The global Virtual Private Server (VPS) market size is expected to grow from USD 2.4 billion in 2018 to USD 5.0 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period. Increasing adoption of cloud-based services among global organizations is expected to create growth opportunities for VPS vendors. With increasing virtualization, Small and Medium Enterprises (SMEs) are largely embracing both private and public cloud services to transform their business processes. The adoption of cloud services has, in turn, led to a steady rise in the demand for VPS for hosting and supporting other critical business functions.
The VPS market includes major vendors, such as AWS (US), United Internet (UK), GoDaddy (US), Endurance International Group (US), OVH (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Liquid Web (US), Linode (US), Vultr (US), DreamHost (US), InMotion Hosting (US), and TekTonic (US). These players have embraced various growth strategies to expand their presence and market shares. New product launches and business expansions are significant growth strategies adopted by the major players to grow further in the VPS market.
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GoDaddy has witnessed continuous growth over the years in the VPS market. The company delivers simple and easy-to-use cloud-based products, and personalized customer care services. The company has more than 18 million customers in various industry verticals, including BFSI, retail, healthcare, manufacturing, and transportation, spread across North America, Europe, APAC, MEA, and Latin America. The company offers shared and dedicated VPS to the hosting segment. The company manages more than 77 million domains. It has adopted various growth strategies to expand its geographic footprint, product portfolio, and customer base. In January 2018, the company acquired Main Street Hub for broadening its customer base. The strategy of launching various products, including TrustedSite, Business Hosting, and other web security solutions, has helped the company achieve a competitive edge in the VPS market. In March 2017, the company launched Business Hosting, an easy-to-manage hosting platform, which is designed for high-traffic, eCommerce, and resource-intensive websites.
Rackspace is a leading provider of managed cloud services. The company is witnessing tremendous growth in the VPS marketspace. It focuses on offering new and innovative managed cloud computing services to enhance customer experience and drive growth. It mainly focuses on adopting organic and inorganic growth strategies to remain competitive in the VPS market. Moreover, it introduces new features and functionalities in its existing offerings with the help of multiple upgrades to provide customers with the benefits of innovations. The company also focuses on expanding its presence globally to increase its customer base and operate data centers in foreign markets. It also focuses on acquiring new customers and offering enhanced services to its existing customers for retaining and maintaining healthy relations. In September 2017, Rackspace acquired Datapipe, a US-based firm and a leading provider of managed hosting services and data centers, to expand its presence in the professional services and traditional colocation services space.
Virtual Private Server Market by Operating System (Windows and Linux), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, Government and Defense, IT and Telecommunication, Retail, Healthcare), and Region - Global Forecast to 2023
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