Virtual Private Server (VPS) Market Analysis (COVID-19 Analysis) – Industry Insights, Drivers, Top Trends, Global Analysis, Forecast and Opportunities to 2030

In a recent published report, Kenneth Research has updated the market report for Virtual Private Server (VPS) Market for 2021 till 2030. Report further now discusses; the various strategies to be adopted or being adopted by the business players across the globe at various levels in the value chain. In the view of the global economic slowdown, we further estimated that China, India, Japan and South Korea to recover fastest amongst all the countries in the Asian market. Germany, France, Italy, Spain to take the worst hit and this hit is expected to be regain 25% by the end of 2021- Positive Growth in the economic demand and supply.

U.S. Market recovers fast; In a release on May 4th 2021, the U.S. Bureau and Economic Analsysis and U.S. Census Bureau mentions the recovery in the U.S. International trade in March 2021. Exports in the country reached $200 billion, up by $12.4  billion in Feb 2021. Following the continuous incremental trend, imports tallied at $274.5 billion, picked up by $16.4 billion in Feb 2021. However, as COVID19 still haunts the economies across the globe, year-over-year (y-o-y) avergae exports in the U.S. declined by $7.0 billion from March 2020 till March 2021 whilest imports increased by $20.7 billion during the same time. This definitely shows how the market is trying to recover back and this will have a direct impact on the Healthcare/ICT/Chemical industries, creating a huge demand for Virtual Private Server (VPS) Market products.

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Moreover, increase in ICT spending around the globe for hardware, software, services, new technologies and telecom among others is also anticipated to contribute to the growth of the market in the coming years. The spending on new technologies recorded around USD 0.6 million in 2018 and is further estimated to reach close to USD 1.3 million by 2023. The total ICT spending around the globe further recorded close to USD 5 million in 2019 and is further projected to touch USD 6 million by 2023

Market Synopsis

The web hosting industry has made a revolutionary impact across small and medium enterprises (SMEs) owing to the rapid technological advancements in virtualization. However, the rise in the adoption of virtualization has eventually led to an increased risk of data breaching. Moreover, the enterprises of all sizes invest heavily on additional infrastructure to prevent the databases that can be easily accessed in a public cloud environment. Thus, virtual private servers (VPS) help enterprises to access application software in a secure environment.

The Final Report will cover the impact analysis of COVID-19 on this industry:

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Virtual private servers (VPS) work as virtual machines in a way that the end users recognize it as a dedicated/private server, installed on a physical computer that can execute multiple software applications over a single operating system. The VPS is also known as a virtual dedicated server (VDS), or virtual root server (VRS). These are largely adopted by e-commerce websites to run various operations. The VPS includes web server software, a file transfer protocol program, and a mail server program to run various application software. The VPS offers a dedicated or private server to the end user to install any type of application software installed in their operating system.

With the emergence of virtualization software, enterprises are offering virtual private server hosting at an affordable cost. The VPS hosting services offered are based on their management and can be either  fully managed or self- managed services. Under these services, the user is solely responsible for managing and monitoring the server and able to transfer an unlimited amount of data on a fixed bandwidth line.

Some of the factors driving the market growth include the adoption of virtualization software, attributes offered by VPS such as reduction in IT expenditure, more customized solutions, enhanced control over servers, agile deployment of virtualized workloads, and improved operational efficiency. However, the availability of shared hosting and dedicated hosting services are expected to limit the growth of the global VPS market during the forecast period.

The global virtual private server market is valued USD 2.525 million and is expected to register a CAGR of 15.4% during the forecast period to reach USD 7,181.3 million by 2024.


The global virtual private server (VPS) market has been segmented based on service type, component, organization size, and industry vertical.

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Based on the service type, the global VPS market has been divided into self-managed services and fully managed services. By component, the VPS market has been categorized as servers and operating systems. The servers segment has further been divided into VPS Solid State Drives (SSD), VPS cloud RAM, and cloud VPS. By operating systems, the market has been categorized as Windows, Linux, and others.

Based on the size of the organization, the VPS market has been categorized as small and medium enterprises (SMEs), and large enterprises.

Furthermore, on the basis of industry vertical, the global VPS market has been divided into IT & telecom, banking, financial services and insurance (BFSI), healthcare and life sciences, government and defense, retail and e-commerce, energy and utilities, and others.

Regional Analysis

Geographically, the global VPS market has been categorized as North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.

North America led the VPS market in 2018, however, Asia-Pacific is expected to be the fastest growing market from 2019 to 2024. Europe is expected to attain the second spot in the VPS market in terms of market share during the assessment period.

North America accounted for the largest market share in 2018 and expected to dominate the global VPS market during the forecast period. The market growth is attributed to the early adoption of the virtualization technology by enterprises and the presence of market giants such as Rackspace, Amazon Web Services (AWS), and GoDaddy.

Asia-Pacific is expected to be the fastest growing segment in the VPS market during the assessment period. The market growth is attributed to the increasing number of adoption of web hosting services by the small and medium enterprises (SMEs) and heavy investments by the vendors to develop a robust cloud infrastructure to allow the adoption of virtualization environment-based applications in emerging economies such as China, India, and other Southeast Asian countries.

Key Players

Some of the key players in the global VPS market include DreamHost (US), InMotion Hosting (US), TekTonic (US), GoDaddy (US), Endurance International Group (US), OVH Group (France), DigitalOcean (US), Plesk (Switzerland), Rackspace (US), A2 Hosting (US), Amazon Web Services (US), United Internet (UK),Liquid Web (US), Linode (US), and Vultr (US).

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Competitive Analysis

The vendors operating in the VPS are majorly from the US and Europe. The market players primarily follow inorganic growth strategies such as partnerships, agreements, and collaborations to remain competitive in the virtual private server market. For instance, In September 2017, Rackspace acquired Datapipe, a US-based leading provider of managed hosting services and data center. Through this acquisition, Rackspace is able to strengthen its professional services and traditional colocation services space that eventually allows enhancing its product portfolio in the VPS market.

Intended Audience

Virtual Private Server (VPS) solutions providers

Systems integrators

Virtualization services providers

Local/Government Agencies

Datacenter Services Providers

Cloud Service Providers

IT Providers

Value-added Resellers

Cloud Infrastructure Agencies

Research Firms

Software Vendors

About Kenneth Research

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Darlene Dooley is a research expert and freelance writer. She is very dedicated towards her work and writing. She enjoys to write on current news on any industry and conclude the news with highly professional report. She has almost 8 years of experience in the same field. She has strong professional skill in Market research, Business Strategies, online marketing, Industry analysis interested in innovative and trending technologies.

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