26 Must-Know Web Hosting Industry Statistics: Growth, Usage, and Trends

The web hosting industry has grown significantly, with businesses and individuals building websites and establishing an online presence. 

The popularity of these services has experienced an increase in demand, and the industry become more competitive. What started with 4 hosts in 1969 has grown to 126 million in 2001.

This article lists 26 web hosting industry statistics about market size, usage, user demographics, and trends.

How Big is the Web Hosting Industry?

There are 1.1 billion hostnames registered online. The web hosting industry has become a massive ecosystem that powers websites across the globe. It is expected to experience significant growth from 2020 to 2027, with a compound annual growth rate (CAGR) of 15.5%.

The following sections will provide web hosting statistics for market size, usage, user demographics, and trends. These numbers will help you better understand the web hosting industry's scope.

Web Hosting Market Size Statistics

Web hosting manages websites, allowing businesses to contribute to its growth. This reflects the importance of online presence for businesses and individuals alike for the industry and web developers. 

Here are some statistics that show the market size of the web hosting industry:

1. The global web hosting services market was valued at $56.7 billion.

(Grand View Research)

In 2019, the global web hosting services market had a total value of $56.7 billion. In recent years, the government of different nations provide financial support to small business owners. This led to an overgrowth of various startup companies.

The demand for web hosting services increased as these businesses built their online presence.

2. By 2027, the web hosting industry’s market will grow to $171.4 billion.

(Grand View Research)

The web hosting industry is projected to reach $171.4 billion by 2027. It indicates a considerable expansion in web hosting services worldwide demand. This is because businesses choose to build websites for their product portfolio and marketing purposes.

3. The global web hosting market was worth $94.64 billion in 2022. 

(Fortune Business Insights)

The $94.64 billion market size is expected to grow to $108.54 billion in 2023 and reach $395.84 billion by 2030. During this period, experts project that the market will experience a CAGR of 20.3%.

The web hosting market is poised for substantial expansion in the coming years as more individuals and organizations create websites for digital media growth.

4. Dedicated hosting had a 27.9% market share in 2018.

(Berkaweb)

Among the common hosting types, dedicated hosting holds the second-largest market share, trailing behind shared hosting. Here’s the percentage of market shares based on hosting type:

• Shared: 31.7%
• Dedicated: 27.9%
• Collocation: 16.6%
• Reseller: 13.6%
• VPS: 10.3%

Shared hosting typically dominates the market due to its affordability and resource sharing. On the other hand, dedicated hosting remains a popular choice for those who want exclusivity.

5. The shared hosting segment accounted for 37.64% of the overall revenue share in 2019.

(Grand View Research)

Shared hosting had a significant influence on the web hosting industry market. It accounted for 37.64% of the total revenue generated in the industry.

Its popularity is due to its low cost compared to other types of web hosting, as website owners share spaces. Hence, it’s the preferred choice for individuals or small businesses seeking an affordable hosting solution.

6. The shared hosting market was worth $22 billion in 2020.

(Statista)

From $7.73 billion in 2010, the shared hosting market size grew to $22 billion 10 years later. 

Refer to the following table for the size of the shared hosting market from 2010 to 2020:

Shared hosting’s market size continuously grows yearly as numerous businesses and individuals worldwide use shared hosting services. This is because it’s the ideal option for startup websites that don’t get as much traffic, and it is also cheaper than dedicated hosting.

7. The virtual private server (VPS) market is projected to reach $8.3 billion by 2026.

(Allied Market Research)

In 2018, the VPS market size was $2.6 billion. With an estimated CAGR of 16.2% from 2019 to 2026, the VPS market size is forecasted to reach $8.3 billion. The high demand of enterprises for VPS drives this growth as it helps them save time on technical issues.

8. GoDaddy has over 84 million registered domains.

(GoDaddy)

As of May 2023, GoDaddy boasts an impressive count of over 84 million registered domains. It also serves more than 21 million customers. This dominance by GoDaddy is due to its wide range of web hosting plans, affordability, and beginner-friendly features.

9. IONOS (1&1) vast network consists of over 90,000 servers.

(IONOS)

IONOS, formerly 1&1, has 90,000 servers in operation as of May 2023. Despite only having 9 data centers in Europe and the United States, it hosts over 12 million domains.

The continued ranking of IONOS among the top 10 web hosting providers led to a data center with over 40,000 servers. This makes it the largest hosting company in Europe.

10. Google currently operates 24 data centers; 14 are in the US, 1 in South America, 6 in Europe, and 3 in Asia.

(Google)

Google rapidly emerged as a leading provider of web hosting and data center services. It boasts an extensive global server network, exceptional benefits, and a steadfast commitment to security.

Here are the places where Google’s data centers are located:

11. Amazon has servers in 31 geographic regions and offers services in 99 Availability Zones.

(Amazon)

With 31 geographic areas and 99 Availability Zones, Amazon Web Services (AWS) Cloud is considered a fast-growing hosting platform. It plans to expand to 5 more AWS Regions in Canada, Israel, Malaysia, New Zealand, and Thailand.

This allows AWS Cloud to cater to a broader global market and meet the growing demand for its hosting platform.

12. 9.5% of the top one million websites by traffic are hosted on AWS.

(Berkaweb)

AWS is more prevalent among the top one million websites. This trend is unsurprising since websites with high traffic volumes typically demand more excellent server resources. Resources like this exceed the capabilities of inexpensive shared hosting options.

13. GoDaddy holds 65% of the VPS web hosting market on the entire Internet.

(BuiltWith)

GoDaddy dominates the VPS web hosting market, hosting 65% of websites online as of May 2023. This is followed by:

• Digital Ocean: 10%
• Linode: 8%
• Liquid Web: 6%
• DreamHost Hosting: 4%
• Other: 7%

GoDaddy’s influence is attributed to its established reputation and reliability. This allows it to leave its closest competitor far behind with only 10%.

14. The US controls 51.41% of the global web hosting market share as of May 2023.

(HostAdvice)

The US holds the most prominent global web hosting market share. Take a look at these statistics that indicate the relative market shares of each country:

The country also has most web hosting services, such as GoDaddy, Google Cloud Platform, Amazon Web Services, Squarespace, and more. 

15. In 2022, 11.08% of WordPress users used GoDaddy as a hosting service.

(CodeinWP)

GoDaddy is the most popular hosting service for WordPress users, capturing 11.08% of the market share. This is a 1% increase from the survey conducted in 2020. Here are the other popular hosts for WordPress users in 2022:

• Bluehost: 8.40%
• Hostinger: 4.88%
• Hostgator: 3.41%
• SiteGround: 3.06%
• Namecheap: 3.03%

Hostinger and Namecheap are among the cheapest hosting services with a less than $2 plan. These two are the top-rated hosting companies for a price.

Web Hosting Usage Statistics

Web hosting usage statistics play a significant role in understanding the Internet’s ever-evolving landscape and its impact on website owners. It provides valuable insights into the growth and trends of online platforms. 

Here are some statistics that show how many use web hosting and how it is used:

16. 43% of websites worldwide are hosted on servers located in the United States.

(Berkaweb)

With 43% of websites hosted on servers located in the US, this server location holds the most prominent usage. Here are the server location and the corresponding use:

The US's dominant web hosting server usage reflects the country’s leading position in the global web hosting industry.

17. 8 out of 10 leading hosting companies in Germany are local.

(HostAdvice)

The web hosting market has a strong domestic presence in many countries. This can be observed in various regions worldwide.

8 out of 10 hosting companies with the most clients in Germany are local. 9 out of 10 leading hosting companies in the United Kingdom are UK-based. In China, 7 out of the 10 leading web hosting providers are Chinese.

18. 40% of consumers think a website should load within 3 seconds.

(Website Builder Expert)

40% of individuals believe that a website should load in 2 to 3 seconds. If a website fails to meet this expectation, they will likely abandon it. These statistics show an increasing demand for a fast and seamless browsing experience.

Slow-loading websites can lead to frustration, inconvenience, and a negative perception of the offered brand or service. Rapid loading times are crucial for maintaining user engagement and satisfaction. Selecting a dependable web hosting provider is vital for this reason.

19. An 11% decrease in page views is attributed to a one-second delay in page load.

(CrazyEgg)

There’s an 11% loss in page views for every one-second delay in page load. Even a tiny delay in a web page's loading time can significantly impact user engagement. Selecting an excellent web hosting company is essential to mitigate the negative impact of slow page load times.

20. WordPress is the top content management system (CMS) in May 2023, with an 18.23% usage rate.

(HostAdvice)

As of May 2023, WordPress maintains its position as the leading CMS, commanding a significant market share of 18.23% of users.

Here are the top 10 CMS with the most users worldwide:

WordPress leads the CMS market share due to its large user base. It surpasses the other popular CMS platforms like Wix, Shopify, and Joomla by a significant margin.

21. As of May 2023, Apache is the most used web server, with 41.30% of users.

(HostAdvice)

Apache remains the most widely used web server, commanding a substantial market share of 41.30%. It is followed by:

• Nginx: 28.35%
• IIS: 10.49%
• LiteSpeed: 2.75%

Apache’s dominant market share is a result of the speed, reliability, and security it provides. Nginx follows due to its performance and scalability.

Web Hosting Users Demographics

Understanding web hosting users’ demographics is vital for marketing, user experience optimization, and business strategy. Here’s a statistic showing who uses web hosting services between businesses and individuals:

22. The enterprise category led the market with a share of 90.46%.

(Grand View Research)

In 2019, the enterprise segment held most of the market share in revenue, accounting for 90.46%. Compared to individuals, enterprises are driven by the focus on expanding their business presence online. The increasing preference for online shopping creates opportunities for businesses to prioritize web-hosted services.

Large enterprises have a high adoption of website hosting services for managing their operations. They often choose dedicated hosting plans for premium security and to handle their significant online traffic.

23. Individuals comprised over 9% of the global web hosting market share in 2019.

(Grand View Research)

As more websites are made for businesses than personal websites, only more than 9% of web hosting users are individuals. Most people don’t build websites unless it’s for business purposes.

Web Hosting Trends

Web hosting trends are a valuable resource for businesses to stay updated and improve their hosting experience. Here are a few statistics that reveal web hosting trends over the years:

24. Cloud hosting is the fastest-growing service in the web hosting industry, with a CAGR of 18.3%.

(Berkaweb)

From 2019 to 2025, cloud hosting holds the highest CAGR prediction, with 18.3%. This is followed by shared hosting at 10.3% and dedicated hosting at 5.6%. The rapid growth of cloud hosting can be attributed to its inherent advantages, such as scalability, cost-effectiveness, and accessibility.

25. As of April 2023, mobile devices accounted for 53.61% of the global web page views.

(StatCounter)

The market share of mobile devices worldwide is 53.61%, followed by desktops at 44.4% and tablets at 1.99%. These statistics highlight the growing dominance of mobile technology in accessing and browsing the Internet. Website owners need to prioritize mobile optimization to ensure an optimal user experience.

26. The most popular domain extension is .com, with 52.8% of usage.

(Statista)

In June 2022, the most widely-used domain extension was .com, accounting for 52.8% of total domain usage. Other domain extensions have emerged, such as .net, .org, and country-specific extensions like .ru for Russia or .uk for the United Kingdom. Despite this, .com is the go-to choice for businesses and individuals seeking a global online presence.

Take a look at the most popular top-level domains worldwide:

Final Words

The web hosting industry statistics reveal a thriving and ever-evolving online service. It benefits businesses and website owners to stay ahead of emerging trends.

The web hosting industry’s growth, usage, and trends emphasize the need for continuous innovation and adaptability. It also underscores the importance of delivering or choosing a reliable and secure hosting solution in an interconnected world.