101+ Essential Web Hosting Statistics and Trends in 2023

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Nowadays, it can be challenging to stay current with the trends in web hosting. The number of online users is increasing with the number of new sites. However, you will need a good host to create an exciting functional website.

A couple of years ago, it was prestigious to have a site, but now it is a necessity for every successful enterprise and organization. Your online presence is your website, but its core is web hosting. It represents a crucial element for an effective and efficient website.

Regardless of your industry, staying up to date with web hosting research data is essential to remaining competitive in the future.

How Many Web Hosting Companies Are There?

There are more than 330,000 web hosting providers worldwide.

Among them, there are 5,000 web hosting providers in North America, about 2,000 web hosting providers in Asia, and 3,000 web hosting providers in Europe.

There are numerous hosting providers because billions of brand-new websites are constructed daily. GoDaddy, Amazon AWS, 1&1, and Hostgator are the most famous hosting providers. It seems challenging to break into the market, but new hosts are springing up every day.

General Web Hosting Statistics

There are more than 1.8 billion registered websites online, and only 25% of them are active sites.

(Source: Thrive myway)

Even though the internet has had a fraction of the time to develop, its development was nevertheless remarkable. When the Web first started, there were only a few websites. Nevertheless, over time it has exploded into the billions of pages we see today. As we can see, many inactive pages are underdeveloped and waiting to flourish, so there are a million possibilities for growth.

107,346,685 domains are hosted in the United States, taking the lead in hosting domains globally.

(Source: Thrive myway)

The number of hosted domains in the US is staggering.

The first four hosts were registered in 1969.

(Source: Firstsiteguide, Scientific American)

The United States Department of Defense’s Advanced Research Project Agency (ARPA) linked four computer network nodes on December 5, 1969, and founded the internet era. Amazingly, the internet had only a fraction of the time to develop to this stage in only 40 years.

Over 1.21 billion hostnames have been registered online since 2021.

(Source: Firstsiteguide)

However, only some of these websites are operational. Only about 200.8 million of the 1.21 billion hostnames are currently active.

With 43.59% of all the used domains, dot com has the leading role in the domain world.

(Source: Financesonline, InterNetX)

ARPANET was the foundation on which today’s internet was built. However, DNS created domain names, which allowed for a more user-friendly internet experience that is also diverse and collaborative. The Domain name industry has expanded on a high note since the creation of DNS. There are over 1500 domain names, but .com is the most popular one. In short, the domain name helps us to pair easy-to-read words like (internetx.com) with IP addresses which are long strings of numbers that would make it hard to find information on the Web otherwise.

The web hosting company GoDaddy has 16.9% of all clients globally.

(Source: Financesonline, GoDaddy.com )

Due to its popularity now, the GoDaddy company holds a large part of the web hosting market. This web hosting company offers shared hosting starting at $3.99 monthly as a basic starter plan, but its services expand to $99.99 for high-performance options. The cost for dedicated web hosting can reach $179.98.

The web hosting industry in North America in 2020 was estimated at $34.32 billion.

(Source: Wpbeginner, Fortune Business Insights)

With many businesses creating sites for their online presence, competition is fierce. The web hosting business has many participants, such as AT&T, Inc., GoDaddy Operating Company LLC., Liquid Web LLC., and many more. Those significant players offer various solutions and services, which makes the competition challenging for many other web hosting firms.

Web Hosting Market Share and Size

In 2020, the global web hosting market value was $75.03 billion.

(Source: Fortune Business Insights)

Companies often settle for more advanced web hosting services to craft a better presentation starting from the landing page. That means higher monthly costs due to running several packages at once. As a result, the web hosting market expanded severely in recent years, adding even more possibilities for brands to climb to the top.

The web hosting market is supposed to grow from $83.99 billion in 2021 to $267.10 billion in 2028.

(Source: Fortune Business Insights)

A CAGR of 18% is expected between 2021 and 2028 – a prediction for the web hosting market.

The growth of CAGR is due to the market expansion, and experts predict it will return to its original levels before the pandemic. The ongoing rivalry between businesses and the demanding digitalization is making enterprises shift to online platforms.

The global web hosting market consists of 10,260,930 companies.

(Source: Datanyze)

The global web hosting market size has already shown how big the competition is and how much room there is for growth. So, it is believed that many more companies will follow suit and alter their approach toward online advertising.

Only 359 companies in the world produce web hosting technologies.

(Source: Datanyze)

From so many web hosting companies globally, only a tiny number produce web hosting technologies. This is a testament to how effective the leading web host services’ are, securing each of them a hefty market share.

The public cloud holds 51.6% of the global web hosting service market.

(Source: Fortune Business Insights)

Based on deployment, the web hosting service providers utilize public, private, and hybrid clouds. The public clouds are expected to control the largest share of the web hosting market services. Nevertheless, there is enough room for the hybrid cloud to expand due to the rapid rise of e-commerce platforms. In turn, that will demand the maintenance of business websites and servers.

Shared Hosting Stats

GoDaddy is the shared hosting market leader, with 10.49% of all sites globally.

(Source: SSL Dragon)

Being the most popular hosting provider GoDaddy offers different kinds of services. The numbers show that it is the most commonly used shared hosting service.

Google Cloud platform holds the second place with 6.10% of the shared hosting market, and the third place is reserved for 1&1 with a 4.38% market share.

(Source: SSL Dragon, En.wikipedia)

With an expansive worldwide network of servers, dependable services, and reliable security features, it is no wonder that Google is now in the top three hosting providers.1&1 has 8 million customers and ten data centers, and its network consists of over 90,000 services.

Of all websites, 5% are hosted by a NewFold Digital brand.

(Source: BloggingWizard)

Known as Endurance International Group, they are another major participant in the web hosting market.

VPS Hosting Statistics

Virtual Private Serving platforms account for 10.3% of all web hosting market share.

(Source: Scalahosting)

Because of the low cost, shared hosting is still popular today. It may not appear to be much of a win, but considering just ten percent of the overall market revenue, it is okay for a relatively new service such as VPS. However, a VPS can be achieved at a relatively low price, and better security and performance can be offered.

It is predicted that the value of the VPS hosting market will reach $8.3 billion by 2026.

(Source: Scalahosting)

The demand for web hosting is expected to rise even more. The market is anticipated to grow at a compound annual growth rate (CAGR) of 15.5%, and VPS hosting is poised to become one of the most critical industries.

The CAGR of managed VPS plans is 16.5%.

(Source: Scalahosting)

Users are starting to enjoy the services that VPS offers. The higher CAGR predicted for managed VPS services Reflects the present trend, in which managed VPS services are increasingly more popular than self-managed ones.

GoDaddy dominates the VPS hosting market with 23.33%, and DreamHost is second with 1,46% of the market size.

(Source: Hth.guide, En.wikipedia)

GoDaddy is the king of the web hosting market in general. This company is so popular that it overshadows all competition in every sector. DreamHost is an LA-based LLC. Founded in 1996. This firm has 400,000 customers and 200 employees.

VPS servers with Edge computing that are decent typically cost around $40.

(Source: Hth. guide)

VPS is now a spider hosting service due to the recent addition of Edge computing. Even though the price is higher than shared hosting, this service offers security and stability.

Over 2,500 enterprises provide VPS hosting services.

(Source: Hth. guide)

In addition to user-friendly control panels and point-and-click management tools, VPS plans come with management services. Managed service plans are searched more than self-managed ones, even if they are cheaper.

Dedicated Hosting Statistics

The global hosting industry will be valued at $152.7 billion net worth by 2026.

(Source: Hth.guide)

Dedicated hosting is the best choice for large businesses. High-end security and uninterrupted uptime are two main reasons dedicated hosting are growing steadily.

Dedicated hosting services account for 27.9% of the web hosting market share.

(Source: Hth.guide)

Big companies have the highest usage of website hosting services to manage their complex business activities. As it is, such companies enjoy a significant market share, generally choosing premium and highly secured web hosting such as dedicated hosting.

Linux will hold more than half of the dedicated server hosting market in 2022.

(Source: MMR)

The dedicated server hosting market is fractionated into two operating systems Linux and Windows. The subscriber is the one that selects the software, and because Linux is free and open source gets more popular than Windows, for which a license is required.

40% of the dedicated hosting service market holds by the North American region in 2022.

(Source: MMR)

Many significant businesses have increased their investment in North America due to the fast-demanding digitalization, which has aided the market development in the region.

Web Hosting Uptime Statistics

The average minute cost of downtime for small enterprises ranges from $137 to $427.

(Source: Truelist)

Uptime represents the hours a server is running and available, meaning customers can see and access a website. Downtime is the polar opposite, and it is not cheap at all, especially for small businesses.

A delay of just one second while your page is loading will result in 11% fewer views.

(Source: Truelist)

The amount of downtown web hosting is critical, as it can influence your brand’s reputation. According to a recent study, due to a bad customer service experience, 88% of users were less likely to return to a website after such an experience.

A website’s load time significantly affects its conversion rate; for every 100-millisecond delay, the conversion rate decreases by 7%.

(Source: Truelist)

A two-second delay in website loading time, on the other hand, increases bounce rates by hundred and three percent. In today’s world of immediate gratification, a swiftly loading website is crucial for your company’s success.

More than half of Fortune 500 companies experience at least 1.6 hours of downtown time weekly.

(Source: Truelist)

The most popular web hosting services offer 99%, 99.99%, and 99,999% up and running at all times. However, mathematically speaking, a 99% uptime might suggest much downtime.

The average website is unavailable for 3 hours per month due to web server downtime.

(Source: Website setup)

Many studies have shown that uptime is the most crucial consideration when selecting a web host. While most, if not all, web hosting companies “claim” to deliver 99.99% availability, that is not true for all of them. If your web host provider does not comply with the stated terms, you can find another that will offer better services.

Web Hosting Providers Statistics

6.2% of all websites use Amazon as their web hosting provider.

(Source: W3techs, Wpbeginner)

According to W3techs, Amazon is the most popular web host provider. Perhaps you did not know, but some of Amazon’s most famous clients are Reddit, Netflix, TikTok, Twitch, Zoom, and Amazon.

Amazon is used by 22.23% of the top 1 million websites.

(Source: Wpbeginner)

Amazon’s name for reliability, stability, and scalability may account for its popularity. Amazon is known to offer solid and scalable hosting to some of the world’s largest corporations.

Netflix consumes over 100,000 Amazon server instances to deliver high-resolution videos to its users.

(Source: Wpbeginner, En. Wikipedia)

Netflix has 222 million subscribers worldwide, last checked in September 2022. Of those subscribers, 73.3 million are in the North American region, 73.0 million in Europe, Africa, and the Middle East, 39.6 million in Latin America, and 34.8 million in Asia – the Pacific region.

4.1% of all websites use Shopify as their web hosting provider.

(Source: W3techs, Wpbeginner)

Shopify’s fast growth of 0.4% in 2016 to 4.4% in 2022 in the web hosting market share is a consequence of the immense popularity of online shopping. This website builder is similar to Wix and is relatively easy to use.

Web Hosting Trends

Cloud adoption is a high priority for most enterprises, with a nearly 80% increasing cloud spending over the next two years.

(Source: Hostpresto)

With this in mind, it is unsurprising that more businesses will invest in cloud housing this year and the future.

The demand for VPS is expected to reach 7.98 billion by 2027.

(Source: Hostpresto)

Virtual private servers are becoming a new trend and gaining popularity. Being a type of virtual machine that is used as a dedicated web host service, VPS is pricey. Nevertheless, due to its popularity, it will become a service for anyone’s budget.

70 million services are running on non-renewable energy.

(Source: Financesonline)

Green web hosting is also becoming a trend for 2023 and the decades. Carbon offsetting schemes are becoming more popular among web hosting companies. Web hosts tend to participate in eco-friendly activities to reduce adverse effects on the environment by using non-renewable energy sources.

90% of organizations are still vulnerable to security breaches, which is why heightened security is in demand.

(Source: Hostpresto)

Even with all the technological advancements available online, internet security is still a significant problem. A safe and secure web hosting service will guarantee that the files and data of your website are always protected.

Conclusion

To conclude, the web hosting industry is growing at a speedy rate, and by the projections made for the next couple of years, the numbers will be even higher. Due to the new business tide, the world is transferring online. Building new sites and firms presenting themselves through online profiles and platforms on the net will increase the demand for web hosting providers. So, having a safe and secure web provider will help your site to flourish.

FAQ’s

How big is the web hosting market?

In 2020, the world wide web hosting market was estimated at $75.03 billion. The number for 2021 that was predicted is $83.99 billion. Furthermore, from 2021 to 2028, the global web hosting market will be valued at $267.10 billion. The negative effect of the pandemic has also reached this sector, and there was 11% lower growth for the market in 2021 compared to growth per year for the period of 2017 – 2019. The periodical closing of manufacturing units, job crises, a decrease of resources, lockdown periods, quarantine measures, and locks down of the whole socio-economic structure have created great difficulties for businesses, especially the family and small businesses. Some of the companies have closed permanently. All of this, taken into consideration, impacted the web hosting market. However, on the other side, there have been reports of increased online gaming.

How many Web hosts are there?

On a global scale, there are more than 330,000 web hosting providers. 1,8 billion registered websites by 2021, but only 25% of them are active. North America is the region with the most web hosting providers, then Europe, and the third place belongs to Asia. In India, there are more than 10,000 web hosting providers. 1.2 billion host names will be registered online by 2021.

Who is the most prominent web host?

The most prominent web host is a company named GoDaddy. This company has an 18.49% market share in the web hosting service industry. Being the most favored host provider, it is the largest one also. Despite being known for its domain, the firm also offers an enormous selection of hosting plans for all budgets, from shared hosting to affordable wordpress service. Also, there is dedicated hosting with more services and VPS for a bigger budget.

How much do website hosts make?

According to data collected on October 3, 2022, by ZipRequiter, the average annual salary for a web hosting professional in the United States is $62,803. This means that approximately $30,19 is the hourly rate and the monthly salary is $5,233. ZirRequter scans its database of millions of active jobs published locally throughout the US to determine the most precise yearly wage range for web hosting positions. Following ZipRecruiter, ten systems pay more than the national average for a web host position, some of which are: in Atkinson, NE, with Deer Park, CA, and Johnstonville, CA. Johnstonville, CA. The average salary for web hosting is $12,562 (20%) higher than the national average, and Atkinson, NE, tops that trend with an additional $30,249 (48.2%) above the $62,803 average.

How much does a host cost?

Depending on your hosting provider, you may be able to pay for hosting either monthly or annually. The average monthly cost of shared hosting is $5 – $20, whereas a virtual private server VPS typically costs $20 – $40. Cloud web hosting usually starts at $50 monthly, but the price increases depending on the customer’s needs. Most providers also offer a lower rate on hosting fees when you commit to using their services for an entire year. Although email hosting and web hosting are two different services, some web hosts offer both. Email hosting typically provides $1 – $15 per month for their services, but this can depend on your chosen company and whether you purchase other products from them.

Sources

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