Virtual Private Server Market

Virtual Private Server Market

Virtual Private Server Market Forecasts to 2028 - Global Analysis By Server (VPS Cloud RAM, VPS Solid State Drives (SSD), Cloud VPS and Other Servers), Operating System (Linux, Windows and Other Operating Systems), Organization Size, Service, End User and By Geography

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4.9 (80 reviews)
Published: 2023 ID: SMRC22462

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2022)

US $4290.77 MN

Projected Year Value (2028)

US $11199.84 MN

CAGR (2022 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Highest Growing Market

Asia Pacific

According to Stratistics MRC, the Global Virtual Private Server Market is accounted for $4,290.77 million in 2022 and is expected to reach $11,199.84 million by 2028 growing at a CAGR of 17.34% during the forecast period. A virtual private server (VPS) is a type of hosting service that uses virtualization technology to allocate specific resources to customers on a single server. It provides a number of advantages such as high dependability, improved privacy, root access to the server and aids in the upgrading of server resources which are more reliable and secure. It assists businesses in safely accessing application software. With the help of the VPS, the end user may install any application software that is appropriate for their operating system on a dedicated or private server. VPS was used in applications such as transportation, healthcare, hospitality, e-commerce, telecommunication, and banking, financial services and insurance (BFSI) sectors worldwide.

According to The Wire news, NordVPN has reportedly stated that it may choose to remove VPN server services from India if it is unable to protect the privacy of its users.

Market Dynamics:


Greater storage and reliability

VPS have access to very high levels of storage and bandwidth. This will help to improve both performance and reliability. It can also support very high volumes of server traffic without a glitch. The added space can hold sites with hundreds of blog posts, media-rich multimedia sites, and a lot more. With a VPS, the website uses only the server’s resources. All these factors are propelling the market growth.


Technical administration troubles

Setting up a VPS involves a certain amount of work and knowledge. Its applications and services must be manually setup, which might be intimidating for newcomers. They will need to keep a tight eye on the server's administration, which might be challenging for new users. And if consumer need outside help for technical administration and management, it might result in additional costs which are hampering the market growth.


Higher levels of security

Virtual Private Server is well known for its higher levels of security. It offers the most dedicated hosting services. VPS provides the opportunity to install custom security software, firewalls, and whatever other security features the customer desire to turn their website into a fortress. It helps the enterprises in managing their confidential data. It provides sandbox security without affecting physical server’s operation which reduces cyber threats and data breach and therefore fuels the growth of the market.


Highly expensive

The main downside of VPS is its financial issues. It is more expensive compared to the shared hosting. VPS server costs are high-priced as they do not require a dedicated server. It costs more than other server solutions since it has faster SSD storage, powerful technology and it is more dependable. The quality and technology of the virtualization system employed might make it more expensive as well. All these aspects are hindering the growth of the market.

Covid-19 Impact

The covid 19 affected each and every business globally by disrupting the demand and supply chain. Many of the hosting providers faced sales dip because of the pandemic impact on hosting industry. But it has seen a significant impact due to rise in the number of people playing online games, increased demand for streaming services, rise in online shopping, and various other minor factors. People have spent more time online, consuming more content which increased the server traffic since the beginning of the lockdown.

The managed services segment is expected to be the largest during the forecast period

The managed services segment is estimated to have a lucrative growth, due to its most secure options. The data, software and operating system are isolated from other instances since each VPS instance is a distinct, independent and virtualized environment comparable to a dedicated server. It improves dependability and stability compared to shared hosting. Maintenance services like updating the core, software installation, backup, security will be look after the service provider itself which are driving the market share.

The linux segment is expected to have the highest CAGR during the forecast period

The linux segment is anticipated to witness the fastest CAGR growth during the forecast period, due to its less maintenance and service cost. Due to the surge in need for safe operating systems across most businesses, the majority of corporations are choosing linux-based VPS solutions. It is quite easy to install. It provides multi occupancy features and the user has good control over things which is driving the market growth.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to more cyber risks and large market competitors. The robust adoption and penetration by large industries are attributing huge share. The rising concentration of VPS in the IT and telecommunications industries and growing internet infrastructure are anticipated to boost the growth of the virtual private server market in the region.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the increased governmental backing for virtualized data centres. Many small and medium-sized businesses from various industrial sectors in this region are favouring virtual private server services due to advantages over conventional and physical servers. Moreover, the market for VPS in the area would develop even more due to the emergence of several start-ups in this industry.

Key players in the market

Some of the key players profiled in the Virtual Private Server Market include DreamHost LLC, Amazon Web Services Inc, IBM, Endurance International Group, GoDaddy Operating Company LLC, Kamatera Inc, United Internet AG, TekTonic, Rackspace US Inc, InMotion Hosting, Savari Technologies Pvt Ltd, Liquid Web, OVH, A2 HOSTING, Namecheap Inc, DigitalOcean Inc, Plesk International GmbH, Hostwinds, Just Host and Linode LLC.

Key Developments:

In November 2022, Cloud service provider Amazon Web Services, Inc. has launched AWS Asia Pacific (Hyderabad) Region, its second such facility to augment services to customers in India. It will be investing an estimated $4.4 billion by 2030 in the country which will include capital expenditure on construction of data centres, operational expenses related to ongoing utilities and facility costs, and purchases of goods and services from regional businesses. The new region is also expected to support more than 48,000 full-time jobs annually at external businesses during this period.

In September 2022, IBM acquired Dialexa, a leading U.S. digital product engineering services firm, to help companies drive innovation and achieve their digital growth agendas. The acquisition is expected to deepen IBM's product engineering expertise and provide end-to-end digital transformation services for clients.

In February 2022, IBM announced key developments to help clients accelerate transformation with a series of new capabilities designed to modernize applications across hybrid cloud environments. These include plans to deliver IBM Z as-a-service on IBM Cloud for development and test, as well as additional tools for developing hybrid applications.

Servers Covered:
• VPS Cloud RAM
• VPS Solid State Drives (SSD)
• Cloud VPS
• Other Servers

Operating Systems Covered:
• Linux
• Windows
• Other Operating Systems

Organization Sizes Covered:
• Small Enterprises
• Medium Enterprises
• Large Enterprises
• Other Organization Sizes

Services Covered:
• Managed Services
• Unmanaged Services
• Self Managed Services
• Other Services

End Users Covered:
• Banking, Financial Services & Insurance (BFSI)
• Retail
• Government
• Manufacturing
• E-Commerce
• Healthcare & Life Sciences
• IT & Telecommunications
• Energy & Utilities
• Defence
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Virtual Private Server Market, By Server
5.1 Introduction
5.2 VPS Cloud RAM
5.3 VPS Solid State Drives (SSD)
5.4 Cloud VPS
5.5 Other Servers

6 Global Virtual Private Server Market, By Operating System
6.1 Introduction
6.2 Linux
6.3 Windows
6.4 Other Operating Systems

7 Global Virtual Private Server Market, By Organization Size
7.1 Introduction
7.2 Small Enterprises
7.3 Medium Enterprises
7.4 Large Enterprises
7.5 Other Organization Sizes

8 Global Virtual Private Server Market, By Service
8.1 Introduction
8.2 Managed Services
8.3 Unmanaged Services
8.4 Self Managed Services
8.5 Other Services

9 Global Virtual Private Server Market, By End User
9.1 Introduction
9.2 Banking, Financial Services & Insurance (BFSI)
9.3 Retail
9.4 Government
9.5 Manufacturing
9.6 E-Commerce
9.7 Healthcare & Life Sciences
9.8 IT & Telecommunications
9.9 Energy & Utilities
9.10 Defence
9.11 Other End Users

10 Global Virtual Private Server Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa

11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies

12 Company Profiling
12.1 DreamHost LLC
12.2 Amazon Web Services Inc
12.3 IBM
12.4 Endurance International Group
12.5 GoDaddy Operating Company LLC
12.6 Kamatera Inc
12.7 United Internet AG
12.8 TekTonic
12.9 Rackspace US Inc
12.10 InMotion Hosting
12.11 Savari Technologies Pvt Ltd
12.12 Liquid Web
12.13 OVH
12.14 A2 HOSTING
12.15 Namecheap Inc
12.16 DigitalOcean Inc
12.17 Plesk International GmbH
12.18 Hostwinds
12.19 Just Host
12.20 Linode LLC

List of Tables
1 Global Virtual Private Server Market Outlook, By Region (2020-2028) ($MN)
2 Global Virtual Private Server Market Outlook, By Server (2020-2028) ($MN)
3 Global Virtual Private Server Market Outlook, By VPS Cloud RAM (2020-2028) ($MN)
4 Global Virtual Private Server Market Outlook, By VPS Solid State Drives (SSD) (2020-2028) ($MN)
5 Global Virtual Private Server Market Outlook, By Cloud VPS (2020-2028) ($MN)
6 Global Virtual Private Server Market Outlook, By Other Servers (2020-2028) ($MN)
7 Global Virtual Private Server Market Outlook, By Operating System (2020-2028) ($MN)
8 Global Virtual Private Server Market Outlook, By Linux (2020-2028) ($MN)
9 Global Virtual Private Server Market Outlook, By Windows (2020-2028) ($MN)
10 Global Virtual Private Server Market Outlook, By Other Operating Systems (2020-2028) ($MN)
11 Global Virtual Private Server Market Outlook, By Organization Size (2020-2028) ($MN)
12 Global Virtual Private Server Market Outlook, By Small Enterprises (2020-2028) ($MN)
13 Global Virtual Private Server Market Outlook, By Medium Enterprises (2020-2028) ($MN)
14 Global Virtual Private Server Market Outlook, By Large Enterprises (2020-2028) ($MN)
15 Global Virtual Private Server Market Outlook, By Other Organization Sizes (2020-2028) ($MN)
16 Global Virtual Private Server Market Outlook, By Service (2020-2028) ($MN)
17 Global Virtual Private Server Market Outlook, By Managed Services (2020-2028) ($MN)
18 Global Virtual Private Server Market Outlook, By Unmanaged Services (2020-2028) ($MN)
19 Global Virtual Private Server Market Outlook, By Self Managed Services (2020-2028) ($MN)
20 Global Virtual Private Server Market Outlook, By Other Services (2020-2028) ($MN)
21 Global Virtual Private Server Market Outlook, By End User (2020-2028) ($MN)
22 Global Virtual Private Server Market Outlook, By Banking, Financial Services & Insurance (BFSI) (2020-2028) ($MN)
23 Global Virtual Private Server Market Outlook, By Retail (2020-2028) ($MN)
24 Global Virtual Private Server Market Outlook, By Government (2020-2028) ($MN)
25 Global Virtual Private Server Market Outlook, By Manufacturing (2020-2028) ($MN)
26 Global Virtual Private Server Market Outlook, By E-Commerce (2020-2028) ($MN)
27 Global Virtual Private Server Market Outlook, By Healthcare & Life Sciences (2020-2028) ($MN)
28 Global Virtual Private Server Market Outlook, By IT & Telecommunications (2020-2028) ($MN)
29 Global Virtual Private Server Market Outlook, By Energy & Utilities (2020-2028) ($MN)
30 Global Virtual Private Server Market Outlook, By Defence (2020-2028) ($MN)
31 Global Virtual Private Server Market Outlook, By Other End Users (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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