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Virtual Private Server (VPS) Market Analysis

The virtual private server market is expected to register a CAGR of 17.1% over the forecast period.

• Major growth drivers for the market include several advantages associated with the virtual private server (VPS), such as the availability of the cost-effective virtual private server, growing insecurity concerns among enterprises, enhanced customization, scalability, and downtime, and more control with virtual servers than shared hosting.
• A significant rise in cyber-attacks and a surge in demand for cloud-based security solutions are expected to boost the virtual private servers market over the forecast period. Moreover, integrating machine learning (ML) and artificial intelligence (AI) with VPS and adopting cloud-based services among global organizations is expected to provide growth opportunities for VPS providers.
• According to US-based Ixia, 90% of IT professionals are concerned about their data and application security in the cloud. VPSs are the best solution to increase mobility for small to mid-size businesses embracing private and public cloud services to transform their business processes. According to Acronis International GmbH, 67% of small business proprietors and 81% of medium business proprietors assume that technology solutions assist them in running their businesses better or that technology solutions help them significantly improve business outcomes.
• Also, the VPS market has a significant growth opportunity due to emerging trends such as bring your own device (BYOD). VPS hosting, the concept of BYOD, and cloud computing combined have become more useful means of conducting business. According to a survey conducted by IBM Corporation, 82% of respondents expect smartphones to play a 'critical role in business productivity in the next two years, and 36% of those surveyed deemed laptops vital to overall productivity. Moreover, according to Cisco, 95% of organizations allow personal devices in some way in the workplace, and the other 5% are probably high-security oriented.
• However, limited availability and efficiency compared to shared hosting, dedicated hosting, and cloud servers, along with limited physical resource and bandwidth availability, could be major factors that could significantly restrain the overall market's growth.
• With several nations in lockdown due to COVID-19, and people working (and learning) from home, online usage grew significantly. Akamai witnessed a 20% rise in daily distributed denial of service (DDoS) attacks between February and March, and Nokia measured a 40% rise. Hence, the market is expected to rise exponentially during the forecast period.

Virtual Private Server (VPS) Industry Segmentation

A VPS-or virtual private server-is a virtual machine that provides virtualized server resources on a physical server that is shared with other users. With VPS hosting, you get dedicated server space with a reserved amount of resources, offering greater control and customization than shared hosting.

The virtual private server market is segmented by operating system (Windows, Linux, and other operating systems), organization size (small and medium-sized enterprises (SMEs) and large enterprises), end-user vertical (iIT& communication, BFSI, retail, healthcare, and other end-user verticals), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.