Increasing pace of digital transformation across numerous business verticals has driven virtual private server market in recent years, along with introduction to virtual network technologies within commercial space. Gradual upsurge in the costs of building and maintaining own physical servers to meet the needs of an organization has allowed the penetration of cost-effective and easily scalable virtual private servers (VPS). VPS can be an isolated microsystem that caters to the requirements of an individual or a business by providing an enhanced privacy and control over security.
APAC Virtual Private Server (VPS) Market Size, By Region, 2018 & 2025 (USD Million)
With virtualization becoming commonplace, enterprises have discerned the benefits of virtual systems and are inclining more towards the utilization of several VPS installed on one physical server. Cost minimization and better flexibility compared to a physical shared server has been the main driver for VPS adoption. In addition to these, rising access to cloud technologies among enterprises to host key applications and run daily business tasks have played a major role in boosting VPS market expansion.
The era of digitalization has allowed the boom in web designing and development businesses, with nearly 79% of web developers in the world witnessing more than 25% client growth in 2017. Emerging economies like India have particularly witnessed major growth in the development and designing of websites in creative, health & fitness and education domains. These web professionals require hosting tools that are easy to use and has the agility and power to meet the needs of their several clients. VPS industry enables professionals to host and build powerful and fast websites and ensure business growth.
GoDaddy, a webhosting company, has developed VPS hosting for end users to have easier control of the hosting solutions, helping them to serve their customers better. GoDaddy recently unveiled its fourth generation VPS hosting products which will simplify managing server environments for designers and developers in India, get sites ready in minutes, save time and increase performance. The advancement and accessibility of hosting services across developing nation will expand the scope of VPS market in the coming years.
Small and medium sized enterprises (SMEs) are increasingly opting for virtual drive technologies and are expected to account for a significant portion of global VPS industry revenues over the forecast period. SMEs have switched to VPS services after replacing physicals servers that limited their capacity and diverted vital financial resources towards maintaining the systems. VPS models are convenient for SMEs due to the easy payments, as they only pay for the services they have availed. Since many enterprises lack the funding to build their own private networks and hosting platforms, VPS industry offers them a pocket-friendly solution for digital needs.
Asia-Pacific region is home to large number of SMEs who are shifting to digital platforms to manage business operations. Reportedly, APAC virtual private sever market size is poised to register a CAGR of 20% over the forecast period. Developing countries like China and India are witnessing support from the government for virtualized data centers. The massive population in this region has increased the number of internet users, subsequently encouraging companies to go online and proliferating VPS hosting services.
Growing number of security threats faced by businesses from cyberattacks has driven them to adopt VPS services at a greater pace. Out of the various advantages that VPS provides, security is one of prominent factors influencing decision of companies. VPS providers are able to ensure better security of files and data within the client’s systems. An unprecedented level of cybersecurity concerns and the lack of skills to protect own physical services will coerce businesses to opt for managed virtual private servers.
Product innovations and advancement is still a key factory boosting the industry scope. Fasthosts, a leading UK based service provider recently announced that it will launch a range of new VPS solutions. There have been an increasing number of individuals and companies in the UK who are looking for different approaches towards tech scalability and investment. Fasthosts is laying more focus on creating scalable and customizable alternatives to fulfill the requirements of those companies. Such initiatives showcase a major growth trend in the global VPS industry.
With substantial investments in offering new services to expand customer reach and accelerated adoption of cost-effective solutions by SMEs, the consumption of VPS services can be expected to surge enormously. Bluehost, Linode, Plesk International, OVH Group, Digitalocean and Savari Technologies are some of the key players constituting the competitive hierarchy of the industry. Reports predict that global virtual private server market size will surpass USD 2 billion in revenues by 2025.