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We live in an age where 99% of consumers use the internet to discover and find local businesses. So, whether you own a small business or a large enterprise, or even if you’re a freelancer, you will likely have a presence online.
Now, it also means that you’re using a specific web hosting provider, so you should stay on top of the latest hosting stats and trends that are shaping the web hosting industry.
Why? Well, all of these developments in web hosting will likely impact your website and decisions. By understanding the latest research and trends around hosting usage, growth, and emerging technologies, you can make informed choices regarding your hosting needs and provider selection.
Moreover, knowing these web hosting stats can give you insight into where this industry is headed and how your website (and business) may need to evolve to keep up with the latest advancements in speed, security, scalability and more.
So, here are our top web hosting stats and trends you should keep an eye on from now on.
Web hosting growth
The web hosting industry has been growing steadily in the past 10 years. At the moment, according to a recent analysis, the global web hosting services market size is projected to grow from $108.54 billion in 2023 to $395.84 billion by 2030, at a compound annual growth rate of 20.3% from 2023 to 2030.
The reason behind this growth is the continuously increasing number of websites being created each day as more businesses move online. So, more websites lead to a greater demand for hosting services.
The COVID-19 pandemic also convinced physical businesses to have an online presence. And the increased adoption of cloud computing and SaaS applications are also key growth drivers.
Here are some more key stats:
- Starting with June 12, 2023, there were over 1.98 billion websites online. This number is expected to grow by the end of 2023, as 250,000 websites are created daily. (Sitefee / Internet Live Stats)
- The United States accounts for the largest web hosting market share globally, followed by Europe and Asia Pacific regions. The APAC market is experiencing rapid expansion. (Hosting Advice)
- Global web hosting revenue is predicted to reach $90.42 billion by the end of 2023 and is estimated to grow to $267.10 billion by 2028. (Statista)
Managed hosting
Managed hosting services take care of technical tasks like security patches, updates, backups, caching, and uptime monitoring so you can focus on your business. The demand comes from SMBs and businesses wanting better performance, security, and support.
That’s why there has been a major shift from traditional self-managed hosting to fully managed hosting services.
Here are the stats that show this:
- The global managed hosting market is estimated to reach over $38 billion by 2023, due to the increasing need for cost efficiency, scalability and increased availability of resources. (Verified Market Reports)
- Managed WordPress hosting accounted for 28% of the managed web hosting market in 2022. It’s the most popular managed hosting solution. Managed WordPress hosting claimed nearly 25% of the market in 2022. WP ranks as the most popular CMS with over 43% of sites worldwide. (Research and Markets)
- The global managed hosting market is predicted to grow at an 8.5% CAGR and reach a value of USD 28.6 billion by 2025 as demand for hassle-free hosting services rises. (Verified Market Reports)
Cloud hosting
While still a small portion of overall hosting, cloud hosting has seen explosive growth in recent years with a CAGR prediction of 18.3% from 2019 to 2025. Shared hosting at 10.3% and dedicated hosting at 5.6% are behind it. (Berkaweb)
The flexibility, scalability and performance advantages of cloud hosting could be the reasons behind this rapid growth, as these are important benefits for sites and businesses experiencing spikes in traffic. It’s also a cheaper option than dedicated hosting and handles traffic levels better than shared hosting.
Some more key stats:
- The cloud computing market was valued at $372 billion in 2020. It’s forecast to hit $832.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 17.5%. (Research and Markets)
- Cloud hosting market size is expected to reach $139.1 billion by 2025, up from $45.3 billion in 2020. (Hosting Advice)
- 81% of enterprises now use some form of cloud computing services. (Forbes)
- AWS has 33% of the cloud hosting market share while Azure has 23%. But Google Cloud (11%) is experiencing rapid growth. (Hosting Advice)
- Cloud hosting now accounts for 53% of the global hosting market share according to Statcounter. This percentage continues growing steadily each year.
- Major cloud providers like AWS, Microsoft Azure, and Google Cloud combined hold over 30% of total hosting traffic worldwide.
Security
With cyber attacks on the rise, web hosting security has become mandatory. To keep their customers’ websites safe and build trust, hosting providers now offer different features to prevent cyber attacks, website hacks, and data breaches.
Here are some stats to keep in mind:
- 93% of web hosting customers see security services as important criteria before purchasing a plan. (Flexera)
- WordPress sites are hacked at a rate of around 13,000 per day on average. Secure managed WordPress hosting protects sites. (Colorlib)
- 90% of web hosts ranked better security tools and mitigating threats among their top priorities for 2023.
- Advanced managed hosting plans now offer features like WAF, DDoS protection, malware scanning, SSL certificates, and more as standard.
Support
As websites become more complex, best-in-class 24/7 customer support is more important than ever. That’s why you can now find more web hosts that provide support via live chat, phone, tickets, and 24/7 monitoring.
Here are a few stats that show how important is customer support:
- 90% of customers confirm that an “immediate” reply is very important when they have a customer service question. “Immediate” is defined as 10 minutes or less. (HubSpot Research)
- 89% of consumers are more likely to make another purchase after a positive customer service experience. (Salesforce Research)
- 68% of customers are willing to pay more for excellent customer service and support. (HubSpot)
Importance of speed
Website speed has been for quite some time a crucial factor for user experience, SEO rankings and conversions. That started once Google factored speed into search rankings, fast hosting is a must. As such, top providers continue to optimize their infrastructure to accelerate performance.
So, make sure you choose hosts that have page load times as a key feature in their plans.
Here are some important stats to keep in mind when choosing a web host:
- 53% of mobile site visitors leave a page that takes longer than 3 seconds to load. (Google)
- A 100-millisecond delay in page response can reduce conversions by 7%. (Akamai)
- 40% of consumers will stop engaging with a website after a poor user experience. (Neil Patel)
- Pages that load in 1 second can have a conversion rate 3x higher than a page that loads in 5 seconds. (Portent)
More stats to come
The web hosting landscape is changing rapidly. Keeping up with the latest stats and trends will help you make the right decision and choose the best web hosting features, providers and plans for building your online presence.
Factors like managed WordPress hosting, cloud adoption, web performance, security, and support will strongly influence the hosting industry this year.
We will keep updating this list as new web hosting statistics and trends emerge, and make sure you stay up to date with the latest updates in the field.
