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Keeping up with trends in the website hosting industry can be challenging! There are too many moving pieces on the board. Advances in technology, innovation, and unique real-world events such as the outbreak of the COVID-19 pandemic are just some of the factors involved.
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While several factors make it impossible to calculate the market size and growth of the website hosting industry, there are also hundreds of resources online. If you don’t want to wrap your head around the most accurate and reliable, you’ve come to the right place.
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We’ve done all the heavy lifting for you. Below you will find the latest and most impressive web hosting statistics collected from trusted resources. Let’s look at the state of the web hosting industry in 2020.
When did the web hosting industry start? How many hostnames are registered online? What is the market size of the industry and its expected growth rate? Get answers to all these questions and discover the most popular web hosting providers, the number of websites hosted per provider, and more.
However, not all of these websites are active. In fact, of the 1.21 billion registered domain names, only about 200.8 million are online and active. Active websites account for 15.5% of all registered hostnames.
The beginnings of the web hosting industry were quite modest. It all started in 1969 with just 4 hosts. Over the next 5 decades, the industry went through a quantum leap to 126 million hosts, 30 million domains, and 28.2 million websites. Learn more about the details, which are conveniently detailed in the table below.
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The size of the global web hosting services market continues to grow. In 2019, its size was valued at $56.7 billion. Projections tell us that it is expected to expand at a compound annual growth rate (CAGR) of 15.5% from 2020 to 2027.
Not all web hosting services (including shared, colocation, dedicated and virtual private servers) contribute to size and growth projections by the same factor:
At the same time, this forecast shows that the industry is expected to expand at a CAGR of 15.5% from 2020 to 2027.
It is logical to see companies that sell data storage space in larger quantities in the list of hosting providers with the largest number of websites hosted online. This list includes all companies that offer web hosting services, sell server space, and data center space, including Cloudflare, Amazon, Google, Unified Layer, OVH, and more.
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Data center sites. There are currently 269 providers and 2923 data centers in the world. This includes 2832 colocation facilities, 2301 cloud nodes, 634 Internet Exchanges (IX) and 924 Disaster Recovery and Business Continuity (DRBC) sites. (Source: datacenters.com)
The GoDaddy network consists of over 37,000 servers located around the world. These servers are located at nine GoDaddy facilities. Although the company owns only one of these facilities, the rest are leased from wholesale suppliers.
The GoDaddy-owned facility is located in Phoenix, Arizona. Its size is impressive at over 270,000 square feet.
The company is headquartered in Scottsdale, Arizona, with another leased facility in Mesa, Arizona. The other 6 facilities are located in Singapore, Amsterdam, Ashburn, Chicago, Los Angeles and Virginia.
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Cloudflare’s network is huge. The company has servers on every continent. Currently, they are in more than 200 cities, established in more than 90 countries. Thanks to its extensive network, the company is able to offer multiple layers of cyber security and enhanced performance.
The success of Cloudflare’s hosting services lies in the size of its network. The company is continuously growing and optimizing to make the Internet safer for end users and to provide reliable services. (Source: cloudflare.com)
With its global server network, industry-leading services, and strong security, Google quickly became one of the leading web hosting and data center providers. The company currently operates 21 data centers. 13 of them are in the US, 1 in South America, 5 in Europe and 2 in Asia.
Google continuously invests in innovation, data and security, efficiency and renewable energy to make its data centers more energy efficient, safer and better performing. (Source: Google)
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IONOS currently manages 15 facilities. Their huge network consists of more than 90,000 servers located in 9 countries around the world.
High performance, security, great coverage and the fact that the company has 8 million contracts with customers worldwide make this company one of the best web hosting and data center providers. (Source: ionos.com)
Amazon’s AWS has one of the fastest growing networks in the world. It now has servers in 24 geographic regions and offers its services in 77 Availability Zones. The company plans to expand its network to additional availability zones and geographic regions, including Spain, Japan and Indonesia. (Source: aws.amazon.com)
In summary, there are 4 main web hosting providers (and domain registrars): GoDaddy, 1and1, Endurance International group and Namecheap.
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GoDaddy is the undisputed champion and owner of the most popular shared web hosting provider globally. It currently has over 44 million subscribers.
1&1 ranks second with over 9 million active subscribers, 10 data centers in 5 countries and 90,000 servers.
Endurance International Group brings together more than 80 brands. The total number of subscribers for all companies as of March 31, 2020 was approximately 4.8 million. The number of active subscribers puts it slightly above Namecheap. (Source: Globenewswire)
Finally, with 4.4 million subscribers, Namecheap ranks fourth. The company’s shared hosting servers, dedicated servers and VPS operators are located in its data center in Phoenix, Arizona. (Source: Namecheap)
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The Virtual Private Server market size was valued at USD 2.6 billion in 2018 and is expected to reach USD 8.3 billion by 2026, growing at a CAGR of 16.2% from 2019 to 2026.
The market is dominated by global virtual private server players such as Amazon Web Services Inc., DreamHost LLC, Endurance International Group, GoDaddy Operating Company LLC, IBM, InMotion Hosting, Liquid Web, OVH, Rackspace US Inc. and United Internet AG. .
GoDaddy dominates the VPS web hosting market. With a market share of 23.33%, GoDaddy is light years ahead of its closest competitor, DreamHost hosting, which currently has a market share of 1.46%. Other popular VPS web hosting providers include Digital Ocean and 123-Reg with a market share of 1.23% and 1.20% respectively.
When it comes to content management systems (CMS), WordPress is undoubtedly the most popular. WordPress has 44% of the CMS market share. Joomla, another popular CMS, is fifth on the list, but with an unassailable 2.6% of the CMS market share.
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WordPress is not only used for blogging, it is also popular in other industries such as e-commerce. Of all the websites on the internet, WordPress has 42% power. (Source: w3techs)
BlueHost is the most popular WordPress hosting provider, with nearly 2 million WordPress websites hosted. It is followed by Automattic, DreamHost, SiteGround and HostGator with less than half the number of websites hosted by BlueHost.
Hosted website solutions are also gaining popularity. The website builder market was valued at $1.65 billion in 2019. Our projections show that this market will reach a value of $2.16 billion by 2025 due to a CAGR of 7%. (Source: Decision Database)
Within the website building market, the distribution has been the same for the past few years. Wix dominates the market with 31.05% market share, followed by Squarespace and Shopify with 18.92% and 13.34% market share respectively.
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Since website building solutions are so popular, we had to take a closer look. Below you will find basic information and key statistics for each of the most popular website building solutions.
Giora Kaplan, Nadav Abrahami and Avishai Abrahami founded Wix. After realizing how difficult and expensive it can be to build a website from scratch, the trio decided to create a user-friendly website. The company as we know it was founded in 2006.
Squarespace started as Anthony Casalena’s dorm project at the University of Maryland in 2003. Today, Anthony is the CEO of Squarespace, one of the most popular website building platforms in the world.
Shopify dates back to 2006 when a young German living in Canada decided to create an e-commerce platform to sell snowboards online. He decided that his platform could be modified so that others could also use it to sell goods online.
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WordPress.com is owned by Automattic. It was founded in 2005 with the hope that people without technical or coding knowledge would feel comfortable using the WordPress CMS. Today, it is one of the most popular hosting website builders worldwide.
Founded in 2007, Weebly is a website builder and e-commerce. Weebly is headquartered in San Francisco, California. Although Square acquired the company in May 2018, its range of services only expanded, offering more user-friendly site-building tools to end users.
To say that the web hosting industry is booming is a huge understatement. As you can see, the market size is currently valued at $56.7 billion and is expected to continue growing at a CAGR of 15.5% through 2027.
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