Virtual Private Server Market to Hit US$ 2 Billion by CONTENTS (cont')
The IT & telecom sector is expected to hold a virtual private server market share of over 25% in 2025
due to the growing demand for secured virtualized infrastructure
By Preeti Wadhwani, Assistant Manager (ICT) at Global Market Insights
The Virtual Private Server Market is set to grow from its current market value of more than $1 Billion to
over $2 billion by 2025; as reported in the latest study by Global Market Insights, Inc.
The virtual private server market growth is attributed to an increase in demand for secured hosting by
enterprises, rising adoption of virtualization technology, and supporting digitalization initiatives in
developing countries. The increasing adoption of cloud technology across the enterprises for hosting and
supporting critical business functions is another factor contributing to VPS market share. The enterprises’
approach for enhanced control over the servers without interference from the other shared servers is
enabling them to migrate to VPS over the traditional physical servers.
The demand for cost-effective server hosting solutions is supporting the virtual private server market
demand. Owning a private physical server involves huge capital and operating expenditure. The SMEs
do not usually wish to invest in owning a dedicated server for hosting their websites. VPS helps
enterprises in providing full control over their network resources without any involvement of the VPS
provider. VPS users do not need to build their own physical server, which helps in reducing capital and
operating expenses of enterprises. The use of virtual server significantly reduces the power requirement
of physical servers. The virtual server also reduces the large space required for deploying and managing