Data Processing and Hosting Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Data Processing and Hosting Services Market is expected to register a CAGR of over 3.58% during the forecast period (2021 - 2026). With the growing data processing services, there has been an increase in the requirement of new servers to keep the data up-to-date, which is expected to drive the market during the forecast period.

• Businesses across the emerging markets have increasingly outsourced their IT infrastructure needs, thereby directly benefiting the hosting operators, further driving the market demand.
• The deployment of big data analytics has elevated the stakes for successful data preparation from many sources utilizing multiple data analysis techniques, thereby maintaining substantial ROI cleaning, combining, and transforming the unstructured data. Though Artificial intelligence (AI) may have familiarized big data, applications such as the internet of things (IoT) are taking it to the next level. The need to analyze large datasets to develop insights and increase internet traffic is increasing the demand for data processing and storage services
• In mid-2019, there were over 4.5 billion Internet users globally, which is 58.8% of the global population with Internet access, and the numbers are growing as internet penetration improves, according to Internet World Stats. This indicates that data traffic will continue to grow even more, with the 2020 crisis unfolding worldwide.
• Also, players in the market are launching new and advanced solutions, for instance in 2020, Khoros, a digital-first customer engagement software, announced the launch of its newest data hosting location in Sydney, Australia, which is anticipated to allow the company to offer enhanced software performance and data privacy confidence for its customers in Australia and New Zealand.
• The COVID-19 pandemic is spurring the adoption of cloud services across all industries as they rapidly pivot to support remote work and collaboration. This is particularly true for healthcare providers at the front line as they leverage remote access and cloud analytics to scale operations.
• Other types of media, such as video games, have also been growing in popularity. According to Verizon, video game usage during peak hours had shot up by approximately 75% a mere week after the quarantine was imposed. These surges for entertainment options have left many ISPs globally unable to cope with the increased traffic, which has been directing the need for the market studied.

Scope of the Report

Data processing includes the collection and manipulation of a different form of data to extract meaningful insights from it. Companies extend their access to the very large dataset in order to gain a competitive edge and deliver critical business insights to its clients. Data processing is done for the conversion of data into a usable and desired form. Hosting services comprise of a wide range of offerings, including web hosting, off-site backup, virtual desktops along with Cloud services. Hosted services accessed from an external provider take a range of forms, that may be categorized in different ways.

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Key Market Trends

Web Hosting is Gaining Traction Due to Emergence of Cloud-based Platform

• Web hosting services are gaining traction to cater to the rising demand from the client requirement that is suitable as per the type of web hosting service is selected. The shared hosting services are suitable for a website with low traffic but if the website with high traffic, using dedicated servers is suitable for the hosting services. Further, the colocation hosting services are experiencing the highest demand owing to its reasonable cost structure.
• The emergence of the cloud has been monumental in modernizing data management and hosting services, as it is a cost-effective method, for companies to take advantage of modern technology and architecture, without the enormous upfront cost to purchase, install, and configure the required hardware, software, and infrastructure.
• Also, the large enterprises were able to adapt to an evolving data-driven marketplace very quickly, with the help of their existing resources and capabilities to manage them very effectively.
• The substantial presence of BFSI across the emerging regions of North America and Europe has driven an increased penetration of digital services at a substantial rate, that is generating massive demand for analyzing enormous data generated through multiple data processing techniques, thereby fueling the market demand during the forecast period.
• While there are still data processing and hosting companies in United States, the rise of Indian companies such as Infosys and US businesses' propensity to outsource their work abroad is creating a more globalized industry. Data processing and hosting companies will have their sales and client relationship in the United States while outsourcing the main operation abroad at a lower cost.

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