Surge in security concerns among organizations, improved customization, scalability, and downtime, increase in adoption of cloud-based services among enterprises, and reduction in overall hardware requirement in data centers fuel the growth of the global virtual private server market. On the other hand, limited physical resource & bandwidth availability, and inadequate efficiency compared to dedicated hosting restrain the growth to some extent. Nevertheless, integration of Machine learning and AI with VPS is projected to pave the way for an array of opportunities in the future.
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The global virtual private server market is segmented into type, operating system, organization size, industry vertical, and region. As per type, the market is bifurcated into managed VPS and unmanaged VPS. By operating system, the market is divided into Windows and Linux. On the basis of organization size, the market is segregated into large enterprises and small & medium enterprises. Depending on industry vertical, it is fragmented into IT & telecommunication, retail, BFSI, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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On the basis of type, the managed VPS segment accounted for more than four-fifths of the total market share in 2018 and is anticipated to lead the trail from 2019 to 2026. The same segment would also exhibit the fastest CAGR of 16.5% by 2026.
On the basis of operating system, the linux segment garnered more than three-fifths of the total market revenue in 2018 and is expected to dominate during the forecast period. The same segment would also cite the fastest CAGR of 16.7% throughout the estimated period.
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Based on geography, North America held the highest share in 2018, generating more than half of the global virtual private server market. Simultaneously, the market across Asia-Pacific would register the fastest CAGR of 18.9% by 2026.
The key market players analyzed in the global virtual private server market report include DreamHost, LLC, Endurance International Group, Amazon Web Services, Inc., GoDaddy Operating Company, LLC, IBM, United Internet AG, InMotion Hosting, Liquid Web, OVH, and Rackspace US, Inc.
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Covid-19 Scenario-
- The outbreak of the pandemic led to decrease in the production of the virtual private server machines that enable users to attach or detach hardware components as per the needs and business size.
- However, the market is projected to recoup soon with the relaxations imposed on the existing rules & regulations and the mass rollout of vaccinations in several countries across the world.
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