hosting, the user must depend on the hosting service provider to maintain the protection of the websites and resources.
Market Trends
Application, firewall, and program installations for server security are the responsibility of the hosting company. In contrast, consumers take security precautions when running a dedicated server. Users can add more firewalls or security solutions to their systems to secure the servers and applications they host. Additionally, since a single user receives the entire bandwidth on dedicated servers, problems like traffic congestion or website failures are rare.

During the forecast period, factors such increasing virtualization and an increase in security breaches are expected to fuel the growth of the dedicated server hosting market. Enterprises all across the country are very concerned about online data security. Instead of depending on the hosting service provider, dedicated server hosting allows users to take the security steps such as software tools and firewalls required to safeguard the website and apps.

Virtualization technologies are becoming more widely used as a result of an increase in demand from companies for the provision of on-demand services, real-time user contact, and efficient storage device use. One of the main factors preventing the growth of the dedicated server hosting market is forecast to be the significantly higher costs of dedicated server hosting compared to shared hosting and virtual private servers.
Dedicated Server Hosting Market Segment Analysis:
Based on Operating System, The dedicated server hosting market can be divided into Linux and Windows-based on the operating system. The software that the subscriber uses to support and maintain the website will determine which operating system to use. Over the course of the forecast period, the Linux-based dedicated server hosting sector is forecast to hold a significant market share. Because Linux is free and open source popular for hosting dedicated servers. Windows, however, needs an operating system license.



Based on the End-User, the Dedicated Server Hosting Market is segmented into End-User
into IT & telecommunication, BFSI, retail, medical & health care, manufacturing, government, and others. The end-user industries for transportation and hospitality are included in the other sub-segments. Government measures in developing nations like South Korea, China, Malaysia, and India, among others, have improved the business climate. With 1.19 billion users, India is currently the second-largest telecom market in the country and has had rapid growth over the past ten years. the GSM Association (GSMA) in collaboration with Boston Consulting Group, India's mobile economy is rapidly growing and will have a major impact on the Gdp of a country (BCG).
Regional Insights:
The North America region dominated the market with 40 % share in 2022. The Asia Pacific region is expected to witness significant growth at a CAGR of 5% through the forecast period.

By 2026, the dedicated server hosting market in North America is forecasted to develop more quickly than the rest of the country. As a result of the rapid digital transformation, many large firms have increased their investments in nations like the United States and Canada, which has contributed to market growth in North America. It is forecast that South America's IT industry will grow more quickly than the rest of the country. Software businesses spend $82.9 billion on research and development in the US, which is 25.1% of total domestic corporate R&D.

The software and information technology (IT) services sector in the US is the most developed in the world. The United States just compensates for more than 42% of the $5.2 trillion IT market, which is dominated by North America. The industry employs 11.9 million people in the US and contributes $1.82 trillion in value-added GDP (more than 10% of the country's total GDP). According to CompTIA, there are more than 526,000 software and IT service providers in the country. Publishers of software, companies that offer custom computer programming services, designers of computer systems, and facility management companies are some of the contributors.

About two million highly skilled and educated workers are employed by the corporation in the US, a number that has steadily grown over the past ten years. The American software market is established, standardized, and known for creating solutions that are dependable, efficient, and rapid to market. Due to the rigorous intellectual property laws and enforcement in the US, international businesses in the sector have shown a special interest in the US market. With a stable percentage of the market, American businesses dominate the world's largest packaged and custom software sectors.

The objective of the report is to present a comprehensive analysis of the global Dedicated Server Hosting Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Dedicated Server Hosting Market dynamic, structure by analyzing the market segments and projecting the Dedicated Server Hosting Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Dedicated Server Hosting Market make the report investor’s guide.
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Dedicated Server Hosting Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 14.26 Bn.


Forecast Period 2023 to 2029 CAGR:
18.9%
Market Size in 2029:
US $ 47.93 Bn.


 Segments Covered:
by Operating System
Linux
Windows


by End -User
IT & telecommunication
BSFI
Retail
Medical & Health Care
Manufacturing
Government
Others


by Enterprise Size
SMEs
Large Enterprises



Dedicated Server Hosting Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (razil, Argentina Rest of South America)
Key Players
1. OVH (France)
2. Amazon Web Series
3. United Internet AG (Germany)
4. DreamHost LLC (United States)
5. Kamatera (United States)
6. Tek Tonic (United States)
7. Savari Technologies Pvt.Ltd (India)
8. Rackspace US (US)
9. Spango Internet B.V. (Netherlands)
10. GoDaddy Operating Company LLC (US)
11. Sasahost Limited Cosel Co., Ltd (Nairobi)
12. Inmotion Hosting Dedicated Hosting (US)
13. Hostwinds Dedicated Server hosting (US)
14. A2 Hosting dedicated server hosting (US)

Frequently Asked Questions:

1] What segments are covered in the Global Dedicated Server Hosting Market report?
Ans. The segments covered in the Dedicated Server Hosting Market report are based on Operating system, Enterprises size and End User.

2] Which region is expected to hold the highest share in the Global Dedicated Server Hosting Market?
Ans. The North America region is expected to hold the highest share in the Dedicated Server Hosting Market.

3] What is the market size of the Global Dedicated Server Hosting Market by 2029?
Ans. The market size of the Dedicated Server Hosting Market by 2029 is expected to reach US$ 47.93 Bn.

4] What is the forecast period for the Global Dedicated Server Hosting Market?
Ans. The forecast period for the Dedicated Server Hosting Market is 2023-2029.

5] What was the market size of the Global Dedicated Server Hosting Market in 2022?
Ans. The market size of the Dedicated Server Hosting Market in 2022 was valued at US$ 14.26 Bn.