Experts Claim The Web Hosting Industry Will Grow By $72 Billion By 2023
As the internet expands each day, so does the infrastructure used to store, host, and deliver the ever-increasing volumes of data. Experts claim that over 2.5 quintillion bytes of data are created every day, and this figure is only expected to increase in the future.
It’s not surprising to hear that the web hosting industry is also seeing monumental growth. A report from a new study by Technavio, a leading global technology research and advisory company, states that the web hosting industry will grow by $72 billion by 2023. The estimated year-over-year growth for the web hosting industry is estimated to be 12.40%. See more from the Technavio industry report below…
The report focuses on the web hosting industry at a global scale, including shared hosting, Virtual Private Server (VPS) hosting, dedicated hosting, and website-builder platforms. The report covers the geographic regions of North America, MEA, South America, Europe, and APAC. Not included in the study are on-premise hosting and cloud hosting from major providers including Alibaba, GCP, AWS, and Microsoft.
The study shows that North America leads the growth at an unprecedented rate of 54%. This phenomenal growth can be attributed to an influx of small and medium enterprises (SMEs), ecommerce and online retail websites, the Internet of Things (IoT), Artificial Intelligence (AI) big data analytics, and other data capturing industries.
The report also states that the increased use of mobile devices has created a more direct need for information available on the go. Estimates claim that 380 websites are created worldwide every single minute and that the internet is currently comprised of 1.5 billion websites. However, this figure continues to grow at a staggering rate.
In 2018, reports claim that 70% of web traffic occurs on a mobile device, with 57% of mobile web traffic originating from a smartphone or tablet. Studies estimate that the average consumer spends five hours a day online. A BrightEdge survey from 2017 states that “69% of smartphone users say that they are more likely to buy from companies with mobile sites that easily address their questions or concerns.” These statistics demonstrate a surge in internet activity leading to significant growth in the web hosting industry.
Industry experts estimate that the growth in the web hosting industry will also lead to an increased need for data security, storage, email hosting, and other web services including domain registration. However, reports show that similar to the web hosting industry itself there are many players in these markets, and they are all fighting for their piece of the market share. According to MarketWatch, “The global market for web hosting services is highly competitive due to the constant proliferation of the service providers in this market.”
A senior advisor at Technavio explains, “Apart from the implementation of AI in web hosting, factors such as the growing adoption of green web hosting, growth of e-commerce market, and the rise in adoption of email hosting services will have a significant impact on the growth of the web hosting services market size during the forecast period,” See the entire report at Technavio.com.