According to a recent report published by Allied Market Research, the global web hosting market size was valued at $57.46 billion in 2019, and is projected to reach at $183.05 billion by 2027, growing at a CAGR of 15.2% from 2020 to 2027.

Web hosting is an online service enabling website or web application publishing on the Internet. Hosting providers offer services like virtual private servers, colocation, dedicated, shared, and cloud hosting. Advanced web hosting services deliver benefits such as enhanced performance and improved security.

The growth of the global web hosting services market is mainly driven by factors such as surge in several SMEs around the globe and their efforts to have online presence; proliferation of mobile marketing platforms; rise in demand for managed web hosting services; and availability of web hosting services with excellent server performance and features at cheapest prices.

In addition, rise in demand for best hosting services during COVID-19 pandemic is projected to drive the growth of the web hosting services market. However, challenges associated with providing scalability and maintaining uptime may hamper the market growth to some extent. On the other hand, artificial intelligence (AI) in web hosting and rise in adoption of cloud-based gaming solutions is expected to provide lucrative opportunities for the market growth during the forecast period.

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Based on deployment mode, the public cloud segment exhibited the highest growth in the web hosting services market in 2019, and is expected to maintain its dominance in the upcoming years, due to public cloud hosting benefits such as scalability, flexible pricing, extreme reliability, and high performance. Aforementioned benefits fuel growth in adoption of this type of deployment model by small and medium sized enterprises. However, the hybrid segment is expected to witness the highest growth, due to the advantages that hybrid cloud provides in contrast with the private and public cloud. For instance, in comparison with public cloud, these types of deployment models offer a higher level of security and uptime.

By end user, the global web hosting services market share was dominated by the enterprise segment in 2019 and is expected to maintain its dominance in the upcoming years, due to surge in number of enterprises around the globe and their efforts to expand online presence. However, the individual segment is expected to witness the highest growth, owing to the availability of simple and affordable hosting plans.

By application, the global web hosting services market share was dominated by the public website segment in 2019 and is expected to maintain its dominance in the upcoming years, because such websites are accessible to anyone around the world. Hence, companies are using these websites to target a general population to sell their services or products. However, the mobile application segment is expected to witness the highest growth, due to the rapid growth in use of smartphones and upsurge in internet penetration across the globe.

Post COVID-19, the size of the web hosting services market is estimated to grow from $67.88 billion in 2020 and projected to reach $183.05 billion by 2027, at a CAGR of 15.2%. The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on the growth of the web hosting services market, as the web hosting services adoption have increased in the face of unprecedented circumstances. The pandemic has significantly pushed demands for web hosting services as most of the business owners have started to sell their products & services online. Web hosting providers have enabled the businesses to showcase their products & services on the website by providing an online virtual space. 

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In addition, several market players offered free hosting services for a few months to help businesses during COVID-19 and uplift them in the time of the pandemic. In July 2020, Mailchimp announced to help small businesses during the COVID-19 crisis with custom domains free for up to 5 years, along with free website builder, until June 30, 2020. 

Some of the key web hosting services industry players profiled in the report include 1&1 Internet Inc., Amazon Web Services Inc., AT&T Inc., Dreamhost Inc., Easyhost, GoDaddy Inc., Google Inc., InMotion Hosting, and Just Host. This study includes web hosting services market trends, analysis, and future estimations to determine the imminent investment pockets.

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP, based in Portland, Oregon. AMR provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR aims to provide business insights and consulting to assist its clients in making strategic business decisions and achieving sustainable growth in their respective market domains. 

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