With the increasing adoption of cloud technology, virtual private server market has witnessed unprecedented gains over the years due to the digital transformation in government, BFSI, and healthcare industries. Today, technologies such as edge computing have considerably developed to power the penetration of the internet of things, augmented reality, and a rise in the number of consumer mobile devices.

This server acts as a customized solution for enterprises and gives them complete access to network resources depending upon their requirements. Another major factor supporting the industry trends includes the growing use of virtualization technology that aims at reducing the cost incurred in the procurement and maintenance of physical servers.

According to reports, the global virtual private server market share could reach USD 2 billion in terms of total annual remuneration through 2025. Mentioned below are some of the integral factors likely to propel the industry size in the coming years:

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Growing dependence on e-commerce platforms

Rising disposable income among people in both developing as well as developing nations have magnified developments in the retail industry. Most of the retailers are adopting cloud-enabled VPS hosting techniques, that allows them to scale their server resources and expand their business into various locations, easily.

The coronavirus pandemic has adversely affected the lives of millions across the world along with affecting the various sectors of the economy, one of them being the retail sector. The governments in most parts of the world imposed a temporary halt in the movement of the people from one place to another in order to control the spread of the disease. This led to a temporary shutdown of retails stores, shopping complexes, and malls, severely affecting the retail sector.

However, there was a rapid shift towards e-commerce platforms due to the variety and ease in availability of the products. The developments in the online platforms have subsequently increased the need for cloud server hosting services among businesses, that offer them unlimited bandwidth to handle the high traffic volume.  

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Economic development in North America

Regionally speaking, the North America VPS industry has showcased tremendous growth trends due to the increasing demand for superior-performance infrastructure which has outlined the need for a virtualized computing ecosystem. With the growing establishment of companies, especially in the U.S., there is adoption of virtual web servers to manage the increase in customer base in a cost-effective manner.

Additionally, the increasing presence of virtualization solution providers has fueled the access to VPS across the region.

Increasing demand for Windows VPS

Windows-based VPS solutions have largely been adopted across various sectors especially by those companies that run complex applications and face high traffic. For companies that work with Windows only devices, windows-based hosting is a viable option as it is a highly compatible option while selecting web hosting service providers.

A windows server package comprises of technical support along with regular system updates and security fixes like firewalls and intrusion monitoring, making it extremely popular among the corporate environments.

Driven by competitive dynamics

Virtual private server companies are driven towards enhancing their efforts to meet the changing industry needs and to also meet the high data storage requirements. The market players are heavily investing in R&D to increase their product quality and to prevent their technology from becoming obsolete.

For instance, in 2020, American multinational firm, Hewlett Packard Enterprise launched news HPE GreenLake cloud solutions and partnerships for Virtual Desktop Infrastructure that offers support to the enterprises expanding their remote workforces and offer required business continuity. Other key VPS provides include DigitalOcean, Inc., OVH, Hostwinds, LLC, Plesk International GmbH and Vultr Holdings Corporation, to name a few.  

Virtual private server demand has registered notable gains over the years due to factors like increased control over web servers, an improvement in operational efficiency, and a reduction in infrastructure maintenance cost. Virtual private server has gained immense popularity among business that wish to upgrade from shared hosting to having more control over their websites.

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