CrazyLeaf Editorial
The bull market is a gift that keeps on giving, especially to those in the tech industry. Like other market segments within technology, the web hosting sector is set to enjoy continuous growth over the coming years. The question is, whether or not that growth can be sustained.
In subsequent years, the global web hosting service market has already experienced impressive growth – and as the 2020s approach, it’s showing no signs yet of slowing down. The bull market is certainly a factor in this; most industries have experienced a massive acceleration in value over the past five or so years. Of them, no industry has experienced more growth than the technology market, an area that has been – and remains – one of the segments that most excites investors.
However, growth in web hosting has also been generated by a concerted effort on the part of businesses to reduce the total cost of website ownership. This, coupled with the imperative to conceal the real cost of website development technology, has resulted in the web hosting market experiencing a real period of boom.
In brief, a web hosting service provider is a business that provides the requisite technology to enable people to put websites and pages on the internet, for a fee. These websites are hosted on servers, huge computers that provide the power and technology necessary for an individual to host a web page.
The kind of technical expertise required for hosting is beyond the grasp of most layman; most individuals and small business owners rely on an outsourced web hosting service to provide the tech to keep them online. Many examples of web hosting sites can be found on this UK comparison on MangoMatter. Most require a yearly subscription to access the server, and keep the website online.
A Growing Market
Market Research Future, a specialised business thinktank, and one of the most reputable organisations for predicting future growth areas in the global market, recently published a report that predicts sustained growth in the web hosting market. The growth they estimate is astonishing; they anticipate growth of USD 154 Billion by 2022, with approximately 16% compound annual growth rate occurring between 2016 and 2022.
Growth in this market has occurred not just as a consequence of the necessity to reduce costs, but both exterior circumstance and increased innovation have developed the value of this sector. 2017 proved that data security is paramount, and web hosting developers are a necessary part of protecting the security of data online. Scalability teething problems have all been overcome, and it seems that web hosting businesses are ready to increase the scale of their operation, doing so competently. Growth is a combination of demand for, and innovation in, the web hosting service industry.
Composition of the Market
Another factor that contributes to growth in this market is just how competitive this field is, which is driving innovation. You have very big players, like Amazon and Google, competing with much smaller providers, who are doing an excellent job in vying for market share.
However, although smaller providers are doing their best to get a share of market dominance, bigger players within the industry are doing all they can to retain their position as those with the biggest share of the market. Companies like Amazon and Google simply have more resources available to drive their expansion.
They are utilising many different tactics in order to retain the dominant hold on the market. Those include a multitude of different methods, employed aggressively against smaller providers; they span acquisition, technology development, collaboration with other large providers, partnerships, and of course, rapid expansion in all directions.
In order to retain the lion’s share of market value, all major players, regardless of their size, are competing to provide consumers with the best price, the best technology, and the best overall service. The real crème de la crème of web hosting is twenty-four-hour technical support; this is a field where bigger providers overtake smaller ones with ease. Most providers these days offer packages which cater to a variety of client demands, including blogging platforms, ecommerce sites and custom webpages.
A wealth of diverse competition is what’s driving market growth, while keeping costs for consumers down. Despite the predictions, too much expansion from the likes of Google and Amazon threaten to destabilise the equilibrium that allows for sustained growth. If they come to dominate the market, it will be to the detriment of consumers and investors.
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