Managed Hosting Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 140.11 Billion |
| Market Size (2030) | USD 355.22 Billion |
| CAGR (2025 - 2030) | 20.45% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Managed Hosting Market Analysis
The Managed Hosting Market size is estimated at USD 140.11 billion in 2025, and is expected to reach USD 355.22 billion by 2030, at a CAGR of 20.45% during the forecast period (2025-2030).
- The managed hosting market encompasses services where third-party providers oversee and maintain the hosting infrastructure for businesses. This includes managing servers, networks, and applications, allowing organizations to concentrate on their core operations without the burden of IT infrastructure management. Typically, managed hosting services offer features like 24/7 monitoring, security management, data backups, and software updates, ensuring smooth and secure system operations. With the growing adoption of digital solutions and cloud technologies, demand for managed hosting has surged, particularly among small and medium-sized enterprises (SMEs) aiming to reduce IT complexities.
- Several factors are propelling the growth of the managed hosting market. A primary driver is the escalating reliance on cloud-based services, leading businesses to seek external providers for their IT infrastructure needs. By outsourcing hosting, businesses gain scalability, flexibility, and cost-effectiveness. Furthermore, as IT environments grow more complex—driven by increasing data volumes and the need for specialized expertise in areas like security and disaster recovery—organizations are turning to managed hosting services. This trend is amplified as businesses prioritize digital transformation, allowing them to focus on innovation over IT maintenance.
- The managed hosting market is fiercely competitive, with numerous key players offering tailored hosting services. Major players like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and IBM provide managed hosting services that seamlessly integrate with their cloud platforms. Alongside these global titans, specialized providers like Rackspace and Liquid Web stand out, catering to customers seeking personalized hosting solutions. These providers carve a niche for themselves through superior customer support, unique features, and performance guarantees, shaping a dynamic market landscape.
- In January 2024, DigitalOcean Holdings, Inc., known for its cloud solutions tailored for startups and evolving digital enterprises, unveiled 'Autonomous' — a new managed WordPress hosting service from Cloudways. Designed to enhance user experience, 'Autonomous' aids businesses in managing fluctuating website traffic, ensuring they don't overestimate hosting needs or expenses during traffic surges.
- As the managed hosting market evolves, it grapples with challenges. A paramount concern is the rising demand for data privacy and security, especially in regulated sectors like healthcare and finance. To stay competitive, managed hosting providers must adhere to regulatory standards such as GDPR and HIPAA. Moreover, with an increasing number of businesses adopting hybrid and multi-cloud strategies, there's a heightened demand for managed hosting providers to offer flexible and customizable solutions that seamlessly integrate with diverse cloud environments. Yet, despite these hurdles, the ongoing digital transformation initiatives and the surging demand for cloud services suggest a robust expansion trajectory for the managed hosting market in the foreseeable future.
Managed Hosting Market Trends
Managed Cloud Hosting is Anticipated to Dominate the Market
- The adoption of managed cloud hosting is growing rapidly as businesses increasingly recognize the benefits of leveraging cloud infrastructure without the complexity of managing it in-house. Managed cloud hosting enables businesses to outsource the responsibility of maintaining and optimizing their cloud environments, allowing them to focus on core operations and innovation. As organizations move toward digital transformation, the demand for flexible, scalable, and cost-effective solutions has made managed cloud hosting an essential service. The ability to scale resources up or down based on demand is a significant advantage, especially for businesses with fluctuating workloads or seasonal spikes in traffic.
- One key driver of the growing adoption of managed cloud hosting is the rise in data-driven decision-making and the need for real-time access to business-critical applications and information. Cloud solutions offer organizations improved performance, faster data processing, and better storage solutions, making them ideal for industries such as finance, healthcare, retail, and media. By outsourcing the management of cloud infrastructure to experienced providers, businesses can also access advanced tools and technologies, such as artificial intelligence and machine learning, without needing to build or maintain these capabilities in-house. This access to cutting-edge technology at a lower cost is a key factor in the shift toward managed cloud services.
- Another factor contributing to the growth of managed cloud hosting is the increasing focus on data security and regulatory compliance. With the rise in cyber threats and stricter data protection laws, businesses need a secure and compliant infrastructure to handle sensitive information. Managed cloud hosting providers offer robust security features such as data encryption, firewalls, and multi-factor authentication, ensuring that businesses meet industry-specific regulatory requirements like GDPR, HIPAA, or PCI-DSS. As companies face pressure to secure their data while remaining agile, managed cloud hosting services offer the necessary tools and expertise to protect sensitive information and maintain compliance.
- Additionally, the flexibility and cost-effectiveness of managed cloud hosting are driving its adoption among small and medium-sized enterprises (SMEs). These businesses may not have the resources to manage their IT infrastructure or maintain dedicated IT teams, making managed cloud hosting an attractive option. By moving to a managed cloud environment, SMEs can access enterprise-level infrastructure, security, and support without the significant upfront costs associated with traditional IT setups. This democratization of cloud services enables businesses of all sizes to benefit from the scalability, efficiency, and innovation provided by the cloud, contributing to its widespread adoption across industries.
- The widespread adoption of Microsoft Azure and AWS by global enterprises, with around 80% and 78% of organizations adopting these platforms in 2024 according to Flexera Software, is fueling the growth of the managed hosting market. As businesses increasingly rely on these public cloud services, the demand for managed hosting solutions that integrate seamlessly with Azure and AWS is rising. These managed services allow organizations to leverage the scalability, flexibility, and security of cloud platforms while offloading infrastructure management, ensuring optimal performance, compliance, and security. This trend highlights the critical role of managed hosting providers in supporting enterprises' cloud adoption strategies and their digital transformation initiatives.
North America Dominates the Market
- North America remains the dominant region in the managed hosting market due to its early adoption of cloud technologies and robust IT infrastructure. The presence of major cloud service providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, has significantly contributed to the region's leadership. These companies not only offer managed hosting services but also provide a broad range of complementary cloud-based solutions, making North America an attractive hub for businesses seeking comprehensive managed hosting options. The region's well-established technology ecosystem and high level of investment in cloud infrastructure have paved the way for widespread adoption of managed hosting services across various industries.
- The demand for managed hosting in North America is driven by several key factors, including the growing need for data security, compliance with regulatory requirements, and digital transformation. Businesses in the region face increasing pressure to ensure the security of sensitive data and meet regulatory standards such as GDPR and HIPAA. Managed hosting providers in North America offer secure, compliant, and scalable solutions that help organizations mitigate risks while improving operational efficiency. Additionally, the region's emphasis on innovation and technological advancements, such as artificial intelligence and machine learning, has made managed hosting a critical enabler of business transformation.
- Another factor contributing to North America's dominance in the managed hosting market is the strong presence of small and medium-sized enterprises (SMEs) and large enterprises that rely heavily on outsourced IT solutions. With a growing number of organizations seeking to reduce operational costs and focus on core business functions, managed hosting services offer an ideal solution. By outsourcing their hosting needs to specialized providers, businesses in North America can take advantage of expertise in infrastructure management, security, and disaster recovery while maintaining flexibility and scalability in their operations. This trend is further accelerated by the increasing complexity of IT environments and the need for businesses to stay competitive in a rapidly evolving digital landscape.
- The competitive landscape in North America also plays a crucial role in driving the dominance of managed hosting services in the region. The high concentration of major players in the market, including IBM, Rackspace, and DigitalOcean, has led to continuous innovation and the development of new, tailored solutions for various industries. As businesses demand more specialized, cost-effective, and secure hosting solutions, providers in North America are investing heavily in advanced technologies and customer support. This intense competition has resulted in a diverse range of managed hosting offerings, further solidifying the region’s leadership in the global market.
- The survey published by Spiceworks indicates that 12% of companies' IT managed services budgets in North America and Europe are expected to be allocated to security and hosting services in 2024. This shift reflects the growing priority placed on secure and reliable hosting solutions, particularly in North America, where businesses are increasingly adopting managed hosting services to ensure robust security and compliance. As data security concerns rise and companies face stricter regulatory requirements, organizations in North America are directing a significant portion of their IT budgets toward managed hosting services that offer not only infrastructure management but also advanced security measures. This trend underscores the essential role of managed hosting in helping businesses safeguard their data and optimize IT operations in an increasingly complex digital landscape.
Managed Hosting Industry Overview
The managed hosting market is fragmented, with key players such as Amazon Web Services (AWS), Microsoft Corporation (Azure), Google Cloud, IBM Corporation, and Rackspace Technology leading the competition. These companies offer a wide range of managed hosting solutions that cater to businesses of various sizes, from small enterprises to large corporations. The market is characterized by intense competition, as providers differentiate themselves through pricing, specialized services, customer support, and integration with other cloud-based tools. Many providers focus on offering highly scalable, secure, and customizable hosting solutions to meet the unique needs of businesses across different industries. As the demand for cloud services and digital transformation grows, these companies are also continuously innovating to offer cutting-edge technologies and stay ahead in the competitive landscape. Additionally, emerging players and regional providers are expanding their footprint by offering cost-effective and tailored solutions, intensifying the market competition.
Managed Hosting Market Leaders
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Amazon Web Services (AWS)
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Microsoft Corporation (Azure)
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Google Cloud
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IBM Corporation
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Rackspace Technology
- *Disclaimer: Major Players sorted in no particular order
Managed Hosting Market News
- April 2024: Data and artificial intelligence (AI) leader SAS officially broadened its SAS-hosted managed services to include Amazon Web Services (AWS). This strategic move enhances the SAS Managed Services portfolio, offering customers greater flexibility in deploying and managing their investments in SAS's industry-leading technology and solutions.
- February 2024: Hyve Managed Hosting, a global leader in fully managed hosting solutions announced its entry into the U.S. market by inaugurating its North American hub in Austin, Texas. With established entities in the UK, U.S., and Europe, Hyve specializes in offering tailored global infrastructure and management services. Their portfolio encompasses private cloud solutions, dedicated servers, colocation, and comprehensive security services.
Managed Hosting Industry Segmentation
The managed hosting market refers to services where a third-party provider manages the infrastructure required to host websites, applications, and data for businesses. These services typically include server management, security, data backup, monitoring, and software updates. Managed hosting allows businesses to focus on their core operations while outsourcing IT infrastructure responsibilities. The market is driven by the growing demand for secure, scalable, and reliable hosting solutions across various industries.
The Managed Hosting Market is segmented by service type (network hosting, application hosting, database hosting, web hosting, email hosting, and other service types), deployment model (on-premise, cloud-based, hybrid), organization size (small and medium enterprises (SMEs), large enterprises), industry vertical (IT & telecom, BFSI (banking, financial services, and insurance), healthcare, retail, media & entertainment, manufacturing, government, education, and other industry verticals), and geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Service Type | Network Hosting |
| Application Hosting | |
| Database Hosting | |
| Web Hosting | |
| Email Hosting | |
| Other Service Types | |
| By Deployment Model | On-Premise |
| Cloud-Based | |
| Hybrid | |
| By Organization Size | Small and Medium Enterprises (SMEs) |
| Large Enterprises | |
| By Industry Vertical | IT & Telecom |
| BFSI (Banking, Financial Services, and Insurance) | |
| Healthcare | |
| Retail | |
| Media & Entertainment | |
| Manufacturing | |
| Government | |
| Education | |
| Other Industry Verticals | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Managed Hosting Market Research FAQs
How big is the Managed Hosting Market?
The Managed Hosting Market size is expected to reach USD 140.11 billion in 2025 and grow at a CAGR of 20.45% to reach USD 355.22 billion by 2030.
What is the current Managed Hosting Market size?
In 2025, the Managed Hosting Market size is expected to reach USD 140.11 billion.
Who are the key players in Managed Hosting Market?
Amazon Web Services (AWS), Microsoft Corporation (Azure), Google Cloud, IBM Corporation and Rackspace Technology are the major companies operating in the Managed Hosting Market.
Which is the fastest growing region in Managed Hosting Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Managed Hosting Market?
In 2025, the North America accounts for the largest market share in Managed Hosting Market.
What years does this Managed Hosting Market cover, and what was the market size in 2024?
In 2024, the Managed Hosting Market size was estimated at USD 111.46 billion. The report covers the Managed Hosting Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Managed Hosting Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Managed Hosting Industry Report
Statistics for the 2025 Managed Hosting market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Managed Hosting analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
