Web Hosting Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 194.20 Billion |
| Market Size (2030) | USD 362.20 Billion |
| Growth Rate (2025 - 2030) | 13.27% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Web Hosting Market Analysis by Mordor Intelligence
The web hosting market stood at USD 194.20 billion in 2025 and is on course to reach USD 362.20 billion by 2030, reflecting a robust 13.27% CAGR. Generative-AI workloads, edge computing rollouts and SME digital storefront creation are lifting infrastructure demand far beyond the limits of legacy hosting architectures. Pay-as-you-go billing, fueled by consumption transparency, is reshaping revenue recognition while accelerating provider cash-flow rotation. Workload placement is also changing: hybrid and multi-cloud blueprints are pulling critical applications closer to end users, pressing hosters to extend footprints into secondary metros and edge sites. Energy use, talent shortages and cybersecurity obligations temper the growth outlook, yet overall momentum signals a decisive pivot toward AI-optimized, GPU-dense platforms that can scale elastically and price by the minute.
Key Report Takeaways
- By hosting type, shared hosting led with 37.5% of the web hosting market share in 2024; cloud hosting is projected to advance at a 17.7% CAGR through 2030.
- By deployment mode, public cloud commanded 61.3% of revenue in 2024, while hybrid and multi-cloud deployments are set to expand at a 20.1% CAGR to 2030.
- By end-user vertical, large enterprises held 54.6% of the web hosting market size in 2024, whereas SMEs are progressing at a 17.8% CAGR to 2030.
- By application, public websites accounted for 47.4% of revenue in 2024; mobile and API hosting is forecast to grow at an 18.8% CAGR through 2030.
- By pricing Model, Subscription (fixed term) commanded 70.7% of revenue in 2024, while metered / pay-as-you-go is set to expand at a 19.6% CAGR to 2030.
- By geography, North America retained 31.8% revenue share in 2024, yet Asia-Pacific is rising at a 17.3% CAGR through 2030.
Global Web Hosting Market Trends and Insights
Driver Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce expansion among SMEs | +3.2% | Global, with concentration in Asia-Pacific and Latin America | Medium term (2-4 years) |
| Surging demand for high-availability and low-latency sites | +2.8% | North America and EU core markets, expanding to Asia-Pacific | Short term (≤ 2 years) |
| Rapid migration to hybrid / multi-cloud architectures | +2.1% | Global enterprise markets, led by North America | Medium term (2-4 years) |
| Growing preference for managed WordPress and CMS hosting | +1.9% | Global, particularly strong in North America and Europe | Short term (≤ 2 years) |
| Carbon-neutral green hosting differentiation | +1.4% | EU regulatory-driven, expanding to North America | Long term (≥ 4 years) |
| Gen-AI-ready edge and GPU server demand surge | +1.9% | Global hyperscale markets, concentrated in US and China | Medium term (2-4 years) |
Source: Mordor Intelligence
Explosive e-commerce expansion among SMEs
Small businesses now treat digital storefronts as survival tools. In Q1 2025 GoDaddy’s Applications and Commerce division posted USD 446.4 million revenue, up 17%, underlining how SMEs are migrating from basic shared packages to performance-oriented stacks [1]GoDaddy Inc., “Q1 2025 Investor Presentation,” godaddy.com. Each migration triggers add-on uptake spanning CDN, payments and automated backup, raising average revenue per account and building durable contracts that resist price erosion.
Surging demand for high-availability and low-latency sites
Real-time trading, multiplayer gaming and live media require sub-millisecond response and 99.99% uptime. Microsoft attributed part of Azure’s 30% Q4 2024 revenue climb to these latency-sensitive migrations. Providers with dense PoP coverage and intelligent routing win workloads, while capital-light regional hosters face acquisition as they cannot finance edge rollouts.
Rapid migration to hybrid and multi-cloud architectures
Single-cloud lock-in is being replaced by split-workload design. Hybrid footprints, growing at 20.1% CAGR, let enterprises match cost, latency and compliance needs. Hoster value now lies in orchestration, billing convergence and SLA alignment across disparate clouds, favoring operators that certify engineers on multiple platforms and build unified dashboards.
Gen-AI-ready edge and GPU server demand surge
Machine-learning training and inference demand GPU clusters, high-bandwidth fabrics and liquid cooling. Operators that assemble AI-qualified stacks command premium price points and longer contracts. Edge AI deployment pushes compute closer to data sources, shrinking latency but upping capital intensity. This two-tier pattern widens performance and pricing gaps versus commodity shared hosts.
Restraint Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Acute shortage of cloud-certified hosting engineers | -2.1% | Global, most severe in North America and Western Europe | Short term (≤ 2 years) |
| Escalating cyber-attacks and data-sovereignty regulation | -1.8% | Global, with regulatory complexity highest in EU and China | Medium term (2-4 years) |
| Margin pressure from race-to-zero pricing | -1.3% | Global commodity hosting markets | Short term (≤ 2 years) |
| Energy-price volatility and power-capex inflation | -1.6% | Global, most acute in Europe and emerging markets | Long term (≥ 4 years) |
Source: Mordor Intelligence
Acute shortage of cloud-certified hosting engineers
Demand for AWS, Azure and Google Cloud certifications far exceeds supply, lifting salary bands and limiting provider rollout velocity. Smaller firms often cede complex deployments to hyperscalers or MSP partners, losing revenue and strategic control.
Energy-price volatility and power-capex inflation
GPU racks consume up to 10× more electricity than traditional blades. TD Securities notes that grid connection lead times now reach seven years in congested hubs such as Northern Virginia[2]TD Securities, “North American Data-Center Grid Report 2024,” td.com. Providers respond with nuclear power MOUs and on-site generation, yet financing thresholds favor large incumbents.
Segment Analysis
By Hosting Type: Cloud Infrastructure Drives Premium Migration
Cloud hosting captured rapid momentum with a 17.7% CAGR outlook, while shared plans held 37.5% of 2024 revenue, the largest slice of the web hosting market. Elastic scaling, API access and integrated security position cloud as the upgrade path for workloads outgrowing resource-capped shared environments. Virtually partitioned VPS solutions bridge the gap by offering root access and predictable performance at mid-tier price points.
Rise in AI workloads magnifies demand for dedicated GPU nodes inside cloud clusters. Managed WordPress remains the fastest-expanding niche as enterprises offload patching and performance tuning. WP Engine attributes uptake to automated plugin updates and EverCache acceleration. Reseller hosting stays relevant where branding control matters, yet direct sign-up portals from big brands squeeze margins. The segmentation now reflects a split between commodity bandwidth and curated, application-aware services.
Note: Segment shares of all individual segments available upon report purchase
By Deployment Mode: Hybrid Architectures Reshape Infrastructure Strategy
Public cloud maintained 61.3% 2024 revenue, anchoring the web hosting market. Nonetheless hybrid and multi-cloud trajectories show a 20.1% CAGR, signaling a pivot toward workload-specific placement. Sensitive data often stays in private zones, while burst capacity migrates to public nodes, crafting an architecture that balances compliance and agility.
Operational complexity rises in tandem. Providers that unify billing and cross-cloud visibility secure larger enterprise contracts. The web hosting industry increasingly values policy engines that govern data residency and cost optimization. Companies lacking multi-platform expertise face relegation to reseller status under larger integrators.
By End-user Vertical: SME Digital Transformation Accelerates Adoption
Large corporations accounted for 54.6% of 2024 revenue, cementing their influence on the web hosting market size. SME accounts, though smaller per contract, grow 17.8% annually and drive feature innovation. Their migration from shared to cloud or VPS inserts upsell paths such as CDN, DDoS protection and managed databases.
Developer-first SaaS startups present high lifetime value by demanding CI/CD toolchains and usage-based metering. Shared hosting retains hobbyist bloggers, but growth is flat. Increasingly, providers tailor bundles around industry compliance; healthcare templates with HIPAA logging fetch premium pricing.
By Application: Mobile and API Hosting Surge with Digital Transformation
Public websites remained the lead application with 47.4% share in 2024. Mobile and API hosting, expanding at 18.8% CAGR, signals how microservices and headless commerce reshape traffic patterns. API-centric designs need low-latency endpoints and autoscaling, pulling spend toward cloud containers rather than static page hosts.
E-commerce stores amplify demand for PCI-DSS alignment and edge cache. SaaS platforms lean on multi-tenant isolation to meet data privacy rules. Consequently, providers invest in service meshes and container orchestration that deliver granular resource throttling.
Note: Segment shares of all individual segments available upon report purchase
By Pricing Model: Usage-Based Models Transform Revenue Recognition
Subscription contracts still own 70.7% of 2024 turnover, locking revenue visibility for providers. Yet pay-as-you-go options, growing at 19.6% CAGR, redefine the web hosting market size for variable workloads such as AI training. Accurate meter-reading across CPU, GPU, memory and bandwidth becomes a differentiator.
Tiered bundles offer compromise by permitting headroom without unpredictable billing. Freemium tiers persist for entry-level users before upsell. Stripe points to growing customer preference for cost that tracks value delivered [3]Stripe Inc., “Usage-Based Billing Trends 2025,” stripe.com. Providers with granular usage dashboards stand apart when customers audit cloud spend.
Geography Analysis
North America controlled 31.8% of the web hosting market in 2024, anchored by the headquarters of major software and cloud firms. GoDaddy posted USD 4.6 billion 2024 revenue, while DigitalOcean recorded USD 806.6 million, underscoring market maturity. Grid congestion in Northern Virginia forces expansions into Ohio, Texas and Canadian provinces. Data privacy acts such as California’s CPRA add compliance cost yet remain predictable compared with EU regimes.
Asia-Pacific is the fastest climber with a 17.3% CAGR to 2030. India’s data-center pipeline and China’s cloud subsidies drive capacity buildouts. Talent shortages and patchy power supply increase opex for smaller entrants, but local presence is mandatory because data localization rules restrict cross-border transfer.
Europe grows steadily under GDPR. Local champions like IONOS reported EUR 1.423 billion 2023 revenue (USD 1.547 billion at average 2023 rate). Sovereignty concerns push French, German and Nordic customers toward EU-based facilities. The France–UAE USD 50 billion plan for a 1 GW AI-centric data center illustrates government willingness to bankroll strategic infrastructure.
Competitive Landscape
Competition remains moderate yet tightening. Hyperscalers dominate standard workloads, pressing mid-tier hosts to specialize or combine. World Host Group’s January 2025 purchase of A2 Hosting adds scale for WHG after 20 prior acquisitions. Private-equity funds see asset aggregation as a lever to raise EBITDA multiples; Permira took Squarespace private for USD 7.2 billion in October 2024.
Technology differentiation is decisive. Firms automate routine admin with AI chatbots and predictive capacity planning. Edge nodes integrated with carrier neutral facilities create distributed latency advantages. Some providers target regulatory niches such as FedRAMP or ISO 13485 for medical device software, capturing higher margins.
Cost pressure in shared hosting accelerates exit of smaller brands that cannot match giant marketing budgets. Conversely, GPU colocation clusters attract venture-backed AI startups willing to pay premiums for scarce compute. The resulting bifurcation widens spreads between commodity and specialized price points in the web hosting market.
Web Hosting Industry Leaders
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GoDaddy Inc.
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Amazon Web Services, Inc.
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Newfold Digital, Inc.
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Google LLC
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Alibaba Cloud Computing Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: Server5.click announced the forthcoming launch of a free hosting platform following a beta that began on January 1 2025.
- February 2025: France and the UAE confirmed a USD 50 billion investment in a 1 GW AI-focused data center in France, one of the largest cross-border hosting projects.
- January 2025: World Host Group completed the acquisition of A2 Hosting, the firm’s largest deal to date.
- October 2024: Permira finalized the USD 7.2 billion all-cash acquisition of Squarespace, taking the site builder private.
Global Web Hosting Market Report Scope
Web hosting is a cloud service in which a service provider stores all the files that comprise a website and makes the website accessible on the internet.
The web hosting market is segmented by type (shared hosting, virtual private server hosting, dedicated hosting, colocation hosting, other types), by deployment (public cloud, private cloud, hybrid cloud), end-user verticals (enterprises, individual), 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 Hosting Type | Shared Hosting | |||
| Virtual Private Server (VPS) Hosting | ||||
| Dedicated Hosting | ||||
| Cloud Hosting | ||||
| Colocation Hosting | ||||
| Managed WordPress Hosting | ||||
| Reseller Hosting | ||||
| Other Types | ||||
| By Deployment Mode | Public Cloud | |||
| Private Cloud | ||||
| Hybrid / Multi-Cloud | ||||
| By End-user Vertical | Large Enterprises | |||
| Small and Medium-sized Enterprises (SMEs) | ||||
| Individual Bloggers / Creators | ||||
| Software Developers and SaaS Start-ups | ||||
| By Application | Public Websites | |||
| E-commerce Stores | ||||
| Web Applications | ||||
| Mobile Applications and APIs | ||||
| SaaS / PaaS Platforms | ||||
| Others | ||||
| By Pricing Model | Subscription (Fixed Term) | |||
| Metered / Pay-as-you-go | ||||
| Tiered (Usage-Bracket) | ||||
| Freemium and Ad-Supported | ||||
| By Geography | North America | United States | ||
| Canada | ||||
| Mexico | ||||
| South America | Brazil | |||
| Argentina | ||||
| Rest of South America | ||||
| Europe | Germany | |||
| United Kingdom | ||||
| France | ||||
| Italy | ||||
| Spain | ||||
| Russia | ||||
| Rest of Europe | ||||
| Asia-Pacific | China | |||
| Japan | ||||
| India | ||||
| South Korea | ||||
| Australia and New Zealand | ||||
| Rest of Asia-Pacific | ||||
| Middle East and Africa | Middle East | Saudi Arabia | ||
| United Arab Emirates | ||||
| Turkey | ||||
| Rest of Middle East | ||||
| Africa | South Africa | |||
| Nigeria | ||||
| Egypt | ||||
| Rest of Africa | ||||
| Shared Hosting |
| Virtual Private Server (VPS) Hosting |
| Dedicated Hosting |
| Cloud Hosting |
| Colocation Hosting |
| Managed WordPress Hosting |
| Reseller Hosting |
| Other Types |
| Public Cloud |
| Private Cloud |
| Hybrid / Multi-Cloud |
| Large Enterprises |
| Small and Medium-sized Enterprises (SMEs) |
| Individual Bloggers / Creators |
| Software Developers and SaaS Start-ups |
| Public Websites |
| E-commerce Stores |
| Web Applications |
| Mobile Applications and APIs |
| SaaS / PaaS Platforms |
| Others |
| Subscription (Fixed Term) |
| Metered / Pay-as-you-go |
| Tiered (Usage-Bracket) |
| Freemium and Ad-Supported |
| North America | United States | ||
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia and New Zealand | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current value of the web hosting market?
The web hosting market stands at USD 194.20 billion in 2025 and is forecast to hit USD 362.20 billion by 2030.
Which segment is growing the fastest within the web hosting market?
Hybrid and multi-cloud deployments are expanding at 20.1% CAGR, making them the fastest-growing deployment mode.
Why are SMEs important to the web hosting industry outlook?
SMEs are adopting higher-performance hosting for e-commerce, driving a 17.8% CAGR and opening cross-sell opportunities for security, CDN and payment tools.
How are pricing models changing in the web hosting market?
Pay-as-you-go billing is growing at 19.6% CAGR as customers prefer charges aligned with real-time resource consumption.
What is the main restraint on capacity expansion?
Energy-price volatility and power-grid bottlenecks delay new data-center builds, adding a -1.6% drag on forecast CAGR.
Which region is projected to grow the quickest through 2030?
Asia-Pacific leads regional growth with a 17.3% CAGR, propelled by large-scale data-center projects in India and China.
