By 2028 the global web hosting services market capitalization is projected to reach $260 billion. Estimating to a Compound annual growth rate of, CAGR of %18 according to Fortune Business Insights analysis. The market value of cloud services was $75 billion in 2020.
Impact of COVID-19 on hosting services
The lockdowns, issued by governments due to Covid, had a negative effect on local and physical businesses. These lockdowns were imposed to slow down the spread of the virus. The businesses that were affected by this, have sought retribution on making startup companies or promoting/moving their businesses over to the internet by using hosting services.
The immense increase in individual or corporate website demand has created a need for cost-efficient, reliable, and fast hosting services. Since general internet use is increasing as well, these hosting platforms have seen traffic that was never seen before. Several companies providing web hosting services to startups have emerged and are gathering momentum worldwide to cater to this demand.
AI and ML factors
Therefore, hosting services started to give specialized services to startup companies which inevitably increased the marketing value of hosting services. Another propelling factor on the increasing market value of web hosting services is the new Artificial Intelligence (AI) and Machine Learning (ML) factors.
An example of these technologies utilization would be AI usage against cyber attacks. Algorithms and firewalls managed by AI’s can mitigate some bugs and prevent possible cyber attacks. AI can also regulate daily routine tasks for a website increasing accuracy and proficiency.

Segments of market
Dividing by the type, segments of the market could be divided between, dedicated hosting, collocated hosting, shared hosting, and VPS hosting. The user usage and application market have been divided into mobile applications, public websites, and online applications.
In terms of deployment, the market is categorized between, public, private, and hybrid cloud segments. And public cloud segment has been leading the market in 2020 with a share of %51. Companies that provide specialized hosting services have been actively collaborating with social media stars to widen their business’s influence over the internet. These collaborations have caused an increase in the market share of cloud services.