Application Hosting Market Size To Surpass USD 210.61 Billion By 2032 Owing To Cloud Adoption And Digital Transformation | Research By SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The Application Hosting market is growing rapidly as industries rely more on scalable, flexible, and efficient hosting solutions.

Pune, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Application Hosting Market Size Analysis:

“ The Application Hosting Market size was USD 74.52 Billion in 2023 and is expected to reach USD 210.61 Billion by 2032, growing at a CAGR of 12.3% over the forecast period of 2024-2032. ”

Growing Demand for Scalable and Cost-Effective Application Hosting Solutions

The application hosting market plays a key role in the digital economy and is an integral part of how businesses transform their businesses into the digital world. Organizations are opting for scalable, cost-effective, and easy solutions to manage applications with minimal infrastructure investment through solutions like IaaS, PaaS, and SaaS. Such a trend exists across sectors in healthcare, finance, retail, and government. Cloud computing, as a technology, has been the core component of most IT strategies. A recent report from Statista shows that 37% of U.S. government IT decision-makers are already using IaaS providers like AWS and Microsoft Azure. This increases dependence on cloud-based hosting solutions making the market significant for business operations today.

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Major Players Analysis Listed in this Report are:

• Amazon Web Services, Inc. (Amazon EC2, Amazon S3)
• DigitalOcean, LLC. (Droplets, App Platform)
• IBM (IBM Cloud, Watson AI)
• DreamHost (DreamCompute, DreamObjects)
• Google (Google Cloud Platform, Google Kubernetes Engine)
• Rackspace (Rackspace Technology, Cloud Sites)
• Microsoft (Azure Virtual Machines, Azure DevOps)
• Liquid Web (Managed WordPress Hosting, Cloud VPS Hosting)
• Sungard AS (Managed Recovery Program, Cloud Hosting Services)
• DXC Technology (DXC Cloud Services, Modern Workplace)
• Apprenda (Apprenda Cloud Platform, SaaSGrid)
• Navisite (Managed Cloud Services, Database Management)
• Spectrum Enterprise (Managed Network Edge, Ethernet Services)
• Capgemini (Capgemini Insights & Data, Capgemini Cloud Platform)
• AWS (AWS Lambda, Amazon RDS)
• Oracle (Oracle Cloud Infrastructure, Oracle Database)
• NEC Corporation (NEC Cloud Solutions, NEC AI)
• HostGator (Shared Web Hosting, Gator Website Builder)
• Netmagic Solutions (Cloud Management Platform, Managed Security Services)
• GreenGeeks (EcoSite Lite Hosting, Reseller Hosting)

Application Hosting Market Report Scope:

Report Attributes	Details
Market Size in 2023	US$ 74.52 Billion
Market Size by 2032	US$ 210.61 Billion
CAGR	CAGR of 12.3 % From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Regional Coverage	North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
Key Growth Drivers	. Rising Adoption of Cloud Technologies for Seamless Scalability and Flexibility Fuels the Application Hosting Market Growth . Proliferation of Digital Transformation Initiatives Across Industries Accelerates the Demand for Reliable Application Hosting Solutions

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Segment Analysis

By Hosting Type

The managed hosting segment dominated the application hosting market in 2023, commanding the largest share of 44%. This is because managed hosting allows the business to outsource the management of its hosting infrastructure, and access expert support while minimizing operational complexities. Providers in this segment are offering end-to-end services ranging from server management, security, software updates, and backups among others, and this is what makes it more popular for those businesses seeking the most comprehensive solutions.

The cloud hosting segment is expected to experience the fastest growth during the forecast period, with a projected CAGR of 13.71%. Cloud hosting lets businesses run applications in a virtualized environment, allowing for unmatched scalability, flexibility, and cost efficiency. With more and more momentum behind digital transformation strategies, businesses are increasingly embracing cloud-hosted solutions to fuel growth.

By Service Type

The Data-Based Administration segment held the largest share of the market in 2023, accounting for 32% of the revenue. This service type focuses on providing data management solutions, including storage, database management, backup, and recovery. Data management is very important for businesses because it ensures secure, reliable data storage and backup solutions, which are very important for business continuity and data integrity.

The Infrastructure Services segment is expected to experience the highest growth rate, with a projected CAGR of 14.12% during the forecast period. Infrastructure services, including server hosting, network management, and hardware maintenance, are the core of hosted applications. Businesses are increasingly turning to IaaS providers to meet their needs for scalable, flexible hosting solutions.

Application Hosting Market Segmentation:

By Hosting Type

• Managed
• Cloud
• Colocation

By Service Type

• Application Monitoring
• Application Programming Interface Management
• Infrastructure Services
• Data Based Administration
• Backup, Application Security

By Application

• Mobile Based
• Web Based

By Organization Size

• Large Enterprise
• Small and Medium Size Enterprise

By Industry

• BFSI
• Retail and E-commerce
• Healthcare
• Media and Entertainment
• Energy and Utilities
• Telecommunications and IT
• Manufacturing

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Regional Analysis

North America continues to lead the global application hosting market, accounting for an estimated 37% of the market share in 2023. The region is highly dominated by the advanced technological infrastructure, high usage of cloud across the globe, and the existence of the world's leading cloud service providers: AWS, Microsoft Azure, and Google Cloud. The U.S. market alone is the largest in this region; finance, healthcare, and retail have invested significantly in hosting services to back their business-critical applications.

Asia Pacific, on the other hand, is the fastest-growing region in the application hosting market, with a projected CAGR of 13.91%. The rapid adoption of cloud computing and digital transformation in countries like China, India, Japan, and South Korea is driving this growth.

For example, India's IT sector is undergoing a massive shift toward cloud adoption, while China's government-led initiatives are accelerating the uptake of digital technologies, further boosting the demand for application hosting services.

Recent Developments

. September 2023: DreamHost introduced an AI-powered business name generator aimed at assisting online entrepreneurs in selecting names and domains for their businesses. This tool is especially useful for small business owners looking to enhance their online presence.

. August 2023: Rackspace Technology unveiled a hosted private cloud generative AI solution in collaboration with NVIDIA and Dell Technologies. This new offering simplifies the adoption of generative AI for organizations, further enhancing their digital transformation efforts.

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Application Hosting Market Segmentation, By Hosting Type

8. Application Hosting Market Segmentation, By Service Type

9. Application Hosting Market Segmentation, By Organization Size

10. Application Hosting Market Segmentation, By Application

11. Application Hosting Market Segmentation, By Industry

12. Regional Analysis

13. Company Profiles

14. Use Cases and Best Practices

15. Conclusion

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